Tips for Business Owners That Need a Payment Processorby Sahil Verma SIFIPAY
According to a recent study, two out of every five people use a debit or credit card to pay for their daily purchases. Many people prefer to use plastic, whether it's a debit card or a credit card, and this translates to a significant loss in sales for your store if you don't accept that method of payment through an online payment gateway. However, before you can even consider accepting a debit or credit card as a form of payment, you must first choose the right payment processor, which can be difficult. Do you know why?
Blog after blog is eager to tell you more about the differences between payment processing solutions, but few are eager to assist you in determining which payment processors will best meet your needs. These pointers can assist you in doing so.
Tip #1 – Decide How You Use Your Payment Processor
Online businesses must ensure that their options include eCommerce solutions such as shopping cart integration. Businesses that frequently exhibit at off-site events such as trade shows require mobile payment solutions. Brick-and-mortar businesses require something more traditional. Understanding what type of business you do the most will assist you in finding the solution that best meets your needs. But don't just think about what's going on in your company right now. You should also consider your company's long-term needs in order to determine what might work now and in the future.
Tip #2 – Understand How Your Customers Pay
Not all customers prefer to pay in the same way. Some people prefer to use a debit card issued by a local bank. Others may wish to make use of their Express card. However, in some cases, you may need to accept EBT cards or electronic checks. What kind of business you run will help you learn more about the types of payments your customers may have on hand, which will help you choose the best processor to meet your needs.
Tip #3 – Know the Set-Up Timeline
How quickly do you need your new payment processor to be operational? Often, you must first apply for an account, and then equipment installation can take some time, so know who can get you there on time and which payment processors may take some extra time to set up. Along with that, you may want to inquire about the amount of setup assistance you will receive during the process. If you're not very tech-savvy, you might want to look for a processor that provides extra assistance to help you get started.
Tip #4 – Identify the Fee Structure
Nothing in this world is free, and this is true for payment processing as much as it is for anything else. Every single processor will have a different fee structure, and knowing exactly what you'll be paying is critical to moving forward. There are a few terms you should be familiar with. The most important term to understand is probably the exchange fee. This is a fee assessed for each transaction processed through the payment processor.
It usually ranges between two and three percent per transaction, but this can vary. It varies depending on the type of card used, the type of transaction (online, over the phone, or in-person), and even the size of the transaction. Aside from that, keep in mind that there are frequently application and setup fees, monthly minimums, and even a gateway access fee.
However, not all credit card processors use the same system. Some employ a subscription model in which you pay a single monthly fee. Others charge a flat fee per transaction. What you choose will, however, be determined by how you conduct business, the average size of the transaction, and how much money you have to spend on the entire process.
Tip #5 – Recognize Compliance and Security Guidelines
Almost every processor on the market will be PCI compliant, and this is not negotiable. If you accept credit and debit cards, you must ensure the security of your customers' accounts, and PCI compliance is the best (and only) way to do so. Security, on the other hand, extends beyond PCI compliance. You'll also want a processor who goes above and beyond when it comes to data security. There are many different ways to help prevent fraud in your business, ranging from tokenization to point-to-point encryption, and you want a processor who takes that seriously.
Payment processors abound today, but that doesn't make it easy to decide which one is best for your company and its customers. With these tips in hand, do some research and you'll find one that suits your needs.
Created on Jun 7th 2022 04:54. Viewed 74 times.