A Guide to Choosing a Payment Processor

Modern technology has completely changed the way customers do business. Nowadays, businesses are capable of accepting fast and encrypted digital payments. Because accepting payments is so crucial to the success of an Internet retailer, you want to ensure you are partner with the right provider like Baanx.

While the process of getting everything set up for accepting online payments isn’t something too challenging for businesses, there are a variety of factors that you need to consider when choosing one. Here are some of the most important factors that you should be considering when you are choosing a payment gateway provider.

What Exactly Is A Payment Gateway?

A payment gateway is essentially a software application that allows businesses both brick and mortar and online to accept payments through a secure gateway. It facilitates the transfer of information from the customer to the merchant’s payment network. The details of the transaction are given back to the merchant to assure them the payment has been successfully processed. This may seem like something that is extremely quick and even straight-forward, the entire process is very complex. Because it requires so many different components working together, it can be a time-consuming process but everything works together to make it seamless for the customer.

1. User Experience

One of the biggest reasons a lot of customers end up abandoning their carts is due to having a complex payment processing process. If your process is too complicated for customers, they may abandon their carts entirely. Because of this, you want to optimize your cart and your payment process to ensure you aren’t losing out on customers because the process is too tedious or complex. It needs to provide as little friction as possible for the best conversion potential.

One essential thing you need to be looking for when you are choosing a payment gateway would have a friendly user experience. It needs to be optimized for both web and mobile applications. After all, more people than ever are navigating and buying things on mobile devices than ever before. Does the payment processor offer on-site payments? This is one important thing to consider because keeping a customer on your site at all times is crucial when it comes to boosting retention among your customers. The good news is there are companies like Braintree that have optimized the end-users experience and made it extremely easy for businesses and consumers alike.

2. Fee Structure

When you are making transactions, you will have to pay fees no matter what. The types of fees you have to deal with will vary based on the provider you are using. There are different kinds of fees you should be fully aware of. These fees include setup fees, transaction fees, and monthly fees. You will find some payment providers charging a monthly fee but not all of them will. Some will only charge based on your usage each month.

Because these fees can alter your profitability, you need to factor this into the equation when picking one. You want to work out the budget you have to work with and figure out your expected sales revenue. That way, you can pinpoint the one that is going to end up being the best to partner with for your business model. Fees are going to be a part of your business no matter what. However, they can add up to a significant amount. You want to spend the requisite time and energy researching your options to find the ideal and most profitable payment processor for you.

3. Multi-Currency Transactions

Because business has gone global, it’s important to find a processor that is going to be capable of helping you tap into this potential. There is a lot of complexities involved with this. As a business, you need to be able to process different currencies while also factoring in the different exchange rate fluctuations that exist. This could mean some merchants will require different bank accounts or even different business entities. If you are planning on doing global business, you will want to find a processor that is going to be capable of offering you the infrastructure you need to accept international transactions with ease.

4. Recurring Billing

This is a feature that you are going to want to have with your processor if you are planning on offering a subscription service. This allows you to enable automatic billing cycles for your services. For businesses that are operating on a monthly, quarterly, or annual billing cycle, this is something that would be deemed a necessity. You want to have the gateway you are using fully integrated with the software you use for invoicing. That way, you can give your customers the best possible experience.

5. Customer Support

If you end up having something go wrong during the process, you want to ensure you have the means to get it sorted as quickly as possible. Otherwise, you will find yourself losing a lot of potential sales and having the bad word spread about your business. While you may be capable of handling some issues on your own, other issues could result in you needing technical support assistance. Because of this, you need to identify a processor that has exceptional technical and customer support to guarantee any problems you have will be dealt with swiftly.

6. Secure Transactions

This is easily one of the biggest threats you’ll be dealing with as an online business. Having a security breach can result in financial loss, but it can also result in the loss of trust and credibility among your customer base. Because of this, you need to ensure that you are prioritizing security among everything else. Whenever a customer does business with you, they expect to have a secure transaction. You need to find a payment processor that is proactive with their security and one that is continually making investments to enhance it. That way, you know your business and customers’ data is safe and secure at all times.

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