Having the best payment processor for your business will help you stay competitive in the industry. Your customers will appreciate the fast and efficient check out process. According to reports, businesses are starting to leverage new technologies and turn to automation so they can become more customer focused. This is all a part of the growing importance of providing the best customer experience. If you can successfully provide a positive and memorable customer experience, you can be assured that your business will stay competitive.
A great payment processor can also keep your cash flow more consistent and accessible. It can help support your business operations to ensure that your funds will come when it is needed.
About payment processors
When you are looking for the best payment processor, you need to understand that it is different from payment gateways. In most parts, they are similar because they are both tools that will help transmit the payment from the customer’s bank to your business. However, payment processors are used for present transactions while payment gateways are more for e-commerce transactions.
There are many payment processors available today. You need to understand your business first before you can choose among the options that you have. That way, you will know what areas in your business should be supported and satisfied by the payment processor that you will use.
Apart from that, you should also consider who your customers are. After all, you need to make sure the payment processing system that you will have is compatible with the bank or chosen payment method of your customers.
Once you have a clear understanding of your business and customer preferences, you can start looking for the best payment processor to work with.
Qualities of the best payment processor
So what are the different qualities that you should focus on to find the best payment processor that can support your business?
Before you start looking at the fees and features, make sure it is accessible and available to your customers. That means it supports the currencies and market locations that you usually transact with. If you have a small business with only one currency and location, then it should not be a problem. However, you should never rule out the possibility that you will expand and globalize your business. Even if you have a small business, it is possible to go global and accept various currencies – at least if you do it online. Someday, you may find yourself dealing with both USD and CAD currencies. Your payment processor should be able to accommodate both.
Transparent pricing and fees
Now that you are sure that this is available, you can start checking out their pricing and fees. According to reports, a lot of business owners have admitted that payment processing is one of the biggest expenses that they face – specifically for credit cards – with labor costs being the first. This is why you need to be smart by scrutinizing the prices and fees of the payment processor you are considering. There are various fees that you need to look into like monthly, setup, registration, transaction, chargeback, refund, batch processing, fund transfer, and termination fees. The fees would depend on the type of payment processor that your business will require. It is important to ensure that there are no hidden fees.
According to reports, 3 out of 10 retailers have expressed their intent to invest in innovative payment processing solutions. If you want to remain competitive, you need to be able to accommodate updates and developments as they happen. This is why you need to partner with a payment processor that is serious about finding innovative solutions all the time. Payment processing and everything involved in it is constantly evolving. You want to ensure that you will be one of the first to support new payment methods as they come out. This will look really put your business in a good light with your customers. Whether it is the ability to keep up with credit card updates or supporting new payment methods, the best payment processor should be able to stay ahead of all these technological advancements.
Strict fraud protection measures
Fraud protection is definitely one of the important qualities of the best payment processor. Reports reveal that 6 out of 10 merchants feel like they are more at risk now than they did back in 2017. You want your payment processor to have fraud protection measures that will lower the chances of you having to deal with this issue in the future. Not only will this cost your business money, but it can also affect the trust that your customers will have.
The fraud prevention tools that you may want to look into include card verification value (CVV) and address verification system (AVS). There are also tools that limit the transactions per hour to prevent high-volume attacks or those that can isolate suspicious activities coming from a single IP address.
Cash flow compatibility
The best payment processor should also support your cash flow. That means you need to find out how long it will take for the payments to be processed after it is approved. You want to have the cash flowing as soon as transactions are made to avoid having gaps. This will allow you to meet supplier payments and also overhead costs. This makes sure your business will never fall short of cash just because the processing took too long to complete.
Full customer support
Finally, the best payment processor should have full customer support. You want to have multiple options to reach them in case something happens. You do not want to be stuck with a phone call that never seems to get connected. A live chat is usually helpful – especially if it offers 24/7 support. If the payment processor is really invested in your business, they will ensure that they will always be available and convenient at all times.
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