Electronic payments have changed how we look at financial transactions. Only a few decades ago there were just a few ways to buy products or make payments: you could either choose cash payments, checks or credit cards. Now, there are a plethora of payment processors around to choose from. There are dozens of different processing account services, various pricing offers, and options. What’s more, there are multiple types of mobile devices that can help you transfer funds, make payments and buy anything you want at a click of a button from the comfort of your home.
The payment processing market is diverse and complex; there are a lot of players, both established firms, and fresh start-ups, and choosing the right payment processing partner might prove tricky. Here are some useful tips for choosing a great payment processing partner for your business:
- Go for quality and reputation
When it comes to payment processors, always go for already established companies or, if you want to try a new company, look for their credentials and financial stability or backers (affiliations). You can check their Better Business Bureau accreditation, a financial institution which can tell you whether any complaints have been filed recently. Try to contact any companies that already work with the payment processing company and find out what they have to say about their collaboration. Simply put, you should know everything about the payment processor before signing any type of contract. After all, they will handle the most important aspect of your business – your cash flow.
- Check their customer service and support options
Get a customer service agreement document from your future payment processing provider and read it thoroughly. Does it include 24/7 online and phone call support? Will they be able to help you install certain payment software? Will they provide a web-based training course for your employees? Can they answer your questions in a timely manner? Also, what are their alternative payment options in the event of a system failure? These are all questions that you should know the answer to.
- Get a list of rates and fees
There are a lot of payment processing companies, such as Fattmerchant.com, around and their rates and fees differ immensely. Some charge a fixed amount per transaction while others will ask for a percentage. Nonetheless, depending on your sales volume and other factors, the fees and rates can add up and ruin your profits. To avoid this, try to obtain a detailed list of all possible fees, and rates for each separate service. Make sure to compare the offers among multiple providers and choose the best one for your business. Don’t expect wonders, though – there are no free payment processors.
- Check the reserve requirements
Reserve funds act as buffer funds which can be used if your company is unable to pay its debts. These buffer accounts are periodically funded with a percentage of each successful transaction. After they reach a predetermined amount, your company is safe during slowdowns, chargebacks, returned/canceled orders or any other financial problem. Make sure you know your provider’s reserve requirements policy before signing an agreement.
- Check their security protocols
Payment processors need to be extremely secure and they must adhere to PCI rules. Make sure your future provider is PCI compliant and their system is able to offer complete security for your transactions. Also, a good payment processor will be able to help your business achieve and maintain PCI compliance. Stay clear of companies that charge additional fees for security settings or fraud detection. They should be basic services and should come at no additional costs.
About the author:
As a freelance writer and small business owner, Flaviu Mircea enjoys creating articles for his readers with information on running a smooth and effective business. If you would like to learn more about Flaviu, you can check out his google+ profile.