Finance

How to Choose a Payment Processor for Your Business

A few years ago, there was a shortage of third-party online payment gateway providers. Thankfully, this is no longer an issue today. However, it’s harder for small business owners to choose the right payment processing methods.

As e-commerce businesses started growing, so did the number of customers using online payment methods. Over 23% of global customers today prefer using credit cards, while 12% prefer debit cards to make online purchases. This number is even higher— 36% for shoppers who prefer using eWallets.

There are things you must consider before deciding on a preferred payment processor for your business. Below are seven essential factors to consider:

1. Is It the Appropriate Payment Flow for My Business?

Your business will not remain small forever; with time, it will expand. The right e-commerce payment processor for your business should be able to handle larger groups of customers when the time comes without stressing your website.

Before adding any payment gateway to your online store, ensure it’s the best one for a growing business. Below are some essential factors to consider:

Does It Have an Integrated Payment Form?

An integrated payment form will collect all the necessary financial information. The customer will fill in the form with essential details like card number and expiry date. The form will then be sent to a different secure gateway for processing.

The payment form must pass through API calls to a safe gateway provider. However, this requires additional programming, which may boost the overall cost of integrating the payment processor gateway.

Will Your Customers Prefer Redirect for Payments or iFrame?

Do you prefer your customers enter their credit card information then redirected to a secure payment page or feed their info on an implanted iFrame on your e-commerce website? Using an embedded iFrame is the best option if you’re looking for a quick integration payment option.

Do You Prefer Having an Escrow System?

Certain businesses would benefit from using a payment gateway with an escrow system. The escrow system works as an intermediate where each party’s money is safely stored while the transaction is still in process. This is a better option to avoid fraudulent transactions.

2. Which Is the Right Payment Method for Your Business?

When it comes to e-commerce, every website requires a payment gateway. As a business owner, a payment gateway allows you to sell your services or products online and get paid hustle-free. Choosing the right online payment gateway for your business means considering an adaptable online solution while keeping in mind customer safety and security.

After selecting the best method, you should figure out how to integrate it into your website. You can either do it yourself or hire someone to help with the task.

3. Make Your Customers’ Security and Safety a Priority

Fortune 500 companies and other successful businesses are working towards improving online shopping for their customers. These businesses are taking steps to meet customer needs while surpassing their expectations. One of the best ways to do this is by getting customers to trust you with their credit card information.

When you start your eCommerce business, most people will be skeptical about giving you their credit card information. However, if you run a high-quality site with the most secure payment gateway, it’s easier for customers to trust you. This is also the best way to improve customer experience.

The best processor for small businesses should be PCI-compliant. It’s therefore advisable to do your research before settling for any company. In the online payment industry, accredited payment processors must meet specific compliance requirements. This is because they have temporary access to your client’s credit card information during the transaction.

4. Choose a Payment Processor That’s Compatible With Other Software

There are many pieces of the puzzle when it comes to online shopping and e-commerce stores. All these puzzles need to work together in harmony to provide your clients with a good user experience.

The payment processor you choose must be compatible with your other software to build a successful online retail platform. You can also add numerous payment methods to give your customers the freedom to choose one they would like.

5. Will Your Customers Need Mobile Payment Options?

Today, most people have stopped using debit and credit cards when shopping, even in physical stores. They now opt for mobile payment options.

Online payment gateway providers and mobile payment providers have partnered to enable mobile payment options in online stores. This is done through mobile-optimized applications or branded apps.

With the increase in digital mobile wallets such as Samsung pay, Google Pay, and Apple Pay, customers prefer to use payment methods optimized for mobile devices. This has gained popularity because most people now prefer shopping from their tablets and mobile phones. Ensure you keep this in mind when looking for the right payment processor for your business.

6. Do You Need to Set up Recurring Bill Payment Options

If you run a company with online services that require monthly or annual payment plans, it’s necessary to set up a recurring bill. This automatically bills or charges your customers at the end of the cycle.

Look for a payment gateway that allows you to have this option. Non-profit organizations and subscription-based online services mostly use this to collect funds consistently.

7. Choose a Gateway With an Easy Integration Process

Integrating an online payment gateway to your website is not an easy process. Most gateways come with integration instructions. However, you must choose one that will not slow down your website.

The right payment gateway will make it easy for your customers to make online payments using credit and debit cards as well as other mobile payment methods.

Are You Ready to Get the Right Payment Processor for Your Small Business?

Choosing a payment processor for your new business doesn’t have to be challenging. But ensure you do a lot of research to find the right partner to work with.

Different payment gateways will meet your website needs. However, it’s crucial to choose one that aligns with your customers’ needs and your future business objectives.

Getting the right partner can lead to a higher customer satisfaction rate, thus increased e-commerce transactions. For more financial advice tips, check out other posts on our website.

Andrea Parker

Andrea Parker is a reporter for Zobuz. She previously worked at Huffington Post and Vanity Fair. Andrea is based in NYC and covers issues affecting her city. In addition to her severe coffee addiction, she's a Netflix enthusiast, a red wine drinker, and a voracious reader.

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