Every time you refuse a card payment, you risk a potential loss of sale. Based on the fact that more than 60% of Americans used either a credit or a debit card to make payments in 2022 while only 18% of them used cash, the potential loss of revenue is far too great for even the smallest business to ignore. But be careful. Certain aspects of accepting card payments need careful scrutiny. Merchants need to be cautious with their choice of payment processor to avoid paying excessive fees and suffering unreliable service. Follow these tips to know what you should be looking for in a reliable payment processing provider.
What Are The Features That The Payment Processing providers Must Offer
Processing payments is quite a successful business at present. Millions of people are accessing the services of payment processing providers to find themselves at an advantage. You will find many payment processing providers, but would you like to go for any one of them randomly? The simple answer would be NO. This discussion is all about the essential features that you find in payment processing providers.
0% Processing Fee for Accepting Credit Card Payments
High processing fees on every transaction are the main reason why merchants are often reluctant to accept credit card payments. On top of that, there are also additional fees and monthly charges that merchants need to pay to their respective payment processing service providers. All these expenses together cut deep into the merchant’s profit margin.
Consequently, merchants are especially reluctant to accept credit cards for low-profit sales. To avoid dipping too much into your profit margin, choose a payment processing company that offers low transaction fees.
Alternative Payment Options
Merchants who offer a wider range of payment options tend to generate more revenue as well. The fact that some payment options are cheaper for merchants to accept than others is a welcome bonus benefit. Sign up with a payment service provider that enables you to accept alternative modes of payment, such as bank-to-bank transfers and ACH transfers for recurring payments.
0% Payment Card Industry (PCI) Compliance Fee
Your payment processing service provider should not be billing you for PCI compliance. The mandatory compliance requirements for the payment card industry are meant to protect merchants and processors against fraud and scams. On failing the applicable PCI standards, merchants might need to pay hefty fines first, and then do what’s necessary to bring their payment processor up to compliance.
However, reputable payment processing service providers do not charge their clients (merchants) any extra fees for keeping their system in perfect compliance to the concurrent PCI standards. All payments processed via your payment service provider should automatically be PCI-compliant and secured.
Time is always fleeting; if you do not work proactively, someone else will do it and emerge victorious. The payment processors must save you valuable time. You can expect services from the provider, which will cut down the time you spend on the accounting, billing, and processing of payment.
Business owners who have a comprehensive understanding of the nitty-gritty of payment services will enable them to know exactly what they can have from the processors. The particular decision can be effective as it will likely meet their satisfaction. Therefore, be sure that you locate a provider with a genuine payment processing model. This service must include the payment tools and hardware, the pricing structure along with the transaction fees, the availability of merchant support, product features, and finally, the scope of the solution.
If the service provider offers you the services and the solutions, it will help save you headaches. Not only this will also help you save the loss of money in the future.
Convenience Of The Customer
Look for a payment processor offering flexible point-of-sales solutions and value-added services. It helps you create a more efficient transaction process for both you and the customers. The biggest way to provide convenience for customers is to offer payment through multiple avenues. It is what the consumer wants from the service provider.
According to a study, around 84% of American adults use smartphones. Also, plenty of Americans use the smartwatch every day. A contactless payment system can be a great option and convenience that a competitive payment processing service must offer. Offering the contactless payment system denotes that you do not have to take out your wallet and then use the smartphone. Your customers can hover the smartphones and access the contactless card readers. It can help card readers finish up their transactions.
Another benefit that you can offer to your consumers is consumer financing. You can do it through the right merchant service company. It will allow your customer to buy the goods and services on the spot. It is one of the services that can put you in an advantageous position because the consumers have less time to react. This is one of the benefits that you must have from a payment processing service.
Automated Recurring Payments
Automated payment plans are among the services. It cuts down the hassle and helps with stress-free payment options. Actually, you can skip paying the monthly installments for the recurring bills. Ultimately, it will reduce the frustration of the clients and, at the same time, increase the timely payments for the business.
Payment processors give the most useful insights into daily transactions, monthly statements, and chargeback fees. If you have real-time knowledge of the company’s finances, it will undoubtedly help you make useful decisions.
Finally, you should check past reviews to find out how fast they are with actually processing the payments you accept. If you have already signed up with a payment service provider, keep an eye on how much time it takes for the money to show up in your account after a successful payment. International payments take longer to transfer than domestic payments, but a slow payment processing service in general can be bad for business.
Ankita Tripathy loves to write about food and the Hallyu Wave in particular. During her free time, she enjoys looking at the sky or reading books while sipping a cup of hot coffee. Her favourite niches are food, music, lifestyle, travel, and Korean Pop music and drama.