I don’t need to know how my car operates in order for me to drive it. But understanding how payment processing works can act as a real advantage for businesses.
Not something you might have considered, however the more informed you are, the better chance you have of securing a partnership with a Payments Service Provider (PSP) that compliments what your business and customers need. It’s that important, I’ll say it again… having the right payments strategy in place and technological infrastructure to support your business it critical to success.
When it comes to online payments, most companies think that their rate is the most important factor; and it certainly is. However, consider for a moment the front end of the payment process and the path your customer has taken to get there.
Think about it; you have worked hard to get this potential customer to your site. They review, compare and even though they might get distracted by their favourite show, conversation or kids, you’ve been able to keep them engaged all the way to the shopping cart. The pointy end of the payment process and then BOOM! They’re gone.
Your site did not offer the payment method they use, feel most comfortable with or in their currency. We’ve all been there. Even with the convenience of online shopping, it still takes time to browse and do your due diligence before it gets time to make a purchase. Finally, you’ve done your homework; the price is competitive, you go through to the checkout and WHAT? I’m having to buy in what currency? OR You don’t offer the payment method I use?
Such a waste of time for all involved.
So how do we fix this? Here’s our top 3.
1. Pay their way
Understand your business and more importantly your customer. While some plug-and-play solutions might be easier to implement, be sure to choose the solution that best suits your target audience. It will pay off in the long term as more customers feel comfortable using and transacting via your site without hesitation or mistrust. An important factor for online payments as it translates to increased conversions for your business. Being everything to everyone can involve more than one option, however by understanding your customer, you can ensure you only implement the solutions they are looking for and not unnecessary features.
Partner with a PSP that has both the security and payment solutions your customers are going to be looking for, whether they wish to pay online, over the phone or face-to-face.
2. A perfect fit
The 1-0-1 of relationship advice is you will never find everything you’re looking for in one person. Well, this is not necessarily the case when it comes to partnering with a Payment Service Provider. For many SMEs, consolidating external resources just makes good business sense.
Payment companies, like BillPro, are able to offer approved customers their own merchant account. Which means that you do not need to jump through extra unnecessary hoops to apply and secure one directly; often a timely exercise and a typical bugbear for many merchants. In fact, your PSP can often ensure you greater application success by understanding the specific criteria the bank is looking for.
Furthermore, be sure to look for a PSP that provides a complete payments package, including multiple payments options and currencies under the one roof, so you don’t have to work with a host of different providers to service your payment needs. In addition to this, your PSP should also include fraud and risk management services, data management and customer support.
As your business expands, you are going to need PSP that can grow with your business and give you the flexibility you need. Have a vision of what your future business looks like and seek out a partner that will best suit you for the long term.
3. Getting the best rate
We couldn’t leave this off! When payment processors look at a business to determine their processing rate, there are a few common things they look at, that you should know. These are just a few:
1. Your processing history – has it been steady, have you needed to make excessive refunds or chargebacks? Your PSP will often need to understand the reasons surrounding this, so be sure to have supporting details on hand.
2. Your company’s credit history – if all is in good order, this will be sure to put you in good stead.
3. What your processing volumes are – many PSPs will accommodate merchants by providing scaled rates based on their sales volume.
4. Where your business is located – different countries have different regulations and requirements when it comes to facilitating payments.
Choosing a Payment Services Provider is an important decision for your business. To ensure your online empire thrives, be sure to, be sure to scrutinize all potential partners to make certain you get the right fit, providing you with the services, flexibility and security you need.