When looking into a payment service provider, whether for the first time or if you are looking to switch your current one, there are a few things to look at. In fact it is very important to look carefully at all parameters when choosing a PSP.
Here are a few suggestions to help you choose the right payment service provider for your specific business needs:
It is always important to see how the service provider’s product can be integrated into your existing store. Many things need to be taken into consideration, like codes, APIs and the cost of updating or upgrading your site to fit the PSP’s requirements. Same goes when switching from one PSP to another, as not all service providers have the same requirements.
Customer support should be a top priority when looking into a service provider. If issues arise, that means money. Technical issues and setbacks, unfortunately do happen, so having a support team that will have you up and running as fast as possible is crucial. The same goes with other matters, such as agreed fees and rates, integration and environment settings. Issues like these can cost you quite a bit of time and money at the end of the day, and being able to contact your service provider quickly and efficiently to straighten them out is vital for your business.
When looking at service providers it can be very tempting to go with the cheaper option. You should take into consideration the issues mentioned above, such as technical difficulties, fees and rates. Most likely, the more non-expensive choice will cause issues in the future when needing to address urgent matters. In addition, the probability of technical issues arising is higher with the cheaper options.
Another thing to look at is hidden fees. Some PSPs may boast a lower price tag, but there may be hidden fees and rates that are not mentioned, or in small print. Usually, the more complex the fee schedule is, the more likely you will be charged more than you would have expected. Some fee schedules might even drill down to differentiate their fees not just between Visa and MasterCard, but also between the type of cards being charged (Gold, Corporate, Platinum, Vanilla …). Investigate to find testimonials and reviews from other users who have used that service as well, and see if any complaints arise.
Also check our insight about negotiating the right rates for your business.
KVB PRIME Strikes UK with Influential Finance Summit SponsorshipGo to article >>
Almost everyone starts out small in the beginning. Choosing a PSP that can accommodate your needs as you grow is an important advantage. Anything from supported currencies to add-ons and the ability to change and alter your options in the future is something that every growing business needs.
If you are selling a non-recurring product now, which could be turned in a subscription-based one in the future, it is best to choose from the beginning a service provider has the option for recurring billing. If you are interested in expanding your business into other markets, choose the provider that can support more currencies and payment methods to help you enter the said market. A good PSP should be able to gratify your needs as you are growing, and not be a burden. On the other hand, do not be over selective with a perfect processor for today because it seems to lack a future development that you have in mind but which is even far from being planned yet. Processors also evolve and chances are good that the good one will have what you need when you need it, unless we are talking of something pretty standard like managing your rebills, do not miss the right opportunity because of a vaporous future innovation.
Check What Your Competition is Doing
One way to help you choose a service provider is to look what others like you are doing. Go out and see how your competition is processing their payments. Some service providers are more in tune with certain fields than others. Best to see what service provider the more successful stores and websites use.
This also goes for the aforementioned suggestions. If your competition is using a certain service, and you see that their online business is lucrative, it may be that the pricing is fair to the industry, and issues with the service do not cause any setbacks.
But in any case, refrain from “shopping around” too much. Behind processors are acquiring banks, and if you do not resist the temptation of applying everywhere you can think of just to compare the offers, your application could end up being applied to the same banks through several channels and that does not look good to the Acquirers’ Compliance teams.
We have a form you can fill if you would like our assistance with this.
It is always important to never settle when choosing a service provider. Your service provider is an extension of your business, it should suit all of your needs and just as any other part of your business, it should be screened for flaws on a regular basis.
Photo courtesy of Flicker