Merchants who find themselves in the e-commerce space need a payment processing provider in order to run their business. And while there are many PSPs to choose from, it is not always an easy choice or a stress free relationship for merchants. There are some important considerations that merchants should ponder on choosing or just in getting the best out of a PSP.
An appropriate place to start may be with the age old question of pennies and cents. E-commerce can be lucrative but it is also competitive and it comes with an unavoidable dependency on credit card companies, banks, PSPs etc… and every party demands a share of the profits. Thus you are encouraged to ask processors about pricing in order to understand and account for exactly what you will be charged, to avoid shock when the so called “bill” is brought to the table. It may be valuable for you to read our insight about getting the best rates for a more in depth look at costing.
Then, of course, as a merchant you know that your requirements are different from those of another merchant, in terms of size, service, target and more. Your needs should to be met with a processor that has the appropriate experience for your business and one that is able to work with your goals and objectives. Payment needs can be very particular, specifically in e-commerce where boundaries, currencies and laws are crossed, internationally, on an ongoing basis. Find a processor that can both support your banking needs within various markets and knows the rules and regulations that govern the markets to which your business extends. Remember to keep the lines of communication with your processor open. This is a delicate operation and both parties must be on the same page as much as possible. It is even suggested that you keep a payment professional on your staff so that the relationship may be maintained expertly and from a place of knowing rather than ignorance.
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Fraud is another one of those inescapable topics. In just the last few weeks, we have read about Britain’s alleged failure to fight a growing seed of cyber-crime, $160 million stolen by hacking experts and an Irish survey revealing that 2.7% of national turn-over, is literally turned over to internet fraudsters. Not to scare you, but it cannot be ignored that anti-fraud measures goes hand in hand with payment. You may choose a processor that will offer a turn-key solution, with anti-fraud as part of the package or you may have to find a third party to take care of the security on your systems. Make thorough inquiries into both options before you decide.
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