Unless you plan to build a payment processing infrastructure, you’re going to work with a payment processing company. (And just so we’re clear, I doubt you’re going to have the time or resources to build such a complex infrastructure!) It’s simply more economical to work with a payment processing company. It allows you to put more focus on your service and products, as well as the other business infrastructures.
But that doesn’t mean you should just go with any old company. When people shop for payment processing services, they often make mistakes.
Want to know what these mistakes are?
Okay, I’ll tell you. But you have to promise not to make them yourself!
Putting Pricing Above All Else
We want to save money when we’re setting up businesses. It’s not exactly cheap, and we’re probably not going to make a lot of profit for a while. But because of this mindset, many startups make mistakes. They go with the cheapest option they can find.
Let’s say you’ve found a company that charges you the lowest fees possible for payment processing.
Don’t just go with them based on that.
There are many other factors to consider that are way more important.
Not Checking All The Associated Fees
Finding one with the lower processing fee doesn’t always mean you’ve actually found the cheapest.
That processing fee is never the only fee that comes with a payment processing company.
There are the setup fees you may need to consider.
There could be a high cost if you want to terminate the service. And if you don’t get enough customer purchases, then you might be penalized for low activity.
Keep a lookout!
Forgetting About Mobility
Customers like all kinds of methods of payment these days. But you shouldn’t only consider the needs of the customer.
What about your particular way of doing things?
Let’s say you’re a freelancer and you travel around from job to job quite a lot.
In that case, you need a process that can travel with you. Some credit card processing companies will provide you with a system that allows you to accept payments on your mobile phone.
Placing Customers At Risk With Lax Security
Security should – no, needs to be your ultimate priority.
The processing of a payment needs to be as secure as possible.
If any cyber crime occurs on your watch and results in a customer’s details being compromised? It could be the result of having worked with a payment processing company with lackluster security.
Check their policies and read feedback from previous users.
Ignoring Global Reach
Let’s say your business is based online. This means that people from all over the world can access your website.
Does the payment processing system you’re looking take this into account?
Will you be able to accept payment in a variety of the world’s currencies?
If you don’t want to limit your sales to your home territory, you need to keep this in mind.
Make sure to review their fees for processing foreign currency, too!
Question: How do you handle payment processing for your business? What else you think should you take care? You can leave a comment by clicking here.
Please note: I reserve the right to delete comments that are offensive or off-topic.