The online business arena has eventually embraced payment processing solutions in a wholesome manner. Not because they had a choice in this as there is no alternative but rather because it is a necessity and an imperative requirement to thrive in today’s digital world. There are a number of players in this industry which and are called payment processing companies.
What is payment processing?
Payment processing is a service provided to businesses to furnish them with the capability to carry out monetary transactions with ease and efficiency. There is a need for a separate industry for this service because the payment process is complex and involves multiple players and technologies for security and other purposes.
Payment processing ensures that transactions are carried out securely and confidential data of users is kept out of unwanted hands. The companies that offer payment processing services carry out financial transactions on behalf of the merchant at a minimal fee. These transactions could come from any pathway, for ex: via debit/credit cards, eChecks, digital wallets, etc.
Payment processing companies:
Clearly, payment processing companies are those organizations that offer these services. They are also called payment processors. These are appointed by business owners or merchants to carry out transactions on their behalf and get paid for their services. Some of the well known companies in the business of payment processing are: PayPal, Stripe, Paycron, Square payments etc. These companies provide front and back-end services associated with payments to the merchants in return for a fee which is also shared with banks and card issuing authorities like VISA, Mastercard etc.
For a long time, credit/debit cards dominated the payment processing solutions market but now times are changing. Newer methods of payment like ewallet E-wallet, eCheck etc. are taking over credit/debit cards and this has led to the diversification of payment processing services. Now, companies are offering a bouquet of payment services, allowing the merchants to receive payments from customers via diverse methods.
How to choose a payment processor?
The question now is what should be kept in mind while choosing/hiring a payment processor for one’s business? There are hundreds of players and they all look the same. However, choosing the right one for your business is crucial in terms of sustainability. as well as survival of your business. Let’s look at some key factors that must be considered when choosing a payment processor:
1. Look for companies that offer a bunch of payment options to your customers. This increases your chances of sales and makes it more convenient for the customers.
2. Security protocols and compliances must be carefully considered to avoid frauds, data-theft and malicious players from disrupting your business.
3. Companies with faster payouts and lower chargebacks are preferred over those who hold on to merchant’s funds for a long time.
4. An appropriate flow of payments and easy checkout process makes the buying cycle smooth and seamless.
5. Look for companies that make your customers feel safe and secure and not fear while making payments on your website.
Finding an adequate payment processor can be difficult especially if you are a new business or a high-risk one. However, there is a workaround for that too and you just have to look harder. Overall, payment processing is undergoing changes as better financial technology is hitting the market every now and then. Be ready for the changes and stay abreast with the trends.