When it comes to accepting payments, you want to choose the right payment service provider. Not all payment service providers are created equal and not all will be a good fit for your business needs.
In this article, we’ll explore what people need to know when selecting a payment service provider, what a payment service provider is in general, and how they help businesses accept credit cards. Please read on for more.
The Basics of How a Payment Service Provider Works
A payment service provider is a company that processes payments for customers and merchants. This includes the management of transactions, customer information, reporting services, settlement instructions, security controls, and other related tasks. A merchant can choose to outsource all or some of these functions in order to focus on their core business activity selling goods or services.
The most important thing to know is that the payment service provider must be able to process all of your transactions, including credit card and debit cards. Of course, before that, you would need a license that can be secured from places like PI License UK, and once approved you can start using the payment service. Payment service providers will then take care of all aspects for you including customer data management, transaction history tracking, settlement instructions, fraud monitoring, reporting services such as sales reports, and customer statements.
What To Look For in a Payment Service Provider
Payment service providers are the most overlooked aspect of e-commerce businesses. They have a large impact on your bottom line and can either make or break you. When selecting a payment service provider, there are many features to consider. Below are some tips.
Accuracy
One of the first things to consider when selecting a payment service provider is what type of e-commerce platform you are using. If your site has built-in shopping cart functionality, then there’s no need for additional plugins or add-ons and it makes sense to opt for one that can handle all types of transactions including credit cards, debit cards, electronic checks (eChecks), wire transfers, and more.
Processing Speed
The processing speed of your payment service provider is also key. For example, in the case of a credit card transaction, it could take days for you to see the funds deposited into your bank account. A quicker processor would deposit these funds within 24 hours or less.
Customers Security
It’s also critical to consider the security of your customers’ personal information. For example, some providers offer more secure authentication tools like two-factor verification which is important when it comes to safeguarding customer data from cybercriminals.
Payments and Agreements
The type of agreement that you have with your provider is also important. For example, some providers offer a monthly fee where they process all transactions and charge per transaction while others may provide an upfront cost for the lifetime use of their services before charging a percentage based on sales volume each month or year. It’s crucial to understand these agreements so you know what to expect when it comes time to pay!
Merchant Dashboard and Analytics
It’s important to choose a provider that offers you full access to your merchant dashboard. Here, you’ll have the ability to track and monitor sales volume, revenue generated from each transaction processed by them, and more insights into how much money is being spent on marketing campaigns. You can also use this data for future business planning purposes.
Easy and Simple Integration
It’s important to choose a provider that is easy and simple to integrate into your site. Thankfully, many providers have created plugins or extensions for popular e-commerce platforms like WooCommerce, Magento Commerce Cloud, Shopify, etc., which makes the process of selecting one much easier.
Funds Management
It’s also important to note that payment service providers can be used for more than just processing transactions. For example, some offer a mobile app that is useful when you need to process in-person credit card payments using your smartphone or tablet. Some even provide the ability to create invoices within their dashboard and then send them directly from there.
Internationally Availability
Finally, it’s also important to consider the availability of your payment service provider in other countries. For example, some providers only offer services within specific regions while others may be able to process transactions throughout Asia and Europe- including emerging markets like Russia.
As you can see, there are a lot of factors to consider when choosing your payment service provider. We hope this blog post has helped you learn more about the basics and what it takes to find an excellent partner for your business needs. If you still have questions or want some help in finding a good fit for your company, feel free to reach out! Our team is standing by, ready and waiting to assist with any questions that might arise along the way.
