One of the primary functions of a payment processor is to provide the necessary support for transactions that take place on an eCommerce website. This may require securely storing sensitive customer information, such as card details, or maintaining transaction logs that help determine if any fraud has occurred. Payment processors are typically responsible for providing access to settings and tracking tools that merchants can use to track the status of their orders and payments. Depending on the type of business and its specific needs, a merchant may need to do extensive research before finding a suitable payment processor.
1. Determine Your Payment Processing Needs
Payment processors are commonly used in online transactions, as they can help simplify and automate the payment process for the merchant and customer. Before committing to a payment processor, you must be sure that this service will meet your unique process needs. This includes researching the location of the payment processor, as well as the fees that are associated with the relationship. Finding the best payment processor for your franchise business may be the one that is right for you and may be different from your personal business. To find a payment processor that offers the options you need, you will have to research and ask questions.
2. Understand the Cost of a Payment Processor
Many payment processors do require some monthly fee, as well as a transaction fee, on each item that is purchased. One of the most common fees you will encounter is the per-transaction fee, which may be either a percentage of the purchase amount or a flat rate. The transaction fees are usually determined by the type and size of your business and the volume of orders placed. The transaction fee may apply only to specific types of charges, such as credit card transactions, or it may affect all sales. Some payment processors may charge a monthly fee to access their services, but other providers will offer them without additional costs.
3. Examine the Transaction History
A payment processor is responsible for providing access to several tools and programs that can be used by merchants and customers alike. In addition to tracking each charge and transaction, the payment processor is usually responsible for generating reports and keeping an archive of the dates and amounts of each transaction. These reports may include data such as charge declines, refunds, customer account activity, merchant history, and outstanding invoices. A merchant may also want to look for a payment processor that offers access to additional resources, such as discussion forums or customer support services that can help answer any questions or concerns you might have.
4. Find Payment Processing Suppliers
Always start by searching locally for companies in your area before searching online, as this method can aid in finding more information about a potential processor. If a company in your area has a significant online presence, you will likely find that the services provided match your needs. Once you find local payment processors, you will want to research and check out the company’s portfolio of services. Look at the types of clients they have worked with in the past, as well as what kind of payment processing services they offer. This research can help you determine if a company will be a good fit for your website or franchise business. Consider your financial needs and any particular concerns that may apply to your business.
5. Assess and Analyze the Costs
A critical aspect of any business decision is accurately assessing all costs involved. This includes evaluating your chosen payment processor’s pricing structure before making any investment. Ensure to consider the pricing structure and flexibility, as specific payment processors may charge a more significant fee for different transactions. This will include looking at the charging method for each transaction and the cost of each type of form used, such as card-present or card-not-present. These charges may also vary depending on what kind of customer you have and where they are located.
Before making a final decision regarding your payment processor, thoroughly check your options. Researching payment processors can take some time, but it can be well worth the effort when you finally find the right one for your business. Be sure to remember that your chosen payment processor may offer additional services or resources that you were not previously aware of, which can help save money for your business and customers. A suitable payment processor can help your company enhance customer experience and simplify day-to-day transactions.