Not so long ago, cash and paper checks were the kings when it came to paying for purchases. But today, consumers prefer paying for something as simple as groceries using credit and debit cards. According to a survey by the U.S. Bank, 50% of consumers rarely carry cash, and when they do, it is often less than $50.
This means that every business today — whether a brick and mortar enterprise or an e-commerce entity — has no option but to set up a payment processing system. If you recently started a business or you simply want to jump into the cashless bandwagon to ensure you are not missing out on any clients, here are tips to help you choose the best payment processor.
- Consider the Services You Need
The services you need should be the key guiding factor when choosing a payment processor. Before you take any other step, take time to analyze your operations, and determine the type of payment cards you plan on accepting and the number of payment terminals you will need.
While at it, remember your sole aim when starting your business was to accumulate profits and expand it. So, you want to choose a payment processing company that is flexible enough to accommodate the increased transactions that come with your entity’s growth.
- The Payment Processing Fees & Policies
Once you determine the kind of services you’ll need, the next most crucial factor you will need to consider is to decide whether the payment processing fee is right for you.
Note, each time you swipe that credit card, you send the details to your processor who then forwards them to the brand card network and next, the issuing bank for the payment to be complete. Each of the parties mentioned often receive a pre-negotiated percentage of the sale.
Therefore, it is essential for you to consider the processing fee associated with each customer transaction before you sign any contract. Also, ensure you thoroughly read the fine print so you understand all the policies so that you can avoid locking yourself in an expensive and costly contract.
- PCI Compliance
One of the major benefits of incorporating a cashless system into your operations is that the payment processor usually assumes the risk of every debit and credit card transaction. However, just because you’ll not be responsible for the financial fallout associated with credit card fraud, doesn’t mean you throw caution to the wind. Ensure you consider the processor’s PCI compliance because in the event of credit card fraud — you will not only be affected financially, but also it will cause your customers to lose trust in you.
- Customer Service and Support
Even though the cashless payment system makes things easier, it is not entirely flawless. It remains subjective to problems such as hardware malfunctions. When such problems occur, you want a processor that you can quickly access and the service that will easily help you out. At times, you may need to talk to someone about your statement or may need a service upgrade. In that breath, make sure you consider the payment processor’s customer service and support.
Even though cash is still the simplest way to make payments, consumers today will choose using a credit or debit card over cash anytime any day. The only way to ensure you are not missing out on excellent business opportunities is by adopting a cashless system. When you do, you will also need a reputable payment processing company to help you integrate a cashless system into your operations.
