Home » 7 Tips For Choosing A Payment Service Provider
It’s no secret that the continued rise in globalization increases your customer base as an e-commerce business owner. Thus, it would be best to have an interface that offers your clientele various checkout potions.
A wide variety of payment options allow you to meet the various desires of your customers. Therefore, while you can have an international bank transfer option, your e-commerce website should have other payment options like a credit card, debit card, mobile wallet, online wallet, and gift card. You can choose all these payment services to incorporate into your e-commerce website. However, it’s essential to look at the payment service provider’s terms and operations. Below are some tips when choosing a payment service provider (PSP).
1. How Efficient Is It
Like other business transactions, you want to receive payments into your account within a short period. A fast-processing time can provide a better experience for you and your customers. Thus, the PSP should offer a quick and efficient transfer process from the customer’s account to your account.
However, it’s vital to note that a quicker processing time can come with more charges. Therefore, you should find a balance that works best for your business and your customers. This can help you save on PSP charges while maintaining a good customer experience.
2. Is It Easy To Integrate And Use
Most PSPs can provide a comprehensive guide on integrating a payment service into your existing system. However, you should know how this integration can affect your website’s user experience.
For instance, find out if it reduces your website’s load speed or not. A slow upload speed can make your clients abandon their transaction process, thus, losing you revenue. In addition, it would be best to ensure the payment service doesn’t require a customer to register on a third-party site. This can seem tedious and suspicious. Therefore, your customers can drop the online transaction altogether.
3. What Are The Service Fees And Agreements
Different providers charge their services according to various bases. For instance, some can charge on types of business transactions or the frequency of transactions. Others can charge depending on the volume and consistency of revenue.
Therefore, comparing the different charging bases and finding one that aligns with your business structure is essential. You should also find out if the PSP requires set-up charges and contractual agreements. Other PSPs can also charge your transaction fees. Hence, you should thoroughly examine each PSP’s costs before settling on one.
4. Does It Provide A Merchant Account And Dashboard
A merchant account acts as a holding account before a customer’s account approves a transaction payment. This account can offer an extra layer of security between you and your customers. It’s also different from your actual bank account.
Furthermore, a merchant dashboard can provide you with a fund management platform. This can help you analyze transactional details and if there are possible loopholes. In addition, the analysis can help you identify ways to improve your transaction processes.
Therefore, it would be best if you could find a PSP that can give a merchant account. Furthermore, such a PSP may charge lower processing fees than one that transfers funds directly to your account.
5. How Is The Customer Support
Generally, technology can get glitches at one point or another, and so does payment services. This can necessitate you to seek help from the PSP. If the provider isn’t on a 24-hour support program, you might lose revenue and customers when such problems occur.
Therefore, a reliable PSP should have round-the-clock customer support apart from other attractive services. You should also check their lines of support. For instance, is the support via email only, or is there a 24-hour customer support telephone line? It would also be best to check reviews on their response to inquiries and support requests.
6. Does It Offer Safety And Security
With the rise of cybercrime, most customers expect websites they visit to have the necessary cybersecurity measures for their online transactions. Such expectations include providing a secure checkout platform. This is a responsibility that can determine your overall returns and customer satisfaction.
Therefore, checking that the PSP you choose meets available privacy and industry security standards would be best. For instance, your e-commerce deals with customers’ card information. Thus, the PS should abide by the payment card industry data security standard (PCI DSS) regulations.
In addition, look for other security measures like one-time pin verification steps and card verification value (CVV) checks. This can help assure your customers of their security during transactions on your website. Furthermore, PSP should have other protection tools like breach insurance and point-to-point encryption.
7. What Is The PSP’s Coverage
Sometimes a PSP can be popular in one region but restrict its services in other areas. In effect, it decreases your interaction with your customers in the affected region of your operation. Furthermore, some PSPs may not support certain currencies, though your business does.
Therefore, it would help to know the PSP’s regional and currency support scope. However, it would help to choose a PSP that supports most of the common currencies.
Various factors determine the PSP to settle on for your business. The provider you choose can affect the experience customers get when transacting with your business. The above tips can help you select a payment service provider to fit your business operations.