Running a successful business comes down to several factors that will make or break your operations. Over 20 percent of small businesses fail within their first two years in the United States. It’s often overlooked, but choosing to select a payment processor is a massive step in the right direction. The best payment processor makes each transaction a breeze for you and your customer.
The best payment processor makes each transaction a breeze for you and your customer. You owe it to everything you’ve built to explore your options for payment processors. Find one that adds value and efficiency to your operations.
It’s a golden era for small businesses with a proper payment processor, and you must get on board before it’s too late. The good news is that you’re in the perfect spot to learn everything you need to know when comparing payment processor costs and features. Continue reading to give your company the best odds for long-term success today!
Consider the Transaction Types
The transaction types your business accepts are vital to bring in more customers. Payment processors provide various options for you to enter payment information. The most common types are in-person payments and mobile payments.
Still, it helps to choose a payment processor that lets you handle online, keyed, and invoiced transactions. The flexibility ensures you can provide goods or services to all potential customers. It helps to explore your options for payment processors to find the best ones that accommodate all your business needs.
Pricing Transparency
It’s also crucial to find a payment processor that offers pricing transparency. You want to make life easier for your customers, which starts with letting them compare your pricing and products with a competitor’s. Select a payment processor that clearly shows consumers the total price of your goods or services.
They’ll know immediately which products or services fit within their budget. It also shows consumers that you’re confident in what you’re selling and the prices they’re listed at. Transparency with pricing works in your favor when showing confidence in the listed price for your products.
The exception to this rule is listing prices as a high-risk merchant. Listing a transparent price as a high-risk merchant is challenging since processing costs differ. Consider if you’re a high-risk merchant when exploring other payment processors for your brand, as high-risk merchants face unique chargeback treatments.
Weigh the Costs
Another effective method to narrow your options for a payment processor is to weigh the costs of each transaction you process. Look at the transaction, monthly, and chargeback fees to find the best fit for your company. Some payment processors also charge membership fees and setup costs to account for.
Use the total cost for a month of service to weigh your options for payment processors. An interchange-plus pricing system looks more appealing, but you could benefit more from a flat-rate model. Interchange processors have other fees associated with their use that could increase the price.
Card Readers
Card readers are essential to maximize your sales with in-person customers. You’ll want to ensure you have a card reader that accepts most credit and debit card options. Look for a processor that can read a card’s magnetic strip, accommodate chip cards, and manage touchless payments.
Many consumers started using touchless payment options amid the COVID-19 pandemic. You’re missing out on half your target market if you choose a payment processor that can’t handle touchless payments. Some payment options provide a card reader for magnetic strips and a smartphone app for touchless payment.
Add the fees for touchless payments and card swipes to your monthly expenses for using the processing service. Look for a processor that accepts both iOS and Android phones. You don’t want to exclude any of your customers based on your company’s payment processing experience.
Point-of-Sale Options
Many small business owners need clarification on payment processing systems and point-of-sale systems. They both perform similar tasks, but they’re pretty different. A point-of-sale system will help you process credit card payments and other transactions.
You can use a point-of-sale system to process cash payments and track the money coming into your business. It’s much easier to manage your inventory with a point-of-sale system. You can also integrate it with your accounting software and generate reports for your income.
It’s a valuable tool to have in your toolkit. If it stands out to you as something that will add value, research options for payment processors that include a POS option. When acquiring a POS system, you’ll pay more, but it will add invaluable convenience to your life.
If you already have a POS system for your business, find a payment processor that is compatible with the existing system. You’ll get the best of both worlds without unnecessary hassle.
A processor system that is integrated with your existing software provides the best experience. Your business will enjoy improved efficiency across the board.
Accounting Integration
Accounting gets more complex as your business grows and increases revenue. Exploring options for payment processors that integrate with your accounting systems is vital. Find a system that lets you transfer your transactions to the accounting software.
Tax season will become a far smaller headache each year with accounting integration. You’ll have accurate information in your accounting system and eliminate the need to enter the financial data manually. It’s an excellent way to save time and invest your energy into other parts of growing your company.
Deposit Timing
Businesses rely on a steady and consistent cash flow to continue running. Part of enjoying your cash flow is having a payment processor with short deposit times.
You want short deposit times. The money from credit card transactions gets deposited into your business bank account sooner.
Select a payment processor that prides itself on next-day transaction deposits. Depending on your business and industry, same-day deposits are the best option.
Most same-day deposit options require additional fees. Account for those when comparing payment processor costs.
Use the payment processor website to determine which bank accounts are suitable for next and same-day deposits. You’ll get the perfect system for running your business and keeping customers happy.
Customer Support
No one plans to encounter issues with a payment processor, but it’s a complex technology. Downtime with your processor will cost you money in lost sales and unhappy customers. You can’t put a price on top-notch and timely customer support.
For the best payment processing experience, work with a system that provides 24/7 customer support. An issue with your system could cost you thousands of dollars in transactions if you’re working a weekend event.
You’ll learn much about customer support by reading online reviews. Check the reviews for each option to compare them and weigh the benefits. It’s valuable first-hand information that will help you make an informed purchase.
Benefits of the Payment Processing Experience
You’ll enjoy several benefits when you select a payment processor to use within your company. The benefits extend from your business to your customers, ensuring a fantastic buying experience. Here’s a deeper dive into how a payment processor will help you expand your business.
- Boosted Efficiency
Investing in a payment processor will make your business far more efficient. You can reduce wait times for customers attempting to make a purchase. You’ll also receive your money sooner from each credit and debit card transaction.
With this upgrade, the transaction times will go from hours or days to seconds. It’s a must-have option to provide the best service to your customers.
- Lower Costs
You’ll also lower your business costs when using a payment processor for transactions. Accepting checks results in longer transaction times and excessive fees. Your business eliminates those costs with a processor since credit card transactions become a breeze.
It’s also a green solution that reduces waste and carbon emissions. The change to a payment processor shows your target audience that you’re serious about doing your part to help the environment.
- Increased Security
Security is a top priority for businesses nationwide. You’ll enjoy increased security when working with a premier surcharging program. Your customer data will remain safe, and your customers will feel confident in their decision to do business with you.
- Reduce Fraud
You take steps to reduce fraud when you select a payment processor that uses secure and encrypted systems for each transaction. You’ll make life more difficult for cyberthieves and bad actors.
Their attempts to take customer payment information will be thwarted. Your customers will quickly trust your payment processor when making a purchase.
Select a Payment Processor for Your Brand
Researching your options to select a payment processor to grow your business is critical. You’ll increase your mobile and in-person transactions. Find a system that integrates with your accounting and POS software for increased convenience.
Weigh the fees and costs of options for payment processors. You’ll improve the customer experience and ensure top-notch security for your customers. Your business will have fewer costs and a more efficient business model.
Taking the next step with your business is challenging, but you can take your business to the top with the right resources and tips. Check out our Technology and Business blog content for news, updates, and advice!
