Choosing a Payment Processor? Here Are 5 Common Mistakes You’ll Want to Avoid
Payment processors do a lot more than just move money from your clients’ bank accounts to your business. They’re responsible for the secure and accurate handling of customer payment transactions – whether those involve credit cards, debit cards, or electronic fund transfers.
Given the integral role a payment processor plays in your company’s sales, it’s important to do your due diligence when choosing a service provider. Here are 5 common mistakes you’ll want to avoid when selecting the best payment processing partner for your business.
1. Falling for fees that are too good to be true
It’s in a business owner’s nature to want to save money. But skimping on your investment in the right payment processor is the wrong way to cut your expenses. Although different processing rates apply to different payment types (think physical point-of-sale vs online transactions), many payment processors try to lure in new merchants by advertising only the lowest of these. Don’t assume that one price fits all when it comes to payment rates – and be sure to ask about withdrawal and cancellation fees.
2. Underestimating your need for assistance
Many business owners are first-timers when it comes to setting up their merchant accounts. If you assume you’re going to breeze through the process without any help, you could be setting yourself up for a lesson in frustration. Find a payment processor that not only makes it easy to get up and running, but that offers long-term technical and transaction support around-the-clock.
3. Assuming your data will be fully protected
Credit card fraud and identity theft are on the rise, and every merchant should take steps to keep their business safe. It’s not enough for your payment processor to offer the latest and greatest in cutting-edge tools if their technology doesn’t keep your data secure. Look for a company that processes customer payments the right way: with full EMV compatibility, and a gateway that offers fraud scrubbing, payer authentication, and encrypted data storage.
4. Accepting less than the full range of payment options
Did you know that when it comes to digital banking and other online financial services, 87% of consumers value convenience over security? That’s not to imply that your business should place data safety below flexible payment options on its priority list. But working with a payment processor that offers less than the full menu of mobile pay, touchless pay, and e-commerce services shouldn’t even be up for consideration.
5. Not understanding the significance of PCI compliance
If you choose to learn one technical term in your search for the right payment processor, make it PCI compliance. In the US, the Payment Card Industry (PCI) plays a key role in governing the security of credit card data through its Data Security Standard. Being certified PCI-compliant can be as simple as partnering with a payment processor like Beacon. We’re fully versed in the rules for encrypting and tokenizing credit card and ACH account data. And no business owner should make the mistake of settling for less.