The ability to accept credit card payments from your clients is one of the most crucial aspects of conducting business online these days. However, the world of payment processing can seem really complicated to some, especially if they’ve never had to accept credit card payments before. Many people make the mistake of going for the first and most popular option they come across, but this could eventually work to their detriment. In this article, we’re going to cover some of the most crucial mistakes people make when they choose a payment processor.
Not Going through a Test Run
One of the first things anybody should do before they go for a payment processor is go through a test run first. This will allow you to get a sense of what the buying experience will be like for your clients.
Most payment processors such as My Payment Savvy will allow you to test their payments solutions before you sign up. When doing your test run, make sure that you check the number of steps it takes for your clients to complete their transactions. Also, try to assess if you would trust buying from this gateway if you were a client. Too many steps and a clunky interface could mean lower conversions and eventually affect your bottom line
Not Considering Fees
It is common knowledge that while offsite solutions offer more convenience, they also have higher per transaction fees as well. A 3% might look good on paper, especially if there’s no setup fee, but it could have a significant effect on your bottom line if you are accepting micropayments or are involved in the sale of luxury goods.
Furthermore, most payment processors have a different pricing structure depending on the type and number of transactions you conduct each month. Most processors will present you with their introductory fee, but will omit to discuss fees pertaining to different credit cards and online payments.
For instance, certain payment processors will have completely different fees for purchases made at a point of sale vs a payment made online. There might also be different fees or limitations on card with rewards or debit cards. These are all things that need to be considered before you choose a payment gateway solution.
Not Knowing the Level of Access They Will Have to their Funds
This is one of the most important aspects of choosing any payment processor. How long will it take for you to access your funds? Some solutions offer almost instant access while others may freeze your funds for weeks before you’re able to access them. Also, some payment gateways will have drastic measures if they suspect any fraudulent activity, and a simple fraud alert could lock up your funds for weeks, which could put your whole operation at a standstill.
If you manage to stay away from these simple mistakes, you should be able to find a great payment processor in no time. Don’t forget to check the pricing structure of any payment gateway in detail before you make a choice, go for a trusted and secure solution and go for a payment processor that will allow easy access to your funds at all times.
