Hot Topic: What’s the Importance of Payment Processing?

We've outlined some tips to provide insight into the importance of a payment processing provider and how it can help accommodate growing customer expectations and payment technologies.

In the era of omnichannel commerce, merchants need to streamline their payment capabilities across every touchpoint. Brick-and-mortar, webpages, apps, and mobile pay — no matter what the touchpoint is, integration is key. Today’s customers will not tolerate delays, and in competitive marketplaces, there are hundreds of retailers waiting to scoop them up. 

What’s the importance of payment processing? 

If you’re wondering, “what’s the importance of payment processing?” let’s look at an example. No retailer wants to inform their customers that it’s “taking longer than usual to process payments.” This happened on Black Friday and it’s possible for any merchant that isn’t staying on top of payment processing operations. 

Not only can you not afford to make payments an afterthought, but it should be your competitive edge. Merchants who prioritize payments and provide excellent customer experience will snag a bigger piece of the pie. 

5 tips to master payment processing 

We’ve outlined some tips to provide insight into the importance of a payment processing provider and how it can help accommodate growing customer expectations and payment technologies.

Market your security 

According to IBM security, data breaches cost businesses an average of $3.86 million globally. It’s no surprise that hearing “data breach” is scary to customers — they threaten their sense of security and their identity. The bottom line? No one wants to shop with a retailer perceived to have relaxed (or no) security measures in place. This is especially true for online merchants that have the added risk of card-not-present transactions. Using multi-factor authentication and other prescribed security measures can help show consumers that you’re secure and that they’re protected. 

Get ahead of cart abandonment  

Online shoppers can start to get anxious about a purchase long before they pull their card out of their wallet. According to Baymard Institute, the average cart abandonment rate is 69.57%, resulting in approximately $18 billion in sales lost yearly. Long checkout processes and forms make online shoppers more likely to abandon their carts.  

Shorten the path to purchase with:

  • Eliminating unnecessary form fields 
  • Offering explanations of why certain fields are required (question marks that pop up into info boxes would suffice) 
  • Not requiring registration for purchases 
  • Having a progress bar on the screen so shoppers can see how far they are in the checkout process 

Speed up transactions  

In a post-EMV world, many brick-and-mortar retailers are concerned with the transaction time for new chip card readers. The goal is to have faster card-terminal speeds, allowing the cardholder to insert their card for only a short time. This’ll make the experience like the “swipe” method and decrease the possibility of someone forgetting to remove their card. Merchants should speak to their POS application software vendors as there are several ways to achieve faster transactions.  

Offer convenience for customers  

Mobile order and pay has gained momentum, particularly in the food and beverage industry. Allowing customers to order, pay ahead, and pick-up in-store makes the experience faster, easier, and more enjoyable. Having a seamless mobile experience built with the end-user in mind is key when it comes to this capability.  

Optimize your online gateway 

Online gateway optimization is important for payment processing for several reasons: 

  • Improved customer experience: Retailers can ensure a quick and seamless checkout process, reduce frustration, and increase customer loyalty. 
  • Increased sales: Provide a fast and convenient checkout experience to increase the number of completed transactions and revenue. 
  • Improved payment flexibility: Offer a range of payment options and accept multiple currencies to increase payment flexibility and accommodate the diverse needs of your customers. Optimizing online gateways can help ensure customers that they can pay using their preferred method with ease. 
  • Increased mobile commerce: Optimizing online gateways for mobile commerce has become increasingly important. A mobile-friendly checkout process can help increase the likelihood of a successful transaction and improve customer satisfaction. 

So, what role does PAYARC play in all of this? 

PAYARC plays a crucial role by offering a payment processing solution that meets the needs of businesses of all sizes. With 24/7 customer support, advanced security features, and all-in-one integrations, PAYARC provides seamless experiences for both merchants and customers. Whether starting out or looking to upgrade your existing system, PAYARC has the tools you need to succeed.  

Are you ready to become a master of your payment processing? Talk to one of our experts to get started today!