It’s not uncommon for both novice and seasoned business owners to get caught up in payment processing rates. Fees associated with payment processing can add up to an undeniably substantial amount.
That said, there is far more to consider when it comes to accepting payments than payment processing rates alone. Sure, merchants should aim to get the best rate possible, but not in foregoing other important factors that can make or break their business.
As ecommerce develops, so does payment processing. In this era, there are specialized payment processors that help merchants of all types and sizes – and that cater their rates accordingly. It’s also important to note that cheaper isn’t always better. Some processors offer unbelievably low rates, only to ding merchants with hidden fees or penalties.
While finding a processor with reasonable fees makes sense, it’s also important to look holistically at the services and support provided. Merchants should engage with payment processors that can cater to their needs on multiple levels.
Beyond Pricing: Finding Your Advocate for Success
Finding a true payment processing partner means finding someone that will advocate on your behalf – with acquiring banks, issuing banks, and card networks – for your success. This may come in many different shapes and forms, which we’ll explore below.
Chargeback and Fraud Prevention Tools
Regardless of your industry and business model, chargebacks and truefraud will always be imminent risks if you accept CNP payments.
The card networks originally introduced chargeback protections to help consumers guard against unscrupulous sellers. Unfortunately, the convenience of initiating chargebacks has led many consumers to do so fraudulently and unnecessarily.
Misuse of chargeback protections paired with real instances of true fraud can be damaging to merchants. As many as 86% of all chargebacks are cases of friendly fraud, resulting in losses that will surpass $31 billion by 2020. It can be a headache to untangle true and friendly fraud, which is why working with a processing partner can streamline the process and save merchants millions.
Most payment processors leave merchants to fend for themselves when it comes to chargebacks, only participating by passing through fines and fees incurred from acquiring banks and the card brands. However, some reputable payment processors will provide expert chargeback management, helping you reign in chargeback ratios and avoid costly fines and fees.
These processors help merchants mitigate such risks by implementing adequate chargeback and fraud prevention tools and by acting as an intermediary should any chargeback issues arise.
Committed Customer Support
Technical hitches are pretty standard in the world of computers and software. Even a stable ecommerce site paired with a seemingly solid payment processing solution can run into issues from time to time.
Online merchants, in particular, have no room for failure when it comes to payments acceptance. Any downtime at all can mean the difference between tens to hundreds of thousands of dollars. Working with a payment processor that offers 24/7 customer support can save merchants millions in the long run.
This is especially true during peak seasons. The holiday selling season and other product-specific peak periods can be especially damaging times for payment gateways to go down. With sales volume highly dependent on reaction time, such a crisis requires immediate mitigation. Your payment processor should have always-on availability, whether through email, chat, phone, or video chat.
Your website is only a fraction of your business empire. If you intend to fully leverage the web for optimal growth, you need to be able to sell across other platforms. Social media sites, for instance, are promising hunting grounds for new prospects and customers.
Additionally, with overall global payment preferences spread among eight different online payment options, your processing partner should be able to provide multiple payment methods across the omnichannel.
Be sure your processing partner supports multi-channel integration along with a wide spread of payment options. This may include mobile app payments, which are becoming increasingly popular both in addition to and as an alternative to mobile web payments.
In the end, as they say, cheap is expensive and expensive is cheap. Only businesses willing to invest in the right payment resources will have the best tools for protection and increased growth.
So feel free to get in touch with us today, and let’s help you set up an effective payment solution at some of the best rates in the industry.