A payment processor allows you to accept your customers’ debit card, credit card, and ACH payments. You must choose a reliable processing service to leverage a powerful and customized system and manage your transactions effectively, reliably, and quickly. Today’s article will list eight tips to select the best payment processor for your business. Read on!
Transaction Types
According to Alan Safahi, an experienced, skilled, and professional entrepreneur, transaction types are the first factor to consider when choosing a payment processor. It refers to the methods by which the payment data enters the system. Safahi says this may include:
- In-person data
- Online information
- Invoiced data
- Keyed data
- Mobile-entry transactions
Therefore, look for different methods you take payment data and confirm that the software tool or payment process has these features. If the payment processing system offers these essential features, go for it.
Pricing Transparency
Pricing transparency is another critical factor when selecting a payment processing system for your business. According to Alan Safahi, a successful business owner in San Francisco, pricing transparency enables you to compare products and services, define the right pricing strategy, and save time.
In addition, it indicates your company is confident, dedicated, and committed to providing the best services to consumers. Likewise, it showcases your company’s fees are competitive. Therefore, choose a payment processing system with high pricing transparency features.
Processing Service Price
The cost or price of a payment processing service is one of the most significant factors to consider. Safahi recommends looking at the costs of a processing service, including monthly fees, transaction fees, chargeback fees, membership fees, PCI compliance, and cancellation fees.
A company that offers the cost per transaction via an interchange-plus model is less than the cost per transaction via a flat-rate model. However, Safahi says that monthly volume minimums and fees with a pricing model can add to the service’s costs. So, it would be best if you found a payment processor that comes within your budget.
Technology Features
Technology is an integral part of a modern payment processing system. For example, a card reader and associated application are essential if you plan to receive in-person payments.
Remember, the card reader technology must accept magnetic stripe cards, contactless payments, and EMV chip cards. Alan Safahi Orinda says payment processors like “Square” provides companies with a free magnetic strip card reader.
However, they charge businesses for an EMV chip. Therefore, contactless or EMV chip reader fees and applications can add to the service’s overall costs. Safahi recommends choosing a reader with high Android and iOS smartphones.
Point-of-Sale Hardware
Most systems offer payment processing and POS system. However, they are different things. A POS system can process card transactions and record cash payments, inventory management, sales reports, and integration with accounting software.
So, if you are looking for a system that combines POS and payment processing options, make sure you choose a system with cutting-edge features. You can select a processing system that aligns with your current POS system, including hardware and software capabilities.
Accounting System Integration
Choose a payment processing system that exports transaction data to your accounting software. According to Safahi, exporting transaction data to your accounting software is essential regardless of a card reader and application or a complete point-of-sale system.
Therefore, the payment processing service you choose for your business must import or synchronize sales data to the accounting software. The purpose is to improve accuracy, enhance precision, make an informed decision, and save yourself from manually entering the data.
Contract Duration
Alan Safahi recommends choosing a short-term contract because you may not like the service over time. Although some payment processing system providers do not require a contract and provide monthly services, determining the contract duration and features of the service is crucial to streamlining the entire process.
Some companies tell their clients to “Cancel” at any time; you must confirm they don’t charge termination or cancellation fees because this can cost you money. So, perform thorough research before choosing a payment processor for your business.
Customer support
A payment processing system provider that offers 24/7 customer support is reliable and convenient. Therefore, select a company that provides 24/7 help to resolve problems immediately.
Although most companies do not prioritize 24/7 support for businesses that need payment processing systems, choose a service provider with experienced professionals. The purpose is to contact them anytime, discuss issues, and receive solutions to the problems.
Final Words
A payment processor is an integral part of your business that helps you manage credit card and debit card transactions. It acts as a mediator between a financial institution and a merchant.
Consider the factors above to choose the best payment processing system for your system and authorize credit card transactions efficiently, reliably, and securely. Until Next Time!
Originally Posted: https://vocal.media/journal/8-tips-to-choose-the-best-payment-processor-for-your-business
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