Congratulations! You’re in the final stages of setting up your ecommerce business and your product will soon be in the hands of eager customers.
Now you need to decide how you want your customers to pay for the products they buy on your site. This involves finding a payment processing partner, the company responsible for handling transactions between your customers’ cards and your bank account.
Choosing a payment provider that fits your business is no easy task. With a variety of providers vying for your business, how do you find the right solution at the right price?
Here are our top 5 factors to consider when choosing a payment partner:
- Be aware of the contract term and early termination fees:
Some providers lock you into a contract which can last for up to 5 years. The decision you make today may be one that you’re stuck with for a very long time. Take this into consideration should your business need change, especially in the scenario that you require earlier termination. Be sure to address the fees and penalties associated before entering any agreement. You should stick with your preferred provider because of the positive experience and the growth of your business, not because you’re locked in to a lengthy contract.
- Consider the technology:
Several major payment gateways were designed before smartphones and tablets, and haven’t changed since. Bear this in mind if you want to provide a convenient and enjoyable shopping experience that your customers will come back for! If you’re working with a developer to implement your payment processing, get their expert and honest advice on the back-end technology. Ecommerce is a fast-paced discipline; you’ll want to choose a system that can cater to your growing business and future needs.
- Customer support is key
Unexpected situations arise at the most inconvenient of times. Minimise disruption to your business by making sure your payment provider is always available to help with customer support from a real person. You could spend hours or even days working on problems that a payments expert can resolve within minutes.
- Currency options:
An important factor when selling to international customers is your ability to advertise prices and process transactions in their local currency. Take note of the different currency options offered, if any, as a lot of payment processors only support AUD currency transactions. This is a key consideration if you want to give your customers the option to pay in the currency they choose, or if you’re considering a global expansion further down the line.
- Pricing and hidden costs:
Cost is a key decision-making factor when choosing a payment processor, but don’t fall into the trap of simply going for the lowest rate. Many payment processors have hidden costs that can depend on any number of factors such and type of credit card and processing options. Steer clear of those who will sneakily charge you a minimum monthly fee just for having the account open, or exit fees when you need to upgrade to another provider.
As you can see, there are a number of factors to consider when choosing the payment provider that’s right for your business. Take the time to understand the features, prices, and support available to help your business, and you’ll be well on the way to ecommerce success.
About the author
Chris Dahl is Director of Sales & Growth at Pin Payments, Australia’s first all-in-one payment provider, making it easier than ever for businesses to accept payments around the world without a traditional gateway or merchant account.