The team of vendors that supports your business is key to your success, but few are as important to your bottom line as your payment processor. Payment options, downtime and fees can all have a considerable effect on customer satisfaction, revenues and expense ratios.
If you have a shortlist of companies that process payments and all seem equally capable, it’s time to fill in specifics. Even you’re just beginning your search, these five questions can help you find the best payment processing company for your business.
What’s Your Level of International Transaction Support?
The answer to this question is most relevant to companies that have a large international customer base, but it’s also important for e-commerce businesses. If, for instance, you’re doing business with a customer in China, not having the ability to receive payment via wire transfer may be an issue, since it is the preferred payment method for international transactions in China.
This is why your payment processor should support multiple currencies as well as payment methods, including mobile wallets and bank transfers. It should also calculate and collect any value-added taxes (VAT) for you, as these tax structures can vary significantly between countries.
Is Your Tech up to Date?
Mobile payments are expected to reach $282 billion by 2021, so offering up-to-date payment technology is key in today’s rapidly expanding number of tech-savvy customers. Your payment service provider should have near-field communication (NFC) capability for digital wallet transactions via mobile devices. Bonus points if they provide integration with peer-to-peer, cost-sharing services such as Venmo.
What Is Your Fee Structure?
This is one of the most significant questions, as it has a direct impact on your bottom line. A myriad of fees can be associated with payment processing including but not limited to:
- Application and setup fees
- Payment gateway access fees
- Interchange fees on each transaction
- Monthly minimum fees
- Statement fees
- Early termination fees
These fees can vary by transaction type, amount and frequency as well as by other factors of your contract terms. Your potential payment processor should be able to explain each fee charged and provide sufficient fee-breakdown documentation.
What’s Your Service Reliability History?
The newest POS systems and low fees won’t matter if a customer’s transaction can’t go through. Questions about outages per year, frequency of downtime and average time to recovery will give you a good idea of how reliable the service is. It’s also a good idea to ask about backup solutions, such as multiple servers or automatic dial-up fallbacks in cases of broadband outages.
What Kind of Support Do You Offer?
Your own preferences will inform your questions here. Companies that are open 24/7 may prioritize customer service as well. Some may want the option of solving basic issues with a chatbot while others require quick access to a representative for in-person help.
