The idea of choosing a payment provider is shaping up to be something that is extremely important for any business. Numerous aspects need to be considered when looking for a reputable one, so it’s important to ask some questions before making a choice. Who’s involved in an online payment transaction? What factors should be looked at when choosing a payment provider?
In this article, we will discuss what a payment provider is, and some important considerations when looking for a good fit for your business payment needs through a step-by-step breakdown on deciding which one is best suited for your needs.
What Is a Payment Provider?
A payment provider is a third-party fintech company that provides business payment solutions with a wide range of online payment methods, like credit and debit cards, e-wallets, direct payments, and more.
It processes all transactions between the customer and the merchant, making sure they are carried out in an effective way and with good security procedures. In order to get paid by the payment processor, you’ll need to have a merchant account and integrate the service into your site.
Who’s Involved In An Online Payment Transaction?
There are many different parties involved in the e-commerce and payment industry.
Merchant
The merchant sells products, services, or digital subscriptions online. The merchant is responsible for payments made on their website, app, or selling platform. A seller needs to partner with a merchant bank known as an acquirer, which accepts payments and deposits funds into a merchant account.
Customer
The customer is the one who will pay for the products or services. The customer has many different payment methods to choose from. A shopper can use a debit or credit card issued by an issuing bank, an e-wallet like PayPal, Skrill, Google Pay, or Apple Pay, or a direct payment with a bank account.
Payment Gateway
A payment gateway is a third-party company that provides technologies to link the site’s shopping cart with a card processing network.
Payment Processor
A payment processor is an entity that takes all payments from customers to merchants using a variety of different payment technologies. In addition, this service processes transactions through the network, send you billing statements, works with your acquiring bank, etc.
Factors to Consider When Choosing a Payment Provider
You will need to consider a wide range of factors when looking for the best payment processor for your business needs.
Customer’s Safety and Security
It’s extremely important to think of the customer’s safety and security. There are many payment gateways that have made implementing a safe and secure online payment system their raison d’être. They can be IP address restriction, bank confirmation, or 3D secure service, which is the most sophisticated of them all. 3D secure is managed by VISA or MasterCard, depending on your country.
Fees And Service Agreement Requirements
There are a number of payment gateways that offer a wide range of payment methods and features, but it’s important to look at their fees and service agreement requirements. For example, some payment gateways offer better rates for repeat customers or store loyalty features.
Ensure Effective Transactions
Remember that the payment service provider is responsible for processing your transactions and ensuring they are done safely and effectively. So be sure to consider the latest technology employed by various payment processors. At the same time, all the customer transactions should be as easy as possible to boost sales and increase conversions. Just try eliminating redundancies like asking to fill in different addresses or other unnecessary information during online payment.
Making Checkout Easy on All Devices
All payment companies want to make checkout a seamless process for the users and allow them to pay easily. They’ve made a variety of payment methods available for all types of devices. The checkout process should be easy on all the devices the customer uses, such as PCs, smartphones, and tablets.
Multiple Payment Options to Choose From
Payment providers should have a wide range of payment methods available if they provide their goods or services in different countries. The most important things to consider are convenience, safety, and security. Different payment methods can be used at the same time. For example, PayPal and Apple pay can be used with local credit card schemes to make the customer more convenient and secure.
Easy Integration Process
Integrating a payment solution is not a piece of cake. You might need to use a 3rd party gateway for the integration. However, the integration process should be easy for merchants. If a payment gateway has a handy API that allows easy integration, it’s a good option. If you do not have time to make all the customizations, there are always ready-made plugins to help you get started faster.
Availability of Mobile Payments
As technology advances, it’s important to ensure that your payment processor supports mobile payments. When a user wants to check out on a smartphone or tablet, it is also very important to make sure that the payment process is not dragging or difficult. For example, you can use Apple Pay or Google Pay in your app and receive the money directly into your bank account.
24×7 Customer Support
Online payment providers are convenient and safe, but the customer can encounter some problems. If you want to make them feel comfortable after they pay, the most important thing you need from a payment processor is 24×7 customer support. The customer will definitely find it easier to contact the company at any time during the day for any reason.
The Bottom Line
This article taught you about payment processors and their different types. You also know about various things to consider when choosing a payment processor.
Payment gateways are the intermediaries that connect buyers and sellers and process transactions. They can be used to provide various payment types and service features. Whether it’s an online store or website, you will need a payment gateway to accept payments on your site or app.
When choosing a payment provider, the most important things to consider are your company’s needs, the price, and the integration process with your site or app. You should also look at their customer service hours and determine if they have a wide choice of supported payment options for your clients.
