Finding the right credit card processing provider for your eCommerce store can be difficult and it is not a decision that should be taken lightly. In business, ill-informed decisions can be costly, especially in relation to payments and security. In this article, we will outline the key factors to consider before selecting a credit card processing provider. We will look at what exactly they are, how credit card processing works and supply you with all the necessary information to make an informed decision.
Credit cards are a quick and easy form of payment, however, in the seconds it takes for your payment to be accepted, many steps are going on behind the scenes. If you are using your credit card to place an online payment, the moment you enter your details into the virtual terminal, a number of other actions are triggered. The process not only includes the involvement of issuing and acquiring banks, but also a payment processing provider.
Credit card processing providers play an essential role in this chain of events.
How does credit card processing work?
Once a customer makes a payment to a merchant using a credit card, the merchant then sends the details to the acquiring bank which are then forwarded to the credit card network. The final stage is for the credit card network to authorise the payment from the issuing bank.
What does a credit card processing company do?
Credit card processing providers enable merchants to accept credit card transactions from their customers. They forge the connections between merchant banks, merchants and card networks. Essentially, they allow businesses to securely accept credit card payments.
Credit card processing companies are extremely useful for merchants who accept global card payments as the providers have already established relationships with other international financial institutions. Additionally, merchants are more likely to pay cheaper credit card processing fees as their provider benefits from reduced, bulk rates. They take their fees from merchants, either as a fixed cost per transaction or as a percentage of each transaction.
Credit card processing companies should act as an extension of your team, dedicated to enhancing the performance of your business through increased payments efficiency.
Now we have defined what a credit card processing provider is, we need to establish what makes a good one…
How do I choose a credit card processing company?
Security, expertise and the ability to optimise payment processing are the most important things to look out for when choosing a credit card processing company. You should also consider contract type, fees, flexibility and the ease of integration with your existing payment architecture.
It is worth taking time to research these points and make sure that you are selecting the right option for you and your business. We breakdown what exactly you should be looking for and hope to inspire you to find your perfect match.
Expertise
It’s important that potential providers truly understand the structure of your business and any specific requirements you may have. Likewise, it’s equally beneficial for you to have a good grasp of all the services they offer, so you can choose the solution that works best for you.
Some companies may have limitations, such as not being able to accept payments from specific card issuers. This information is best discovered in the early stages of research, so you don’t waste your time speaking with providers that don’t cover your basic requirements.
Additionally, it is useful for them to have previous experience working within your industry as it means their advice will be tailored and specific to your needs. It should also mean that they are more likely to notice indicators of fraud and be able to act upon them efficiently.
Customer service
Providing expert customer service is also a valuable quality for a credit card processing company to have. As a merchant, you need to know that both your money and the money of your customers are in safe hands. Therefore, you need to consider the level of customer service provided and ensure that there is always a team, or dedicated Account Manager, on hand to offer insights and advice about their platform. Someone should be on hand to answer questions 24/7/365 as credit card payment processing is a crucial part of most businesses and needs to consistently stay up and running.
Secure credit card processing
What is secure payment processing?
SSL certificates, PCI compliance, the use of 3DS2 and tokenisation are all features that your credit card processing provider should be offering to ensure that your payments are securely processed. Credit card processing security is a high priority for many merchants who are looking to protect against fraud. However, only 26% of payment leaders are fully satisfied with their ability to monitor fraud in real-time and with their activities based on these reports. Given this statistic, it is important that your credit card processing company has a strong knowledge of fraud prevention methods. Real-time monitoring of fraud and the plotting of behavioural patterns can prevent the number of chargebacks faced by your company, saving you time and money in the long run.
Explore the security measures that all potential payment providers have in place and decide whether they are in alignment with your standards. Again, you want to make sure that both your business and your customers are receiving a high level of protection to encourage them to place repeat transactions.
Good things to check for are their use of encryption, tokenisation and integrated fraud screening solutions. One or all of these measures should be used to shield financial data and allow you to transfer funds safely. Research by emerchantpay showed that “tokenising transactions can have a huge impact on customer loyalty, and ultimately, the frequency of transactions.” Therefore, offering secure payment processing is likely to lead to increased sales as customer trust increases.
Optimisation
Recent research from emerchantpay highlighted that “65% of payments leaders report that they are coming under more pressure from the business to improve payments performance.”
Optimising payments performance should be the goal of every professional within the industry as it creates a strong foundation for any business. There are many facets of the payment infrastructure that can be optimised, but the focus is ensuring that they are all improved cohesively. Your chosen credit card processing provider should share your goal of optimising the performance of your payments.
If your business operates internationally, the provider you select must have an international payment gateway and the ability to process transactions quickly and securely in all your territories. The inclusion of local payment preferences is key as people are more willing to complete transactions using a method they are familiar with. Your provider should also have the functionality to offer local currencies as this can also lead to increased transactions.
Another easy way of optimising the payment page for consumers is to make sure all applicable transaction fields are available and easily accessible. For example, if they are paying with AMEX there needs to be the option to insert a four-digit security code, not the three digits which are standard for other credit cards. The provider that you work with should also be able to speed up the payment process and reduce the number of steps in the customer’s journey to payment.
Flexibility
Businesses often strive for agility and flexibility so they can react to potential risks and new opportunities ahead of their competition. A customisable payment gateway gives you the ability to adapt to the customer’s payment experience based on their needs. The option for customisation means that merchants are able to react quickly and alter certain elements themselves, without having to go through their provider for every little change.
Easy to integrate
Merchants are often concerned about delivering a consistent user experience for their customers and want to prevent unnecessary upheaval and disruption whenever possible. Therefore, it’s important to consider the ease of integration when selecting your credit card processing provider. You want to be able to implement a process that fits in seamlessly with your existing architecture and doesn’t confuse your customers.
Innovation
Innovative solutions and being able to keep on top of trends within the world of financial technology are also signs of a good credit card processing company. You want to know that you are working with a dynamic organisation who are at the forefront of innovation and always looking for new ways to develop and improve their services. However, it is also important to work with a provider who is not solely preoccupied with change for change’s sake but focused on delivering a robust and trustworthy service.
Exclusivity clauses
Exclusivity clauses are also important to look into as you may not be able to work with more than one payment provider at a time. It is good to know this information from the start as it may prevent you from getting into legal difficulties further down the line.
Contracts
When you get to the contract signing stage with your chosen credit card processing provider, there are a few key factors to look out for. The contract should include the same details and prices that were previously agreed upon with no hidden fees. You will also need to decide if a month-to-month or annual contract works best for your business.
When to look for a new credit card processing provider
If your existing credit card processing provider doesn’t support 3DS2 or is not optimising your payments' performance it could be time to start looking for a new provider. Alternatively, if you are starting a new business you should select a credit card processing provider before you launch your eCommerce store. Therefore, it is beneficial to start looking a few months prior to your store going live so that you have adequate time to research and go through the onboarding process with your selected provider.
In conclusion
The main points to consider when selecting a compatible credit card processing company are security, expertise and the capacity for payments optimisation. Flexibility, innovation and ease of integration are other important points for consideration. It is integral that you will be able to work well with your provider and you both understand each other’s business’ needs and structures. Therefore, make sure you conduct thorough research before reaching a decision and select one that fulfils all of your requirements.
Get in touch to find out about emerchantpay’s range of payment processing capabilities.