Merchants should think of their business enterprise as a well-oiled machine: for it to run effectively and efficiently, all the best pieces must fall into place.
We mentioned in one of our previous blogs that one of the most important pieces of the business puzzle are payment processors. As what the name pertains to, payment processors are mainly responsible for making sure that money flows into your business since they take care of accepting payments on all possible fronts. But for payment processors to work successfully, you have to make sure that the one you choose to partner with truly meets your needs. Now, this is where your ability to decide what’s best for your business comes in.
The good thing about the business landscape nowadays is that there is plenty of competition, which gives you plenty of options to choose from. In setting up a payment processor, you can either work with an acquiring bank that will take care of your merchant account and link to a payment processor, or work with a third-party company called a merchant service provider. Regardless of who you choose to work with, what you need to ensure is that it is the one for you. There are many factors that you must consider in choosing a payment processor so you won’t end up in the wrong hands.
It seems over-the-top, but it’s true; this one mistake in decision could make or break your business. Choosing ill-equipped payment processors can kill your business in many ways, and here’s how:
1 - You might encounter alarming problems with no one to immediately help you
There are many occasions that merchants choose a particular payment processor because it turned out as the most economical choice, even thinking they might have gotten the better end of the deal. What they failed to consider is that the pricing plan they chose may not have a lot of additional services, particularly in offering technical support. There is no way you will be able to accept payments and run your business properly if the system of your payment processor malfunctions. Any technical glitches left unattended for a delayed period would mean losses worth thousands of dollars of potential income.
2 - You get left behind.
You must have noticed by now how many technological advancements around financial services are emerging just to meet the dynamic purchasing habits of consumers. The changes in trends have become even faster now that we have evidently entered a digital phase. If you happen to choose a payment processor that is, forgive us for the term, mostly outdated, you will get left behind. Not all customers make payments the way they were before, and you have to keep up or eventually close shop.
3 - You might be promoting inequality, which is bad business practice.
One of the worst things you could make a customer feel is being alienated, and this could happen simply because you can not accept his payment when there are no problems with others. The same could be said if you are too advanced that your payment processor only accepts cashless payments, which will make the more traditional buyers have a harder time in your store. This could all happen if you have chosen a payment processor that could not accept different kinds of payments.
4 - You will drown in unexpected fees.
There is a reason why you have an operating budget, and that is to not pay for a lot of unexpected fees that you suddenly realized are part of your responsibility as a client of a (bad) payment processor. The thing about closed and signed deals is that once you’re in, it would be very hard to get out. Another thing with bad deals are the expectations that are left unmet, and if you want to continue running your business the way you want it to be, you will be forced to pay for more services.
5 - Your professionalism will be questioned.
This, of course, is not the case for all, but imagine you have chosen a payment processor with no proven track record. You won’t be able to get a general consensus on how they operate due to lack of testimonials from other happy clients as reference. You are putting a lot of things at risk, even your professionalism when dealing with customer concerns, by going for a payment processor that can be ill-equipped.
6 - Privacy of your customers will be at risk.
Your customers will always be concerned with their privacy. You will risk losing their trust and their money if their payment information would turn up in areas that are less predictable and pleasant. This can happen if your payment processor does not have enough technical expertise in receiving payments anonymously, especially with electronic payments.
7 - You become a victim of fraud.
Since more buyers are now preferring card-not-present transactions, you should have a payment processor that can accept online payments, too. Just be sure that your choice is an expert on handling cybersecurity since fraudsters can now exploit online payment methods to steal sensitive information from your customer. You can fall victim to fraud, which will possibly lead to chargebacks and the loss of your valued clients.
All these seven ways will ultimately lead you to losing more customers and potential profit, which are both indicators of a healthy and thriving business. If you want to avoid these risks, always choose a payment processor that understands your market and supports not just its growth but most importantly your own.
Agapay has a pool of trained experts that understand the intricacies of the business world, the merchants’ needs, and the necessary factors that make up a powerful payment processor. If you need more information on how to avoid the risks of losing your business with a great payment processor, one of our experts can help you. Contact us online or call us at 800 644 3909.