3 Tips to Help You Navigate the Complex Maze of Payment Processors
Getting paid effectively, efficiently, and at a fair price is essential. This factor alone could determine the success of your business. What’s more, without the right mix of payment processors, you might struggle to keep your business afloat. And this can be true even if you offer excellent products and services.
For instance, credit cards and debit cards have become an integral part of the economy. As a matter of fact, many people hardly ever touch cash. Therefore, small businesses who haven’t developed systems for getting paid in a cashless economy could lose a significant portion of sales.
However, many small businesses who would have embraced the cashless economy are locked out because of the complexities of the payments industry. For instance, regulations for businesses on Payment Card Industry, or PCI, compliance can be somewhat confusing. This post, however, provides insight into navigating the complex world of payment processors for small businesses.
1. Choose a Technically Savvy Payment Provider
You’ll probably find hundreds of payment processing companies vying for your attention and patronage. It can be easy to choose the service provider with the most interesting marketing pitch or the cheapest transaction costs. However, don’t hesitate to look beyond competitive costs and fees. For example, be sure to choose a payment processor who will make ongoing investments in security and infrastructure.
You also need to be sure that you choose a payment processor that has the capability to accommodate all of your preferred payment methods. Some of the payment methods available to small businesses include debit cards, credit cards, Automated Clearing House (ACH) payments, e-checks, and direct deposits.
2. Ensure That Your Payment Data Will Integrate with Your Accounting System
Proper business accounting is a big challenge for many small business owners. This can be especially true for those who don’t have a background in finance. However, choosing the right payment-processing tool could help you overcome some of the biggest obstacles to keeping proper financial records.
For instance, retail point-of-sale (POS) software integrated with your inventory can automatically update stock levels as your cashiers close sales. In this way, you will have accurate data for reordering items in stock.
In addition, you need to ensure that your payment systems will integrate with your accounting software. Auto-integration between accounting and payments eliminates mistakes that tend to occur with manual data entry.
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3. Understand That Mobile Payments Are Here to Stay
Much of the Western world has made the shift from using cash to running on an almost cashless economy. Now, credit and debit cards make many of our transactions. Customers no longer need to tolerate the inconvenience and security risk of cash.
Interestingly, though, the payment processing world continues to evolve. We are gradually moving away from credit and debit cards to mobile payments and wireless payments by way of NFC chips.
NFC, by the way, stands for “near field communication,” and it means that you can transfer bits of data from one device to another merely by bringing those devices close together. Mobile payments, for example, allow payers to use their smartphones instead of their credit or debit cards.
Mobile payment solutions such as Apple Pay, Samsung Pay, and PayPal and others are here to stay. Further, businesses that accept mobile payments will be that much more competitive. Therefore, when you’re choosing a payment processing firm, be sure that its product has the capability to accept mobile payments.
As with anything having to do with your business, choose reliable partners. An excellent payment processor can help you to forge your way into this new cashless economy.