5 common mistakes to avoid when choosing a payment provider

1Failing to read the fine print regarding rates and fees

When comparison shopping for a payment processor, keep in mind that a low rate doesn’t always mean a low overall cost. Processors can have high processing fees or variable rates that can make it hard to tell what you’ll really be paying.

For example, some credit card processors charge higher rates for what they call “non-qualified” cards – such as corporate and rewards cards. These cards earn customers reward points or cashback bonuses so they’re popular and a lot of your customers will be using them. Finding after the fact that they come with a higher rate can be an unpleasant surprise so look for a payment processor with transparent fees to avoid the shock.

2Choosing based on rates alone

While those low processing rates might seem great, you shouldn’t choose a credit card processor based on rates alone. There are many factors that can dramatically affect how your business runs and the profit you make, including security, technical support, ease of integration and cost.

3Ignoring security and fraud protection

Data breaches have hit retailers large and small, and customers now demand the best protection possible to help lower their risk of card fraud. As you evaluate vendors, look for a payment gateway that’s backed by a secure, reliable payment processing company. Also look for providers that offer services to help you proactively prevent fraud. It doesn’t just help protect your customers and your business, it also helps ensure you’re compliant with the Payment Card Industry Data Security Standard (PCI DSS), which sets rules for preventing, detecting and reacting to security incidents.

4Limiting customers’ payment options

Today’s customers expect more options than ever, and not just in products and services. They expect to be able to pay online with a range of options. If your payment processor doesn’t allow for the flexibility customers demand, you might see an increase in abandoned shopping carts on your site. Choose a provider that can offer your customers plenty of payment options.

5Going DIY with setup and support

Setting up multiple payment options can take a lot of time and effort if you’re not well versed in payment gateways and online checkout details. Finding a payment processor that can deliver easy setup on your site is imperative and backing that up with technical support is crucial. Every moment of downtime can impact your sales. You need a processor that understands those challenges and has a dedicated team to help support you on payment-related problems.