Every eCommerce business needs to find the right payment processing partner to enable smooth financial transactions with customers. This decision carries great weight – choose wisely, and your payment processor will seamlessly keep the business flowing for years to come.
Choose poorly, and you may encounter headaches like clunky integrations, scaling limitations, and confusing fees.
It’s a key decision with big long-term implications. The payment processor that looks good today may bring frustrations tomorrow if not properly vetted. How can online business owners avoid buyer’s remorse and confidently pick the right solution upfront? By simply steering clear of the five common mistakes we will list in this article…
The key is finding a payment partner you can grow with, not a middleman skimming pennies. One that aligns with your business values and supports your vision. Keep that partnership mentality at the forefront when evaluating your options, and you’ll be well on your way to online payment processing success. Onward to avoiding those key mistakes!
Not Vetting for Security
Most business owners ignore the dry acronym soup around payment security – PCI compliance, TLS, SSL. Let’s speak plainly: would you build revenue on a crumbling foundation? Probably not.
Yet, that’s exactly the shaky ground many stores stand on when shrugging off security vetting. And make no mistake, the cyberwolves are at the door – over 480 million records were breached in 2022 alone!
PCI compliance and sturdy data encryption are the bare minimum here. No system is impenetrable, but to partner with a processor that treats security as an afterthought is simply setting yourself up for failure. As they say, “a chain is no stronger than its weakest link.” With this in mind, bet provider security thoroughly, or suffer the costly consequences of vulnerability in the wild wild web’s shadowy alleys.
Going for the Cheapest Option
With slim profit margins, the temptation looms large to search out the most affordable payment processor. However, in this arena, the bottom-dollar option often leads business owners down a path of pitfalls – terrible UIs, convoluted reporting, system outages during sales spikes, and sudden account freezes or closures. Saving a few dollars today can end up costing you far more down the road in wasted time and lost revenue.
Vetting essential features, reliability, stability and customer support should be prioritized above chasing down a bare-bones bargain. Investing a little more up front can yield substantial savings by eliminating tedious manual work, avoiding rollbacks and errors, and enabling generally smoother business operations.
By all means, compare your options and shop around for a good deal, but don’t sacrifice foundational components that keep your financial engine powered up and humming. Selecting solely on price tag rarely builds an agile and sturdy payment fortress prepared to stand the test of time and growth.
Not Comparing Integration Options
You wouldn’t try assembling a jigsaw puzzle blindfolded, yet many businesses handpick payment processors without vetting integration compatibility – and the result is the same frustrating mess. Clunky platforms, missing plugins, workaround “custom solutions”, endless emails begging for updates and bug fixes. You wanted seamless sales channel fusion, but ended up with a software tower of Babel.
Seamless integration should be a non-negotiable criteria when evaluating payment solutions, even if it bumps up initial costs. With this in mind, rigorously compare native APIs, existing plugins, dashboard UI, and documentation among top contenders.
Don’t box yourself into technical debt and endless workarounds – demand flexible tools built for simplicity from the start. Smooth connections make smooth operations, while complex rigging risks knotting the lifelines keeping business flowing.
Not Carefully Reviewing Terms
In the complex payment processing landscape, the fine print terms of service often contain critical details that impact customers down the road. Key areas to review include contract length, renewal procedures, fee structures, and the arbitration process for resolving issues. It’s important that you put these under the microscope rather than glossing over all the legal language.
As mentioned earlier, try to partner with a provider whose terms align with your business values around transparency and flexibility. Seek contracts without auto-renewal clauses locking you in long term. Make sure fee schedules don’t disguise hidden costs.
Taking the time to carefully compare terms now prevents nasty surprises that can limit success later. The details matter – keep an eye on the fine print as well as the big picture when evaluating partners.
Not Considering Scalability
When assessing payment processors, there’s one evaluation area that often gets overlooked – the ability to smoothly scale up over time. It’s tempting to fixate on current transaction volume and features. But future-proofing for growth is crucial to avoid seismic business disruptions down the road.
Make sure you vet each potential partner carefully on metrics like: maximum transactions per month, tools for rapidly detecting fraud with larger volumes, tiered pricing for growth stages, complex channel integration scalability, and resource capacity for supporting you through exponential evolution.
Even flourishing companies can outgrow initial systems capabilities. And ripping out/replacing financial infrastructure mid-flight can cripple operations with revenue lulls and customer attrition. Save yourself the headache by picking payments solutions engineered to seamlessly scale at the pace of your hard-earned success. Think long-term – plan for the business you want to become, not just the one you are today.
Choosing a payment processor is an unavoidable part of running an online business. Handle it right, and your store’s future shines bright. Fumble it, and you may end up trapped knee-deep in quicksand as opportunities sink out of reach. As such, you need to find a vendor that will let you put payments to the back of your mind while you focus on what really matters – running your business.