Get More From Your Payment Processor

Getting more from using payment processor reaquires the understanding of what a pay payment processor is. Simply put, a payment processor is often a third party that handles transactions from various channels such as credit cards and debit cards for merchant acquiring banks. They are usually involved in making transactions on behalf of the customers based on customers choice and needs.

Payment processors exist in forms like;  payment gateway,  mobile apps , POS,  and bill payers. Payment gateway specifically,  is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, and traditional stand engagement. Here’s how to get more from your payment processor:

  • Know which charges are required 

Payment providers charge for access to their platform, for instance the gateway, and their payment methods. They make money whether your transaction is successful or not. Additionally, they impose fees when a card is declined, during refunds and charge backs. Therefore, ensure that every transaction in which you would involve payment processors is worth it.

  • Understand the terms and conditions of the service

Most payment processors do not favour recurring transactions. They have provision for recurring online payments via a wallet online. This is usually done via a third party partnership which means there is another party to manage, another negotiations for rates, and another contract to sign.

Although many payment processors have transparency in their gateway fees, there are many hidden fees that aren’t transparent in payment processing such as customers call fees.

Hence, you as a customer should get more informations about the expected norms and procedures requirement for the transaction, this will enables you to know how to challenge or complain if there is any mismanagement of funds or error in your transaction. 

  • Request to make payment on your behalf

You stand to gain a lot of benefits from involving a payment processor. The benefits can be enjoyed when you request for their service in making payment on your behalf. Importantly, you must understand that they can only be involved in your transactions when you request for their service. This means payment processors have no insight into or control over how the authorizations are handled. They fully understand your role and utilize your power whenever you want to engage payment processors.

  • Get to know the players

There are many payment-processing companies to choose from, each with its own services and conditions, as well as niche agents that cater to certain types of companies. You are advised to do your homework well and stick with the larger, well-known agents with attractive packages.

  • Understand that there are different card rates

Business owners will pay different rates for the different types of credit cards they accept from customers. Fees usually range from about 1.0 per cent to 2. 8 per cent per transaction, depending on whether it is regular, premium card or even a smart app. Small-business owners should also accept debit cards, not just because it’s another payment choice for customers, but also because the transaction fees are often lower. As you use payment processors repeatedly you would get to know it is a competitive industry that includes a number of independent, sometimes aggressive sales people based on business interests.