At this time, you need to start thinking about how you expect your customers to pay you. What payment processors would make it easier for them to make a purchase? You definitely want them to be happy with their buying experience, so it’s important to know the important things to consider when choosing your payment processor.
So as an online merchant, how do you come up with your shortlist? Understand the 4 F’s to consider in selecting your payment processors.
Speed during check-out matters a lot. It can be quite irritating for online shoppers to have to wait long before their payment transactions are completed. Thus, you must review the ideal gateways in this respect.
For example, American Express has greatly improved their services for merchants by allowing you to connect directly. As a result, you don’t have to pass through any third party processors that may charge you additional fees. And what’s even better is that the response time for authorizing transactions only takes about 1 to 3 seconds!
Fees to Pay
With every payment method, you’ll need to consider the required fee for every transaction. This should be calculated into the pricing of your products. It’s also important to double-check if there are hidden and add-on fees.
Amazon Payments, for instance, outright states that they offer low, volume-based pricing without any other surprise fees. In addition, it’s good to note that PayPal maintains reasonable fees despite its popularity as an online payment method. They are also proud to claim that they charge no setup and cancellation costs.
Naturally, it’s crucial to consider this third F— Fraud protection. Especially with the increasingly hi-tech swindlers and crooks operating online, you ought to make sure that each payment gateway you choose comes with advanced security measures.
For example, a customer will usually find the signs for MasterCard SecureCode and Verified by Visa to give them assurance that their credit card details are well-protected and the purchase transaction is a safe procedure.
Features of Convenience
The last F refers to Features of convenience. Think easy transfer of payments to your bank account, mobile-ready software, order history viewing, anytime cancellation, and more.
Naturally, there’s no one payment method that will offer all of these features and others that you’re looking for. Hence, just try to picture which ones would work best with your targeted buyers. Of course you ought to include the popular ones too like PayPal, credit and debit card payments, Amazon Payment, and AMEX. You might also want to consider a few local banks within your location which also have their own merchant payment gateway programs.
Remember that it’s not necessary to incorporate plenty of payment processors into your online store. Go for the quality ones based on the 4 F’s discussed above.