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What's holding CFOs back from digital finance initiatives


Posted by Matt Osborn - 16 December, 2019

Payment Gateways 101: Choosing a Payment Provider

Nowadays, many businesses opt for a payment gateway from various providers. The main reason is to ensure that payments are regular and in order, while also ensuring that customers have more options when it comes to methods for b2b payments. In this modern day and age, many completed payments happen online. In fact, electronic transactions total well over $41 trillion. Therefore, whether you run an e-commerce business or receive payment for providing services to clients, it's a good idea to implement a payment provider to process your income.

However, there are plenty of providers out there, which makes it difficult to choose the right one for your business. There are plenty of options to choose from, such as reduced costs, additional convenience for businesses and customers, improved security, faster processing and so on. It's up to you to choose the right provider with the right benefits for your company. Here are a few things you should know before choosing a payment provider.

Focus on security 

Properly secure electronic payments in order to protect both your customers and yourself. When choosing a payment path provider, make sure they have proper protection measures ready for your check-out process. Today, online users are mostly savvier and will refuse to do work with companies that don't give proper security. In essence, your payment provider should at least be PCI DSS compliant.

payment security

Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards for companies that handle electronic payments, such as credit or debit cards. The Payment Card Security Standard Council created the gauge in order to shield consumers from unsecured transactions and data frauds. Being PCI DSS compliant grants that your business and provider has implemented proper payment security to keep the safety of your customers.


Proper technology

Technology has progressed a lot in the last few years. Nowadays, payment providers apply various tech to make your payment processing more streamlined and useful. That's why, when choosing a payment gateway, make sure they're using the latest technology for their services.

For instance, you can opt for a provider that gives ACH fee financing. ACH (Automated Clearing House) are electronic payments that move through the ACH network. Simply put, funds get moved from a consumer's bank account to the merchants with the help of a mediator. ACH payments are beneficial for automation, they're generally inexpensive and they yield more efficient record keeping.

Seamless integration

As you may already know, meeting and exceeding the customers' expectations are important and that your check-out process is as seamless as possible. When choosing a payment provider, you have to make certain that they make this possible.

seamless integrationMost payment providers are able to integrate with the most commonly used site and e-commerce platforms. However, before you pick a provider, make sure that they can, in fact, easily integrate with the platform you're using and that they can give you the right result for your customers as well.

For example, is your gateway payment provider able to handle payments for multiple regions and various currencies? This is especially vital if your business operates on a global scale. What's more, ensure that your payment provider can handle transactions from multiple payment options, such as PayPal, invoices and so on. After all, you're looking for a provider that can make transactions more useful for you and for your customers.

Additional fees

As mentioned before, there are many payment providers out there on the market. However, not everyone is suitable for your business. When you're researching various payment providers, make sure you look behind the scenes. The thing you're looking for is additional fees and pricing. Many payment providers often charge you extra, in order to improve their own profits.

Most of the time you can easily spot that there are additional costs involved, but sometimes you have to dig a bit deeper into their offers. For instance, look for hidden bank service fees, refund fees, hidden volume fees, tax reporting fees, excessive downgrades and so on. You should generally avoid providers that are not upfront and honest with you and avoid getting charged extra for things you weren't even aware of.

Payout time


One of the most important, if not the most important, factors when choosing a gateway payment provider is the payout time. As a business owner, you rely on regular payments to ensure you have a positive cash flow. If your provider makes you wait for weeks or months to pay you, then you can easily end up in even more financial difficulties.

For example, if your provider handles your 30-day invoices, but it takes more than that to pay you, then you have serious issues with regular payments. After all, you have expenses, such as salaries, bills, taxes and so on. It's important to assess the terms and conditions in order to determine when the provider makes payments. That way, you will know when the payoffs are in and make plans for your financial status and your cash flow.

Many businesses require a good payment provider, in order to regulate their incomes. However, when choosing the right provider for your business, you have to focus on benefits and convenience that will ensure a seamless experience for both your business and your customers.

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Topics: Finance

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