Also compare the “costs per transaction versus monthly minimums,” says Noah Bleich, co-creator, The TeaBook. “You might get a low processing charge, but watch out for the minimums and extra fees, especially cancellation if you switch.”
4. Think globally.
If your business is or plans on selling to customers outside of your home market, choose a payment platform that accepts different currencies, as “customers need to be able to pay for services the way they want to,” says Kris Nagel, CEO, Vindicia. “Even if your immediate plans don’t call for international expansion, your platform should have the capabilities to expand and grow with your business.”
5. Consider a solution that offers more than just credit card processing – and has good tech support.
“When choosing an ecommerce payment provider, make sure that they have the capability to handle back-end taxation and compliance regulations versus just being able to process payments,” says Hayden Reed, senior vice president & general manager, Digital River World Payments. “It’s great if they can process your customers’ payments, but it’s even more advantageous and efficient if your partner can offer end-to-end support from payment and fraud protection to tax management and financial reconciliation.”
Similarly, “it’s also important to find a vendor that offers strong tech support,” says Shapiro.
6. Don’t pigeon-hole yourself with only one payment solution.
“When we first started out, we didn’t accept PayPal and inevitably lost some sales because of it,” says Schnur. “Luckily our shopping cart platform had an easy solution [for] integrating it into our check out. Today, online payments from PayPal make up 20 percent of our revenue.”
Indeed, while some businesses pooh-pooh PayPal, “a 2013 study by Hill Marketing Group stated that almost 3 in 4 customers preferred using PayPal over a credit card,” notes Ellen Cunningham, marketing manager, CardFellow.com. “Respondents indicated that PayPal was less important when they shop[ped at] larger, well-known websites, but was preferred [when shopping at] small ecommerce businesses.”
And you don’t have to use PayPal as your primary processing method. “You can set up ecommerce payments through your preferred processor and add PayPal Express Checkout, allowing customers a choice of paying by card (through your processor) or through PayPal,” she says.
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