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My colleague recently published a piece on selecting a payment gateway and it got me thinking. How do you choose a service - any kind of service - when you're inundated with options? I've decided to use his same basic argument, but changed the focus from choosing a payment gateway to choosing a payment service provider.
Brand recognition, goes the argument, is important - but it isn't everything. As with all things, it's important to conduct a thorough, independent analysis to ensure that your prospective partner is able to meet your needs. Here's a few points to consider when carrying out said analysis:
1. International is better (except when it isn't)
Let's start with the basics. I may be stating the obvious, but the most important point to consider when selecting a payment service provider is their regional capabilities: do they speak the language of your target market(s)? Do they handle the currencies you require? For most businesses, global expansion is on the roadmap. As such, their partners must be truly international.
2. Keep commissions out in the open
It's no secret that processing payments costs money, but problems arise when payment service providers try hiding those commission fees in the fine print. Transparency in pricing ensures you know what you're being charged for, why you're being charged for it, how you'll be expected to pay for that charge, and when you're expected to pay it.
3. The full package
Following up on the previous point, make sure you know the nuances of your contract: what services you can expect your payments partner to cover and which ones you'll need to find elsewhere. Does your payment service provider offer in-house risk management? Can they assist with certification? How about regulatory advice? Before signing on the dotted line, make sure you know exactly what you're signing up for.
4. What does reputation count for?
Reputation is a strange thing: hard-won, easily lost. It shouldn't be the only thing you rely on when selecting a payment partner, though. After all, people are much more vocal about their negative experiences than their positive ones, which means you're likely to read critical, one-sided reviews from disgruntled former clients or possibly even saboteurs. That's not to say negative reviews shouldn't be factored into the equation, just that they ought to be considered in a balanced manner.
5. How to choose a payment service provider
And so we've come full circle, covering everything from global reach to the fine print to financial transparency. But the question remains: how should you actually go about selecting a payment service provider best suited to your needs? It's primarily about research and, crucially, about understanding the demands of your target audience. Actually, it's even more important that your chosen payments partner understands that target audience too.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
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