Which payment gateway should you use for your online business?

/Which payment gateway should you use for your online business?

There are tens, if not hundreds of payment processing providers out there. There is certainly one for every business type and model, but with so much on offer, it can sometimes be tricky deciding which one matches your business best.

With GBO’s payment optimization assistance you can benefit big time when choosing a payment processor that best suits your business’ needs.

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When deciding on a merchant account provider, consider the following factors to help you make a smart business decision:

5 things that you need to consider before signing an agreement with a payment processor:

  1. Regulation/licensing. What kind of licensing does the payment processor hold? Is it an offshore license?
  2. Is the payment processor a white label? Often times, a payment processor operates the white label of a payment provider. There is nothing wrong with this practice, but knowing who stands behind the contracted service is important so you can be aware of who to call in case you encounter any issues.
  3. Do they know your industry and specialize in it? Payment processing companies tend to specialize in certain industries and know the ins and outs of such industries and the risks involved. This is particularly important for high-risk merchants, which some payment processors refuse to service. It is important that you reveal to the payment processor every detail about your business model. Withholding this information in order to get the account approved, will only result in your account getting shut down at a later stage, when they find out that your business is conducting activities that do not fall within their realm of services. If you are en ecommerce business than you need an eCommerce payment gateway.
    Nightmare case study: A gaming provider decided to engage the services of a PSP and filled out the application as an ecommerce site. They went as far as showing an ecommerce facade just to get their merchant account approved. Once the PSP discovered the real business of the merchant, they refunded all clients’ funds, closed the merchant account, terminated the agreement with the merchant and filed a lawsuit against the gaming company for damages. Rule #1 when opening a merchant account: Do Not Lie.
  4. Fees. When engaging the services of a payment processor, ask for a full disclosure of fees to make sure they are fair. Normal fees should include maintenance fees, incoming fees, outgoing fees, chargeback fees, refund fees, SWIFT, SEPA, intermediators, merchant account fees and the like. It is often a good idea to ask about the merchant account provider’s ability to offer a steps volume mechanism in which your fees are reduced as your volume increases. This is particularly useful for start ups.
    Payment methods.
  5. What payment options are offered by the gateway? What kind of cards are you able to process? Are there any countries excluded from the agreement? Is there an option to accept alternative payment methods such as bitcoin or e-wallets? Do they provide mobile functionality? Having all this information upfront will help you avoid problems such as marketing your services to country A, only to find out you can’t accept credit cards from said country.

we recommend you to visit several ecommerce events in 2017 and gather information from ecommerce processing companies before making any decision.

Summary – When opening a merchant account for the first time, you may encounter the process to be somewhat complex. GBO can help with your payment optimization, making the process of finding the best PSP for your business as easy as swiping a card.

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