5 Questions You Should Ask When Shopping for a Payment Processor

For the pioneering entrepreneurs whose eCommerce businesses rely on the ability to accept credit card payments, the search for the right payment processor can be a daunting task. Indeed, a simple Google search for “payment processor” yields over 120 million results. So how do businesses even begin to sift through so many choices?

Whether they’re starting up a new business or switching to a new payment processing system for an existing business, merchants should be asking a few strategic questions that will help them determine the combination of technology, feature set, and support structures that will best meet the business’ needs. Here are five such questions to keep in mind:  

How will it benefit my business in my particular industry? 

Many payment processors tend to have a “hands off” approach to providing their services, and that can mean that their technology isn’t very adaptable to different industries or business realities. Moreover, they probably also aren’t willing to put time and effort into understanding a merchant’s core business. This lack of engagement usually manifests as a cookie-cutter solution that merchants have to adapt to, often to their own detriment.   

PayCafe’s Answer: The eCommerce landscape is fast-paced and ever-changing, and PayCafe knows that businesses need a partner who will dig in and take the time to understand a merchant’s core business and adapt accordingly. PayCafe offers a customizable feature set that can be tailored for any merchant in any industry. Rather than the “set it and forget it” approach of other processors, PayCafe starts by helping merchants get set up to accept payments as quickly as possible, and then works with them on an ongoing basis to ensure that the system is helping them thrive and grow.      

How does it protect against fraud? 

Online credit card fraud continues to be one of the biggest challenges for any business operating in an eCommerce space. For some businesses, fraud can become an absolutely crippling blow to cash flow and the potential for future business growth. Many payment processors claim to protect against fraud, but finding the right service means evaluating the specific tools that are used.

PayCafe’s Answer: Effective fraud prevention requires the latest security technology and a payment processor that is capable of continually innovating. PayCafe has developed our own proprietary system with bank-grade security software designed to protect both the merchant and the merchant’s customers. Additionally, PayCafe is fully compliant with all PCI-DSS (Payment Card Industry Security Standard) regulations. 

What if my business is considered high risk? 

In the world of eCommerce, “high risk” can have different definitions depending on the processor. Regardless of the specific business and its relative strength or solvency, some payment processors won’t even work with a merchant who has been deemed high risk. Even if they do work with those merchants, they have been known to shut down a payment account without explanation or charge especially high fees. 

PayCafe’s Answer: High risk merchants are welcome at PayCafe because our system has sophisticated fraud prevention technology and a robust dispute management system that is designed to reduce risk. As part of PayCafe’s core values of transparency and communication, merchants will always have access to risk-related information and any possible reasons why a payment account might need to be shut down (usually because of fraud, payment disputes, or a violation of account terms). 

What kind of support is available? 

The credit card payment processing industry is full of players who take a “set it and forget it” approach to setting up a payment system; once in place, ongoing support can be anywhere from nonexistent to sporadic. This makes it frustrating for merchants because they rarely can predict every need or wrinkle as they continue to operate and sell products or services. A great payment processing service will have a support system that is reliable and all-encompassing. 

PayCafe’s Answer: For PayCafe, customer support is more than just a simple FAQ and an email form: it’s about going the extra mile for customers so that they are free to run their businesses without getting bogged down by lengthy support requests. This concierge-style customer service system means that merchants will have a helper and advocate who is always available to answer any question or resolve any problem. PayCafe goes even further by offering billing-related support to merchants’ customers; in addition to making life easier for merchants, providing this support allows PayCafe to further reduce dispute and chargeback risk by staying engaged with those customers.

How does it protect against chargebacks? 

Did you know that payment processors can shut down a merchant account if the account’s chargeback ratio is 1% or more? Whether you’re a brand new merchant or you’re looking to switch to a new payment processor, chargeback protection should be a non-negotiable feature. Beyond protection against chargebacks, a processor should also offer a resolution system that allows merchants to easily resolve any chargebacks that do hit the account. 

PayCafe’s Answer: PayCafe understands that chargebacks can be one of the riskiest aspects of operating an online business. To combat this, they offer protections like dispute alerts, an early warning system that can help merchants deal with disputes before they can even become chargebacks. When chargebacks do happen, PayCafe’s dispute management system provides a hassle-free interface to easily respond to and win disputes.   

About PayCafe

Thoroughly evaluating a credit card payment processing service is an important step for any eCommerce business. PayCafe’s vision is to provide an easy-to-use platform for both high and low risk merchants through the right mix of technology and customer support. At their core, PayCafe seeks to be a guiding partner for merchants who are looking for a hassle-free payment processor that offers security, real-time reporting, fraud protection, chargeback defense, and a concierge-style approach to customer service.