Payment processing can be a difficult task for small businesses, costing them a lot of time and money. While the traditional process can be a challenge, however, there are better ways for small businesses to complete this important task, which can save them time and headaches.
Further, payment processing is the process of taking money from customers in exchange for a product or service. A payment processor is a company that acts as the bridge between businesses, consumers, card networks, and banks to ensure that each transaction goes as smoothly as possible.
While this process is foundational to any company, many small businesses find payment processing to be quite a stressful experience.
There are many reasons why it can cause stress, such as not having the proper infrastructure in place, not knowing how to process payments, or having to deal with high fees. Whatever the reason, however, it’s essential for small businesses to learn as much as they can about payment processing to minimize the stress and headaches that come with it.
5 ways for small businesses to reduce payment processing stress
If you own a small business, you know the importance of choosing the right payment processing company. However, many small businesses are overwhelmed by the responsibility of working with a payment processor.
Reduce your stress with these five tips for small business payment processing:
1. Understand the fundamentals
The first of many factors to consider about payment processing is how the process works in general. It’s important to understand exactly how money flows between the consumer and the business and the payment processor’s role throughout it all.
You also need to know how the card networks, banks, and merchants work together to facilitate successful transactions.
Finally, you need to know how to actually process payments. How do you set up a merchant account? What are the different kinds of cards? What happens if the card gets declined? These are all essential items for small businesses to know about payment processing.
2. Know your customer base
Due to the massive increase in e-commerce transactions recently, this step is vital. Research shows that e-commerce penetration hit approximately 19.6% in 2020, up from 15.8% in 2019. That means more consumers are making purchases online than ever before, and your customers may not be as local as you initially assumed.
Once you know who your customer base is, you’ll be able to focus on finding the right payment processor that can ensure successful transactions for the people you’re targeting.
3. Take advantage of automation
One of the most effective ways for small businesses to reduce the stress of payment processing is by using automation.
Payment processors can handle much of the work involved so that you can focus on other tasks for the business. This is especially helpful for small businesses that don’t have the time or resources to manage the entire process themselves.
Examples of payment processing automation can include:
- Automatic payment submissions
- Automatic alerts and notifications
- Automatic refunds and chargebacks
- Automatic coupon fulfillment
4. Have the right security measures in place
Whether you’re processing transactions in-store or online, you need to ensure that the transaction is safe. This means the data you’re collecting needs to be secure, you need to use the right encryption, and you need the right payment gateway.
Investing in good payment processors and secure payment processing solutions will help keep your customers’ data safe.
5. Choose the pricing model that works for your small business payment processing
Finally, take the time to research all your options for payment processing solutions. This will not only ensure that you are picking the best working pricing model, but it will also give you the chance to look at the other factors involved, including:
- Technology used
- Customer support offered
- The fee structures
- Payment gateway
- Processing speed
- Fund management, etc.
You need to consider both your customer base and your small business’s needs when choosing the right payment processor to work with.
More small business tips and tricks from the BBB®
Having the right small business payment processing solutions in place can help you not only save time and money, but alleviate some of the stress of your day-to-day activities.
When you have the right tools at hand, you can spend less time worrying about the magic happening behind the scenes and instead focus your attention on your customers and the rest of your business.
Once you’ve found the perfect payment processing system for your small business, you can breathe a little easier and make the most of your day.
Need more helpful tips and tricks regarding small business payment processing? Check out the other information on Better Business Bureau today!
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