Payment Processor Services – Whats The Right Fit For Your Business

Author: Greg Wong

A payment processor, most commonly referred to as a payment gateway, is often a third party manufacturer or service provider established for the purpose of completing a transaction.

Payment processors may specialize to the different types of payments such as online transactions, phone, or fax while the form of payment can be electronic checks, paper checks, money orders, ACH or Automated Clearing House, and of course most commonly credit or debit card payments.

Payment processor services provide the following depending on the company:

1. A secure payment processing software solution.
2. Support services especially to businesses who want to build their own payment processing systems.
3. Employment of the payment gateway system to businesses or individuals as a partner to allow payment processing transactions.

When selecting a payment processor service for your business, pay close attention to:

1. The security of payment processing services. Because payment processing entities are often third party institutions, they make it a point to offer security in their partnership. Data encryption helps secure the purchasers information privacy and some processors provide additional information transmittal security features that can benefit your customers.
2. For a business online, it will be difficult, if not impossible, to take cash payments. For this reason, stick with credit and debt card processing services that provide benefits and features catering to your specific needs.
3. For a new business, the cost of opening and maintaining a merchant account can be high as you may not meet the transaction volume minimums required to offset fees. Keep in mind what your projected sales volume will be when selecting the best processor for your business.
4. For a merchant who specializes in certain products, it may be best to settle with a payment processor. This is because some payment processor services are only paid when used, programs that can be especially beneficial to high transaction amount but low volume merchants.
5. If you are a merchant operating overseas catering to international clients from various countries choose a processor that can accept payments in the countries you could likely foresee a client. Let the needs of your business dictate the right processing service. 

Payment Processor Services

When recommending the best payment processor service for your business, we take into consideration the following:

1. The needs of your business. Not all businesses are alike, but your needs should dictate your decision. Is your product or service considered high risk? Will you need wire transfer functionality? Do you only require credit card processing? What level of support do you require? Account for what your business needs to thrive before shopping for a payment processing service.
2. The clients for your business. Clientele varies. Make a projection of what your expected transaction amounts will be and what volume you expect? What is the preferred method of payment in your industry and will your processor provide added value to your client base?
3. The business equipment. A business operating online will have no need for equipment as compared to one who operates in a physical location. Some services offer credit card processing terminal rentals or provide purchase options that can benefit your business.
4. The business payment input options. Some businesses offer the option to take payments through mobile phones. Other businesses are online only and require a payment gateway that is secure internet transmission. Your business might need a terminal to be provided by your processor for onsite transaction processing. Your needs will help determine the best solution.
5. The processing costs and fees. Any business should aim to maximize profit and minimize costs. Fees are a major consideration and should be compared when selecting a company for payment processing. Payment processors follow certain fee structures relative to how they operate and the range of services they offer. One consideration for the business owner may be on whether he will use all offerings a payment processing service has, there is no need to pay for features you don't expect to use.
6. The payment processing company's reputation. Awards, testimonials, online reviews and comparative guidelines are available and can help you guage reputation of a service you are considering. The best in the market provide exceptional support, integrated solutions, friendly staff, and hassle free solutions to your needs.
7. The payment processing speed of service. Because of batch processing, time becomes an important consideration for merchants. The time between the merchant submitting the batch information and the duration until the merchant receives funding is worth a careful review.

Ultimately your business should be authorization, batching, clearing, and funding in a smooth, effortless manner. In these times where convenience can mean the difference in business success, finding the right payment processor service is worth your time to research properly.

Your customers will thank you for the extra effort it took to work with a top provider that provides true value and hassle free services.

Article Source: http://www.articlesbase.com/business-articles/payment-processor-services-whats-the-right-fit-for-your-business-5619736.html