Over the last decade, payment service providers (PSPs) have made a range of payment methods available to customers, particularly when it comes to online payments. With new payment options becoming available regularly, customers have a lot of choice when it comes to finding businesses that offer flexible payment options.
Accepting digital payments and providing your customers with a range of flexible payment options may initially seem like a daunting task associated with an increase in your expenses and the need for additional training for your team. Security issues may also be a key concern. Fortunately, PSPs address the common challenges and risks associated with introducing new payment options in a business.
In this article, we outline what you need to consider when choosing a PSP.*
What is a payment service provider?
A PSP is a third-party company that business owners use to accept a wide range of in-store and online payment methods, including credit cards, debit cards, e-wallets and bank transfers, to name a few. Also known as a merchant service provider, the key function of a PSP is to ensure all of your transactions are completed safely and securely.
What do payment service providers do?
The PSP manages all parts of a transaction from start to finish. In short, it ensures all of the information from the customer’s credit card provider or bank is correct and securely sends this information to your business’s merchant account to complete payment. All of the infrastructure around transferring this information is known as a payment gateway.
What should you look out for when choosing a payment service provider?
When your business started and had very few customers, you may have picked the first PSP you came across. While this provider may have served its purpose for some time, business owners often outgrow their initial provider, requiring a platform that can do more and grow with their business over time. Some key things you should consider when you’re choosing a new PSP include:
Some providers will charge upfront fees, while others charge a percentage and a small fee depending on the payment method and amount. As your business grows, you’ll want the most cost-effective fee structure while getting the features your business needs.
Some platforms offer transaction reporting features which can make account reconciliation and financial reporting more efficient.
Integrated payment platforms such as Spenda automate transaction recording through automatically feeding data between the platform and your other business systems.
Did you sign up with a PSP that provided extra features just in case you needed them? Look at which features are essential for your business and remove what is not necessary.
Check if your current PSP can handle a sudden increase in payment volume.
If you sell to overseas customers, check if your current PSP offers a streamlined and cost-effective solution.
When researching for a PSP, analyse the level of support you receive. This can be a good guide of how much support you can expect when you are a customer.
Choosing a provider that offers as many payment options and flexibility as possible for your customers is critical. With a variety of payment platforms available today, by introducing a single integrated platform you can streamline your operations and expenses while creating a better customer experience.
Why you need the right payment service provider for your business
Choosing the right PSP and ensuring your customers have a positive buying experience is critical. Spenda’s platform provides business owners with all the tools and systems they need to offer customers flexible payment options to get paid faster.
Our intuitive interface provides:
- Secure transaction processing for your business and its customers
- Seller protection and fraud prevention
- The ability to accept multiple currencies
- Integration with your other business systems, such as accounting and inventory management software
- Support as your business grows and changes
- A user-friendly interface for you, your staff and customers
- Flexibility for you to choose and pay for only the features you need
- Ledger to ledger reporting and integrated payments
Master your payments with Spenda
Our fully integrated payments platform which works with other major software programs you may use in your business will ensure you can accept a range of payment methods and reduce issues like late payments. No matter what industry your business operates in, Spenda can work with you to tailor a stack of solutions that best suits your business.
We know a business’s needs will change over time as technology and industries evolve. Our technology is always up to date, ensuring we’re continuously improving our solutions to meet customer preferences and deliver the latest features and functionality in payment and business management technologies.
Click here to book a demo and learn how Spenda’s products can improve your payment processes, provide payment flexibility and help your customers to pay you on time.
*This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.