Q:

How do you choose a good online payment processor?

A:

Quick Answer

To choose a good online payment processor, consider cost, debit card and PayPal processing; processing application programming interfaces and site testing; digital security; and customer support. Read the terms and conditions carefully for hidden costs and cancellation fees before signing a contract with a provider.

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Full Answer

Cost is an important factor to consider when choosing an online payment processor because charges vary from one company to another. The start-up cost typically covers configuring the processing engine and setting up a merchant account. Service providers charge in different ways, including a flat per-transaction fee, variable per-transaction charge or month-to-month payment plan. Consider which kind of payment best suits the businesses’ finances and structure before choosing a provider.

Apart from traditional credit cards, as of 2015, online consumers are now using debit cards and PayPal for online purchases. Each of these types of payments is processed differently. A good online payment processor should be able to cater to the different types of payment seamlessly.

Business owners who want to write their own custom codes for online transactions should use providers that issue processing APIs to developers. Similarly, the service providers should offer site testing to ensure that the processing engine runs smoothly before it is used by the public.

A good provider should have adequate security including data encryption to avoid theft and fraud during online transactions. Additional security features may include CW2 verification and VeriSign SLL certificates.

Lastly, payment processing problems need to be addressed immediately for the success of an online business. Although round-the-clock phone support may increase the price of the service, it may be worth the cost because efficient and effective payment processing is an integral part of any business.

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