5-Step Guide to Payment Processor Selection

Choosing a payment processor is a crucial decision for any business looking to securely accept payments from customers – whether you operate in a physical storefront or online. With the growing number of payment processing options available in the market, choosing the best fit for your business needs can be a challenging task, especially if you’re looking to integrate with Salesforce. Luckily, Kulturra currently integrates with 146 payment processors, and that number is always growing, so you’ll likely be able to choose whichever processor best fits your needs.

 

This article will guide you through the five key steps of choosing the payment processor that best fits your business needs. The right payment processor should meet the specific needs of your business, offer competitive fees, provide robust security measures, and be easy to use and integrate with your existing systems. Whether you’re a small business owner, an online seller, or a large enterprise, this article will provide you with the information you need to make an informed decision and ensure a smooth payment processing experience for your business.

 

Here are the 5 key steps to choosing the best payment processor for your business:

 

1. Determine your payment processing needs

 

Before you begin your search, it’s important to understand your business’s specific payment processing requirements. Consider factors such as the types of payments you need to accept, your desired processing speed, and your preferred payment methods.

 

2. Review fees and pricing

 

Payment processors charge fees for processing transactions. These can include transaction fees, monthly fees, and setup fees, among others. Review the fee structure of different payment processors to determine which one offers the best value for your business.

 

3. Evaluate security measures

 

Payment security is of the utmost importance, especially in the current climate of increasing cyber threats. Choose a payment processor that has robust security measures in place to protect your business and your customers’ sensitive information.

 

4. Assess ease of use and integration

 

Look for a payment processor that is user-friendly and easy to integrate with your existing systems, such as Salesforce and Accounting Software (Kulturra does both). Consider factors such as the availability of developer APIs and the ease of setting up and managing your account.

 

5. Consider customer support

 

Choose a payment processor that offers excellent customer support. This can include online resources, 24/7 phone support, and a responsive helpdesk. Ensure that the payment processor you choose can provide the support you need when you need it.

 

Now, for those of you looking for a bit more detail, let’s dive into each step.

 

Step 1: Determine your payment processing needs 

 

This is the first and arguably most important step in choosing a payment processor. Understanding your business’s specific payment processing requirements will help you narrow down your options and choose a processor that fits your needs. When determining your payment processing needs, consider the following factors:

 

Types of payments you need to accept

Do you need to accept credit and debit card payments, bank transfers/ach/direct debit, or other payment methods? Consider the payment methods that are most commonly used by your customers and ensure that your payment processor supports them.

 

Processing speed

How quickly do you need transactions to be processed? Some payment processors offer real-time processing, while others may take several days to process transactions. Consider the processing speed that is most appropriate for your business.

 

Volumes and frequency of transactions

Consider the number of transactions you expect to process and how frequently they will occur. This information will help you determine the processor that can handle the volume and frequency of transactions that your business requires.

 

By fully analyzing and defining these needs, you’ll be able to make a much more informed decision. 

 

Step 2: Review fees and pricing

 

Payment processors charge fees for processing transactions. These fees can include transaction fees, monthly fees, setup fees, and others. When reviewing fees and pricing, consider the following factors:

 

Transaction fees

This is the fee charged for processing each transaction. The fee may be a percentage of the transaction value, a flat rate, or a combination of both. The de-facto industry standard rate is 2.9% + 30 cents per transaction for credit card processing. Review the transaction fees charged by different payment processors to determine which one offers the best value for your business.

 

Monthly fees

Some payment processors charge a monthly fee for using their services. Consider whether the monthly fee is reasonable for the services you will receive.

 

Setup fees

Some payment processors charge a one-time fee for setting up your account. Determine whether this fee is reasonable and necessary for the services you will receive.

 

Other fees

Some payment processors may charge additional fees, such as chargeback fees, refund fees, data transfer fees, or gateway fees. Review these fees to determine whether they are reasonable and necessary.

 

Carefully review the fees and pricing of different payment processors. This allows you to determine which one offers the best value for your business. It’s important to keep in mind that the lowest fees may not always be the best option, as some payment processors may have hidden fees or less favorable terms.

 

Step 3: Evaluate security measures

 

Payment security is a critical consideration when choosing a payment processor. With increasing cyber threats, it’s essential to choose a payment processor that has robust security measures in place to protect your business and your customers’ sensitive information. When evaluating security measures, consider the following factors:

 

PCI Compliance

Ensure that the payment processor you choose is PCI DSS compliant. This is an industry-standard security measure that helps protect against cardholder data breaches.

 

Encryption and Tokenization

Ensure that the payment processor uses encryption and tokenization to protect sensitive information. Encryption scrambles data into an unreadable form, while tokenization replaces sensitive information with a unique code. Kulturra is compatible with tokenization, meaning that if your processor supports it, we’ll be able to store tokenized card information, keeping your customers safe.

 

Fraud Detection

Look for a payment processor that has advanced fraud detection and prevention measures in place. This can include 3D Secure, AVS (Address Verification System), and CVV (Card Verification Value) checks. Depending on the processor, Kulturra supports this too!

 

Data Storage

Consider where the payment processor stores sensitive information. Ensure that the data is stored in a secure and encrypted environment.

 

By evaluating the security measures of different payment processors, you can choose one that provides the highest level of security for your business and your customers. It’s important to prioritize security when choosing a payment processor, as the consequences of a data breach can be severe.

 

Step 4: Assess ease of use and integration

 

When selecting a payment processor, it’s important to choose one that is user-friendly and easy to integrate with your existing systems, as well as any others you plan to use. Otherwise, you’re only creating a larger headache for yourself – technology should solve problems, not create them. Here are some factors to consider when evaluating the ease of use and integration of a payment processor:

 

Developer APIs

Does the payment processor offer APIs for developers to integrate its services into their own applications or websites? If it’s one of our 140+ supported processors, the answer is yes!

 

Account setup

Is it easy to set up an account with the payment processor, and does the processor provide adequate support throughout the setup process?

 

Integrations

Does the payment processor integrate with your existing systems, such as Salesforce and your accounting software? Kulturra can help!

 

By considering these factors, you can choose a payment processor that is easy to use and integrate, and provides the support you need to manage your account and transactions with confidence.

 

Step 5: Consider customer support

 

Customer support is an important factor to consider when selecting a payment processor, as it can help ensure that you have the support you need when you need it. Here are some factors to consider when evaluating the customer support offered by a payment processor:

 

Online resources

Does the payment processor have a comprehensive online knowledge base, including articles, FAQs, and tutorials, to help you understand its services and troubleshoot any issues you may encounter?

 

Phone support

Does the payment processor offer 24/7 phone support, so you can get the help you need when you need it?

 

Helpdesk

Is the payment processor’s helpdesk responsive and able to resolve any issues you may encounter in a timely manner?

 

Dispute resolution

Does the payment processor have a process for resolving disputes, such as chargebacks, in a timely and fair manner?

 

By considering these customer support  factors, you can choose a payment processor that offers the level of support you need. Adequate customer support can help ensure that you have the resources you need to resolve any issues that may arise.

 

Choosing a payment processor can be a complex and challenging task, but by following these 5 steps, you can make an informed decision that meets your specific payment processing needs:

 

1. Determine your payment processing needs

2. Review fees and pricing

3. Evaluate security measures

4. Assess ease of use and integration

5. Consider customer support

 

When evaluating payment processors, consider factors such as the types of payments you need to accept, processing speed, fees, security measures, ease of use, integration with existing systems, and customer support. By considering these factors, you can choose a payment processor that offers the best functionality and value for your business, protects your customers’ sensitive information, and provides the support you need to manage your business and transactions with confidence. Feel free to reach out to our team if you have any more questions!

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