With any business, payment processing can be extremely stressful. Finding and choosing the right payment processing solution can be daunting, knowing dealing with it could be costly and time-consuming. Plus, once you have one in place, you have to make sure everything works well. You also have to make sure vendors and customers pay on time, as well as any other difficulties that may arise.
However, payment processing is a necessity for most businesses to function properly. How can you reduce the stress of payment processing for your small business?
- Payment processing is the method in which businesses complete credit and debit card transactions.
- The payment processor is the bridge between the consumers, your business, the card networks, and the banks. It ensures validity and smoothness of transactions.
- Taking the time to learn information about the terminology, process, and various payment processing options upfront can save you time, effort, and money in the long run.
What is payment processing?
First of all, what exactly is payment processing?
Payment processing is the method in which businesses complete credit and debit card transactions. The company, called the payment processor, functions as the mediator between the person using their card, their bank, and your business’ bank. It also verifies the validity of the transaction, hopefully making the buying-selling experience smooth-sailing.
So, how can you reduce the stress of small business payment processing?
Understand the basics:
You must first learn some of the technical terms. If the company you’re working with throws a bunch of financial and technologically-advanced terms around, and you have no idea what they’re talking about, this could add to your stress.
Take a quick minute and read up on some basic terms and principles to help you get familiarized with the lingo and relieve some stress.
Get to know the process:
Next, you have to understand exactly how the process works. You should read up on the cash flow, the interactions between all the parties involved, and how actually to process your payments. Once you’ve got a solid hold on the information, you will feel more confident in what’s happening with the exchange of money. You will have a solid grasp on how the money flows between the customer, your business, and the payment processor you’re using. And, you will know how to work your business account, how to handle credit vs. debit cards, and what to do if the card gets declined.
Have a clean user-experience:
Consider the process that comes with the transaction. Is it quick and easy? Try to see if you can improve and refine your checking-out process, so that your customer’s user experience is seamless. With less friction at check-out, there will be less frustrated customers, and less stress for you.
Lean into automatic processes:
Payment processing does not just involve the immediate transaction. Confirmation emails, shipping updates, and even "thank you"s are part of the process. Doing all this follow-up can be a huge job for one person and can cause a lot of stress. You should consider leaning into automation, a term meaning that human input would be minimized. The payment processor can handle much of the work so you or your workers can handle other parts of the business. Small businesses especially see several benefits, as you might not have the time or resources to manage the entire process yourself.
Some examples of payment processing automation can include:
- Automatic payment submissions
- Automatic alerts/notifications
- Automatic refunds
Be confident in your security:
You should be confident in the methods protecting your payment processing. The data needs to be safe and secure, with the right encryptions. By upgrading and being confident in your security, you can prevent headaches from stressful situations such as data theft or fraud.
Pick the pricing model that works best for you:
Take time to research all your options. Different processing vendors charge their businesses in different ways, including markups, tiered rates, and subscriptions. Take a look at your cash flows and other aspects of your business to see which method works with your business.
Make an informed decision:
In addition to price, check out other aspects of each payment processor. Ask about their technology. Do they have analytics and reports? See if they offer any customer support. You could also look into the fee structures, payment gateways, processing speeds, and more.
How do these recommendations help you?
Though this might seem like a lot to do therefore causing more stress, having the right small business payment processing solution from the get-go can save so much time, money, and headache later down the road. When you have the right tools, you don’t have to spend as much time keeping an eye on everything and worrying. You can instead focus on other areas of your business and spend more time with customers.
Small business payment processing shouldn’t be a huge stressor. Remember to follow these steps to breathe a little easier as you go about your day-to-day activities.
Want some more tips? Read some more of our blogs! Reach out to Blue Ridge Risk Partners, today or comparing insurance quotes for your business here!