What Payment Processor Is The Best?

The best payment processor is the one that will give you the most flexibility, and the ability to accept payments from all of your customers in a way that makes sense for them.

There are many options out there, but not all of them can do everything you need them to do.

Things To Consider When Choosing A Payment Processor

There are several things to consider when choosing a payment processing company:

 

1. 1. Do they have an API (application programming interface) so you don’t have to write any code to integrate their services into your website or app?

1. 1. Can they process credit cards, debit cards, gift cards, Apple Pay, Google Wallet, PayPal, Venmo, Zelle, Square Cash, Dwolla, etc.?

1. 1. How much money do they charge per transaction?

1. 1. Are they PCI-compliant? Do they offer fraud protection features like tokenization?

1. 1. Is it easy to set up new merchants on their platform?

1. 1. How well does their customer service team respond to issues?

1. 1. Does their support team speak English?

1. 1. Is their software intuitive and user-friendly?

1. 1. Will they be able to help me if I run into trouble with my account?

These are just some questions you should ask yourself before signing up with a payment provider.

Best Payment Processors For Small Businesses

PayPal

PayPal has been around since 1998 and was originally created as a tool for eBay sellers to receive payments from buyers.

Since then, it has grown into a full-fledged online payment solution that allows businesses of all sizes to accept payments from customers anywhere in the world.

It offers a free merchant account option that lets you start accepting payments immediately without having to pay anything upfront.

Pros

 

• • Easy to use – PayPal’s simple interface makes it easy for anyone to get started.

• • Free – PayPal doesn’t require any fees or monthly minimums.

Cons

 

• • PayPal only supports credit card transactions, which means you won’t be able to take payments using other methods such as Apple Pay, Google Wallet or Venmo.

Apple Pay

Apple Pay is the mobile payment system developed by Apple Inc. It works with both iPhone and iPad devices and requires no additional hardware or software.

Instead, it uses near field communication technology that enables users to securely send payments to retailers via NFC chips embedded in the device.

Pros

 

• • Works with iPhones and iPads

• • Easy to use

Cons

 

• • Requires iOS 8.0 or later

• • Only available in select countries

• • No Android version yet

Google Wallet

Google Wallet is the digital wallet service offered by Google Inc. It allows consumers to make secure purchases at participating stores through their smartphone.

Transactions are handled directly between the consumer and the retailer, eliminating the need for third-party payment providers.

Pros

 

• • Available in over 40 countries

• • Simple design

Cons

 

• • Limited availability

• • Not supported on certain phones

Square

Square is a mobile point of sale (mPOS) application designed specifically for small business owners who wish to accept payments from their customers. It provides tools for managing inventory, tracking sales, and taking orders.

Pros

 

• • Accepts credit card payments

• • Allows for real time updates

Cons

 

• • No support for recurring billing

• • Only available in US

Venmo

Venmo is an app that allows you to transfer money between friends and family members. Unlike traditional bank accounts, Venmo doesn’t have any transaction limits or overdraft charges.

All transactions are processed instantly, so there’s no waiting period when transferring funds.

Pros

 

• • Instant transfers

• • No fees

Cons

 

• • Can only be used to transfer money between your own contacts

• • No support for recurring payments

Why Do I Need A Payment Processor?

The most important thing to consider when choosing a payment processor is whether they offer enough flexibility to meet your needs.

Some services will allow you to set up recurring payments and charge different amounts each month, while others don’t. Some can handle multiple currencies, while others limit you to one.

If you plan on selling products online, you should also check out how well they integrate with popular ecommerce platforms like Shopify and BigCommerce.

You may also want to look at what kind of security measures they take to protect your data.

How To Choose A Payment Processor

There are several factors to keep in mind when selecting a payment processor:

Security 

Make sure that the company you choose has a good reputation for protecting customer information. Look for companies that provide PCI compliance certification. This ensures that all sensitive financial data is encrypted and stored safely.

Integration 

Find a provider that offers easy integration with popular ecommerce platforms. If you sell physical goods, this could mean integrating with shipping carriers like FedEx and UPS. For virtual goods, it might mean connecting with popular marketplaces like Amazon Payments.

Flexibility 

Select a payment processing solution that gives you plenty of options for setting up recurring payments and charging customers based on different criteria.

Support

Check out reviews from other merchants who use the service to see if they had any issues getting started. Also ask them about their response times and level of technical support.

Payment Processing Fees

Most payment processors charge monthly subscription fees ranging anywhere from $5-$15 per month. These fees cover everything from the software itself to the merchant account that processes your transactions.

Some providers require additional setup costs before they start accepting payments. Depending on the size of your business, these setup fees can range from $100-$500.

Recurring Billing

Some payment processors let you create subscriptions using their platform. Subscriptions are billed automatically every month, which makes it easier than having to manually add new charges to your invoices.

You can also set up recurring payments for specific events like birthdays or holidays. When someone purchases something during those dates, you get charged again.

Customer Support

When you sign up for a payment processor, make sure you know exactly what kind of support you’ll receive. Will there be phone support available?

How long does it take to respond to emails? What happens if you have an issue after hours? This knowledge is crucial when choosing the right payment processor for your business.

Conclusion

To conclude, the best payment processor is going to depend on your individual situation. There are many factors to consider, including price, ease-of-use, and compatibility with various ecommerce platforms.

However, there are numerous renowned companies that offer payment processing services so you will undoubtedly find the right processor for you.

For more articles on the subject, visit our payment processing expert guides.