An online business isn’t going to do you much good if you can’t collect payments, right?
There are just as many payment solutions out there as there are email solutions, so like everything else, a bit of preparation will help you make sure to select the platform that is best for you and your business.
The first question is where to find the options for collecting money from customers. There are a lot of places you can look..recommendations from friends/colleagues, Facebook groups, online searches or your current software.
Yes, one of the best places to find recommendations on new platforms is from your current software solutions.
The reason for that is they will likely suggest the online processors (companies you can use to process credit cards or ACH payments if needed in your industry) that they work well with.
The more companies you use that have native integrations, meaning they program them on the backend to work together, the better off you will be in the long run.
I have worked with countless companies who spend more time and money than you can imagine trying to fit a square peg into a round hole. Whenever possible it is best to find a native integration, so ask your current software providers for their recommendations.
Just like with email or delivery solutions, you need to start with asking yourself some questions.
Questions to ask yourself:
How much do I expect to process each month?
Will I be charging people monthly or only one time purchases?
How will I send my customers payment links? Email, website, text message, etc.
Am I setting this up with a personal or business account? SSN or TIN?
Do I need this to work with my CRM or other platforms?
How quickly do I need this to be set up?
Will you be taking in person payments or just online?
Are you selling digital products, online courses, tangible goods?
Once you’ve answered these questions you are armed with the right information to begin your search.
As you make your list of processors you’d like to talk to, get all of your answers together so you can make sure they will meet your needs.
Whether it is Stripe, Square, Paypal, WePay, Auth.net or something else, you will also want to ask 3 very important questions, in addition to the questions you’ve already asked yourself.
First, you want to ask, should you decide to change processors in the future, do they hold any reserves from you. Some companies will keep what they call reserves, just in case a chargeback comes through. I have heard of reserves well into 6 figures depending on sales volume, so this could be a very significant question.
Second, you will want to ask if they offer any seller protection. I worked with a processor named above and had a chargeback come through when an old client decided to change his business, again.
The processor did nothing to fight the chargeback, nor would they allow me to contact his bank to disputer it. Super frustrating given that the work (website, logo, and custom brochures, etc) had already been delivered, and I had his approval in writing. He just changed his mind.
Things like this will happen so it’s valuable to know what kind of protection your processor offers to sellers in situations like this.
Third, what are their fees. All processors charge fees, and they are usually different depending on what payment form is used. Make sure to get a complete list of their fees for successful and unsuccessful payments, returned ACH if applicable, and any set fees or charges as well.
Once you get your information and determine which platform will fit your needs best, it’s time to sign up and get started.
There can be a couple day delay in getting started so you will want to get this set up sooner than later so you can hit the ground running when you are ready to.
If you have any other tips on choosing a payment processor, or experiences that can help us all choose more carefully, please share them in the comments section below so we can all learn from each other.
