When it comes to running a business, one of the most important decisions you will make is choosing a payment notifications system provider. With so many options available, it’s overwhelming to decide which one is right for your company. In this article, we will guide you through the process of selecting the best payment notification system provider for your business.
Understanding Payment Notifications System Providers
Payment notification system providers, also known as merchant service providers, are third-party companies that offer businesses the ability to accept electronic payments for their products or services. They provide a wide range of payment methods, including real-time bank transfers, and bank-based payments like direct debit, and credit cards. Payment notifications system providers work with payment processors through acquiring banks to manage the entire transaction from beginning to end, connecting all financial parties, and providing a seamless payment experience for customers and merchants.
Factors to Consider When Choosing a Payment Notifications System Provider!Â
1. Compatibility with Your Business
Before choosing a payment notifications system provider, it’s essential to ensure that they are compatible with your business. This means that they should support your countries, currencies, and payment mechanisms. You should also check if they are compatible with your existing systems and software.
2. International Payments
If you are a global retailer, you will need to choose different payment processor PSPs in different countries. Some payment methods may not be available in certain countries, so it’s crucial to choose the right payment notification system providers to help your website go global. For example, if you want to open a website in Sweden, you need to adopt Swish, which more than 75% of residents use for their online transactions.
3. Mobile Payment Offers
With the increasing number of mobile device users, customers’ behaviour changes, and they expect an uncomplicated and efficient online shopping experience. Payment notification system providers that offer mobile optimization for the retailer’s website and provide a high level of brand recognition can increase conversion rates. Some PSPs offer checkout features that allow tailoring the checkout process for each type of mobile device.
4. Technical Requirements
It’s crucial to choose a payment notifications system provider that offers modules that can integrate with your existing software and business processes. Your selected PSP should offer modern and popular integration options, including API connections, redirects, and iFrame connections.
5. Payment Development Security
Payment notification system providers must meet worldwide data security standards, like Payment Card Industry Data Security Standard (PCI DSS), to offer credit card payments. You should choose a PSP that has a BaFin certificate, which allows them to set up escrow accounts to accept payments at banks across Europe and protect transactions in the countries where they have an established escrow account.
6. Services Provided
PSPs offer different services among different providers. You should have a clear outline of what services are necessary and important to the growth of your online store. Some PSPs offer recurring payment processing services, customer support, risk protection from missing payments, and factoring and financial services.
7. Contracts and Pricing
Pricing and collaborative contracts between your online store and PSP are an important part of the selection process. The typical cost model consists of variable and fixed fees, and other fees are currency conversion rates and transaction cancellation fees. For small transaction volumes, some PSPs charge a certain flat fee for each transaction.
8. Overall Reputation
The overall reputation of the payment notifications system provider is an essential factor to consider. Check the number of years they’ve been in business, quality, and level of support. You should also consider additional services such as chargeback management and fraud protection depending on the needs of each retailer.
9. Account Opening Process
The account opening process for some payment notification system providers can be time-consuming and complicated. You should consider this aspect in your full-service contract with payment notification system providers.
10. Recurring Payments
Some payment notification system providers offer recurring payment processing services. This feature is essential for businesses in industries like media and food, in which their customers can access their payment status in a real-time overview and save and retrieve payment data when they want to make repeat purchases. Subscription models should have other available payment methods besides the popular credit cards, such as direct debit or PayPal.
Best Payment Notifications System Providers in 2021
There are several payment notification system providers available in the market, but some stand out from the rest. Here are some of the best payment notifications system providers in 2021:
Trusted by 430,000 merchants from small to medium-sized businesses, Authorize.net offers a straightforward interface and easy-to-use features.
Stripe is available in 25 countries and is highly customizable and scalable, making it a runner-up for the best payment notifications system provider overall.
PayPal is the best payment solution provider for online businesses, including popular eCommerce platforms like Magento, Shopify, and WooCommerce. Over 17 million merchants trust it and have 218 million customer accounts.
Square is the best merchant service provider for brick-and-mortar businesses and the perfect choice for farmer’s markets, food carts, and other mobile merchants like craft booths. It includes a free mobile card reader, and merchants can accept both online payments and in-person with no setup.
Braintree is the best payment notifications system provider for startups, providing merchants with simple pricing, ease of use, and a sleek interface for a seamless checkout experience.
Choosing the right payment notification system provider for your business can be a difficult and time-consuming decision, but it’s necessary and will be beneficial in the long run. We hope this guide has provided you with what you need to know to find a suitable payment notification system provider for your business. Remember to consider factors such as compatibility, international payments, mobile payment offers, technical requirements, payment development security, services provided, contracts, pricing, overall reputation, account opening process, and recurring payments. By following these guidelines, you will make the right decision for the specific needs of your business and customers.