Not All Online Payment Systems Are Created Equal. How Do You Compare Them?
When selecting an online payment system for your business, you want to be sure that it fits just right. There are a lot of things to consider when choosing a digital payment system for your business. Before we jump into the nitty-gritty of it all, let’s take a quick look at what exactly an online payment system is.
An online payment system is an e-commerce system that makes both the sending and receiving of funds online possible. A true digital payment system will securely facilitate all of your company’s online transactions. What are the most common types of online payment systems?
- Merchant Account – A merchant account is an account used to accept credit and debit cards. Most processors will offer both merchant accounts and payment gateways to be in use simultaneously.
- Payment Processor – A typical payment processor will handle a company’s credit card and ACH/check transactions. A payment processor will usually implement anti-fraud measures, ensuring high security for both the customer and merchant.
- ACH (Automated Clearing House) – An ACH system allows electronic credit and debit transfers. Your customers will make payments directly from their bank accounts to your business. ACH systems are typically used for monthly bills like utilities, mortgages, subscriptions, and more.
Now, let’s take a thorough look at how to compare online payment systems and choose which one is best for you:
- Consider all fees – Typical fees that you will have to look out for when comparing digital payment systems are:
- Processing fees
- Transaction fees
- Interchange fees
- Chargeback and return fees
- Gateway fees
- Monthly fees
- Consider time – Do you prefer to receive your funds quickly or do you not mind waiting a few business days? When comparing online payment systems, consider the time it will take to receive your funds. Verification and deposit times will vary with each company. For some systems, you will receive your funds by the next business day or less. With other systems, it may take 2 or more business days.
- Consider customer service – Customer service is something you should heavily consider before deciding on a payment system. Keep in mind, you are dealing with your company’s money. If you have an issue, question, or malfunction, you want to be sure that you can reach a support team member quickly. Choose a payment system that has business hours that make you comfortable.
- Consider your business industry and objectives – Different digital payment systems work best for low-risk vs high-risk businesses. Depending on your industry, certain online payment systems will have higher or lower fees. Some payment systems will also have more or fewer restrictions depending on the industry of your business.
- Make sure that you thoroughly understand the fees and restrictions that your business may encounter before making a commitment to any payment system. At SeamlessChex, we happily work with high-risk businesses, without implementing any insane fees or restrictions.
- Consider experience – Everyone has to start somewhere. But you may want to consider experience when choosing a payment system. After all, you are dealing with your hard-earned money. Be sure to properly vet a company before signing up with them. Before deciding on an online payment system, take a look at reviews and social proof.
- Take advantage of free trials – Don’t be afraid to shop around and take advantage of free trials from potential payment systems. Free trials will give you a true feel of how you like what a company has to offer without a full commitment.
How to Choose the Payment System
After taking a look at the different kinds of payment systems and what each may have to offer, you may still be wondering which one will work best for your business. At the end of the day, it all comes down to the needs of your business and what you would like to see as a business owner.
At SeamlessChex, you can take a simple quiz or speak to a payment expert to find out which online payment system will be the best fit for you. We want to help you expand your business by removing the hassle of payments so you can focus on growing your business. Regardless of the industry you operate in, we offer fair and competitive digital payment systems and merchant services to all of our customers.