The Most Common Reasons for Changing a Payment Gateway
There are many players on the market that can offer you better payment solutions, higher conversion rates, or a bigger set of features. So maybe it’s time for you to consider a new payment provider.
Not all digital payments are the same. Before you leap to a new payment solution, consider whether it will impact your customers and bottom line. Do the math before making any decision and think about whether your current provider fulfills all your business needs. Below, you’ll find the most common reasons for switching payment processors.
When it comes to payments, the technology always needs to be up and running when you need it. When your current payment provider reports frequent downtime, your business suffers due to unplanned outages. Payment processing issues can cost you money and customers. Every second lost counts against your company.
Sign up and explore the provider’s test environment before you decide to work with them to make sure their system goes above and beyond technology. Look for reliability and scalability, and search for a solution with integration and technology that will give you more control over your payments.
Badly designed UX
Checkout is the most important part of the selling process, so how the payment flow is designed is critical. It’s important for the user to pay directly on your website or in-app without being redirected to an external service. When a payment provider offers an outdated system, your best option is to switch to a more reliable solution.
Terminated merchant account
There are many reasons why merchant accounts can be terminated – for example, because of an unsupported business model. Termination can be frustrating, especially when your business was accepted by the payment provider and then terminated with no explanation after several weeks or months of payment processing. This is why we advise you to always ask for the provider’s supported business models and countries before you apply for a merchant account via a PSP’s website. Doing so will save you a lot of time and headaches.
Low conversion rates
When your website’s conversion rate is too low, your site likely has a poorly designed and overly long checkout process with redirections and distractions for users. If you consider changing your payment gateway, make sure your future provider delivers a solution with a top-notch UX, follows current industry standards, and offers conversion-friendly features such as one-click payment or cross-sales.
Ineffective or lack of fraud protection
Fraud is an inevitable part of online payments, so make sure the payment gateway you want to work with relies on encryption and tokenization services. They should also comply with the PCI level 1 certificate and offer a set of fraud prevention tools and multilayered protection. An effective anti-fraud solution will save you much stress and money as well.
If you feel your payment provider doesn’t provide effective security solutions, it’s time to switch. Data security, especially when it comes to payments, is paramount and has a significant impact on your bottom line and your company’s reputation.
Your needs are not met
Naturally, needs change, especially when your business is growing. What if your current processor can’t support your growth objectives or can no longer keep up with your transaction volume? If your provider is unable to meet the new demands, consider changing your payment gateway.
Sometimes you don’t have to immediately switch to another solution. You might just need a second provider to assist you with these new, complex needs. Search for a provider that offers services that will support your business as it expands. Perhaps you need some custom features to boost your business processes.
If you’re not sure whether another payment provider will meet your business needs, consider having both solutions on your site and analyze your business results for several months. You’ll then see what solution is best for your company, so it will be easier to make a final decision.
However, keep in mind that working with several payment providers can create bottlenecks. You need to sign multiple contracts, manage various accounts, contact different sales reps, or dilute your margins.
Questionable fee transparency
Are you sure you’re not paying more than you need to? When comparing plans and pricing, make sure that the payment processor’s website shows all the fees they charge, so you can know exactly what you’re paying for. Additional charges can add up over time and make some providers more expensive than they initially appear.
Some solutions charge a transactional fee for every completed payment, while others charge monthly fees or use both transactional and monthly fees. Do the math and note that, in the end, it can cost you much more to pay a large amount of money every month or year than paying a percentage of each transaction. What appears to be cheaper in the beginning may turn out to be much more expensive.
Also, note that advanced technology costs money – so you will pay a price, but also get better value. Make calculations to see whether the new bells and whistles will bring more benefits to your business. Ask yourself: What’s more important, the price or the added value you can get (such as user-friendly checkout, highly effective anti-fraud solutions, or conversion-boosting features)? Remember, the savings you can achieve by switching providers should be significant enough to justify the transition.
When running an online business and processing payments on your website, you need to work with a payment gateway that provides super-responsive support. It’s about payments, so any problem must be addressed as quickly as it occurs. The last thing you want is to lose customers because of ineffective assistance from a payment provider.
Business needs change when a company scales up, so the services provided by a payment gateway with outdated technology will no longer be enough. Re-think your payment provider and find one that will be a business partner who speaks the same language and will let your company grow the way you need it.
Switching payment gateways shouldn’t be complicated and doesn’t have to affect the payment process on your site. If you choose well, your new payment partner will steer you through the transition and make it smooth, without any roadblocks, and keep every single transaction in place.
Are you looking for a new payment provider?
If you’re thinking about switching to another provider, consider SecurionPay, a highly effective payment processor. If you’re wondering how to transition smoothly or whether it’s the right time for your business to switch to another payment gateway, contact us to speak with one of our super-helpful team members.
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