If you had a brick-and-mortar business, you would periodically transport your cash to the bank. You might have so much cash that it makes sense to send it to the bank via armored car. Think of a payment gateway as an armored car … a digital one.
A payment gateway helps you make money, but it also costs money. It’s critical to choose a reputable and professional payment gateway provider for your online company whose fees are appropriate for the level of service you need.
Whether your company makes its money by selling nutritional supplements like Complete Nutrition, or provides access to information like Hoovers, for your business to produce revenue, money must change hands. Your company needs a way of accepting those payments that is secure, customer-friendly, scalable and uncomplicated.
When considering how much to spend with a payment gateway, it’s a good idea to be very clear on your needs. Below are some industry standard options worth considering.
If you’d like a Member Solutions representative to help you develop a plan that is tailored to your business, request a free evaluation.
Sign-Up Fees: You may want to reduce costs by looking for a gateway without sign-up fees, however remember to consider the future. If you are planning to process a large amount of payments, or need specific features from your provider, you might find a gateway with a sign-up fee more effective in the long term.
Transaction Fees: Like many things in our world, there are companies who market themselves as the lowest cost solution. Many equate lower transaction fees to higher profits, but your customers want to know that the provider you’ve chosen can be trusted with their financial information. Quality gateways typically have higher transaction fees, but have invested heavily in establishing a solution that you and your customers can trust.
Countries and Currencies Supported: If your product has demand beyond North America, you’ll need to find a payment gateway that supports those locations.
Restrictions on Product Type: Some gateways limit certain products or specify under what conditions you can sell certain products. In fact some payment gateways only allow the sale of physical goods. Be sure to read the terms and conditions very carefully.
I hope that this information has been beneficial and again encourage you to check out Part 1 and Part 2 for a complete list of what to consider when shopping for a payment gateway. To learn more about Member Solutions’ payment gateway and proprietary billing solution, call 267.287.1035.
Rick Ellis is a Business Development Executive with over 20 years of experience operating a membership-based company. Rick has experienced firsthand the types of unique challenges present when using a recurring billing business model. Rick enjoys working through complex business models to find and leverage every opportunity to optimize profit and reduce risk.
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