How Payment Processing Can Help Small Businesses Grow
As a business owner, you already know how crucial it is to provide customers with simple and fast payment processing services. This saves customers a lot of time, prevents transaction delays, and enables them to accept payments quickly.
More payments means more revenue, which is essential to your growth.
In reality, most entrepreneurs and small business owners do not know that payment processing is a great business development strategy that can help SMBs grow.
Here are some ways that can boost your small business growth through payment processing;
- Choose a payment processor that specializes in small businesses
- Digital Payment Methods will widen up your Customer Base
By integrating payment processing, you can drive loyalty.
- Take advantage of recurring billing options
- Go with Integrated Payment Processing to reduce Human Error.
- Increase sales and improve cash flow
- Zero payment processing/Lowered Labor Costs.
Let’s discuss these points in detail;
1. Find a Small Business Payment Processor:
Payment processors with big-name brands are expensive! These globally recognized providers show flashy business advertisements, but often lack the personalized touch that small business-focused payment processors offer.
So, rather than going after big names, find an honest, transparent payment processor who offers flexible payment methods and adheres to your business needs.
Here are the things to look for when you choose a payment processor:
- Support: When looking for a service provider, access to the help you need the most should be your top concern. Easy-to-use, accessible, and fast are the three things that give customers peace of mind.
- Reliability: Processing uptime is another important factor to ensure smooth business operations. So it is always advisable to find a credit card service provider with a long track record of handling problems and is dependable in such instances so processing for your business is never down
- Security: The fallout of data breaches can be devastating; therefore, securing sensitive data is another consideration for businesses that accept card payments. Find out which security program your service provider offers and how they can help you.
- Experience: It’s always best to seek advice from someone who is trustworthy and experienced. In order to learn more about credit card providers and their solutions, you may need the assistance of friends and colleagues.
Either you are accepting payments online, in person, or by mobile. Choosing the right payment processing partner can deliver your team the personalization needed to scale your business profit!
2. Digital Payment Methods will Widen up your Customer Base:
According to the study from business wire, the global digital payment market is expected to reach unexpected heights by 2022.
There was a time when simply accepting credit cards for payments would be enough to set a business apart in the eyes of customers. Today, online payment methods like digital checkout, mobile payments, and eBank transfers are the new normal.
As a result, small business owners can increase their customer base and retain existing ones by opting for these new digital payment options.
3. Payment Processing Can Drive Loyalty
Did you know, with consumers in power, your business or brand is easily replaceable if you do not make purchasing convenient and smooth.
In addition, the customers want more control and transparency; so, how will you improve customer loyalty?
The unprecedented technological innovations drive the future of payments. This is something that small businesses can use to gain access to capital. One way to do this is by offering loyalty programs managed by payment processes. This will attract and retain more customers and helps you get insights into how your customers interact with your business.
You can also reach your customers by providing seasonal promotions, exciting deals, and other offers. Also, you can include customer loyalty points that will automatically capture their attention and increase engagement.
In addition, loyalty programs will provide you with valuable information that you can use to improve your products, services, and customer experience.
4. Take Advantage of Recurring Billing Options:
Maintaining recurring payments is quite challenging, but not with the right payment processing solution. With recurring billing, you can ensure a steady revenue stream for your small business.
This means that you will get a regular flow of money unless your customers cancel the subscription. Customers prefer services that fit into their monthly budgets, and if you provide exceptional service, you can expect more revenue and sales.
Furthermore, recurring billing will also help increase the acquisition numbers and the chances you’ll keep them coming back month after month.
5. Zero Payment Processing and Lowered Labor Costs:
Ensure that the payment processing company you choose does not charge unnecessary fees. The fee might be for non-transactional services such as;
- Fees for processing
- Account maintenance
- Terminal rental
- Statement fee
- PCI non-compliance fee
- PCI annual fee
- Regulatory product fee, and more
Big giants like Paypal, Stripe and Square all charge around 2.5% per card swipe. This means that your total fees charged will be equal to the overall sales volume per month. This way, you will lose hundreds of dollars as a processing fee, and in other hidden expenses.
You can avoid this by choosing a zero-fee partner like Gettrx, which gives complete payment transparency.
“Moreover, you will be saving dollars instead of being charged a processing fee!”
6. Reduced Human Error:
In the payment processing industry, human error can lead to many unwanted situations, including fraud. Errors can be made by employees and others that put your system at risk.
Here are some tips for minimizing human error in payment processing:
- Opt for Contactless Payments: A recent survey indicates that mobile commerce spend for digital services will increase by $3.79 trillion by 2022 with more than 2.7 billion consumers using digital payment apps by 2022. Additionally, customers are reducing physical contact with the POS to minimize touchless payment, allowing them to purchase anything without entering a PIN code.
- Use Biometrics: Biometric is the future of payments, as it allows you to do everything
without physical elements, and it’s extremely secure. When combined with a second authentication like a secret code, biometrics is an advanced payment solution.
- Paying through Smartwatches: Thanks to the NFC chips in smartphones, smartwatches are now able to accept contactless payments.
7. Payment Processing Boosts Sales and Improves Cash Flow:
Cash-only stores hinder sales and cause businesses to lose hundreds of potential customers. If you incorporate credit card processing software into your business, you can increase sales and expand your customer base.
People use credit cards because they are legal, safe, and convenient.
The payments made with credit cards are also electronically processed, meaning that they will settle quickly and proceed immediately. Also, these payments are deposited rapidly in the bank account, resulting in increased cash flows.
By accepting cashless payments, you will also save time and stress relating to checks, bills, and invoices.
Pro-tips to Double Up the Payment Processing Benefits
Now that you know how payment processing can help grow a small business, let’s look at the top 4 factors to consider when choosing a payment process.
Factors to Consider When Choosing a Payment Flow for Secure Transactions:
1. Choose a Processor Gateway Appropriately: The payment gateway you select should be able to scale along with your business as it grows. Therefore, you need to choose a payment gateway that fits your needs. Here’s what you need to do:
- A site with an integrated payment form that sends information to a payment gateway. Upon submitting the form, all of your information is sent to both the payment processor and the service provider through an API call. If your site has an integrated payment gateway, your credentials will be encrypted and secure.
- Redirect for payments: Integrate the redirections to ensure fast payment solutions. Direct customers to the secure, hosted payment page or have them enter their information in the embedded form.
- Using Escrow: This payment gateway is often used by eCommerce platforms, which can withhold the funds before the respective person grants them. For instance, when your website works as an intermediary for trading, you might need a one-platform store where both parties’ traded funds are kept.
- Ensure your platform is secure: Many big brands have raised the bar on the online marketplace by raising client expectations. So, even if you run a small business, your clients might expect a high-quality, responsive website with secure payment options and a variety of features.
Also, make sure your payment provider is certified and has accredited information security standards like PCI-DSS. PCI security standards are mandatory for card brands, but are administered by the Payment Card Industry Security Standards Council.
2. Look for Pricing and Service agreement requirements: Payment gateway pricing is determined by the type of transaction your business makes (online or in person). It also depends on sales, revenue, consistency of payments, frequency of transactions and the market your business serves.
So, it is important to compare how different business models are related to your payment provider. There might be a few services like setup fees, contracts, or any charge transaction fees.
3. Look for Easy Checkouts: The majority of sales are now conducted through mobile devices. So when researching payment gateways, make sure you check the level of experience your provider offers. Keep in mind that the process should be smooth and the same for all devices.
4. Smooth and Easy Integration: Online payment gateway integration is not an easy process. However, most of the providers give detailed instructions for this. The ideal solution to make things hassle-free is by choosing a gateway system that does not hinder your website’s user experience and does not slow down processing.
Conclusion
The payment processing industry has evolved beyond just payment processing; it now includes technological innovations and adaptations. Moreover, customers are likely to spend more with merchants they know and trust, and who offer advanced payment solutions.
As a business owner, you should make it your top priority to provide smooth payment solutions. Selecting an intelligent payment platform, such as GETTRX, will help you keep your business successfully running and will ensure the success of your business.
