Payment processing solutions are becoming increasingly important for businesses large and small. Standing in as the digital equivalent of the point-of-sale terminal, they allow businesses to take payments online, which is a line of sales that continues to grow each year.
Of course, the digital landscape is constantly changing, with new technologies like cryptocurrencies shaking up modern preferences for payment methods. There’s a lot to take in, but there remain some key considerations to weigh up when picking your business’s payment processing solution or when looking to get a better one.
Should Your Business Accept Crypto Payments?
A very modern debate being had by businesses around the world right now is whether or not to facilitate payments made in cryptocurrencies. On the one hand, they’ve developed a keen following and are growing as a desirable method of pay. On the other hand, the systems required for setup to facilitate the payments will be distinctly foreign to many. Then there are arguments and issues on volatility, whether the effort is worth it for a small market, and understanding the tech.
The core of the technology, the blockchain, offers many possible advantages to users and vendors. Its security measures are generally considered to be superior to existing fiat currency payment systems, predominantly due to the anonymity allowed and the public ledger verification process. Plus, chargebacks can’t be issued as transactions are irreversible. With the right payment system, a business could accept crypto as it is or get it exchanged en route.
Of course, this isn’t necessarily always the case. Transactions being irreversible, for example, could prove to add additional work for businesses that allow quite open return policies, such as apparel stores that let customers try before they buy. With the current systems, it’s often easier to just send a refund than commission a payment back to the user’s crypto wallet. Equally, businesses operating mainly with low-priced products may find the denominations of some cryptocurrencies unnecessary.
On the flip side, one sector that’s growing increasingly keen on bringing in crypto payments is that of online gambling. The speed of transactions is, naturally, a big selling point, but so could be the emphasis on security, particularly for high rollers. The ideal payment solutions for gambling will include crypto payments as an option alongside more traditional methods, meaning players of a range of payment preferences will be allowed to deposit and withdraw their sums without much hassle and with fees kept to a minimum. From there, players dealing with higher sums may wish to give crypto payments a try, as the additional security provided by blockchain technology may offer greater assurance as to the safety of the transaction.
There are therefore good reasons why certain businesses may feel compelled to give crypto compatibility a try, while others not as much. A crucial takeaway here, however, is that there’s rarely any harm in offering your customers solutions that cast a wider net in terms of the many different preferences people may have nowadays.
Top Considerations for a Payment Processing Solution
You need a payments processing solution for your business, and so your pick needs to be a business-minded decision. This means getting the best possible price for what encompasses the needs of your particular business. While a certain payment system may be bigger, better, and flashier, if you don’t need certain features, there’s not much point in paying for them. Upfront pricing and the transaction fees should weigh heavily on the decision.
Next, it’s over to ensuring that the payment system not only boasts hefty security measures, but is also compliant with the laws and regulations of the jurisdictions you operate within. Obviously, keeping your money and the money of your customers safe, as well as their payment details, is of paramount importance. You’ll also need to factor in aspects like fraud detection software and, in some sectors, Know Your Customer checks.
Once these essential hurdles have been jumped, you can explore which are more aesthetically pleasing and integrate more easily with your platform to help create a seamless experience on both ends. So, there’s much to consider, but luckily, there are many options out there to choose from.
Also Read: Why understanding payment gateway charges is critical for pricing
