5 Signs It’s Time to Switch Payment Processors

Payment service providers bind retailers to their clients, enabling them to receive card payments rapidly and efficiently. When someone makes a payment using a credit card, the payment must be handled by an issuing bank that is a legal member of a credit card service. Since these banks bear the entire liability of responsibility for transfers, they are reasonably hesitant to open doors for companies that need payment services.

How Do Payment Processing Companies Work?

For businesses in high-risk sectors (such as antique stores, travel agents, or home furnishings), obtaining a payment service from one of these banks may be daunting or exorbitantly costly. Payment processing firms have an excellent solution, linking high-risk retailers to acquiring banks and credit unions through top segment portals while absorbing all of the compliance risk involved with managing consumer financial data (for instance PCI DSS regulation).

When a retailer accepts payment for products or services, the online payment firm examines the interpretation to check for infringement and then directs the purchase record to the appropriate credit card organization, which may authorize or reject the transfer and grant a reimbursement to the merchant's account.

5 Signs of a Bad or Mediocre Payment Processor

Regrettably, not all money service providers are treated equally. Often payment processors entice retailers by emphasizing all of the directions they can assist them in generating income while forgetting to acknowledge how their stringent practices can stifle development and hinder versatility.

Below are some indicators that your high-risk enterprise might be dealing with a substandard payment processing firm:

1) High Reserve Necessities

Many payment processors impose some kind of reserve condition on their account holders, particularly for high-risk businesses. Reserves are a form of fee used by processors to shield themselves against chargebacks, which arise when a consumer challenges a credit card purchase (this is different from claiming a refund, which is controlled completely through the retailer instead of the credit card provider). There are several kinds of reserves, but the majority include withholding a portion of each contract to create a contingency fund that payment service networks use to offset chargeback expenses.

Since high-risk retailers frequently may not have many alternatives for securing a payment, they will quickly convince themselves into endorsing a payment network's high reserve criteria. Sad to say, many businesses accept much more capital than is needed to pay their chargeback rates. Inadequately, many of them use large reserves to cover for poor trading practices. Instead of trying to improve their fraud defense, for example, they could actually be carrying on the burden of weak security to their clients.

2) Inclusion of Fees

Although no one objects to payment processing firms collecting payments for their direct services, several processors use hidden fees to cheat their clients. Many of these penalties are hidden deep inside retailer account agreements and sometimes go unnoticed by merchants until they get their first invoice and discover they've been charged an user processing fee, an account configuration fee, or a PCI non-compliance service charge.

The difference between a fair fee and a "crap" fee is generally determined by whether or not the price is followed by a program that helps the retailer in any way. Paying fees for PCI non-compliance, for example, and doing nothing to assist the customer in being legal, is a representation of a “crap” fee intended to merely collect more revenue from the seller.

3) Long-Term Agreement

The length of the contract is one of the most critical details any seller can take into consideration when assessing payment processing firms. Commercials generally choose shorter-term contracts to provide the most power and performance, while processors want longer contracts to guarantee a stable stream of revenue. It is always impossible to strike the optimal balance between those standards, but certain payment processors don't even bother and opt instead to secure long contracts with large early-call payments.

It is impossible to prevent long contracts and costly termination payments after a retailer has already agreed with a processor so it's necessary to closely review contracts before heading into that arrangement. There is no excuse why, with so much rivalry in the online payment market, merchants must be required to consider conditions which are highly unfavorable.

4) Complicated Pricing Plans

Payment service providers are based on the transfer rates paid by banks and other financial card unions in which they operate. This charge forms the foundation of the rate schedule for processing, which specifies the amount the merchant must pay for any sale. Since these plans are not very diverse, tiered pricing schemes seem to be the least conducive for merchants.

5) High Growth Limitations

Most companies do not encourage high-growths of companies. To avoid risk, many payment processors adopt the “smart risk” handling strategy and block the transactions of any high-risk business if they notice rapid growth or increment in sales. Also, there is always an obstacle of slow payouts which hinders the growth of high-risk businesses.

Poor Compatibility Issues

One of the benefits of having a payment service system is that streamlined applications can be used to enable financial transactions. Generally speaking these tech systems should be both scalable to satisfy a number of business demands and are stable enough to ensure high efficiency and availability of data. If things go bad, a successful payment processor has competent and well trained workers who can fix problems efficiently and with minimum interruption.

There is absolutely no excuse in today's dynamic payment processing market for a company with unreliable hardware and inadequate customer service. Sad to say, this is not always an issue which, unlike many other warning signals, is easy to find before the deal is executed.

During the sales cycle an organization may pledge a certain amount of help and actually failure to perform. Similarly, there will be many issues with a technological approach when it comes to deployment and usability. Examining and seeing what potential consumers have to say in advance is the perfect way to prevent this issue.

It becomes tough for them to act real-time due to inefficient technology. Thus, users are likely to face inconvenience.

Myuser: Settle for High-Quality Payment Processing Services

You can obtain a credit card with Myuser to make investments even before it is available. Myuser has immediate payouts from your upcoming balance with a credit card. We issue you credit cards for future payments, and there is no country cap on receiving your card. You don't get access to your funds immediately via other PSPs (payment service providers). You have to wait 2-7 days for the money to be used or reinvested.

You can incur losses due to this wait.  With Myuser, however, you have convenient access to your funds and can make profit easily to spend in your company by means of our credit card. You will get extra money and have more caps on your card to spend more in the coming years of your business operation. Other payment service providers don’t support 3DS standard but Myuser makes sure your online transactions are safe and secure and delivers a premium security check.

Choose a payment processing company specializing in a high-risk business that provides clients competitive high-risk plans. This allows you to place your company for flexible and sustainable growth. Talk at length to one of our specialists and proceed with Myuser!

Ryan Davis

Ryan Davis

United Kingdom