How to Choose the Best Payment Models for Online Business

Selecting the optimal payment model for a business is a crucial step in a company’s success. The only way to avoid abandoned carts is through a smooth and speedy checkout. One often-overlooked detail about checkout is that it’s a great opportunity to receive feedback and gain a following. Listed below are the most imperative points to consider when shopping around for a payment model.Card Payment

What Are the Options?

It’s necessary to have the most popular payment options available to customers at checkout. Visa and Mastercard are the most commonly used choice of payment, but you’ll want to give some thought to having others at their disposal. Familiarize yourself with all the ins and outs of Card Acquirer vs Payments Processor vs PSP, as these are all the choices you will have for your online payment model. There are perks and downsides to each of them, so definitely educate yourself on them so you can know what’s best for your business. Having multiple payment options is the best way to ensure that you’re not losing customers at checkout.

What About Cost?

Unfortunately, a payment model is not free. Ponder on how much business you think you will get or are already getting, and think about what would be the best choice based on how they will charge you for using the product. If you have a small business that isn’t turning much of a profit yet, then start off with a service that will come with a small fee every time someone purchases something. Paying a monthly charge is better for bigger companies that have many transactions per month.

You’ll also want to see if the service will charge you for when a customer reports a fraudulent payment on their card and the bank reverses the charge. International payment options are also another factor to consider, as it will cost you extra and could possibly make your payment model more vulnerable to fraud.

Is There a Contract Length?

If you’re just starting out, you might want to get a service that offers a monthly contract. Your business might grow, as will its needs. The payment model will need to shift and evolve with it. With that being said, only go with the long contracts if you know for certain where your business will be in the coming months and years. This will help you avoid signing up for a service that is too expensive or doesn’t fit your company’s structure.

Is It User-friendly?

Roughly 30% of your potential customers will be lost if the checkout process is too slow, has too many steps, doesn’t offer any good payment options, or asks them for more information than necessary. Living in a fast-paced society results in short attention spans. Take that into consideration when choosing your model.

You should fully test the service many times before deciding on which one you will sign with. Imagine yourself as a customer who has something urgent to do and needs to make the transaction as quickly as possible. Is there anything about the checkout process that takes too long? Is the site asking too many questions about things unrelated to checkout? Will I recommend this to a friend? In or worst case scenario, do I even want to complete this transaction?

Are Recurring Payments an Option?

Subscriptions require the option for recurring payments. If customers are paying for a subscription, then make sure the system will properly charge them. It’s also necessary and vital that it’s easy to unsubscribe and that customers will not get charges after they unsubscribe.Payment Option

What About Customer Support?

Since customers will be making payments at any given time of the day, it would be wise to go with a company that has around-the-clock customer service. Obviously, you will not be able to solve all the issues with a malfunction in checkout. So be sure that the customer service is reliable, as it will end up costing you more in the end if you have a lot of problems.

Feedback and Reviews Are Helpful

Checkout is a fantastic time to add to your following and build rapport with subscribers. If it’s something that’s important to you, then go with a service that will allow customers to provide their email to be added to a newsletter or to subscribe to your website. It’s always best if the option to leave a review is at the end of the checkout process.

If you find a service that meets all your business’s basic needs in these areas, then it’s less likely that you’ll lose money or customers. Remember to always try the service out before you sign the dotted line to ensure you know what you’re paying for.