As technology becomes more prevalent and accessible for small business owners, now more than ever, it is important to work with a suitable payment processing provider.
Consumer trends saw the use of cash in society steadily decrease over the last decade, with customers increasingly favouring digital payment methods.
The movement towards cashless payments accelerated further throughout and following the COVID pandemic, with the Bank of England reporting in July 2022 that only one in five people still consider cash as their preferred payment method.
And it’s not just consumers who now favour digital payments. Many merchants find that utilising a suitable payment provider can help regulate cash flow and give them access to faster payments.
With all this in mind – what should small business owners consider when choosing a payment processing provider?
Ease of Use
If your business attracts customers online, you’ll want to ensure that your payment process is fast and frictionless.
Find a payment provider that has a straightforward checkout process. The longer it takes to confirm a transaction, the higher the chances are that you’ll lose the customer before they’ve made payment.
With a deluge of digital payment offerings available to consumers nowadays, speed and efficiency is key.
Tip: Avoid losing customers to competitors by onboarding a payment processing provider that offers one-click payment solutions.
Accepting of Major Credit and Debit Cards
It is essential that you have a payment processing system in place that accepts all major credit and debit cards.
In addition to Visa and Mastercard, there are now a plethora of digital wallets used by customers, and mechanisms available to pay via non-traditional means.
As contactless payment limits have increased and developments in technology have made it easy for consumers to pay via their phones, using systems like Google Pay and Apple Pay, it is paramount that your provider can accommodate alternative payment methods.
Foreign Currency
In today’s digital world, small businesses are able to reach customers like never before through their websites and online shop fronts.
If this sounds like your business, you’ll want to ensure that your provider can take payments in different currencies, minimising additional charges imposed on customers purchasing products and services from overseas.
Crypto Currency
Nowadays, a large number of providers offer digital gateways and physical payment terminals that are capable of accepting crypto currencies as a form of payment.
Yes, that’s right! Increasingly, retail outlets in the UK have facilities that can accommodate payment in crypto currencies like Bitcoin, Ethereum and Lite Coin.
Moreover, online payment processing platforms can offer customers a wider range of crypto currencies to use as tender, including more alternative ‘coins’ and ‘tokens’ like Shiba Inu and Doge Coin.
Security
It goes without saying that payments need to be processed safely and securely.
Ensuring that you partner with a payment provider with built in security and anti-fraud features will give consumers confidence to give you their custom.
Additionally, partnering with a well-known payment provider can help develop your business’s credibility and legitimacy in the eyes of the consumer.
Integration with Accounting Tools and CRM Systems
Utilising a digital payment processing system can make your accounts exponentially easier to manage, saving you precious time and energy.
Rather than logging each transaction manually and spending hours with your calculator ensuring that your bookkeeping figures align, many of today’s payment providers offer solutions that can integrate with simple and effective accounting tools.
Platforms like Xero and Quickbooks make it easy for business owners to stay on top of their live cash flow, calculate payments and automate reconciliations.
Moreover, using these types of tools make it a lot easier to submit returns to HMRC, if your business is VAT registered.
Final Takeaways for Business Owners
Given the prevalence and popularity of digital payments, it would be prudent to take time to evaluate what type of payment processing provider is best suited to your business.
When you’re considering different providers, it’s important to think about your business needs today and in the future.
If you have growth plans for your business and are looking to scale in the coming weeks, months or years, having a flexible and functional payment provider can help streamline this for you and assist in future proofing your business for years to come.
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.
