Challenges with Payment Processing: How to Overcome Them

Small business owners have to wear a lot of hats. You’re the CEO, the marketing director, the salesperson and the accountant. The last thing you want to have to worry about is payment processing issues! After all, selling things and getting paid is the whole point of being in business to begin with, right? You are going to want the easiest and most secure, affordable and efficient way to accept payments from customers. 

Here at PayHawk, we have become recognized as one such merchant services provider, offering maybe the very best payment processor around! In this post, we’ll outline some of the most common  payment processing challenges, and show you how to overcome them so you can keep the money flowing in without any problems. Let’s get started!

There are Two Types of Credit Card Processing

Let’s begin by understanding the two ways in which businesses can accept credit cards:

Online Payment Gateways

A payment gateway is a form of secure online credit card processing used for e-commerce. For customers, it is a way to pay for products and services from any computer or mobile device, so long as you have an internet connection and the company you want to purchase from has their e-commerce site set up. For business owners, a payment gateway helps to automate the process of securely capturing, submitting and processing online card transactions. When customers enter their payment information on the merchant’s website, it is then forwarded to the gateway to be encrypted and sent through a secure network to the acquiring bank which then forwards it onto the card companies for authorization. The payment gateway will then send an approved or denied response from the banks or credit institutions back to the merchant so they can process orders accordingly. 

Standard Point of Sale Systems

A standard point of sale (POS) system, also known as a payment terminal, is a comprehensive and integrated transaction platform that enables retail stores to efficiently manage sales and improve customer service. In not so fancy of words – it’s one of those contraptions at the cash register where you are asked to swipe, tap, dip or insert your credit or debit card so that the business can take your money in exchange for their product or service. A POS system streamlines the checkout process, allowing retailers to securely receive payments, deliver loyalty programs, update inventory levels, provide customer insights, issue refunds and exchanges, keep track of discounts and promotional campaigns, reduce fraud risk with more accurate stock records, and generate detailed reports that help make informed decisions about the store’s performance. 

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The Most Common Issues with Payment Processors

Unless you choose the right payment processing company to work with, one who has all the bases covered – the way that PayHawk does – to keep you from experiencing any more challenges as a business owner than necessary, there are many problems you might face. Here, we list out the most common challenges that you could run into and how PayHawk saves the day every time:

Your Card Processor is Slow

POS issues can be a nightmare for consumers who expect fast, easy payment options. So when your payment processor is holding things up that’s a real problem. In order to keep customers satisfied while ensuring smooth payment processing, it’s essential for businesses to invest in reliable technology solutions to ensure their transactions are seamlessly handled. A dial-up payment processor is usually to blame if you are experiencing a slow credit card processor. Choosing the right provider, one that can offer you an ethernet credit card processor, will make all the difference in eradicating slow credit card processing from your business and keeps your cash flow flowing. So when it comes down to ethernet vs phone line credit card processor, go with ethernet every time.

Chargebacks Become Costly 

Chargebacks are unfortunately a common issue when it comes to payment processing – and they can be costly for you, the merchant. A chargeback is an electronic transaction that allows customers to dispute a credit or debit card payment. It’s the process by which a customer can initiate a refund directly from their bank in cases where they feel they haven’t received what they paid for, or if the goods or services didn’t meet expectations. Essentially, the funds are put into dispute until the situation is resolved and both parties are happy with the outcome. 

As a merchant, it is important to take proactive steps to reduce your risk of loss due to these chargebacks. Some helpful tips include using an up-to-date point-of-sale system like PayHawk that allows you to easily and accurately capture customers’ information, provide clear terms and conditions and communicate any challenges or delays with customers, promptly. 

Fraudulent Activity

Electronic payments have revolutionized the way people make transactions, however, with this new payment method comes its own set of challenges. One of the most common problems is associated with fraud issues. Fraudsters are constantly finding new ways to exploit weaknesses in electronic payment systems and it can be difficult for organizations to stay well-protected against these threats. A good payment processor can minimize merchant risk of fraud by offering several layers of security certified by major payment networks. For example, PayHawk offers one of the best payment processors on the market, the way our fraud detection technologies identify suspicious transactions and restrict payments accordingly. With a reputable payment processor that offers these kinds of safety measures, you will be taking action in minimizing your risk of being defrauded.

The Fees can be Expensive for Merchants

Many merchants struggle with payment processing fees, as they can be a significant expense that eats into profits. The trick is to use a payment processor like PayHawk that uses the interchange fee model vs a flat fee model. With flat fee you get charged the same amount no matter what kind of card is being used. With interchange, you reduce your fees because the fee that gets charged is different for each transaction, based on what type of payment method the customer is using. 

With this in mind, it is beneficial for merchants to research payment processing fees in case they might be missing out on more competitive fees than their current processor may offer. Doing so can enable them to significantly reduce their payment processing costs while continuing to ensure that clients can pay through a secure and reliable platform. Ultimately, the cost savings achieved through utilizing PayHawk’s services could provide an important boost to profit margins.

Lack of Customer Support

Nobody likes dealing with a poor customer service team, especially for something as important as a payment processor. Having customer support available on a whim can be the saving grace during the vital transaction process, so it is essential to make sure your processor has top-notch support. Considerations include the response time of inquiries and how helpful they are in answering questions. Ensuring that your choice of payment processor has excellent customer support will ensure a smooth selling experience and keep up trust throughout the chain.

The Obvious Solution to All of These Problems is PayHawk

So, what do you do if you’re a business that wants to start processing payments but is struggling with some of the challenges we talked about? The good news is, there are companies like PayHawk that can help. We offer the best payment processor for businesses of all sizes and can work with you to overcome any hurdles you may be facing. Contact us today to learn more about how we can help your business grow. Thanks for reading!

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