What to ask when choosing a payment gateway company?
Do you know what the great paradox of this life is? When we go grocery shopping, many of us are willing to ask dozens of questions about the same product. But when it comes to more serious decisions, such as how to choose a payment gateway, many firms for some reason rely on information from the gateway vendor, while rarely asking enough questions to find out the real deal.
All this leads to the fact that some vendors simply hide the real commission, resulting in additional costs for the company. But at this point, it is too late to ask questions since the contract has been signed.
How do you choose payment gateway and avoid additional costs?
One compares the conditions of several providers and ask themselves a question: which payment gateway should I choose? Of course, each of the companies will try to show you exclusively the advantages of your cooperation, while all the disadvantages will be carefully hidden from you. But there is good news: you can influence this process. All you have to do is ask your gateway provider the right questions.
The gateway vendor is unlikely to have a ready-made answer to such questions, or they have to answer them honestly.
What questions should I ask my gateway vendor?
Remember the most important rule: All questions should be asked before you sign the contract. After that, in response to any of your claims, the gateway provider will argue that all the nuances were negotiated with you before the deal was officially signed. And he will be right.
To ensure that your company’s interests are protected, ask the gateway provider the following questions:
What fees does your company charge?
If the gateway provider has something to hide from you, asking about commissions will put them in a bad light. Ask in detail about all commissions, what they are called and when they are charged, and most importantly, for what services. When it comes to commissions, you can’t be trivial, because in the future, if you don’t ask the provider about any commission, you’ll still have to pay it.
Does your company only process payments or can you offer us other services?
Every company wants to get more services, but it’s essential to understand that you will have to pay extra for these services. On the other hand, if the company provides more than just payment processing, they could make more money, and they won’t have any sense to hide any processing-related fees from you.
Do we have to pay setup fees?
To give companies lower rates, some gateway providers charge installation fees separately from the overall rate. Find out if you will pay for installation in order to compare the total cost of service with other companies.
What fees and for what types of transactions do you charge?
Paying through a reader costs the company less than paying by credit card when that payment would be made manually. That said, each gateway provider may set different rates for different transactions. Much here will depend on the company that issued the card, the type of company that accepts the payment, the level of the card, and other factors.
Will there be a chargeback fee?
Check in advance to see if your company will be refunded a transaction fee in the event of a return. Some vendors even impose a fee on a return transaction.
How compliant is your company with EMV requirements?
This is a very essential question, as this technology makes it possible to more securely accept credit card payments using smart payments and chipcards. If this technology is supported, other devices will not be able to copy your customer’s card, and you will be able to offer your customers a higher level of security.
Is there a minimum monthly fee?
If a company will not have many transactions in a certain month, the gateway provider may charge a minimum monthly fee, which will be a real problem for small companies and startups. That’s why it’s better to find out about the availability of such fees right away.
In what cases can you increase your service rates?
In order to attract clients, some companies set the most loyal rates for the first months of cooperation. After this period the rate may be increased and you better know when exactly this will happen. Be sure to find out in which cases the company may increase the rates, so you can be prepared for any development.
If you don’t feel like asking a lot of questions, contact PayOp. We respect our customers and give you all the detailed information right away, and most importantly, we strive to give you the most loyal terms and maximum opportunities.