February 21, 2023

5 Minutes

Why it is important to have a good payment processor

Why it is important to have a good payment processor

What is a merchant looking for in a payment processor?

Companies that transact online are always looking for a payment processor that allows them to achieve their goals:

  • Charge securely
  • Validate cards and identities
  • Frictionless payment methods
  • Secure and agile payment experience

These are very important points to be taken into account by the directors of operation and risk, as well as the head of growth, since they are in charge of all the maneuvers related to security and providing a good experience to users.

When looking for a payment processor, businesses take into account a series of characteristics so that their users have a good experience. These are:

  1. Agility in solving technical problems: a business will always seek a quick response from its processor in case it has any technical, operational or administrative questions. It is important that you have a support team for any problem that your client may present.
  2. Protection against fraud: according to the Mexican Association of Online Sales (AMVO), 75% of businesses in Mexico have as their main concern being victims of fraud. Businesses will always look for a processor that allows them to protect themselves from fraudsters. This is why having an integrated tool that prevents fraud is a must for any payment processor.
  3. Diversity in your gateway: the more payment methods your payment processor offers, the more advantage you will have over the competition; businesses seek to reach all types of customers including those who do not have a credit card; therefore, offering alternative options, such as payment by QR, by proximity, with cryptocurrencies, etc., will make them decide to work with your processor over others that are less flexible.
  4. User experience: merchants are aware that losing a customer due to a bad shopping experience is very easy, so you must make it very clear in your communication that your payment processor has the capacity to respond to all types of demand.
  5. Monitoring tools: a business always seeks to have the greatest possible visibility of its purchases. That your payment processor helps you keep track of your specific figures such as: attempted fraud attacks, chargebacks, number of purchases, bank declines, final acceptance rate, among others, will achieve a competitive advantage for your processor. Fraudsters quickly perceive when an entity is well protected and, therefore, fraud tends to migrate to other entities that are more vulnerable to the actions of fraudsters.
  6. Proactivity: companies look for an ally that periodically provides them with improvements. Taking the initiative and offering tools that go beyond processing payments, such as reducing the rate of fraud, will make customers retain their loyalty and even recommend your payment processor to other merchants.

As we know, we are experiencing a great transition in the means of purchase; Since the pandemic, businesses offering their services online have increased. Figures from COFECE state that purchases with digital media have grown at rates of 39% per year. Therefore, it is increasingly important to highlight the advantages that your gateway has over the competition in order to keep it at the top of mind of businesses. Managers must make merchants understand that a good payment processor is the best ally for any company that transacts online. Keep in mind that there are many alternatives on the market, so meeting this list of features is the best way to get your processor in the spotlight.