7 Tips for making payment system decision

A payment system is a set of processes and technologies that transfer monetary value from one entity or person to another. It may be physical or electronic and each has its own procedures and protocols for implementation. Payment systems are a set of common laid down rules and procedures, which support the transfer of funds between individuals, businesses and financial institutions locally or globally. Most payment systems are managed by operators, and supported by one or more infrastructure providers of hardware, software, and communication networks. Some financial institutions have direct access to each payment system and provide payment services to their customers.

You name it, debit cards, credit cards, electronic funds transfers, direct credits, direct debits, internet banking, and e-commerce payment systems. Payments remain the undisputable lifeblood of any business, an essential part of a company’s financial operations, and a complex part given the many different payment systems and currencies used around the world. So it is no doubt that without the ability to pay and receive money there can be no trade.

Before we look into some of these useful tips, it is important to know whether your business model is classed as low-risk or high risk merchant account. Top on the list of high risk merchant accounts are businesses that operate in sectors such as gambling, adult, travels, digital downloading, insurance etc.

Here are some of the top key factors to be considered in making a payment system decision

1. Ease of integration

Applications must be modified to use the payment infrastructure in order to make a payment service available to all users. Ideally, a common API should be used so that the integration is not specific to one kind of payment instrument. Support for payment should be integrated into request-response protocols on which applications are built so that a basic level of service is available to higher-level applications with little significant modification.

2. Gateway compatibility

When it comes to choosing the perfect platform for online payments the first and the foremost thing is to find out a payment gateway that supports all types of transactions, either credit cards, debit cards, smart cards, electronic fund transfer via bank’s website and/or any other mode of electronic payment. Every entity in the ecosystem has different requirements, and while nailing down a payment model, not considering this point could lead to functional issues

3. Cost-effectiveness

Another important factor to consider is how cost-effective is the system. The cost per transaction for using the infrastructure must be reasonable enough that it is insignificant even for transaction amounts on a smaller order you can imagine. Including the installation fees, transactional fees and charges plus chargebacks especially if your industry or business model is prone to a high rate of chargeback.

4. Usability

Ease of use is not doubts another vital factor worth considering to be so sure that it will enhance your user overall experience considering the rate of competition in the marketplace.

7 Tips for making payment system decision5. Security is a most

Since payments involve actual money and sensitive information of the parties involved, payment systems are more than ever before becoming a prime target for criminals. Any security breach can be a catastrophe and damaging with the possibility of financial loss, business disruption, reputation damage to mention but a few. Since Internet services are provided today on networks that are relatively open, the infrastructure supporting electronic commerce must be usable and resistant to attacks.

6. Support anonymity

For some transactions, the identity of the parties to the transaction should be protected; it should not be possible to monitor an individual’s spending patterns, nor determine one’s source of income. An individual is traceable in traditional payment systems such as checks and credit cards. Where anonymity is important, the cost of tracking a transaction should outweigh the value of the information that can be obtained by doing so.

7. Must be reliable

As more commerce is conducted over the Internet, the smooth running of the economy will come to depend on the availability of the payment infrastructure, making it a target of attack for vandals. Whether the result of an attack by vandals or simply poor design, an interruption in the availability of the infrastructure would be catastrophic. For this reason, the infrastructure must be highly available and should avoid presenting a single point of failure.

Take it or leave it, the decision of selecting the right payment system is always a vital yet tricky one. Every business has different requirements, which is why provider like https://tbffinance.com/corporate-services/ always at the forefront in helping business getting things right with their payment system.

By Jo Smith – Contributor  || 25/10/2018