One of the most crucial aspects of running an e-commerce business is finding the right payment gateway and processing software for customers. This choice determines the seamlessness of the transaction, which can significantly impact a customer’s shopping experience and the company’s reputation. With so many providers available, choosing the right one can be difficult. Read on to learn about common mistakes businesses make when choosing payment processing software and simple ways to avoid them.

1. Disregarding PCI DSS compliance
PCI DSS (Payment Card Industry Data Security Standard) is a requirement for all payment processing software that covers credit card transactions. To comply with these regulations, the payment processor must maintain an effective firewall, use updated antivirus software, utilize encryption technology for data storage, and review their data security policy periodically.

Often, companies forget to account for this compliance when looking for a payment processor, exposing their business to cyber-attacks. Before signing up for any new provider, it is important to ensure they comply with these basics. If not, the business will have to get certified on its own, which can be expensive and time-consuming.

2. Overlooking security
One of the most common mistakes businesses make is to assume that security is guaranteed with their payment processing software. Not all providers offer a high level of security, which increases the risk of payment fraud and data breaches. This can be detrimental to both the business as well as its customers.

To steer clear of this, businesses must look for safety features such as fraud scrubbing, payer authentication, encrypted data storage, and full EMV compatibility, over and above other compliance requirements.

3. Accepting limited payment options
A costly mistake many businesses make is working with limited payment options. For most customers, convenience is of utmost importance – and this means using their preferred modes of payment, such as digital/mobile wallet, credit or debit card, bank transfer, buy now pay later, cash on delivery, direct debit, pre-pay, etc. If they don’t find these options, they may end up abandoning their cart entirely, resulting in a loss of business.

To avoid this, look for payment processing software that offers customers a wide range of options to choose from.

4. Settling for the cheapest option
Many companies believe that choosing the cheapest provider will help them maximize their profits. However, this strategy often results in the opposite, as businesses end up stuck with bad UIs, system outages, or even account freezing. This could result in a loss of time and revenue.

To avoid this, look for features such as safety, security, reliability, and customer support instead of just the price. While finding a cost-effective solution is important, don’t let it be the only guiding factor when choosing a payment processing software.

5. Failing to understand integration options
Any payment processing software must integrate well with the business. Overlooking this would result in a confusing platform, missing plugins, and frustration for customers and the IT team.

This can be avoided by looking for a software solution that offers seamless integration. Although this may drive up initial costs, the business will end up with a flexible tool for smooth operations.

6. Forgetting to review the terms and conditions
It is important to carefully read and understand the terms and conditions before signing up for any platform. The fine print may contain several important details, such as contract length, renewal procedures, fee structure, the arbitration process, and other details that a business needs to consider. Making a decision without considering these factors may lead to complications in the future.

One way to avoid this issue is to review the fine print thoroughly. Look for a partner whose business ideals match the company’s own, especially in terms of transparency and flexibility. Sign up for a contract without an auto-renewal clause, so it is possible to change partners if necessary.

7. Not thinking about scalability
Any business focuses on growth and scaling to reach new heights. However, many companies fail to consider this when choosing a payment processor. This could result in a lot of confusion and changes down the road, hurting operations and growth.

Therefore, when looking for a payment processor, consider important metrics like maximum transactions per month, fraud-detection tools, tiered pricing for growing companies, complex channel integration compatibility, resource capacity, and more.

8. Ignoring extra fees
Lastly, remember that what one sees is not necessarily what one gets when choosing a payment processor. Many software providers have a host of extra or hidden charges, over and above their regular subscription costs, which could drive up expenditure. While these may look small initially, they can quickly add up to a substantial amount, affecting business profits. Some commonly charged fees include statement fees, cancellation fees, batch-processing fees, PCI compliance fees, etc.

Before signing up for any software, ask the provider to offer a list of charges, as well as a document explaining all of them. Feel free to ask them questions to clarify any concerns. This may also provide an opportunity to negotiate.

It is impossible to run an e-commerce business without proper payment processing software. Therefore, exercise caution when picking a software provider to ensure the best possible experience for the customers and the team alike.