Businesses grow, change directions, and swap strategies over time. Your payment service provider (PSP) has to be able to accommodate it all. Plus, the world of payment services is always evolving, so there may be new features or a different pricing model that could fit your needs better than your current solution.
Whatever the reason you need to switch providers, it can be an intimidating task. With so many providers and solutions to choose from, you might find yourself feeling overwhelmed. The good news? It doesn’t have to be so complex. Just use our step-by-step instructions below as you shop around, and you’ll find the right solution for your business in no time.
The Most Common Reasons to Switch Payment Service Providers
Businesses like yours switch payment service providers every day, and for a variety of reasons. You may have issues with your current solution, or you could be simply curious about new options in an ever-growing market. There’s never a reason too big or small.
Here are the most common reasons you might choose to make the switch:
- The payment service provider can’t offer the payment methods your customers want to use.
- The payment solution cannot adapt to suit your growing business needs.
- You’re looking for more advanced security features.
- Your current service provider doesn’t have PCI DSS compliance.
- The fee structure is complex and difficult to understand.
- You receive surprise charges or bills.
- You need to cut costs so that you have funds for other business needs.
- Your contract has ended and you want to explore other options.
- The service provider’s customer support is lacking.
- The payment solution is unreliable and you’ve experienced downtime.
What to Look For in a New Payment Service Provider
There’s no one-size-fits-all solution. What works for you might not work for your neighbor and vice versa. That said, there are a few key features that most businesses need. Keep these in mind as you look for a new provider.
Transparent Pricing Structure
Payment service providers (PSPs) use a variety of pricing structures - some operate on a subscription basis, with a set monthly fee and separate processing fees. Others only charge you per transaction. Some PSPs charge a set rate, while others charge a percentage.
Be sure to choose a provider that has a transparent fee structure so you never end up with a surprise bill. You can compare the terms set by your current provider with any prospective providers to get an understanding of what you’ll pay. Generally speaking, a flat-rate, per-transaction fee structure will save you the most money and help you avoid any unexplained charges.
Variety of Payment Methods
Customers use far more payment methods today than just debit and credit cards. In fact, many customers are loyal to alternative payment methods (APMs), like Apple Pay and PayPal. Offering the right options can often help you boost customer loyalty. Aim to choose a provider that supports a variety of payment methods so you can serve your target audience.
Your PSP facilitates payments between your customers and your business, whether that’s via checkout pages, invoices, direct payment links, or in-person transactions. No matter how you get paid, you should be able to customize the solution to your needs.
For example, if you own an ecommerce business, you must tailor your checkout process to your website. Some PSPs offer prebuilt checkout pages, others allow you to use advanced options, like integrating with their APIs. Your PSP should allow you to customize either option so that the checkout page fits seamlessly with the rest of your website.
Advanced Security Measures
Security is a growing concern for business owners and customers alike. Your payment service provider should provide all necessary payment-related security measures. To start, it should maintain PCI DSS compliance so that your business doesn’t have to. It should also use more advanced tools, like tokenization to protect sensitive data and 3D Secure 2.0 (3DS2) to protect your business from fraud.
Proven Customer Service
You should expect your payment solution to work 24/7. However, you never know when you might run into an issue, so your PSP’s customer service team needs to be easily accessible.
They should make onboarding fast and easy, respond quickly to questions, and provide ongoing support. You might check for online reviews to ensure that other people have had good experiences with your prospective service provider.
Ease of Use
Payment solutions can be complex, but the right PSP can make setup and maintenance easy. It should be intuitive, allowing you to quickly adjust your checkout page, add payment methods, review reporting, track payments, and issue refunds.
3 Steps to Switch Payment Service Providers
Once you’ve decided on a new payment service provider, making the switch can still feel confusing. Follow along with these simple steps, and you’ll have a new PSP in no time.
1. Review Your Contract
If you’re currently under contract, you’ll need to review it and determine the contract end date. Switching to a new provider could result in early termination fees, so be sure to read the fine print. You may want to wait to make the switch. On the other hand, if your current solution is negatively affecting your business, the fees may be worth it to get a more effective solution.
The contract will also specify how much notice you must provide when you want to terminate the service. It’s generally best to plan the switch a few months before your termination window. Notify your current PSP of your plans to avoid any automatic contract renewals.
2. Sign Up With Your New Provider
Signing up with a new payment service provider should be fairly simple. You’ll just need to provide some basic business information, like your business name, type of business, length of time in business, and what services you need. Agree on a setup and transfer date to avoid any downtime between solutions.
3. Set Up and Learn the New System
Finally, it’s time to set up your new solution. Depending on your provider, you may set it up on your own or have a specialist come to your store and install the equipment. The PSP may teach you and your team how to use the system, or you may learn about it online via demos and tutorials.
The Benefits of Working with Pay.com as Your Payment Service Provider
Ready to make the switch to a more advanced payment service provider? With Pay.com’s powerful full-service payment solution, you can optimize your payment operations and provide an excellent customer experience. We offer robust features, including:
- Customizable solutions. You can use our developer-friendly APIs to add hosted payment fields to your website or app, creating a smooth, seamless checkout experience.
- Top security measures. Pay.com maintains Level 1 PCI DSS compliance. We use advanced security tools like tokenization and multifactor authentication to protect sensitive customer information and avoid fraudulent transactions.
- Various payment methods. Earn your customers’ loyalty by accepting a variety of payment methods, including Apple Pay, Google Pay, PayPal, ACH transfers, and more.
- Affordable fees. Pay.com has a flat-rate, per-transaction fee structure. You only pay for successful transactions. Plus, you can track all of your fees in the dashboard so you never get any surprise bills.
The Bottom Line: It's Never Too Late to Switch to a Better Payment Service Provider
Changing service providers as a merchant is rarely a simple decision, but it can be a game changer for your business. By switching to a new payment service provider, you can support your growing business with fewer fees, and advanced features.
Choosing the right PSP is key, so be sure to look for the elements we discussed above. Pay.com has powerful solutions to support your business, whether you need to streamline your checkout process, add more payment methods, or utilize more advanced security features. Plus, it’s affordable, with a completely transparent fee structure.