Changing Payment Service Provider?

When it comes to e-Commerce a lot of business settle for the easy option when creating their webshop. Most open-source content management systems, like the big corporate companies, have partnered up with fixed payment service providers and those are pre-installed in their settings.

Now, this often means that businesses that don’t have a lot of money to spend end up with an expensive payment gateway provider or acquirer.

Most of them will charge a minimum processing fee or monthly fee if the merchant doesn’t reach the set processing threshold. 

We at MerchantCount don’t believe this is a fair practice, as each merchant deserves a chance to start without any extra expenses, with the exception of the processing fees set by VISA and Mastercard.

Now before you can just switch payment gateways, you’ll need to do a couple of checks:

Is the gateway I want compatible with my store?

If you’ve found the right gateway with the right fees, all your payment options and exceptional service, you might want to double-check if the integration is possible with your store.

Almost all stores are open-source content management systems, this means that the available plugins can be integrated without any problems. Now some bigger content management systems providers have decided to not make it available for everybody.

What are you gaining, what are you losing?

When you decide to move away from your payment gateway provider, think about what you’re gaining and what you’re losing.

Do you still have the option to a direct API integration or is that the reason you’re moving to gain that option?

A lot of your customers are used to the check-out that you currently have in your store. When you’re conversion is low, the change can have a positive impact, as customers will be more likely to proceed with the settlement if they see their favourite payment option. 

But when you’re conversion is high you’re customers want to see exactly the same payment options – in this case, the change should be made without impacting your current clientele. 

Gateway fees & rates, do’s and don’ts

Every transaction made through your gateway will have a fee attached to it. Now when you’re making the switch from gateway provider, your fees will definitely change. 

The bigger the payment service provider or acquirer, the more overhead they will have. This means that even if their gateway is top-notch, it will come at a price. Sometimes a change with a higher rate might be beneficiary if the return is good, for example; if you get better fraud & risk controls or more payment options which your customers have asked for. But make sure that whatever the current and future cost will be, that your business is ready for this change.

If you’re an SME and still trying to safe money; please check if the new payment service provider or acquirer is not charging you with:

  • Minimum processing fees.
  • Minimum monthly fees.
  • Expensive settlement rate, exchange rates.
  • Long settlement period.
  • Excessive reserve periods.

Changing Payment Service Provider