I wanted to write this quick post as alot of the time, especially at this show that I just went to, alot of the merchants were solely concerned with price. I want to point out - My pricing is always competitive and alot of the time I win deals on lower pricing. Now that is out of the way, I think that merchants who look at merchant accounts, gateways and any type of online processing solely on price, are making a big mistake. Instead of pricing, look at VALUE.
There are so many other factors to consider, and I do believe that pricing is important, but in there is a saying "you get what you pay for" and in payments that holds true as well. Questions that should be asked are:
1. Does the technology work for me? What features does it have that can make my life easier? Does it allow for recurring billing? tokenization?
2. How is the reporting? Do the reports help me streamline my business? It it in real time and available online
3. What is the customer service experience? If I have problem is there someone I can call and talk to? will they help me with technical issues? Its important to look at processors that have high merchant retention rates. Savy merchants won't just switch to get a better price unless its drastic and customer service is a very big reason for that.
4. How long will it take to get my money? As we know, cash (flow) is king, and businessess need it to survive - so would you rather pay a bit more and get your money faster, OR pay less and wait to get your money. I had a client who recently switched over because of this very reason even though I had quoted rates that were a bit higher.
So, just like everything in life, when selecting a payment provider, look at the VALUE. Maybe the actual pricing is higher, but the positive effect it can have on you and your business is what should be looked at.
In another post I will explain why you the pricing you are quoted is not always the pricing you get, and why you need to look at the effective rate.
Contact me if you have any questions about the above.
