Choosing the Right Payment Processing Solution for Your Business

Are you ready to level up your business and boost your sales?

Chances are your payment processing solution is either helping you or holding you back.

The fact is, over 70% of consumers worldwide now pay with digital methods. And if you can’t accept their preferred payment option, you’re leaving money on the table.

It’s simple.

No business can function without a reliable way to accept payments. Whether you have an online store, a brick-and-mortar location, or both — the payment processor you choose will impact everything from the customer experience to your bottom line.

And yet most business owners don’t put much thought into choosing their payment processing provider. They rush into signing a contract with the first company they find and end up stuck in a high-cost arrangement with hidden fees and a clunky system that drives their customers away.

It doesn’t have to be this way.

When you work with a solution like Adaptiv Payments, you’re partnering with a payment processing team that understands what small business owners need. We provide flexible, transparent solutions built around our customers’ businesses.

So let’s dive in.

We’ll cover everything from the features you should demand to the mistakes to avoid. By the end, you’ll know exactly how to choose the right payment processing solution for your business.

Here’s what we’ll cover:

• Why Payment Processing Matters For Your Business
• Essential Features Every Solution Should Have
• Different Types Of Payment Systems
• Biggest Mistakes To Avoid
• How To Make The Smart Choice

Why Your Payment Processor Matters

Don’t think your payment processor is all that important?

I can see how you might think that, but you’d be wrong.

Your payment processing solution isn’t just a tool to collect money from customers. It’s the lifeblood of your entire sales operation. It can impact everything from how fast you get paid to whether a customer even completes their purchase.

Let’s break down what a good payment processor does for your business:

Speeds up your sales. Quick, convenient checkout makes customers more likely to complete their purchase. With digital wallets accounting for almost 50% of all online payments in 2023, it’s never been more important to offer multiple payment options.

Builds trust with your customers. An easy, secure checkout process shows your customers you’re professional and you care about protecting their data.

Saves you time and money. The right payment processor can automate your transaction process, reduce errors, and integrate with your accounting software. You spend less time chasing down payments and more time growing your business.

It’s a no-brainer.

The wrong payment processor can cost you thousands in lost sales, frustrated customers, and internal headaches.

Essential Features Every Solution Should Have

Not all payment processing solutions are created equal.

Some are designed to help you succeed while others will hold your business back. Here are the key features you should require from any solution:

Multiple Payment Methods

Customers expect choices. Credit cards, debit cards, digital wallets, ACH transfers — you need to accept them all.

The more payment options you offer, the more sales you’ll drive.

Security & Compliance

Trust is everything. Your payment processor must be PCI DSS compliant and offer strong encryption to keep customer data secure. One breach is all it takes to destroy your reputation.

Make sure your solution has:

• End-to-end encryption
• Fraud detection & prevention tools
• Tokenization of stored payment data
• Regular security updates

Transparent Pricing

Hidden fees suck. Look for a payment processor that’s upfront about pricing and doesn’t hide anything in the fine print. No surprise charges, no confusing rate structures.

You should know exactly how much you’re paying:

• Transaction fees
• Monthly fees (if any)
• Setup costs
• Chargeback fees

Fast Deposits

Cash flow is king. Choose a solution that quickly deposits funds into your bank account. Some processors make you wait days. Others offer daily deposits.

Guess which one is better for your business?

Reliable Support

Chances are something will go wrong with payments at some point. When it does, you’ll need support immediately. Look for providers that offer 24/7 support via multiple channels, including phone, email, and chat.

Different Types Of Payment Systems

With the market for payment processing solutions reaching $66.8 billion in 2024, you have TONS of different options to choose from. Here are the main types you’re likely to come across:

Traditional Merchant Accounts

These are the go-to payment processing accounts set up with banks or established payment processors. They’re a good fit for larger businesses with high transaction volumes.

Pros:

• Lower rates for high-volume merchants
• More customization options
• Direct relationship with processor

Cons:

• Longer setup process
• More stringent approval requirements
• Higher monthly fees

Payment Service Providers (PSPs)

PSPs like PayPal, Stripe, and Square offer master merchant accounts you can “share” with other businesses. This means quicker, simpler setup.

Pros:

• Faster, simpler onboarding process
• Transparent, simple pricing
• No monthly fees (typically)

Cons:

• Higher transaction fees
• Less control over account
• Potential for account holds/freezes

Payment Gateways

Payment gateways are the technology that processes online payments. They verify and authorize transactions between your website and the payment processor.

You’ll need one to accept payments online. Some of the top providers include Authorize.net, Braintree, PayPal, and many more.

Mobile Payment Solutions

Mobile payment systems let you accept payments using mobile devices like smartphones and tablets. Ideal for businesses needing to accept payments on the go.

Food trucks, service businesses, pop-up stores, etc. all benefit from mobile payments.

Biggest Mistakes To Avoid

You know what trips up most business owners when it comes to payment processing?

They make these common mistakes:

Choosing Based On Price Alone

As we’ve covered, the cheapest payment processor is rarely the best. Very often, low pricing comes with terrible customer service, hidden fees, or limited features.

Remember, a slightly higher rate with better processing, excellent customer service, and the features you need is well worth the extra cost.

Ignoring Contract Terms

Binding contracts with sky-high early termination fees are a trap. Always negotiate for a month-to-month agreement or a reasonable contract term.

Always read the fine print. Don’t agree to anything you don’t understand.

Not Considering Growth

Your business will grow. You can be sure of that. So make sure your payment processor can scale with you.

Can it handle increased transaction volumes? Higher average ticket sales? New payment methods or markets? Make sure the answer is yes.

Overlooking Integration

Your payment processor should play nice with your existing systems. Make sure it integrates with:

• Your e-commerce platform
• Point of sale (POS) system
• Accounting software
• CRM tools

Poor integrations waste time and frustrate employees.

Forgetting About Customer Experience

Your checkout process is where sales happen or die. A confusing, slow, or error-prone payment system will lose you customers.

Go checkout your store. Does the payment process frustrate you? It’ll frustrate your customers too.

Making The Smart Choice

So you know what to look for…

Now it’s time to make the decision. The first step is to write down your specific business needs. Think about:

• Your average transaction size
• Monthly transaction volume
• Payment types you must accept
• In-person vs. online (or both)
• Your technical capabilities

Then request quotes from several processors.

Don’t just pick the lowest. Compare them side by side. Total cost of ownership is more than just transaction fees. Include setup fees, monthly fees, etc. in your comparison.

Ask tough questions.

• How long before funds are deposited?
• What happens if something goes wrong?
• What does support look like?

Finally, talk to other small business owners in your industry.

What are they using? What have they tried? What do they recommend?

Word of mouth recommendations are worth more than sales calls.

The Bottom Line

Picking the right payment processing solution isn’t about finding the lowest rates.

It’s about choosing a solution that supports your business, protects your customers, and helps you grow.

The right processor will make accepting payments a breeze for your customers. The right processor will ensure your money flows in and you have the working capital you need to grow.

Take your time and compare your options carefully. The payment processor you choose today will impact your business for years to come.

Whether you choose a traditional merchant account, a modern PSP, or a specialized solution — just make sure it’s a perfect fit for your business.