A good payment provider should offer simple, secure and flexible business payments to streamline your cash flow management.
Choosing the right online payment service provider (PSP) can be intimidating. Nonetheless, relying on the right PSP to send and receive payments is absolutely critical for your business.
Knowing what to look for in a payment provider can help you choose the best one for your business.
What is a Payment Service Provider?
A payment service provider is a service that enables your business to make payments to vendors and receive payments from your customers. PSPs connect businesses (you) with vendors/merchants and the various institutions (banks, credit cards, etc.) from which your funds will be transferred.
A payment service provider typically offers businesses the ability to make and receive payments from a variety of payment methods including credit card and bank-based payments such as ACH and wires.
Payment service providers generally handle the entire payment transaction. They facilitate the transfer of funds from your account to your vendor’s account. However, not all payment service providers process every type of payment.
Some specialize in processing online payments while others specialize in processing in-store payments. When considering PSPs, it’s important to consider the payment capabilities your business may need in the future.
What to Look for in a Payment Service Provider
Beyond basic functionality, there are three characteristics that you should look for in a payment service provider.
Whether you pay your vendors in cash or charge all of your expenses to your credit card, your small business needs access to payment software that enables easy payments. Regardless of the payment method your customers and vendors prefer. Payment flexibility enables your business to convert checks to ACH and pay a vendor with a credit card. Even if that vendor does not traditionally accept credit cards.
The added flexibility to choose how you make payments can have a big impact on cash flow management. Vendors or PSPs that lock you into a specific form of payment can make it difficult to make use of credit to free up short-term cash for more critical business needs such as payroll.
Alternatively, your PSP should make it easy for you to receive payments of all types. Making it too complicated for your customers to send money can slow down payments and add new cash flow management challenges. Look for a payment provider that gives you flexibility rather than restricting your payment options.
It goes without saying that you want your payment service provider to be safe, stable and secure. There’s nothing worse than realizing that your business is financially vulnerable because your payment service provider has been hacked.
You must also consider who your payment provider shares your financial information with. If payments made through check or ACH expose your financial information to your vendor or if you are tasked with protecting your customer’s financial information. This could further open you up to risk.
Make sure your PSP enables your business to send and receive secure credit card payments without handing over your credit card information to vendors, thereby limiting your exposure to hacking and fraud.
You should also give heavy consideration to payment service providers that integrate payments within your existing accounting software. This enables you to build a database of customers, issue payment requests from internet-connected devices, attach remittance documents, and leverage a secure portal to pay your vendors.
The biggest benefit to managing payments within your accounting and bookkeeping solution is having all of your financial information in a single dashboard. This offers forecasting and reporting that can help improve your cash flow management and better prepare your business for the unexpected.
Other things to consider are the capabilities of the PSP beyond software. Does it come with basic functionality, or does it provide comprehensive consultation and support services that actually make it easier for you to conduct business?
Introducing FINSYNC Pay
Now that you know what to look for in a payment provider, two things should be obvious. First, you need a payment provider that is flexible, secure, and integrated with your accounting software. Second, you need a payment provider that offers functionality. One that actually makes it easier for you to receive money and pay your vendors.
FINSYNC Pay gives your business the power to send and receive payments using ACH, debit and credit card with ease and peace of mind. It can even convert checks into direct deposit so you can send and receive all payments electronically even if you have customers or vendors who prefer a paper-based process.
What’s more, FINSYNC Pay is backed by fraud protection, advanced monitoring, and provides greater privacy. If you’re looking for the best payment provider for your business, you need look no further than FINSYNC Pay.