Rethink Commerce Blog

Back to School TIP: Top 10 Myths of Payment Processors

Posted on September 10th, 2014 by

It’s September, which means, summer’s officially over and everyone’s going back to school, and back to school shopping means lots and lots of commerce. But just as every calculator isn’t a scientific calculator, neither is every payment processor a digital commerce provider.  The problem is, when the packaging looks the same, called the same thing and they both claim to provide the same functionality – how do you tell the difference?

It’s time for a TIP – Truth in Payments – to help you understand the difference between payment processors and digital commerce providers. Here are some common myths that you hear from the payment processors:

 

Myth #1:  “We sell conversion(s).”

Truth: Payment processors charge for access to their platform, the gateway, and their payment methods. They make money irrespective of whether your transaction is successful, imposing fees every time a charge is ran, when a card is declined, or when refunds, chargebacks, or fraudulent transactions occur.

 

Myth #2:  “We have 200+ payment methods”

Truth:  Payment processors often consider every type of credit card (including debit cards), gateways, and individual bank ACH and wire options as a unique, payment method, which when added up can look like a lot of methods, when in reality, it’s only a handful.

 

Myth #3:  “We offer subscription payments”

Truth:  Most payment processors don’t support recurring transactions.  They support recurring payments via a wallet only or via a third party partnership, which means another implementation, another party to manage, another negotiation for rates, another contract to sign, etc.

Read 7 more myths at www.truthinpayments.com.

Bottomline: You need to think and go beyond payments – Avangate’s digital commerce solution also represents the intersection of three areas – Smarter Payments, eCommerce and Subscriptions – and like that scientific calculator, can solve even your most complex problems. That’s a TIP you can take to the bank.

 

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Raj Badarinath

VP, WW Product Marketing and Alliances

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