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.