For every business owner, the goal is to boost sales, and reduce operational costs while streamlining customer services and retaining as many clients as possible.
Still, many underestimate the pros of using a reliable payment services provider. And for most eCommerce merchants, the cost of processing payments is a necessary pain point in doing business, more so in a less-regulated fiscal environment where pricing methods are uncontrolled.
Though discussing with a payment processor can reduce the transaction cost, this approach remedies a meager 10 percent of the total cost of processing. More benefit can come from partnering with a service that ensures a transparent payment journey, making up 40 percent of the full cost.
So how can eCommerce merchants stay on top of this matter and reduce expenses while boosting profits and retention rates?
The payment processing environment is a complicated sector and one that’s difficult to survive and maneuver with one payment partner, more so when serving customers in different regions.
Most businesses use existing online platforms to process payments. Without a multi-currency payment platform, companies may fall victims to risky transaction data management, incurring expenses of up to 40 percent in transaction processing, FX, and turned-down transactions, according to 2019 studies by Merchant Maverick.
Another study titled Growth and Consolidation Report by InterAmerican Development Bank shows that; in Latin-America, nearly 50% of inhabitants are out of the official banking system. Forty-six percent of grownups do not own a bank account, and only a meager 12 percent have an active savings account in a banking institution.
However, solutions like PayRetailers have held the fort for Hispanics by allowing access to alternative payments, hence boosting revenue and shopper reach.
Leveraging AI & Machine is essential in automating payments to mitigate increasing transaction expenses and related costs.
Managing transaction costs means considering 100 percent of the total cost tied to a transaction— including interchange fees. eCommerce merchants spend a long time, even months, hammering out a lower fee and often end in catch-22 when their processing partners are no longer able to offer affordable rates (maybe because of a payment network, exorbitant banking deals, and fixed overheads).
But by installing a surveillance tool like PayRetailers’ eCommerce payment system, business owners can witness a significant difference in profit margins.
Ecommerce businesses, while handling hundreds or thousands of transactions every day, must implement tech that electronically routes a transaction to the most affordable payment avenue and partner.
PayRetailers tech can help identify the payment type and tell immediately the cheapest way to process it, consequently ensuring affordable processing every time.
This strategy, dubbed Interchange Optimization, is one of the best ways to cut transaction costs.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert at bestpaymentproviders.co.uk who understands the complex world of merchant accounts. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.