Payment processing can make or break your business.
In one night, you can have your processor close your account and suddenly all of your cash flow is nonexistant.
(It’s happen to me, and nearly every digital entrepreneur I know.)
So… you gotta pick the right one for your needs.
So what payment processor should you use?
The first, and easiest pick for the majority of businesses would be “aggregators” meaning essentially, you use a payment processing service and they share one giant merchant account.
These are also more likely to be shut down, here’s a list of a few trusted and known aggregators:
Stripe is suited for all types of businesses, consultants, SaaS companies, eCommerce businesses and beyond.
They have an industry standard processing fee, and 2 day transfers to your bank.
They allow a 1% chargeback ratio in most cases before closing your account, I’ve processed thousands through Stripe with no major complaints, but just be sure to provide good support to avoid chargebacks.
It’s by no means a high risk payment processor.
Honestly, I can’t really suggest Paypal.
The only reason I’d use it, is because everyone has it and trusts it.
That being said, in many cases the dispute system is heavily abused, and they’re known to freeze funds all the time for nearly no reason.
By no means is for high risk businesses, long story short, it’s trusted, but use at your own risk.
Square is a reletively new payment processor, originally designed for brick and mortar stores, but now pretty functional for digital transactions.
From experience, tends to be about on par with Stripe, maybe a little bit more lenient for higher ticket transactions than Stripe, but they’re about on par with each other.
No real complains, but again, not really for high risk businesses.
Also has fast bank transfers alike Stripe.
Now, for merchant accounts:
Merchant accounts are for higher risk businesses, and just in general more unlikely to get frozen or shut down.
Foreign merchant accounts tend to allow more chargebacks and higher risk businesses as well.
It’d be impossible to list every single merchant account provider.
(Hint: even your own bank would likely open a merchant account for you.)
But I’d personally recommend (as do many)…
They provide a gateway, and also do merchant account brokeraging, meaning they can find the right merchant account for your business.
So, what should you use?
I’m not affiliated, I’m just experienced with them and can certainly recommend them.
If you sell:
- High ticket products
- Supplements, fitness products
- Information products
- Recurring products
- Anything grey area
- Free trials
- And beyond (anything with a high risk for chargebacks)
Then likely, a merchant account is right for you.
But that’s not to say you couldn’t use any of the aggregrators above.
Or perhaps, you could start out with an aggregrator before having proof of concept, then move to a merchant account.
Either route you choose, just insure you have good customer support and avoid chargebacks and disputes as best as possible.
So take your pick, and get to selling! 🙂