Looking for the right payment processing company? Learn how to choose the payment processor and which types make the best choice for your business. Read our comprehensive guide now!
Payment processing companies are the backbone of modern commerce, enabling businesses to accept payments securely, efficiently, and conveniently. With countless options available, choosing the right payment processor can feel overwhelming. The decision affects your business’s operations, customer satisfaction, and bottom line.
This guide will walk you through the factors to consider, the types of payment processing companies, and tips to select the one that suits your needs best. You are going to learn:
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Payment processing companies act as intermediaries between businesses, customers, and financial institutions to facilitate transactions. These companies ensure the secure transfer of funds, whether via credit cards, debit cards, mobile payments, or online platforms. Popular payment processors include PayPal, Stripe, Square, and Worldpay.
Selecting the right payment processor isn’t just about processing transactions; it impacts your business in several ways. First of all, a smooth and secure payment experience boosts customer satisfaction and reduces cart abandonment.
Operational efficiency is also important. Streamlined payment processes save time, reduce errors, and enable faster settlements.
Different processors have varying fee structures; selecting the wrong one can inflate operational costs. But most importantly, the right processor grows with your business, offering features that support expansion.
Before diving into specific factors to consider, it’s important to understand the categories of payment processors available.
These companies set up a dedicated merchant account for your business, offering features tailored to your needs. Ideal for established businesses, they often provide lower transaction fees but may involve lengthy approval processes.
Payment aggregators like PayPal, Stripe, and Square combine multiple businesses under a single account. They are user-friendly, fast to set up, and great for small businesses but may charge higher transaction fees.
Gateway providers like Authorize.net focus solely on facilitating transactions and require a separate merchant account. They are suitable for businesses that already have a merchant account and need robust payment infrastructure.
All-in-one providers like Shopify or Toast cater to specific industries with integrated solutions for payment processing, point-of-sale systems, and e-commerce platforms.
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Here’s a breakdown of what to look for when evaluating payment processing companies:
Ensure the processor accepts a wide range of payment methods, including:
The processor should integrate seamlessly with your existing systems, including E-commerce platforms, accounting software, and customer relationship management (CRM) tools
Security is paramount to protect customer data and prevent fraud. Look for:
Payment issues can disrupt your business, so 24/7 customer support is crucial. Evaluate the company’s support channels, such as live chat, email, or phone.
Choose a processor that can grow with your business, offering customizable solutions for expanding needs, support for multiple currencies and languages, and advanced features tailored to high-volume merchants.
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Here are some of the best payment processors to consider based on features, costs, and reliability.
ArtsylPay is a leading B2B payment processor designed to simplify and optimize payment workflows for businesses. Seamlessly integrating with ERPs and accounting software, it ensures a streamlined payment process that eliminates manual inefficiencies. ArtsylPay helps businesses save more on every transaction.
Additionally, ArtsylPay boosts business cash flow by offering rebate programs that provide financial benefits to users, making it a cost-effective choice for managing payments. With robust automation and exceptional compatibility with existing systems, ArtsylPay is the go-to solution for businesses seeking efficiency, reliability, and savings in their payment processing operations. Perfect for scaling B2B enterprises!
PayPal is a leading B2C payment processor known for its user-friendly platform and wide acceptance across e-commerce sites. It offers seamless payment options, including credit cards, bank transfers, and digital wallets, making it a favorite for consumers and businesses alike.
However, PayPal’s transaction fees can be higher compared to other processors, particularly for international payments. Additionally, account freezes or disputes can sometimes disrupt cash flow. Despite these drawbacks, its global reach and ease of use make PayPal a top choice for B2C transactions.
FIND OUT MORE: Payment Processing: Transaction Lifecycle
Gravity Payments is a credit card processing company celebrated for its transparent pricing and dedication to small businesses, offering flat-rate fees and personalized customer service. However, its services may lack the advanced features larger enterprises need, and the flat-rate pricing could be less cost-effective for businesses with high transaction volumes.
Payment Depot is a merchant services provider offering transparent pricing via a membership-based model. Businesses benefit from no long-term contracts, setup fees, or cancellation fees, as well as free virtual terminal and gateway options. Payment Depot is particularly cost-effective for low- to medium-risk businesses looking to simplify their payment processing.
However, drawbacks include limited support for high-risk merchants and some higher upfront monthly fees compared to other providers. These limitations may deter businesses needing specialized or risk-adapted solutions.
Apple Pay is a widely used payment processing solution for B2C transactions, offering secure, contactless payments through mobile devices. It’s convenient and highly secure, but it’s limited to Apple users and unsuitable for complex B2B operations.
Unlike Apple Pay, ArtsylPay specializes in B2B payment processing, integrates seamlessly with ERPs and accounting software, and offers rebates, making it cost-effective. ArtsylPay’s focus on business needs and scalability makes it a more versatile and attractive option for enterprises.
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Payline Data Services LLC specializes in high-risk merchant accounts, serving industries such as travel, tobacco, CBD, and others that often face challenges securing payment processing. High-risk accounts are critical for businesses operating in industries prone to chargebacks, regulatory scrutiny, or higher fraud risk, as they ensure uninterrupted payment processing and protect business operations.
Payline collaborates with over 20 banking partners to improve account approval chances and offers tools like load balancing across multiple accounts and advanced fraud prevention. However, it may not be ideal for low-risk businesses or those with smaller processing volumes due to additional fees and service limitations.
LEARN MORE: Payment Processing: Optimizing Transactions for Efficiency
Square is a versatile payment processor known for its user-friendly point-of-sale (POS) systems and transparent pricing, ideal for small businesses and retail environments. However, it has drawbacks, including higher fees for larger transaction volumes and limited customization for complex business needs. It’s best suited for smaller, straightforward operations.
Shopify Payments is an integrated payment processor designed for e-commerce businesses using Shopify. It simplifies transactions by eliminating third-party gateways and supports multiple payment methods. However, it’s exclusive to Shopify users and comes with additional fees for non-Shopify Payment gateways.
In contrast, ArtsylPay excels in B2B payment processing with seamless integration into ERPs and accounting systems. ArtsylPay offers rebates, and scalability beyond e-commerce, making it a more versatile and cost-effective solution for businesses looking to optimize payments.
Finix is a payments technology provider that allows businesses to accept and send payments both online and in person. Finix offers a customizable payment infrastructure and developer-friendly APIs. However, its services may be cost-prohibitive for smaller businesses, and the payment processing setup can be complex for non-technical users.
Merchant One is a payment processor tailored for businesses across industries such as retail, hospitality, restaurants, eCommerce, and trade shows. It offers benefits like free hardware (including Clover POS systems), a user-friendly virtual terminal, and interchange-plus pricing, which can be more cost-effective than flat-rate alternatives. Additionally, Merchant One provides 24/7 customer support via multiple channels.
However, there are some dealbreakers. The company enforces a three-year contract with high early termination fees and lacks transparency in pricing details on its website. Hidden fees, such as PCI compliance charges, have also been a concern among users.
Stripe is a popular payment processor offering customizable APIs for seamless integration with online platforms, supporting various payment methods worldwide. While Stripe is developer-friendly and versatile for B2C businesses, it can be costly due to transaction fees and requires technical expertise for setup and maintenance.
At the same time, ArtsylPay focuses on B2B transactions, offering rebates, and ERP integration for streamlined payment workflows. For businesses prioritizing cost efficiency and simplicity in managing payments, ArtsylPay is a superior choice.
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Follow these steps to find the ideal payment processing company for your business:
READ NEXT: What Is Payment Processing in Order Processing Workflows?
ArtsylPay transforms the accounts payable (AP) process by integrating seamlessly with InvoiceAction and OrderAction, automating invoice and order payments directly within the solutions. With ArtsylPay, businesses can process invoices received through InvoiceAction, pay them effortlessly, and even earn a rebate on payments made. This closed-loop solution accelerates AP workflows, offering both efficiency and financial incentives.
For vendors using OrderAction, ArtsylPay simplifies B2B transactions. When a vendor sends an invoice with a payment link generated from OrderAction, the client can instantly pay online via ArtsylPay, earning rebates on the transaction. Vendors benefit from faster payments and reduced fees compared to traditional wire transfers or credit card processing.
Both parties gain distinct advantages: payers enjoy rebates, while recipients save on fees and expedite their cash flow. ArtsylPay’s approach makes it a game-changer for businesses looking to optimize payment efficiency while reducing costs across their supply chain.
A merchant account is a type of business bank account that allows businesses to accept payments from credit and debit cards. It serves as an intermediary between the customer’s payment and the business’s bank account. Funds from transactions are deposited into the merchant account before being transferred to the business account.
Merchant accounts are essential for businesses processing card payments but often come with setup fees, transaction fees, and compliance requirements. They are provided by acquiring banks or payment service providers.
A payment gateway is a technology that facilitates online payments by securely transferring payment information between the customer, merchant, and payment processor. It encrypts sensitive card data to protect against fraud and ensures compliance with security standards like PCI DSS. Payment gateways are essential for e-commerce businesses as they handle the authorization of transactions. They can be standalone or integrated with payment processing services. Popular examples include Stripe, PayPal, and Authorize.Net.
A chargeback is a transaction reversal initiated by the cardholder’s bank when a customer disputes a charge. Common reasons include fraud, product dissatisfaction, or unauthorized transactions. While chargebacks protect customers, they can be costly for merchants due to associated fees and potential loss of revenue.
Excessive chargebacks can lead to penalties or even termination of the merchant account. Merchants can reduce chargebacks by providing clear communication, accurate descriptions, and reliable customer service.
Interchange fees are fees charged by card-issuing banks to merchants for processing card transactions. These fees cover the cost of handling and risk associated with payment transactions.
The interchange fee varies based on factors such as the type of card (credit, debit, rewards), transaction amount, and payment method (in-person or online). Merchants often negotiate with payment processors to minimize these fees. Interchange fees are a significant part of the overall transaction cost borne by businesses.
Tokenization is a security process that replaces sensitive payment information, such as credit card numbers, with unique tokens. These tokens are meaningless if intercepted, reducing the risk of data breaches and fraud.
Tokenization is widely used in payment processing to secure customer data during online transactions and recurring payments. It ensures compliance with PCI DSS standards by minimizing the storage of sensitive information. Many payment processors and gateways provide tokenization services to enhance transaction security.
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Choosing the right payment processing company is a critical decision that affects your business’s efficiency, security, and profitability. By understanding your specific needs and evaluating options based on features, costs, and scalability, you can find a provider that aligns with your goals.
Whether you’re a small startup or an established enterprise, the right payment processor ensures seamless transactions and builds trust with your customers. Take the time to research and invest in a payment processor that empowers your business to thrive in an increasingly digital world.
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