When you’re running a business and you’ve got everything up and running it’s easy to fall into the trap of sticking with your current service providers out of loyalty or as you think switching is just too much hassle. That’s fine if they’re providing a great service, but it could be a mistake if there’s room for improvement or you’re concerned you’re paying too much.
Depending on your circumstances, changing your payment provider could be one of the best ways of giving your business a boost.
What’s a payment provider?
First things first – what exactly is a payment provider? It’s just a company that enables your customers to pay you for the products or services you provide them.
They help you take payments in one or more ways depending on the nature of your business – that might be online or over the phone, or in person at a checkout or your customers’ premises.
Why might switching be a good idea?
There are several reasons you might wish to switch. Let’s take a look at some of the most common.
Transaction fees
This is the most obvious – you might just be looking for a provider that takes a smaller cut of your hard-earned sales. According to industry lobby group Axe the Card Tax, card payment scheme and processing fees have shot up by a remarkable 600% in recent years. What’s more, some providers may give their customers a nasty shock by adding on hidden fees and charges which could take their customers by surprise.
There’s considerable variation among providers, which means by shopping around there’s clear scope for many firms to find a cheaper deal.
If you’re choosing a new provider based on fees, it’s important to check the small print of their deals. For example, some might offer you a low rate for an initial period to entice you onboard before moving to a much higher rate a few months down the line. And of course if your current provider has just hit you with higher rates, now could be a great time to look for a cheaper option.
Settlement times
When you make a sale, do you expect the money to be in your account quickly? It’s your money, but some payment providers can take days to get it there. This can be a major problem if cashflow is a big issue for your business.
Other providers, like Tyl by NatWest*, make sure the money’s in your account the next business day after the sale.
Payment options
Remember the ways to get paid we listed above? Not all payment providers offer all those options. For example, if your provider doesn’t accept payments on the move and your line of business involves going out to your customers’ premises or a pop-up, you’ll either have to accept cash or cheques or get paid at a later date.
Nowadays, customers expect a range of payment options – not least paying by card as soon as they’ve received a service or bought an item. If paying you is a hassle, there’s a risk they’ll take their business elsewhere next time.
Along the same lines, if you take card payments it’s important that your payments company provides the right option for your needs – whether that be taking contactless payments on your phone, an all-in-one point of sale system or a portable card reader.
Technology
Times are changing, and technology is developing at pace. One breakthrough payments technology is Open Banking – a simple, secure way for people and businesses to move and manage their money.
Some payment providers enable businesses to harness this new technology by, for example, sending a payment link or QR code to their customers so they can pay quickly and completely securely without entering their card or banking details. This could be a great way of getting one up on your competitors.
Security
Protecting yourself against fraud is unfortunately an essential part of any business’s day-to-day responsibilities. Thankfully, payments technology has evolved and some payment providers now incorporate various built-in security features to their payments products, helping you reduce the risk of fraudulent transactions and chargebacks.
For example, Tyl enables you to check a customer is actually based at the address they give you when you’re taking a payment by phone, and its payment terminals are able to check whether your customers’ cards are valid.
If your current provider doesn’t provide you with this kind of peace of mind, maybe they’re not the right match for you.
Customer service
We all need help from time to time as problems inevitably occur. When they do, it’s important that there’s someone based in the UK on hand to provide help straight away, and that you won’t be kept queuing on the phones for hours or left in the hands of a chatbot.
If your payments provider doesn’t take customer support for small businesses like yours seriously, it might be time to think about making a switch.
FSB Member Story: How Switching Payment Providers can Save Time and Money
FSB member Andy Mardle at Libby Butler Jewellers, an independent retailer in Helmsley, North Yorkshire, told FSB that changing to Tyl By NatWest has been a great move, saving him both time and money as a business owner.
"From our first conversation as a business with Tyl, their customer service has been exceptional, finding us the right products at the right price for card processing, then a super easy set up and the user-friendly portal for tracking payments and managing our account, everything is straightforward and quick to take care of."
"There's always a friendly and helpful person on the phone if needed as well as the intuitive easy to access portal online. I do think friendly and professional customer service at a competitive price is really hard to come by, especially with business utilities, but with Tyl we have found it, I can highly recommend them and keep telling other businesses it's been such a breath of fresh air, they really get small business and have designed the service to fit".
Facebook: Libby Butler Jewellers
X: @LibbyButlers
What to do next
If you’re not sure whether to change your payments provider, take a look at what other businesses like yours are doing in terms of the payment options they offer their customers and the providers they use. Offering more payment options or a better provider could be a great way of helping you stand out from the crowd.
At the same time, it’s vital to look at your current provider’s terms and conditions, as ending a contract early might leave you with a hefty bill.
And when you’re choosing your new provider, as well as making sure they cover the points we discuss above, make sure there’s an easy onboarding process – the last thing you need is being unable to take payments during the switch.
Find out more
There’s lots more information about switching providers and our payment partner Tyl on the link below.
*Additional fees may apply for data usage or app downloads. Tyl eligibility criteria, terms, conditions and fees apply.