The sense and nonsense of payment providers

Blog  — Mon 5 Aug 2024

When doing business online, it’s hard to avoid payment providers. A forest of opportunities, but also potential pitfalls.

As an entrepreneur, you simply want to sell your products or services and get paid. Your choice of a payment provider is often based on the payment methods they offer and the costs involved. However, there is another hidden challenge we frequently encounter: the technical side of the integration.

Some solutions are easy to install, while other systems turn out to be unnecessarily complex. This can be due to outdated documentation, outdated software, or even a combination of both. The worst case is when the software and documentation don’t align, leading to unexpected technical challenges and unnecessary costs.

Additionally, some payment providers require so much information for each transaction that you might question whether it complies with GDPR (General Data Protection Regulation). It’s understandable that financial institutions are bound by laws, such as those for preventing money laundering and financial crime. However, it can feel strange or even uncomfortable when an excessive amount of data about your customers is requested.

Choosing the right payment provider is, therefore, a serious decision. Often, rates and available payment methods take center stage, but it’s just as important to consult with your technical partner beforehand. This can help avoid hidden costs, as the implementation of one provider can often be more complex than another.

For standard e-commerce platforms, there are often standard integrations available, making implementation easier. But for larger businesses, who require more customization or use a specific platform, this is often not an option. In such cases, it’s wise to discuss the options with your technical partner. They usually have good insights into which payment providers are easy to work with on both technical and user-friendly levels.

By carefully following these steps, you can avoid surprises and ensure that you choose a payment provider that not only fits your business but also aligns with your technical infrastructure and legal requirements.