Agility and adaptability can help merchants build a stronger competitive position, but vendor lock-in can stand in the way. Lock-in happens for various reasons. Merchants may sign agreements that state they’ll use a particular payment processor or other solution provider for a certain term or face penalties. Merchants may find they’re locked into using a certain solution when they want to upgrade a part of their IT environment but have limited options unless they rip and replace at astronomical costs. So, at least in the near term, they’re locked into what they have.
As an ISV or VAR looking for ways to ensure customer satisfaction by offering flexible, scalable solutions, your strategy should include partnering with payment-agnostic solution providers. By giving merchants the freedom to choose, you are also giving them the power to:
- Control Processing Fees
Processing fees, primarily based on interchange rates, typically average 1.5 percent to 3.5 percent of each transaction. Since payment processors use different pricing models, it’s important for you to give your clients choices so they can sign an agreement that’s right for them and their bottom line. - Stay in Control When Terms Change
Terms of an agreement with payment processors can change for a variety of reasons. A merger or acquisition could lead to a fee hike. The merchant might suddenly face higher fees or reserve requirements if higher-than-average chargebacks change their classification to high-risk. Or a challenging economy could force the processor to raise rates. A processor-agnostic solution allows the merchant to retain control, respond to changes, and control costs.
Furthermore, it’s an advantage to partner with a payments company that understands that deciding to work with a different payment processor can lead to challenges and offers solutions for merchants. For example, work with a company that offers Processor-Agnostic Tokens. These processor-agnostic tokens don’t need to be updated when a merchant uses a new payment processor. They can simply be transferred from one processor to another without disrupting operations or consumer experiences.
- Meet Consumer Expectations for Payment Choice
The payments space is changing at an accelerated pace, and some processors aren’t keeping up with innovation and consumer demand. Consumers expect more options, like self-service with unattended payments. They want the freedom to use digital wallets and QR code payment apps or the convenience of text-to-pay transactions. As the payment space continues to evolve, merchants need the freedom to change if their current payment processor doesn’t support the payment methods they need to accept. - Choose Budget-Friendly Hardware
A credit card terminal can cost anywhere from $50 to $850 or more. When payment solutions are processor-agnostic, merchants can choose the payment devices that meet their needs and fit their budget. Aesthetics also play a part. Some options are sleek and modern, which merchants may want to complement their brands. Other merchants need compact devices with flexible mounting options to use in different areas of the store. Merchants may also need mobile or unattended options to allow them to accept payments when customers engage beyond the checkout counter. Processor-agnostic solutions give merchants more device choices and, as a result, more freedom to create experiences that will help them build customer satisfaction and loyalty.
Offer Solutions that Increase Merchant Satisfaction
Processor-agnostic solutions allow you to build a valuable feature into the solution you provide: Flexibility. You will help merchants control costs, accept all the payment methods their customers want to use, and retain control in a continually changing world.
Contact us to see how our processor-agnostic solution can help you build merchant satisfaction and grow your business.
