What We’ve Learned from Consulting 100+ Companies on Payment Processing

Tap, swipe, card PIN… Payments have evolved tremendously over the years, so it’s no wonder that the concept of barter and even paper checks may seem alien to some. While today’s end users are accustomed to the ease of online and in-store payments, the truth is that payment processing is a complex process involving numerous parties. 

 

So let’s explore the topic further. Our experienced team has consulted 100s of companies on how to structure their payment processes, and here is what we’ve learned. 

 

What Is Payment Processing?

 

Payment processing is the process of payment transactions getting initiated to complete a purchase. This involves processing a card and communicating with banks, accounts, and gateways. 

 

Imagine you’ve finally found your dreamy retreat and have the money for it. Then you grab your card before that last-minute deal expires and enter your details. Approved. Done. You call in sick (shhh, we won’t tell anyone!) and pick up your child (or pet) early to start getting ready. 

 

That said, the technical process is not simple. When a user makes a payment, their details are passed through a payment gateway and then to the merchant’s bank. The card’s issuing bank is also notified about the transaction and confirms if the funds available are sufficient.

 

In other words, many parties exist between the client and their desired product or service. We’ve got the:

• Banks that store and manage funds;
• Payment gateways that are services that connect all entities involved, transfer data and notify parties;
• Payment processors that provide the logistics to transmit funds based on the information provided by the gateways;
• Merchant accounts that hold funds while pending transactions get settled.

 

Why Do Companies Need Consulting by PSPs?

 

The problem is that often businesses get caught in the middle, between compliance, chargebacks, documentation,  fraud attempts and sometimes, for no clear to the merchant reason, merchant accounts closed which often leads to the need of finding a consultant to help process payments. 

 

The truth is that  payment searvice providers (PSPs) bring not only expertise but an objective opinion and help with identifying fraud during payment processing, impacting the payment processing fees, speeding up onboarding, and ensuring that the payment options are convenient for users in order to ensure higher ROI and brand relevance.

 

The best part is that consulting is not a one-way process, and PSPs continuously learn how to provide tailored and flexible solutions to match their clients’ needs and show them they are heard. 

 

Lessons We’ve Learned from Consulting 100s of Companies Regarding Payments

 

Given the need to listen to every client and provide speedy, yet effective solutions, we at CatalystPay have learned some valuable lessons while consulting our clients on how to optimize their processes.

 

Here’s what our experts Anna Miteva (AM), Georgi Panayotov (GP), and Daniel Davidov (DD) have to share:

 

 

• Since no such thing as one-size-fits-all solution exists, CatalystPay aims to provide tailor-made solutions to any client:

 

 

Businesses come in all shapes and sizes, so CatalystPay has an individual approach to all clients.

 

DD: CatalystPay provides consultancy services in the field of acquiring, including website compliance checks, onboarding, technical support, and the like to make sure each client is understood and advised properly in order to improve their business and ensure the acquiring bank will accept them. 

 

AM: There is no one-size-fits-all as every business’ characteristics and setup vary. In order to understand a merchant's needs, we would have an initial discussion with the client to make sure we understand what they are looking for. Also, CatalystPay tries to help every client even if what’s needed is outside our scope of work.

 

GP: The one-size-fits-all approach will not work simply because there are lots of variables when we talk about each merchant and the business vertical they are in. This is why we have a more personalized approach in accordance with the client’s background experience and knowledge in the industry. 

 

 

• Lack of knowledge is a major challenge businesses face when it comes to structuring payments:

 

 

Lack of knowledge regarding the options companies have, especially when it comes to specific business verticals, is one of the major challenges businesses face. For example, often merchants are not aware of the importance of redundancy and how making use of it can help them avoid costly transaction problems and keep customers happy. Another common lack of knowledge is in the field of chargeback managment and how different solutions like Visa RDR and Mastercard Collaboration as well as diligent internal management could help in reducing them. 

 

To tackle these problems, CatalystPay helps businesses fill the gaps in their expertise and leverage their industry knowledge, hence their business potential.

 

 

• Banks and payment service providers should cooperate to make things easier for businesses and customers:

 

 

Another problem is that banks and providers do not always simplify processes for businesses,  and CatalystPay has learned the hard way that the complicated onboarding process clients face is proof of that. A starting point to resolve this problem, according to Anna, is to “Request fewer documents that could be obtained directly from them and streamline the onboarding process without going back-and-forth to the clients multiple times.” 

 

Here we should note that some misconceptions clients have also add fuel to the fire. To provide an example, many clients CatalystPay works with think that “The onboarding will take several days,” Daniel says, and that “if one bank has accepted their website and documents, these should be accepted by all banks, which creates a gap between expectations and reality,” adds Anna. 

 

How CatalystPay Puts Hands-on Knowledge into Practice

 

Based on the consulting excellence and lessons learned on the way, now CatalystPay provides not only diverse and reliable solutions but clear information and ongoing support. As Anna says, “The more time you spend on providing detailed instructions, the faster you get the required documents/changes. If you provide clients with only a brief description, there’s a lot of space for them to interpret what’s requested and this usually results in providing insufficient documents.” 

 

CatalystPay aims to keep “Providing clear and detailed information and feedback to the clients alongside setting out good communication and relationships from the beginning,” explains Georgi. Because after all, CatalystPay is not only an innovative payment service provider but a true partner. 

 

Ready to find your ultimate business partner? Then contact us today!