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5 Small Business Payment Processing Challenges

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The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedOct 20212 min read

With an increasing percentage of small businesses moving their payment processing online, the system has been made more efficient than ever. Innovations like real-time international payments, digital wallets, cryptocurrency, and social payments have enhanced ecommerce for merchants and buyers alike. Despite these innovations, payment processing still presents some unique challenges to be aware of, including the following.

1. Handling multi-currency payments

Do you want to open your business to an overseas audience? If so, one of the first challenges to contend with is finding a payment processor that can handle multi-currency payments. You’ll need a payment gateway designed for international credit payment processing, complying with international security and banking standards. When it comes to currency exchange, you could lose money on each transaction if you’re not careful. A good payment gateway will display local currencies in your target countries, accepting and automatically converting international currencies into AUD.

2. Card-not-present fraud

Another challenge related to credit card payment processing for small businesses is card-not-present fraud. This is the most common type of card-related fraud in Australia, involving criminals taking advantage of purchasing at a distance to use stolen or fraudulent details. If you run an online business, you’ll need to put adequate security in place to verify each credit payment processing transaction. For example, you could opt for a payment gateway that redirects to the customer’s bank for further verification.

3. Data security compliance

With an explosion of online payment methods, it’s perhaps not surprising that many of these challenges relate to online security. Protecting customer data is another major challenge to be aware of when it comes to credit card payment processing for small businesses. The Australian Prudential Regulation Authority (APRA) has strict standards in place mandating that businesses are responsible for safely handling customer data. You’ll also need to be sure all batch payment processing is PCI DSS compliant.

4. User-friendly checkout experience

Security must be built right into the payment processing system, but what does your checkout process entail from the user’s end? If your checkout process is glitchy this will put potential buyers off. The problem is that some payment processors focus more on the merchant experience than the end user, so be sure to integrate a system that’s user-friendly at both ends. How long does a credit card payment take to process on your website? If it’s more than a few seconds, you need to find a faster processor, or you’ll lose the sale. The best gateways will also accept multiple payment options, including credit and debit cards as well as apps like PayPal.

5. Third-party integrations

Once you’ve chosen a user-friendly, secure payment gateway, the final challenge is to integrate both old and new systems together. Australian consumers expect a fast, seamless checkout experience which often involves several integrations to achieve. Look for a payment gateway with a strong API and a wide selection of third-party integrations enabling everything from batch payment processing to recurring payments. Cloud technology lets you scale up or down as needed.

The bottom line

As you can see, there are many facets of online payment processing to think about when choosing a gateway provider. The right payment gateway will enable seamless transactions, securely transmitting customer data from your website or store directly to your bank. Australian businesses must ensure they are compliant with all APRA regulations, whether or not they sell abroad. This applies just as much to small businesses as it does to larger corporations. Ultimately, payments are a key feature of any business so it’s well worth comparing your options carefully in terms of fees, compliance, security, and third-party integrations.

We can help

GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.