We get so caught up in making money online that we many times forget that collecting the money owed to us doesn’t come without a price, and sometimes a very steep price. Unless we have our customers send us payments via check or money order, which many people will be reluctant to do and slows up the process anyway, there is an expense associated with taking payments online, and not all payment processors are the same, regardless of what you might think. This article is going to cover some basic tips you’ll need in order to select a payment processor that’s best for you. Hopefully, after reading this, you’ll be able to make an informed decision on the payment processor that you ultimately choose to work with.

The first thing you need to know about any payment processor is what its fees are. They are not all the same. For example, if you were to register your product with Clickbank, they take 7.5% right off the top of each purchase plus $1. If you make a sale outside of the United States, there is an additional cost because of the exchange rate. So you need to be aware of this as well. With some payment processors, you can be losing close to 10% on each sale if you’re not careful. So make sure you research their fee schedule carefully before you sign up with them.

The next thing you have to research with your payment processor is what countries they service. Not all payment processors service every country. The reason for this is the amount of fraud that is prevalent in many countries. That is why, as an example, Clickbank does not service countries like Nigeria where fraud is rampant. So if you’re planning on doing business with certain countries in particular, you better make sure that the country in question is supported by the processor you decide to use.

The next thing you want to do is find out how that payment processor is going to pay you your funds and how often. For example, with Clickbank, they pay you on the 16th and the 1st of each month. They pay via check. There is no direct deposit unless you earn a certain amount each month, and it’s a substantial amount. Now, PayPal does have a direct transfer to your bank account, if you choose to use it. Funds are usually transferred in 4 to 6 business days. Every processor is going to be different in how they pay and when they pay.

These are just the basics. There are also legal matters that you need to be aware of as well, such as how many accounts you can have with the processor. With Clickbank, you can have as many as you want. With PayPal, you can only have up to two.

So do your research. Ask questions. Most payment processors have various means of contact including email and phone. Make sure that you know exactly what you’re getting yourself into before signing up with any payment processor.

Albert

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