Article 8: Comparing payment service providers

Article 8: Comparing payment service providers

This article discusses important points when comparing and selecting a payment service provider.

Payment methods

When comparing payment service providers, it is important to take a long-term perspective. Specifically, instead of focusing only on your desired payment method at the current time, you should also consider payment methods which you might implement in the future. Example: Currently, my business only operates a desktop website. However, in the future, we also want to operate a mobile website.

Choosing a payment service which supports the carrier payment method which is selected by many consumers as a mobile payment method will enable you to expand your payment system without incurring losses or missing the right timing. If there is a delay in the payment receipt cycle, there may be a significant effect on supply and cash management. Therefore, it is important to thoroughly confirm payment.

Payment management function

We also recommend selecting a payment service which enables “all management at a single management screen.” One example is the PG Multi-Payment Service offered by our company. It is extremely troublesome if it is necessary to log into a different system for each payment method, or if it is not possible to perform payment processing (changes, cancellation, etc.) at a single management screen.

  • ・Batch processing for batch support of multiple transactions
  • ・”Automatic detection” function which eliminates the need for file processing and payment collating/reconciliation.

These functions will significantly increase administrative efficiency. We recommend making a detailed assessment of payment management functions required by your business, and then comparing the functions offered by each payment service provider.

Costs

Another important element of E-commerce website operation is the extent to which operating costs can be reduced. Costs such as the following may be incurred when using a payment service.

  • ・Initial costs associated with the installation contract, installation support, and system settings
  • ・Monthly fees
  • ・Payment fees incurred for each payment amount
  • ・Transaction fees incurred for each transmission of payment data
  • ・Optional fees when adding special services

Other points for comparison include the sold merchandise, security measures, etc. Although many businesses are prone to focusing on costs first, it is important to select a payment service provider which supports the connection method and service installation period.