By Brandon Banks
Choosing the right payment processor for your direct selling organization is an important decision that will affect everything from customer convenience to budgeting processes. With so many options on the market, it can be challenging to determine which payment provider best fits your needs.
To ensure you select one that not only meets current requirements but also supports future growth, it’s critical to evaluate how each candidate aligns with your overall objectives. In this blog post, we’ll cover the major considerations for finding the most suitable payment processor for direct selling organizations.
Payment challenges for direct sellers
Direct selling organizations and merchants face several unique challenges when it comes to processing payments including the following:
- Complex business models — Direct sales often have intricate compensation plans, multiple sales channels, and diverse product offerings, making payment processing more complicated than for standard business models.
- High chargeback rates — Direct selling businesses are more susceptible to chargebacks due to factors like customer dissatisfaction, product returns, and recurring billing.
- Increased fraud risk — Direct sellers can be attractive targets for fraudsters due to their global reach and high transaction volumes.
- Regulatory compliance — Direct selling organizations need to comply with a myriad of industry regulations and standards, including PCI DSS, which can be time-consuming and challenging.
Not every payment processor is built to handle these challenges. So, it’s important to select a provider that has the technical infrastructure and expertise to support your needs.
Attributes to look for in a payment processor and partner
As a direct seller, you need a payment processor that understands the intricacies of your business model and industry challenges. The following are some essential factors to consider when choosing a payment processor:
- Industry expertise — Your payment processor should have a proven track record of supporting businesses with complex merchant profiles and providing solutions for fraud management and chargebacks.
- Stability and confidence — Look for a processor that offers you stability and confidence, so you can continue to scale your business without being hindered by payment complexities
- Compliance and good standing — The last thing you want is your payment processor shutting you down. To avoid this, your payment processor should help you stay compliant with PCI rules and maintain good standing with credit card networks.
- In-house underwriting — Choose a processor that performs in-house underwriting from the get-go, minimizing friction and potential issues down the line.
- Exceptional technical and customer support — Your processor should offer top-notch customer support and act as a consultant, guiding you through the complexities of payment processing.
Don’t be afraid to ask difficult questions. You want to work with a payment processor that aligns with your business needs and goals.
Features and support for growth
As your business grows, your payment processor should anticipate payment challenges and equip you with the expertise, strategic thinking, and tools to avoid pitfalls. Key features to look for include the following:
- Fraud prevention — a robust fraud prevention system to protect your business from unauthorized transactions.
- Chargeback mitigation — effective tools and strategies to minimize chargebacks and maintain a healthy merchant account.
- Gateway redundancy — a reliable gateway infrastructure to ensure smooth processing even during technical issues or downtimes.
- Multi-currency processing — the ability to price goods and services in a variety of foreign currencies while continuing to receive settlement and reporting in USD.
As mentioned above, the direct sales industry has unique payment challenges. Make sure your payment processor has the tools and resources you need to help you accomplish your goals.
Final thoughts
Finding the right payment processor for your direct selling business requires careful evaluation of their expertise, stability, support, and features. By partnering with a processor that understands your unique challenges and provides you with the necessary tools and resources, you can focus on scaling your business and achieving success.
About Nexio
Nexio was purpose-built for direct sellers and understands the complexities of running a direct selling business. We can not only help you remain compliant but can also help you expand your enterprise with safe and secure payments around the world.
If you are looking for an experienced payment partner to help address your current payment challenges, contact us today!