CNP Expo: Choosing the Right Processor
May 22, 2014
As an e-commerce or m-commerce merchant, what’s your best bet for choosing a payment processor?
“When you’re evaluating processors, understand exactly what they are doing and what they are providing for you,” Joel Hoskins, director of operations for International Processing Solution said Wednesday afternoon at a CNP Expo panel discussion on what merchants need to consider when choosing their processor.
“One of the most important things to understand is, what’s a platform and what you’re hoping to get from the provider,” said Melissa Rabasco, manager of customer success for Vantiv/ Litle & Co. “Find somebody’s who’s going to understand your business model,” Rabasco said. “What additional value are you getting? If you have a subscription base, make sure the processor can serve you now and as you continue to grow.”
And, with EMV mandates taking effect over the next few years, it’s important for merchants to understand that card-not-present fraud will be a more pressing issue. When evaluating processors, panelists urged merchants to vet them carefully about their knowledge of the coming shift to EMV and their preparedness. As you think about a new system to replace the old credit card system, look for companies that are familiar with the new rules.
Consumers are going to have to be educated to adopt and use the new cards, and merchants fear that they might abandon their cards. The Target breach, however, may actually have helped in this regard. Many of the cards reissued in the breach’s wake are chip cards, getting many consumers used to them sooner than they would have.
“It’s time to get out of the magnetic stripe era,” said Jimmy Scarborough vice president of business development for Bank of America Merchant Services.