Is consumer payment processing a commodity?

Are all payment providers the same?

Is cost the only consideration?

No, no, and no.

The average business owner buys many products and services based on price because they view them as commodities. With the entrance of services like Square to the market, some businesses now feel payment processing falls into the category of being a commodity. Doing so is a big mistake. Just because a few companies have simplified the pricing structure does not mean all processing services are the same. Payment forms and the process a consumer is guided through to make a payment must be designed with the Consumer Experience in mind.

Consumer Experience Key Factors

There are two key differences in the consumer experience as they relate to the accounts receivables industry.

Key factor #1

Debt collection deals with consumers reluctant to make the payment and they are quick to disconnect at any point in the transaction.

In the retail consumer buying experience, the customer wants to purchase the product and may tolerate a consumer experience that is less than smooth to get the product or service they want. Large retail providers, however, know that with one additional field for the consumer to fill out, they will lose a significant percentage of their sales.

Key factor #2

Your consumers make a payment for either a one-time or ongoing payment arrangement. If they hesitate anywhere along the process, especially if the compliance process is lengthy, you may lose the payment today and in the future, until you make another contact, which costs time and money.

Retail Online purchases differ from in-store purchases. Online purchases provide more opportunity for success (easier for consumers to buy and make payments), but at the same time, add more room for failure (compliance and software issues). Both successful design and failure of design are exaggerated with mobile optimized payment forms.

Payment Processing that focuses on your Consumer Experience

Your consumer does not care about your costs or fees. What they care about is their consumer experience! Do you know what your consumers have to fill out to make a payment to you? Do you have a mobile optimized form? Have you ever seen it?

When your consumer must jump through hoops to pay the debt, such as, wait for a written authorization form to come in the mail, sign the form and then send it back in the mail, often times, they give up or don’t follow through, and your business loses the payment.

The compliant payment flow must be seamless from the consumer’s point of view. They should have easy access from any electronic device and be able to quickly and effortlessly complete their authentication details, sign the authorization, and make their payment. The best practice for all is have this happen while the collection agent is on the phone with the consumer.

Payment software that provides the least friction for your consumer to authorize and send a payment moves beyond a commodity, and becomes an important tool to increase payments and decrease compliance liability.

PDCflow products are built with your consumers in mind, giving the consumer the easiest and least resistant path to getting a quick payment authorization and making a consumer payment to your business. For more information, please see the PDCflow product PaymentAuthorizations or call us at 1-877-732-4814.


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