Processing fees are often a concern to many merchants when choosing a PSP for their digital businesses in Brazil. In theory, the cheaper, the better, but is that right? Well, not always.
The truth is, other aspects may impact one’s business and profit. In the E-commerce Brasil Conference in Santa Catarina, Ralf Germer, CEO and PagBrasil’s co-founder, explained the most critical elements to online business owners looking to increase their ROI.
Way Beyond Processing Fees: What Truly Matters When Choosing a PSP in Brazil
When selecting a PSP in Brazil, the fundamentals of financial gain to e-commerce platforms go right beyond trying and save as much as possible in fees. Germer wrapped up four essentials:
1. Processing fees are irrelevant
Saving a few bucks is great, but one should look beyond that when thinking of business. Germer explained that it’s essential to understand that processing fee is just a tiny part of the company’s revenue, making them virtually irrelevant. “Revenue and, most importantly, profit, are more important than fees”, he said.
2. Focus on conversion
Online stores with optimized and streamlined checkout pages, cart recovery solutions, and payment options that are mobile-friendly are ways to increase conversion rates, thus increasing sales and profit.
“We have clients who doubled their conversion rates with specific payment methods,” said Germer.
3. Look for a stable and secure payment platform
If you don’t want to burn money like this, look for a PSP that offers solutions aimed primarily at safety, stability, with good integration options and several payment methods. Other than that, having multiple acquires and a robust server infrastructure can help manage traffic and sales peaks.
4. Poor customer service can be costly
The costs of poor customer services are high, and according to Forbes, businesses lose $75 bi due to a negative customer service experience. Thus, it isn’t worth overlooking this service at the end of the day.
“Problems will always exist, so you should rely on your payment service provider’s help when you need to,” explained Germer. Humanization of this kind of service is an opportunity to treat the buyer with empathy, creating a bound and customizing communication.
How to choose the best PSP for your business
Germer wrapped up his presentation bringing three things to bear in mind before hiring a PSP for digital businesses in Brazil. Here they are:
The first step is to define your business’ priorities and goals, then compare all the options available on the market according to your company’s needs.
Test their customer service
If you choose a company that offers poor customer service right from the get-go, chances are, the service will be poor later as well.
Check the company’s reputation
Read what other people are saying about that specific company – how was their experience, how were they treated, was the overall experience negative or positive?
Want to learn more?
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