5 Hidden Reasons Payment Aggregators Aren’t Quick and Easy

1. Interrupted transactions will cost your customers valuable time.

The Perception

Payment aggregators are known for having a fast setup process, making them seem like a wise choice if your customers need to get started accepting payments quickly.

While it's true that aggregators have a limited verification process and can get your customers up and running quickly, be forewarned: the easiness stops there. 

The Problem

Aggregators take a reactive approach to fraud rather than a preventative approach. If an aggregator detects any fraudulent activity, they'll immediately take action by freezing your customer's account—often with no notice at all. 

That means that even if your customers haven't done anything wrong, they could experience frequent interruptions to their transactions. 

The Solution

When your customers work with a dedicated merchant account provider, they'll have much more control over the transactions taking place in their account. Unlike an aggregator, a dedicated processor can contact your customer if they detect fraud and resolve the issue without needlessly freezing accounts. 

Learn more about the benefits of working with a merchant account provider.

There are major differences between payment aggregators and dedicated payment processors.

2. Delayed or withheld funds can leave your customers waiting.

The Perception

Your customers need to receive their funds as quickly as possible, so they'll likely choose a payment processor who promises fast turnarounds and instant deposits. 

Unfortunately, payment aggregators often use confusing or unclear language, which might leave your customers with a vague or incomplete idea of when they'll actually receive their money.

The Problem

If not being sure when they'll receive their funds weren't enough of a problem, your customers might also be unaware that payment aggregators retain full control over all the funds within their account.

Translation? Payment aggregators reserve the right to withhold funds until they decide they're cleared for deposit. Your customers might be waiting days, weeks, or even longer to see their funds! 

The Solution

A dedicated merchant account provider will deposit your customers' money as soon as the payment process is complete (usually within 24-48 hours). That means your customers will spend less time waiting for funds and more time furthering their organizations!

3. Aggregator pricing is not as simple as it seems.

The Perception

In addition to being quick to get started with, payment aggregators are known for their simple fee structure and low-cost rates.

There is some truth to the simplicity of aggregator rates. In fact, payment aggregators typically offer pre-set payment processing services with one standard fee structure. However, there may be other costs (such as the price of advanced fraud prevention tools) that aren't accounted for in the fixed rate fee. 

The Problem

While payment aggregators might seem like the simplest choice early on, your customers need to be aware that flat fee structures become more expensive as you process more payments, so your customers might outgrow this model as their organizations expand.

Plus, aggregators won't tailor their fee structure to meet your customers' real needs. Nothing about a payment aggregator, including price, is customized to help your customers succeed or grow.

The Solution

Merchant account providers take the time to get to know your customers and create solutions that are reflective of their organizations. While the rates might seem more complicated at face value, they're actually laid out in a way that ultimately serves your customers and helps them keep costs low! 

Are rates the only consideration that matters when it comes to choosing a payment processor?

We'll show you why you should consider the whole payment processing package—not just the price tag!

4. Payment aggregators can't grow with your customers.

The Perception

Since payment aggregators are thought to be a straightforward payment processing solution, your customers might have the impression that they can use these processors for as long as their organization is accepting online payments. 

Choosing a payment processor takes time, so your customers need to find a solution that can grow with them. Otherwise, they may soon be back at the drawing board looking for another payment processor! 

The Problem

If growth is a priority for your customers, they'll likely find that a payment aggregator is not a sustainable solution.

Aggregators' payment solutions are inflexible and unresponsive to your customers' needs over times. And, payment aggregators impose lower limits, meaning your customers won't have support if they expand their organizations.  

The Solution

Merchant account providers are a much more sustainable payment processing option for customers with unique and changing needs. Not only can they tailor their services to meet your customers' organizations, but they can give them greater flexibility to adapt their solution over time.

5. Customers may not have access to adequate support.

The Perception

Payment aggregators are available for anyone and everyone, meaning they typically process more transactions for more merchants than dedicated processors.

Your customers might see it as a benefit that payment aggregators can handle so much business. But the truth is that the volume of transactions can lead to major customer support issues. Payment aggregators will give your customers access to some level of customer support, but it won't be secific to your customers' needs and might not be consistently helpful.

The Problem

Aggregators do not have an understanding of your customers' organizations, nor do they have any insight into using payment processing as a way to improve or expand as a nonprofit.

Additionally, aggregators usually won't give your customers data portability options, so if they choose to transfer their data to a new processor down the line, an aggregator won't offer any support in that process. 

 

The Solution

Merchant account providers can work with your customers to resolve problems quickly and effectively. Plus, since a dedicated processor can get to know your customers individually, they can personalize their support to respond to their unique organizations.

Learn how iATS can work with your customers to find solutions for their payment processing needs.

As a dedicated payment processor exclusively serving the nonprofit community, iATS can provide insight and support for your customers on a personalized level.