Payments High-Level

Why do you need a payments strategy?

The way consumers pay and the channels for payment processing have both significantly changed in the past several years. As a result, there are more options than ever for your company to implement payments.

Many of these options may initially seem enticing to you for a variety of reasons:

  • Accept payments immediately
  • Cost
  • Risk exposure
  • Customizing the customer experience
  • Generating additional streams of revenue

However, your company needs to align a payments strategy to your business model. It may seem like the differences between your options are not that great, but choosing the wrong payments strategy could result in a less-than-favorable outcome.

Purpose of this article: Demonstrate the importance of having a payments strategy as related to:
  • Minimize Fees
  • Compliance
  • Security

Minimize Fees

Many of the easy-to-turn-on payments options come with a high fee or a variety of hidden fees that are not clearly stated up front. You need to ensure your business is only paying for services you need. There are many willing to partner with you or set-up merchant accounts. Each seem to have different fee structures.

This is not a one-size fits-all industry. It’s important to match your needs, risks, business maturity and payments understanding to a payments strategy and payments model. You need to be certain the model and fees will best serve your company for the future. Find out more about the fees associated with payments, here.


There are a lot of rules to be followed when it comes to accepting credit cards. At the top of the list are the network rules (Visa, Mastercard, American Express, Discover etc.) There are compliance requirements from the government (state and federal) anytime money is transferred, to avoid scenarios involving money laundering and fraud.

Therefore, every member of the card processing channel is concerned about your risk exposure and other underwriting concerns. The channel needs to ensure you’re operating within the rules of the credit card networks and the banks that support your payments platform.

These organizations want to ensure that you are creditworthy (collateral and capital), understand the risk related to your business/industry and can provide verifiable identity, just to name a few factors.

This will minimize the likelihood of chargebacks and frustrating payment disputes. If they feel your business isn’t equipped to manage this process effectively, you will not be approved to accept credit cards.


The payments ecosystem has a lot of moving parts today. Because of this there are numerous opportunities for breaches. It’s important to understand how information and funds flow from the card holder to your bank account.

You are responsible for your part and the amount of responsibility you have is based on your payments strategy. Because of this responsibility, you need to understand the part you play.

Did you know:

if you swipe instead of reading the chip, you have increased your liability?

Payments Detailed

Why your payments strategy must fit your business model

One approach does not fit all. See how to approach payments for your business.

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