This young generation of borrowers has adopted new payment technologies even in obtaining and repaying loans. That has made mobile payments among the main options that they go for. But now that you have already figured that out and are using mobile payments, how much more can you improve customer engagement for loans?
Using credit cards. The next best viable option
As a small business loan company, accepting credit card payments is one of the strategies you can implement to increase your returns. Selling your loan packages has not been easy these past few years. So, it is time you changed your strategy to reach more customers. With a keen eye into this, you will notice that your competitors have been accepting credit cards among other payment methods. Therefore, to regain your competitive edge, this is not anything of an option. You ought to find a firm that offers such payment processing for loan companies. But, there is one hurdle here. How will you know which credit card and payment processing company to choose?
With these, you will make the right choice
Customer Support
Expanding your loans customer base can be quite a challenge when you work with a payment processing company that hardly responds on time to your queries. It is best that you consider working with one that prioritizes seamless communication. A company that is always there to handle the technical problems that you could run into with their credit card machines. A company that is has the right resources to address your billing issues on time. Additionally, they should explain the fees and other costs that you do not understand. Well, it might cost you more in subscription fees to enjoy such services, but you’d rather that than always having unreliable services at a lower cost.
Fees & Costs
Among the most common fees in credit card and payment processing include interchange fees. These are fees that your payment processor pays to the bank that issues the credit card for the transaction that you process. Interchange fees can, however, vary depending on your type and size of transactions. Other fees to consider are the costs to cover monthly statements, setups and gateway access, and early termination.
If, as a loan company, you plan to use credit cards for your payments, do not just pick the credit card and payment processing company that you will land first. Due diligence here will demand that you conduct in-depth research to determine how well is their customer support. Also, list the fees that they charge for each of the services that they offer. On that, it is imperative that you inquire whether there are any hidden fees that you should be aware of. The more precise the figures will be, the more conclusive will be your budget. Besides, inquire about how long is their setup time to have a complete and functional system.
Most importantly, ensure the company specializes in credit card and payment processing for loan companies. You want a company with vast experience working with loan firms like yours so that they can address all potential payment processing issues and concerns that you could be having.
