7 important things you should know before choosing your payment provider

Let’s be honest: the payments market is complex and often confusing. There are unfamiliar technical terms, unclear pricing, hidden fees, and various technical details — all of which make it difficult to assess which payment provider is the right fit for your business. Here are 7 tips to help you choose the right one.

We’d like to give you a free guided tour through the sometimes nonsensical world of online payments and highlight 7 key things you should be aware of when selecting a payment provider.

Our goal is to help you make a more informed decision and find the best match for you and your business.

For clarity, we’ve divided our tips into two categories: price-related and practical.

The price-related tips focus on various cost factors (surprise!) that can be tricky to understand, as providers are often very good at hiding them. But they matter — so we’ll start there.

The practical tips deal with operational factors that most merchants don’t consider when choosing a provider. Every choice has consequences, and we believe it’s best to make that choice with full insight.

We’ll assume you already know which payment methods you need, which markets you’ll sell to, and which technical platform you’ll use — and that it’s compatible with the providers you’re considering.

Now, let’s talk about money.

The price-related tips

Of course, you’ll look at the prices of different providers. But while monthly and transaction fees are usually listed clearly on their websites, there are also hidden or indirect costs that can end up being much more expensive than you think.

Each provider structures their pricing differently. Typically, you’ll pay a monthly subscription, a percentage of each payment, a fixed fee per transaction — or a mix of all three.

But that’s only the surface. There’s a lot more to consider.

1. Watch out for (hidden) fees

Many providers seem to have great, low prices upfront — but you only discover what you’re really paying once you start using them and encounter their “fee jungle”.

Have you heard of a chargeback fee? A minimum fee? A reversal fee?
Each of these can become an expensive problem for your business. How expensive depends on your setup: how many chargebacks you get, your average order value, and how often you refund customers.

And one small note about reversal fees: some acquirers refund the transaction fee you originally paid, while others don’t.

Since these fees are often hidden on provider websites (they don’t exactly advertise them), make sure to ask about all potential fees before signing anything.

Therefore: investigate the provider’s fees.

You’ll be glad you did.

2. Do they require a rolling reserve?

A rolling reserve means your payment provider withholds a percentage of your revenue as a security buffer against potential fraud or chargebacks. This is typically required for so-called “high-risk” businesses.

You may face a rolling reserve if:

• your average order value is high
• your industry is prone to fraud
• your company’s equity is negative
• your personal finances are weak

Most providers withhold 5–25% of your turnover for up to 24 months.

Some providers are upfront about this, while others only mention it after you’ve submitted your application — when you thought everything was in order.

We believe such terms should be clear from the start.

Therefore: if the provider doesn’t mention a rolling reserve, ask them directly.

It’s better to be prepared than surprised.

3. Do they require a bank guarantee?

Some payment providers demand a large deposit before signing a contract with you. As with rolling reserves, this is due to the risk they take on your behalf.

If you’re a new entrepreneur, being asked to come up with €5,000–10,000 just to start accepting payments online can be a real blow.

To be honest — we wouldn’t consider a provider again if they treated us that way.

But it’s your choice.

Therefore: check if the provider requires a bank guarantee.

If it’s not mentioned on their website, be cautious — it’s often revealed later in the process.

4. How quickly will you receive your money?

Everyone prefers getting paid quickly, right? Different providers have different payout terms, and one of the most important to understand (and potentially negotiate) is the settlement period — the time between the customer’s payment and the funds reaching your account.

In the payments industry, this is called the “settlement time”. Some providers offer just two banking days; others take seven. In some cases, it can be up to 28 days, depending on the card type.

Which payout schedule you’re offered usually depends on your industry, the products you sell, and the level of risk they believe they’re taking on.

Most providers are transparent about their settlement times — but remember to compare them carefully when choosing your partner.

The practical tips

Here are some practical considerations you should also keep in mind.

5. Documentation requirements when applying

Most providers now have digital application processes — which is great.
But they differ widely in how easy they make the process for you: how many fields you must fill in, how much information they need, and how many documents they require.

Some will ask you to upload ID (passport or driver’s license) and tax documentation.
Others will let you sign digitally with an e-ID.

It’s a small detail, but it can make a big difference — especially in combination with the next point.

6. Number of domains per agreement

This point refers specifically to acquiring agreements. Some acquirers are very strict: one agreement per domain. If you run multiple stores or websites, you’ll need one agreement for each.

This creates two problems:

Time
For some acquirers, the application process is lengthy and bureaucratic. If you want to quickly test a new concept, it’s demotivating to have to dig up all your personal documents again just to get another identical agreement.

Cost
If you have separate agreements for each domain, you’ll also have separate merchant IDs and accounts. That can easily make things several hundred percent more expensive than combining multiple domains under one account.

In short: for your own convenience (and wallet), ask whether the provider allows multiple domains under one agreement.

If not, check what technical and financial implications that setup will have for you.

7. Support

When things go wrong, it’s critical that you can reach your payment provider — and that they actually help you.

Check how their support works: do they respond quickly? Are they helpful? And is local language support (e.g., Danish, Norwegian, Swedish) important to you?

And much more …

Those were our 7 main tips for you.

Of course, there are many other factors to consider — such as currencies, experience, features, available plugins, and maintenance quality — but we’ve focused here on aspects most merchants wish they had known before choosing their payment provider.