How SMEs can avoid payment setup headaches
If you’re running a small or medium-sized enterprise (SME), you know that setting up payments can be complex and challenging to navigate. You want to make it easy for customers to pay you, but the process can quickly become overwhelming. Payment options, fees, security concerns - there’s a lot to juggle, and getting it wrong can lead to frustrated customers, lost sales, or worse.
In this blog post, we’ll walk through how SMEs can avoid common payment setup headaches, streamline the process, and build a payment system that works smoothly for both you and your customers.
1. Simplify by offering the right payment options
Customers want choice, but too many options can cause confusion - while too few can drive shoppers away. Striking the right balance is key to keeping your checkout easy and efficient.
How to avoid headaches
- Start by identifying the preferred payment methods your target customers use most often - credit/debit cards and a popular digital wallet are usually a good place to start.
- Use a PSP like Ecommpay to handle multiple options in one easy integration.
- Regularly review which payment methods get used and ditch the ones that don’t add value.
2. Get clear on fees and avoid hidden costs
Payment fees eat into your margins, especially when you’re running on a strict budget. Hidden or unexpected fees make budgeting a nightmare.
How to avoid headaches
- Shop around and compare pricing structures before settling on a payment provider.
- Read the fine print carefully to understand all fees - setup, transaction, chargeback, currency conversion, and monthly fees.
- Consider negotiating fees if your transaction volume grows.
3. Prioritise security from day one
Data breaches can sink your business reputation and cost you big time. Customers expect their data to be protected, and compliance with security standards is non-negotiable.
How to avoid headaches
- Use PCI-compliant payment gateways that manage sensitive data on your behalf.
- Make sure your website uses HTTPS (SSL certificates) to encrypt customer data.
- Keep your e-commerce platform and plugins updated regularly.
- Educate your team about spotting phishing scams and suspicious activity.
4. Prepare for chargebacks and fraud risks
Chargebacks cost you money and time, and too many can get your payment account suspended. Fraudulent transactions hurt your bottom line and customer trust.
How to avoid headaches
- Clearly communicate your refund and return policies on your website and terms of service.
- Use fraud prevention tools like address verification and CVV checks.
- Keep thorough records of orders, shipments, and customer communications.
- Use your payment processor’s fraud detection features
5. Keep cash flow steady with fast payments
Cash flow is critical for SMEs. Payment delays can throw your finances off balance and impact operations.
How to avoid headaches
- Choose payment providers known for quick settlement times - same-day or next-day payouts
- Build cash flow buffers and plan ahead for slower payment methods.
- Encourage customers to pay upfront or offer incentives for prepayment.
6. If you sell internationally or plan to, choose a provider that handles cross-border payments smoothly
International sales bring their own challenges with currency conversions, compliance, and local payment preferences.
How to avoid headaches
- Look for providers with transparent currency conversion fees.
- Make sure they handle compliance in the countries you sell to.
- Offer payment methods that are popular in your customers’ regions.
Download our guide to global expansion to help you scale across borders.
7. Stay ahead of late-payment laws
Late payments can cripple SME cash flow - and starting in 2025, new UK laws are tightening the rules for large businesses that pay late.
How to avoid headaches
- Do your due diligence: new legislation requires large firms to publish payment performance, making it easier to spot repeat late payers.
- Strengthen contracts: clearly state payment terms, interest for delays, and dispute processes.
- Use upfront payments: reduce risk by requesting deposits or staged payments.
- Know your rights: The Small Business Commissioner now has greater power to support SMEs, and late fees (interest + compensation) are enforceable.
8. Legislation and Regulation
Ensuring your firm is compliant with the right regulations
How to avoid headaches
- Authorised by the FCA if facilitating payments.
- Follow UKGDPR rules.
- Understand AML duties and KYC checks.
- Ensure you are PCI-DSS compliant.
- Ensure audits are recorded.
- Terms and Pricing should be transparent.
By aligning your payment setup with these rules, you’ll protect your cash flow and reduce the stress of chasing unpaid invoices.
Payment setup doesn’t have to be a headache. By focusing on the right payment options, understanding fees, prioritising security, preparing for fraud, and managing cash flow carefully, you’ll set your SME up for payment success from the start.