Rural and small town businesses often face challenges when it comes to payment processing. They may find it difficult to find a payment processing company that is willing to work with them, or they may be charged higher fees than businesses in more urban areas. This can be a significant barrier to growth and success for these businesses. In this article, we will explore some of the reasons why rural and small-town businesses may get left out by payment processing companies.
Limited infrastructure: Rural and small-town businesses may lack the infrastructure that is needed to support certain types of payment processing. For example, businesses in more rural areas may not have reliable internet access, which can make it difficult to process electronic payments. Additionally, some rural and small-town businesses may not have a brick-and-mortar storefront, making it harder for them to accept payments in person.
Smaller transaction volume: Many payment processing companies have minimum transaction volume requirements that can be difficult for rural and small-town businesses to meet. This can make it difficult for these businesses to find a payment processing company that is willing to work with them. Additionally, some payment processing companies may charge higher fees for businesses that do not meet minimum transaction volume requirements.
Difficulty to comply with regulations: Payment processing companies are subject to a wide range of regulations and compliance standards, which can be difficult for rural and small-town businesses to meet. These regulations can include the Payment Card Industry Data Security Standards (PCI-DSS) and Know Your Customer (KYC) requirements. Rural and small-town businesses may not have the resources or expertise to comply with these regulations, which can make it difficult for them to find a payment processing company that is willing to work with them.
Lack of competition: In rural and small towns there are not as many payment processing companies available to choose from as in bigger towns or cities. This can lead to the payment processing company having less competition and therefore having fewer incentives to offer better rates or fees, and less flexibility in dealing with the specific needs of the small businesses.
In conclusion, rural and small-town businesses can face significant challenges when it comes to payment processing. Limited infrastructure, smaller transaction volume, difficulty to comply with regulations, and lack of competition can make it difficult for these businesses to find a payment processing company that is willing to work with them. This can be a significant barrier to growth and success for rural and small-town businesses. These businesses should research and shop around for different payment processing options that may better fit their needs and circumstances.