SaaS Payment Processing Ten Questions You Should Ask While comparing different solutions
What is the reason why a business chooses one SaaS payment processing provider over one?
In my conversations with software developers and technical founders over the years I've learned how difficult the tech stack decisions are to consider.
But we wanted to speak directly with technical creators and developers of software about what you need to consider when choosing a SaaS payment processing service.
Does it have to do with the interface? Optimization options for conversion? Integrations? API documentation? API documentation?
We asked a small group comprised of SaaS founders and software engineers what they look for when they are looking for many different answers, including:
- Controlling subscriptions
- Payment methods
- Prevention and detection of fraud
- PCI compliance
- Converting currencies
- Localization
- VAT and sales tax
These are the ten most frequently asked questions that came up over and over again in our conversations:
Evaluation Checklist: Ten Questions for SaaS Payment Processing
1. Are you sure? PCI compliant?
Based on the 2020 Verizon Payment Security Report just 28% of companies surveyed were fully compliant with the Payment Card Industry Data Security Standards (PCI DSS) -- a number that continues to drop each year.
Do you know if your processor for credit cards is PCI compliant? Lee Grant, CEO of Wrangu suggests asking questions regarding their encryption practices.
"Tokenization is one of the protocols that completely erases cards' data and provides additional security. In addition, safer gateways reduce risk and, in turn, achieve cheaper processing costs."
2. How does the provider protect against fraud in the payment industry?
"What security measures do they have in place in order to protect itself from scams, phishing, and other digital hacks which could scare potential clients away?" David Levi, creator of Cryptoner suggests asking. Also, he suggests asking the company about what resources it has in place to fix transaction problems. Consider asking what their average response time is in response to cybersecurity threats.
"These are just a handful of the questions you need be thinking about when looking at an option for payment processing because these are the same ones your clients will be asking you," Levi says.
3. Does it accept a wide variety of payment options?
Do not forget to include things like coupons and promotions, custom invoices, refunds and other forms of payment -all the items you'll require for successful customer relations as well as to maximize conversions.
If you're looking at billing solutions it is important to check the entire listing of the payment methods that they accept, which includes the currencies they accept.
"It's imperative to have access an array of payment choices that let you facilitate financial transactions worldwide and accept payments in multiple currencies, as well," advises Eden Cheng, co-founder PeopleFinderFree. PeopleFinderFree.
4. Do you know what costs are involved?
Make sure you know exactly how much you'll be charged to use the SaaS Payment processing system. Payment processing is a complex process. There are distinct fees that come with different types of transactions. In particular, it's much more costly to handle a credit card than run the ACH transaction. It's also important to be aware of additional fees like gateway or fees for setting up a gateway or merchant account costs.
"Many processors will have a fixed fee per transaction along with an amount of the transaction ," Rahul Mohanachandran, co-founder of Kasera, clarifies. "Also, make sure you check for these fees for higher volume as it should reduce the cost per transaction."
5. Is it highly customizable?
Alongside the payment options and billing localization, be sure the service is configured to handle all of your current offerings. Does it offer recurring billing in addition to one-time payments? Are you able to offer usage-based plans or other advanced membership plans?
"When you have different payments, you'll need a payment solutions provider that can cover all of them," says Alina Clark Co-founder and Marketing Director at CocoDoc. "Being in a position to tailor the payment system to fit your company's process is crucial for business efficiency."
6. Does it provide dunning management?
"It's annoying to do this," Dussud admits, therefore, find a firm who can do this for you.
7. Are they user-friendly to both the employees as well as clients?
Tech founders often spoke regarding user-friendliness and ease of use, talking about both the front-end and back-end components.
"Your employees must be able to access the system and check whether there are any issues with payments, chargebacks and refunds. For customers, it's important that the system is simple to use to prevent abandoning carts or abrupt exits from the business funnel," Explains Lawmatics President and Founder Matt Spiegel.
It's hard to determine how user-friendly a system will be unless you're able to test all of the features and connect the system to your data and existing technology stack. For this, look for solutions that offer complimentary extended trial.
8. How secure can you say about the API?
"Given the level of development time needed to set up the payment method, choosing a provider that gives a very robust as well-documented APIs is vital," explains the co-founder of Fox-Listed the online marketplace for auto parts and accessories in Australia.
9. Does it integrate easily to your website?
In addition to having a strong API, the payment system must be able to seamlessly integrate to your website. Eric McGee Senior Network Engineer, TRGDatacenters. It is important to note that:
"You need to choose the payment gateway that is easily integrated with your eCommerce website. Otherwise, the payment process gets slower, which can affect the level of quality your site's user experience. Pick a system whose integrated instructions are clear simpleand easy as well as one whose customer support can be reached quickly for assistance when it comes to the payment process."
10. Do you think it will scale up with your needs?
"Measure your own company's potential for growth against that of the payment processing company that you're considering," advises Austin Dowse the CEO of Aimvein.
As Dowse states, "It is important that the payment processor you choose to use can be able to adapt to grow and change at the same pace as your business."
Offers SaaS Payment Processing -And Much More
We're there for you when you're in need of an answer that incorporates:
- Global processing of payments, with check-out localization and cross-border tax management.
- Flexible subscription managementthat includes free trials, monthly, annual plans with paid subscriptions, proration, and discount management.
- SaaS B2B sales management like electronic invoicing, interactive quotes as well as CRM integration.
