SaaS Payment Processing 10 questions to ask when comparing solutions -
What makes a company choose one SaaS payment processor in preference to the other?
In my conversations with developers of software and tech founders I've learned how difficult these tech stack choices are to take.
We wanted to hear directly from technical founders and software developers about what you look for in the SaaS Payment processing services.
What is the issue? Optimization options for conversion? Integrations? API documentation? API documentation?
We asked a small group of SaaS creators as well as software engineers what they look for in a SaaS service, and received many different answers which included:
- Management of subscriptions
- Payment options
- Fraud detection and prevention
- PCI conformity
- Converting currencies
- Localization
- VAT and sales tax
Here are ten topics that came up repeatedly and over again during our conversations
Evaluation Checklist: 10 Questions for SaaS Payment Processing
1. Does it meet the requirements of PCI compliant?
Based on the 2020 Verizon Payment Security Report the report shows that less than 28% of the companies that were surveyed had a complete compliance with the Payment Card Industry Data Security Standards (PCI DSS) -- a figure that is decreasing each year.
What can you do to determine if your processor for credit cards has been certified as PCI-compliant? Lee Grant, CEO of Wrangu is a good source to inquire regarding their encryption practices.
"Tokenization is one of these standards that completely removes the card information, providing an extra layer of protection. In addition, safer gateways lower risks and, in turn, lower processing costs."
2. What is the best way to safeguard against fraud in the payment industry?
"What steps does the company take to ensure it's secure from phishing scams, fraud or other hacking attacks that could turn clients off?" David Levi, founder Cryptoner, founder Cryptoner suggests asking. Also, he suggests asking a company what kinds of equipment it is using to address issues with transactions. Think about asking them what their typical response time is to a cybersecurity threat.
"These are just some of the things you'll need to consider when evaluating a payment service solution as they are similar to ones your clients will have to ask," Levi says.
3. Can it take a array of payment options?
Do not forget to include things like coupon codes and special promotions, customized invoices, refunds and other forms of payment -essential items for successful customer relations as well as to maximize conversions.
When evaluating billing systems it is important to check the full list of payment options they can accept, including the currencies they accept.
"It's vital that you are able to access a a wide range of payment options that will enable you to conduct payments across the globe and take payment in multiple currencies in addition," advises Eden Cheng who is co-founder of PeopleFinderFree.
4. Are you aware of the cost?
Make sure you know exactly what you're going to pay to use a SaaS Payment processing system. Processing payments is inherently complicated. There are unique fees associated with various types of transactions. For example, it's more expensive to process credit cards than the ACH transaction. It's also important to keep an eye out for any additional fees like gateway or the gateway or merchant account setup charges.
"Many processors have the option of a fixed cost for each transaction and a percentage of the transaction itself," Rahul Mohanachandran, co-founder of Kasera, explains. "Also ensure that you examine these fees when you are shopping for greater volume, as it will be less expensive per transaction."
5. Are they highly customizable?
Alongside the options for payment and billing localization, ensure that your provider has been set up to handle all of the existing services. Do they offer recurring billing in addition to one-time payments? Do you offer usage-based or any other membership plans that are more advanced?
"When there are multiple payment methods, you'll require a payment solutions provider that will be able to cover them all," says Alina Clark Co-founder and Marketing Director at CocoDoc. "Being able to customize payment systems to your business procedure is essential for your efficient business."
6. Does it have dunning control?
"It's frustrating to have this done," Dussud admits, and so you should find a business that will do it for you.
7. Does it make sense for the employees as well as customers?
The founders of the technical team often talked about user-friendliness, referring to both the front-end and back-end components.
"Your employees need to easily use the system to search whether there are any issues with payments, chargebacks or refunds. As for the customers, it's important to make the system user-friendly to avoid abandoning carts or abrupt exits from the business funnel," explains Lawmatics Founder and CEO Matt Spiegel.
It's hard to determine how user-friendly an application will be unless you're able test every feature and integrate the system with your existing data and tech stack. For this, look for products that provide free extended trials.
8. How secure is the API?
"Given the level of developer time required for setting up your payment system, choosing an API provider with an extremely robust, well-documented API will be vital," explains the co-founder of Fox-Listed which is an online market for auto parts and accessories in Australia.
9. Will it easily integrate into your site?
Apart from having a solid API and payment gateway, your payment method must be able to seamlessly integrate to your site. Eric McGee Senior Network Engineer, TRGDatacenters. The company reiterates the importance of this:
"You need to choose an online payment system which is easy to integrate to your website's commerce features. Otherwise, the payment process gets slower, which can affect the level of quality your site's user experience. Go for a platform whose the integration procedures are clear, simpleand easy as well as whose support is readily available in case you require assistance with the payment system."
10. Do you think it will scale up with your needs?
"Measure your own company's potential for growth against the growth of the payment processing company that you're considering," advises Austin Dowse Aimvein's CEO. Aimvein.
As Dowse says, "It is important that your payment processor can adapt to grow and change in the same way that your company does."
Provides SaaS Payment Processing forAnd A Lot More
If you require a solution that includes:
- Global payment processing , including check-out localization and international tax management.
- Flexible management of subscriptions, such as free trials, monthly, annual plans with paid subscriptions, proration, and discounts management and much more.
- SaaS B2B sales management , such as online invoicing, interactive quotations and integration with CRM.
