SaaS Payment Processing: 10 Questions to Ask When Comparing Solutions -
What makes a company choose one SaaS payment processing provider instead of another?
When I've had conversations with technical founders over the years I've seen how complex the tech stack decisions are to take.
However, we would like to get direct feedback from tech creators and developers of software about what you need to consider when choosing a SaaS payments processing system.
What is the issue? Options for optimizing conversion? Integrations? The API documentation?
We asked a small group of SaaS founders and software engineers what they were looking for in SaaS in a SaaS service, and received an array of responses, including:
- Controlling subscriptions
- Payment options
- Preventing and detecting fraud
- PCI compliance
- Currency conversion
- Localization
- VAT and sales tax
Below are ten of the topics that came up repeatedly and over in our conversations
Evaluation Checklist: 10 Questions to be asked by SaaS Payment Processing
1. Does it meet the requirements of PCI Compliant?
According to the 2020 Verizon Payment Security Report just 28% of companies studied were in compliance with The Payment Card Industry Data Security Standards (PCI DSS) -- a percentage that is decreasing each year.
How do you know whether your processor for credit cards is PCI certified? Lee Grant, CEO of Wrangu suggests asking questions regarding their encryption practices.
"Tokenization is among these standards that completely removes cards' data and provides additional security. Additionally, secure gateways lower risks and, consequently, achieve cheaper processing costs."
2. What can the service provider do to protect from fraud on payment transactions?
"What steps does the company take to ensure it's secure from frauds, scams, and other digital hacks which could scare potential customers away?" David Levi, creator Cryptoner, founder Cryptoner suggests asking. He also recommends asking a company what kinds of tools it uses to fix transaction problems. You might want to inquire about what the average reaction time is for a cyber-security threat.
"These are just a handful of the issues you have be thinking about when looking at a payment service solution as they are similar to ones your clients will ask you," Levi says.
3. Can it take a variety of payment options?
Do not forget to include things like discounts and coupons, creating custom invoices, refunds and other forms of payment -essential items for optimal customer relations and for maximizing conversion rates.
In evaluating the billing system, you'll want to see the entire list of payment options they will accept, as well as a list of currencies.
"It's essential to have access an array of payment methods that let you facilitate international financial transactions and also accept payments in multiple currencies, as well," advises Eden Cheng, co-founder PeopleFinderFree. PeopleFinderFree.
4. Are you clear on the cost?
You must be aware of how much you'll be charged to use a SaaS payment processing service. Processing payments is inherently complicated. There are distinct fees that come to different kinds of transactions. In particular, it's costlier to process a credit card than run an ACH transaction. But, it's important to watch out for extra charges, such as the gateway or merchant account setup fees.
"Many processors have a fixed fee per transaction , along with a percentage of the transaction itself," Rahul Mohanachandran, co-founder of Kasera explains. "Also, make sure you check for these fees for higher volume as it should be less expensive in terms of transaction."
5. Are they highly customizable?
As well as the payment options and billing localization, make sure that the provider is set up to manage all the existing services. Are they able to offer recurring bill as well as one-time payments? Do you offer usage-based or other advanced membership plans?
"When there are multiple payment methods, you'll require an expert in payment solutions that can cover all of them," says Alina Clark who is the co-founder and marketing director for CocoDoc. "Being in a position to tailor payments systems for your specific business processes is vital to business efficiency."
6. Does it offer dunning management?
"It's annoying to do this," Dussud admits, and so you should find a business which can handle it for you.
7. Are they user-friendly to both employees and clients?
Technical founders talked a lot 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 transactions, chargebacks or refunds. For customers, it's important that the system be simple to use to prevent the possibility of abandoning their carts and abruptly removing them out of the funnel for business," explains Lawmatics President and Founder Matt Spiegel.
It's not easy to gauge how user-friendly a system is going to be unless you're able to try out every feature and connect the system to your existing data and technological stack. In this regard, search for products that provide free extended trials.
8. How secure can you say about the API?
"Given the amount of development time needed for setting up your payment solution, finding an online service that has a very robust as well-documented APIs is essential," explains the co-founder of Fox-Listed, an online marketplace for car parts in Australia.
9. Will it easily integrate with your website?
Alongside having a robust API, the payment system needs to easily integrate into your current website. Eric McGee Senior Network Engineer, TRGDatacenters. reiterates how important this is:
"You should select an online payment system that is easily integrated to your website's commerce features. In the absence of this, payment processing is slow and this affects the quality of your website's user experience. Choose a payment platform that's integration instructions are clear, simpleand easy as well as one whose customer support can be reached quickly in case you require assistance with your payment method."
10. Does it grow with you?
"Measure your own company's potential for growth against the growth of the payment processor that you are evaluating," advises Austin Dowse Aimvein's CEO. Aimvein.
As Dowse states, "It is important that the payment processor you choose to use can be able to adapt and expand in the same way that the company you work for."
Provides SaaS Payment Processing --And A Lot More
We're there for you when you're in need of solutions that include:
- Global payment processing with check-out localization as well as the management of taxes across borders.
- Flexible subscription managementthat includes trial free, monthly or annual plans with paid subscriptions Proration, discount management, and more.
- SaaS B2B sales management , such as digital invoicing, interactive quotes as well as CRM integration.
