SaaS Payment Processing: 10 Questions to Ask While comparing different solutions
What is the reason why a business chooses one SaaS payment processor over another?
Through my interactions with software developers and technical founders throughout the years I've seen how complex this tech stack choice is to take.
But we wanted to get direct feedback from tech creators and developers of software about what you look for in the SaaS payments processing system.
Does it have to do with the interface? Conversion optimization options? Integrations? API documentation? API documentation?
We asked a panel comprised of SaaS developers and founders about what they are looking for when they are looking for a wide variety of answers, including:
- Subscription management
- Payment options
- Prevention and detection of fraud
- PCI Compliance
- Conversion of currency
- Localization
- Sales tax and VAT
These are the ten most frequently asked questions that were asked over and over again during our conversations:
Assessment Checklist: 10 Questions for SaaS Payment Processing
1. Are you sure? PCI compliant?
According to the 2020 Verizon Payment Security Report, less than 28% of the companies that were surveyed had a complete compliance to requirements of the Payment Card Industry Data Security Standards (PCI DSS) -- a figure that continues to drop every year.
Do you know if your processor for credit cards is fully PCI certified? Lee Grant, CEO of Wrangu is a good source to inquire about their encryption methods.
"Tokenization is one of the standards that completely removes the card information, providing an extra layer of protection. In addition, safer gateways reduce risk and, as a result, can achieve cheaper processing costs."
2. How does the provider protect against payment fraud?
"What security measures do they have in place to assure it's safe from scams, phishing or other hacking attacks that could turn customers away?" David Levi, the founder of Cryptoner recommends asking. It is also recommended to ask the company about what tools it uses to address issues with transactions. You might want to inquire about what the average reaction time is in response to cybersecurity threats.
"These are only a few of the things you'll need to think about before evaluating the payment solution you are considering as these are the same queries your customers are likely to ask you," Levi says.
3. Does it accept a wide range of payment methods?
Do not forget to include things like coupon codes and special promotions, customized invoices, refunds and other forms of payment -essential items for optimal customer relations and to optimize conversions.
If you're looking at billing solutions it is important to check the entire listing of the payment methods they will accept, as well as the currencies they accept.
"It's essential to have access the wide array of payment choices that allow you to facilitate payments across the globe and take transactions in many currencies and more," advises Eden Cheng co-founder PeopleFinderFree. PeopleFinderFree.
4. Are you aware of what costs are involved?
Be sure to know how much you'll be charged when you use an SaaS payment processing service. The process of processing payments can be extremely complicated. There are distinct fees that come to different kinds of transactions. It's for instance, costlier to process credit cards than the ACH transaction. But, it's important to keep an eye out for any additional fees like gateway or the gateway or merchant account setup fees.
"Many processors will have fixed fees per transaction along with an amount of the transaction itself," Rahul Mohanachandran, co-founder of Kasera, clarifies. "Also, make sure you look for fees that apply to larger volumes as they will reduce the cost per transaction."
5. Are they highly customizable?
In addition to the billing options and payment 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 have usage-based or additional advanced membership plans?
"When you're using multiple payment methods, you'll require a payment solutions provider that can cover all of them," says Alina Clark, co-founder & marketing director at CocoDoc. "Being capable of customizing payments systems for your specific business procedure is essential for your efficient business."
6. Does it have dunning control?
"It's difficult to perform 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?
Tech founders often spoke about ease-of-use, speaking about both front-end as well as back-end components.
"Your employees need to easily navigate the system to check for problematic payments, chargebacks or refunds. As for the customers, it's important that the system be easy to navigate to avoid 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 difficult to know just how user-friendly a system will be until you're able to try out all the functions and incorporate the software with your data and existing tech stack. In this regard, search for solutions that offer complimentary extended trial.
8. How secure is the API?
"Given the amount of developers' time and effort required to set up your payment system, choosing a provider that gives a very robust as well-documented APIs is vital," explains the co-founder of Fox-Listed, an online marketplace for car components in Australia.
9. It will be easy to integrate it to your website?
Apart from having a solid API and payment gateway, your payment method needs to easily integrate to your website. Eric McGee Senior Network Engineer, TRGDatacenters. reiterates how important this is:
"You need to choose an online payment system which is easy to integrate into your commerce website. Otherwise, the payment process gets slower, which can affect the quality of your website's user experience. Pick a system whose integration instructions are clear, simple, and straightforward as well as one whose customer support is readily available when you need assistance with the payment system."
10. Does it grow with you?
"Measure your business's capacity to grow against the expansion of the payment processor that you're considering," advises Austin Dowse, CEO of Aimvein.
As Dowse states, "It is important that your payment processor is able to change and expand with the same speed as the company you work for."
Provides SaaS Payment Processing forPlus Many More
We're here when you need an answer that incorporates:
- Global payment processing with check-out localization and cross-border tax management.
- Flexible management of subscriptions, such as trial free, monthly or annual plans with paid subscriptions as well as proration and discount management.
- SaaS B2B sales management like digital invoicing, interactive quotes and integration with CRM.
