SaaS Payment Processing Ten Questions You Should Ask when comparing solutions -
What makes a company choose one SaaS payment processor instead of another?
When I've had conversations with developers of software and tech founders, I've heard how complicated this tech stack choice is to take.
But we wanted to hear directly from technical leaders and software developers on what you want to look for in a SaaS payments processing system.
Does it have to do with the interface? Options for optimizing conversion? Integrations? API documentation? API documentation?
We asked a group comprised of SaaS founders and software engineers about what they were looking for in SaaS in a SaaS service, and received many different answers, including:
- Subscription management
- Methods of payment
- Preventing and detecting fraud
- PCI Compliance
- Converting currencies
- Localization
- Sales tax and VAT
These are the ten most frequently asked questions that were asked over and over in our conversations:
Assessment Checklist: 10 Questions for SaaS Payment Processing
1. Is it PCI compatible?
Based on the 2020 Verizon Payment Security Report, less than 28% of the companies that were surveyed had a complete compliance with The Payment Card Industry Data Security Standards (PCI DSS) -- a percentage which continues to fall every year.
What can you do to determine if your processor for credit cards is fully PCI-compliant? Lee Grant, CEO of Wrangu, recommends asking regarding their encryption practices.
"Tokenization is one of these protocols that completely erases card data, offering additional security. Additionally, secure gateways lower risk and, in turn, achieve cheaper processing costs."
2. What is the best way to safeguard from fraud on payment transactions?
"What security measures do they have in place to ensure it's secure from scams, phishing, and other digital hacks that could turn clients away?" David Levi, the founder of Cryptoner suggests asking. He also recommends asking companies what equipment it is using to fix transaction problems. Think about asking them what their typical response time for a cyber-security threat.
"These are just some of the questions you need to think about before evaluating an option for payment processing because those are queries your customers are likely to have to ask," Levi says.
3. Does it accept a wide variety of payment options?
Do not forget to include things like coupon codes and special promotions, customized invoices, and offering refunds- the things you'll need for successful customer relations as well as to maximize conversions.
If you're looking at billing solutions be sure to look at the full list of payment options that they accept, which includes the list of currencies.
"It's vital that you are able to access a an array of payment choices that let you facilitate payments across the globe and take transactions in many currencies in addition," advises Eden Cheng who is co-founder of PeopleFinderFree.
4. Are you aware of the costs?
Be sure to know what you're going to pay for the SaaS payment processing service. Payment processing is a complex process. There are distinct fees that come with different types of transactions. In particular, it's more expensive processing a credit card than run the ACH transaction. It's also important to watch out for additional fees like gateway or fees for setting up a gateway or merchant account charges.
"Many processors will have a fixed fee per transaction , along with an amount of the transaction ," Rahul Mohanachandran, co-founder of Kasera describes. "Also be sure to examine these fees when you are shopping for higher volume as it should get cheaper per transaction."
5. Are they highly customizable?
Alongside the billing options and payment localization, make sure that the service is configured to manage all the existing services. Does it offer recurring billing as well as one-time payments? Are you able to offer usage-based plans or other advanced membership plans?
"When you have different payments, you'll need an expert in payment solutions that covers all of them," says Alina Clark Co-founder and Marketing Director for CocoDoc. "Being capable of customizing payment systems to your business processes is vital to efficient business."
6. Does it have dunning control?
"It's difficult to perform this," Dussud admits, so find a company who can do this for you.
7. Does it make sense for the employees as well as the customers?
Technical founders talked a lot regarding user-friendliness and ease of use, talking about both front-end as well as back-end components.
"Your employees need to easily use the system to search for any suspicious payments, chargebacks and refunds. For customers, it's crucial 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 try out every feature and connect the system to your current data as well as your technology stack. In this regard, search for solutions that offer complimentary extended trial.
8. How reliable are the API?
"Given the amount of developer time required to set up your payment system, choosing an online service that has an extremely robust, well-documented API will be vital," explains the co-founder of Fox-Listed which is an online market for auto parts in Australia.
9. Does it integrate easily with your website?
Apart from having a solid API, the payment system needs to easily integrate to your site. Eric McGee Senior Network Engineer, TRGDatacenters. The company reiterates the importance of this:
"You should select a payment gateway system that is easily integrated to your website's commerce features. Otherwise, the payment process is slow and this affects the quality of your website's user experience. Go for a platform whose integrated instructions are clear simpleand easy as well as whose support can be reached quickly in case you require assistance with your payment method."
10. Does it grow with you?
"Measure your business's capacity to grow against the expansion of the payment processor that you are evaluating," advises Austin Dowse, CEO of Aimvein.
As Dowse states, "It is important that the payment processor you choose to use can be able to adapt and grow with the same speed as the company you work for."
Provides SaaS Payment Processing -- and Much More
We're there for you when you're in need of solutions that include:
- Global processing of payments, with the localization of check-outs and the management of taxes across borders.
- Flexible subscription managementthat includes trial periods, free trials, annual paid plans as well as proration and discounts management and much more.
- SaaS B2B sales management , such as online invoicing, interactive quotations, and CRM integration.
