SaaS Payment Processing Ten Questions You Should Ask While evaluating solutions
What makes a company choose one SaaS payment processor instead of the other?
In my conversations with software developers and technical founders over the years, I've heard how complicated these tech stack choices are to take.
But we wanted to get direct feedback from tech founders and software developers about what you want to look for in an SaaS payments processing system.
Does it have to do with the interface? Optimization options for conversion? Integrations? API documentation? API documentation?
We asked a group of SaaS founders and software engineers what they are looking for, and we heard many different answers which included:
- Controlling subscriptions
- Payment options
- Preventing and detecting fraud
- PCI conformity
- Conversion of currency
- Localization
- VAT and sales tax
Here are ten questions that were asked over and over again during our discussions:
Assessment Checklist: 10 Questions to be asked by SaaS Payment Processing
1. Are you sure? PCI compliant?
In the 2020 Verizon Payment Security Report just 28% of businesses surveyed were fully compliant with the Payment Card Industry Data Security Standards (PCI DSS) -- a number that continues to drop each year.
How do you know whether your credit card processor is fully PCI certified? Lee Grant, CEO of Wrangu, recommends asking about their encryption methods.
"Tokenization is one of the standard that totally erases card data, offering an extra layer of protection. Furthermore, more secure gateways decrease the risk of fraud and as a result, can reduce processing costs."
2. What can the service provider do to protect against fraud in the payment industry?
"What security measures do they have in place to ensure it's secure from phishing scams, fraud as well as other cyber-attacks which could scare potential clients off?" David Levi, founder of Cryptoner advises you to ask. Also, he suggests 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 to a cybersecurity threat.
"These are only a few of the issues you have to think about before evaluating the payment solution you are considering as these are the same ones your clients will be asking you," Levi says.
3. Can it take a range of payment methods?
Don't forget about things like discounts and coupons, creating custom invoices, refunds and other forms of payment -all the items you'll require to ensure optimal customer relationships and to optimize conversions.
If you're looking at billing solutions be sure to look at the entire list of payment options they can accept, including the currencies they accept.
"It's imperative that you have access to an array of payment choices that enable you to conduct financial transactions worldwide and accept transactions in many currencies and more," advises Eden Cheng co-founder PeopleFinderFree. PeopleFinderFree.
4. Are you aware of what costs are involved?
You must be aware of the amount you'll have to pay for the SaaS payment processing service. The process of processing payments can be extremely complicated. There are unique fees associated with different types of transactions. It's for instance, more expensive to process the credit card rather than an ACH transaction. However, it's crucial to be aware of hidden fees, like merchant account or gateway setup costs.
"Many processors will have the option of a fixed cost for each transaction and a percentage of the transaction ," Rahul Mohanachandran, co-founder of Kasera explains. "Also, make sure you check for these fees for larger volumes as they will get cheaper per transaction."
5. Can it be made highly adaptable?
As well as the billing options and payment localization, be sure the service is configured to manage all your current offerings. Are they able to offer recurring bill in addition to one-time payments? Are you able to offer usage-based plans or additional advanced membership plans?
"When there are multiple payments, you'll need a payment solutions provider that will be able to cover them all," says Alina Clark who is the co-founder and marketing director for CocoDoc. "Being capable of customizing payments systems for your specific business process is crucial for the efficiency of your business."
6. Does it provide dunning management?
"It's frustrating to have this done," Dussud admits, so find a company which can handle it for you.
7. Does it make sense for employees and the customers?
The founders of the technical team often talked about user-friendliness, referring to both back-end and front-end components.
"Your employees must be able to access the system and check for any suspicious charges, transactions or refunds. As for the customers, it's crucial to make the system 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 not easy to gauge how user-friendly an application will be unless you're able test all the functions and incorporate the software with your current data as well as your technological stack. To this end, look for products that provide free extended trials.
8. How secure can you say about the API?
"Given the developers' time and effort required in establishing your payment system, choosing a provider that gives a very robust and well-documented API is vital," explains the co-founder of Fox-Listed the online marketplace to purchase auto parts 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 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 with your eCommerce website. In the absence of this, payment processing gets slower, which can affect the quality of your website's user experience. Go for a platform whose integration instructions are clear, simpleand easy as well as one whose customer support can be reached quickly in case you require assistance with the payment process."
10. Do you think it will scale up with your needs?
"Measure the potential of your company's own for growth against the growth of the payment processor that you're considering," 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 --Plus Much More
We're here when you need an answer that incorporates:
- Global payment processing with check-out localization as well as cross-border tax management.
- Flexible subscription management, including free trials, monthly, annual plans with paid subscriptions, proration, and discount management.
- SaaS B2B sales management , such as digital invoicing, interactive quotes, and CRM integration.
