SaaS Payment Processing: 10 Questions to Ask When Comparing Solutions -
What is the reason why a business chooses one SaaS payment processor over one?
When I've had conversations with technical founders, I've heard how complicated the tech stack decisions are to make.
However, we would like to speak directly with technical creators and developers of software about what you want to look for in a SaaS payment processing service.
Is it the interface? Optimization options for conversion? Integrations? The 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 which included:
- Subscription management
- Methods of payment
- Prevention and detection of fraud
- PCI Compliance
- Currency conversion
- Localization
- VAT and sales tax
These are the ten most frequently asked questions that came up over and over again in our discussions:
Assessment Checklist: 10 Questions for SaaS Payment Processing
1. Are you sure? PCI compatible?
According to the 2020 Verizon Payment Security Report just 28% of businesses surveyed were fully compliant to The Payment Card Industry Data Security Standards (PCI DSS) -- a percentage that is decreasing every year.
How do you know whether your credit card processor is fully PCI compliant? Lee Grant, CEO of Wrangu suggests asking questions whether they use encryption.
"Tokenization is one of these standard that totally erases the card information, providing additional security. Additionally, secure gateways decrease risks and, in turn, 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 assure it's safe from frauds, scams as well as other cyber-attacks that could turn customers away?" David Levi, the founder of Cryptoner recommends asking. Also, he suggests asking the company about what equipment it is using to fix transaction problems. Think about asking them what their typical reaction time is for a cyber-security threat.
"These are only a few of the issues you have to think about before evaluating a payment service solution as these are the same queries your customers are likely to ask you," Levi says.
3. Can it take a range of payment methods?
Do not forget to include things like coupons and promotions, custom invoices, refunds and other forms of payment -all the items you'll require to ensure optimal customer relationships and for maximizing conversion rates.
If you're looking at billing solutions, you'll want to see the entire listing of the payment methods they will accept, as well as a list of currencies.
"It's imperative to have access an array of payment options that will let you facilitate payments across the globe and take payment in multiple currencies and more," advises Eden Cheng, co-founder PeopleFinderFree. PeopleFinderFree.
4. Are you aware of the costs?
Be sure to know the amount you'll have to pay when you use the SaaS payment processing solution. 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. However, it's crucial to watch out for extra charges, such as fees for setting up a gateway or merchant account fees.
"Many processors have fixed fees for each transaction and some percentage of the transaction itself," Rahul Mohanachandran, co-founder of Kasera clarifies. "Also be sure to check for these fees for higher volume as it should get cheaper for each transaction."
5. Is it highly customizable?
As well as the payment options and billing localization, be sure the service is configured to handle all of your existing offerings. Do they offer recurring billing as well as one-time payments? Do you have usage-based or any other membership plans that are more advanced?
"When you have different payment methods, you'll require an expert in payment solutions that will be able to cover them all," says Alina Clark, co-founder & marketing director at CocoDoc. "Being able to customize payments systems for your specific business processes is vital to efficient business."
6. Does it offer dunning management?
"It's annoying to do this," Dussud admits, therefore, find a firm that will do it for you.
7. Is it user-friendly for both the employees as well as clients?
The founders of the technical team often talked about ease-of-use, speaking about both the front-end and back-end components.
"Your employees must be able to navigate the system to check for any suspicious payments, chargebacks, refunds, etc. For customers, it's crucial that the system is simple to use to prevent abandoned carts and sudden exits out of the funnel for business," says Lawmatics President and Founder Matt Spiegel.
It's not easy to gauge how user-friendly an application will be until you're able to test every feature and connect the system to your existing data and technology stack. For this, look for solutions that offer free extended trials.
8. How reliable can you say about the API?
"Given the developers' time and effort required for setting up the payment method, choosing an API provider with an extremely robust and well-documented API is essential," explains the co-founder of Fox-Listed which is an online market for auto components in Australia.
9. Does it integrate easily to your website?
Alongside having a robust API for payment, the system needs to easily integrate with your existing website. Eric McGee Senior Network Engineer, TRGDatacenters. reiterates how important this is:
"You must select the payment gateway that is easily integrated into your commerce website. If not, the process is slow and this affects the level of quality your site's user experience. Pick a system whose integrated instructions are clear simple, and straightforward, and whose customer service is readily available when you need assistance with the payment process."
10. Will it scale with you?
"Measure your business's capacity for growth against that of the payment processing network 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 in the same way that your company does."
Offers SaaS Payment Processing -- and Much More
We're here when you need a solution that includes:
- Global payment processing with check-out localization as well as international tax management.
- Flexible subscription managementthat includes free trials, monthly, annual paid plans as well as proration and discount management, and more.
- SaaS B2B sales management like electronic invoicing, interactive quotes and integration with CRM.
