SaaS Payment Processing 10 questions to ask While evaluating solutions
What makes a company choose one SaaS payment processing provider over another?
When I've had conversations with developers of software and tech founders I've seen how complex these tech stack choices are to make.
However, we would like to get direct feedback from tech leaders and software developers on what you look for in a SaaS Payment processing services.
Does it have to do with the interface? Optimization options for conversion? Integrations? The API documentation?
We asked a small group of SaaS creators as well as software engineers what they are looking for, and we heard a wide variety of answers, including:
- Subscription management
- Payment methods
- Fraud detection and prevention
- PCI compliance
- Conversion of currency
- Localization
- VAT and sales tax
These are the ten most frequently asked topics that came up repeatedly and over again in our conversations
Evaluation Checklist: Ten Questions to be asked by SaaS Payment Processing
1. Are you sure? PCI compatible?
Based on the 2020 Verizon Payment Security Report the report shows that less than 28% of companies studied were in compliance to The Payment Card Industry Data Security Standards (PCI DSS) -- a figure which continues to fall each year.
How do you know whether your credit card processor has been certified as PCI compliant? Lee Grant, CEO of Wrangu is a good source to inquire regarding their encryption practices.
"Tokenization is one of these standard that totally erases cards' data and provides an extra layer of protection. Furthermore, more secure gateways decrease risks and, in turn, reduce processing costs."
2. How does the provider protect against payment fraud?
"What measures does it impose to assure it's safe from phishing scams, fraud as well as other cyber-attacks which could scare potential customers off?" David Levi, the founder of Cryptoner recommends asking. He also recommends asking the company about what resources it has in place 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 things you'll need be thinking about when looking at the payment solution you are considering as they are similar to ones your clients will be asking you," Levi says.
3. Does it accept a wide variety of payment options?
Be sure to keep in mind things such as coupons and promotions, custom invoices, refunds and other forms of payment -- the things you'll need for successful customer relations as well as to maximize conversions.
When evaluating billing systems be sure to look at the entire listing of the payment methods they can accept, including the list of currencies.
"It's vital that you have access to the wide array of payment choices that enable you to conduct financial transactions worldwide and accept payment in multiple currencies as well," advises Eden Cheng who is co-founder of PeopleFinderFree.
4. Are you aware of what costs are involved?
Make sure you know exactly what you're going to pay to use a SaaS payment processing solution. Processing payments is inherently complicated. There are distinct fees that come with different types of transactions. In particular, it's more expensive processing a credit card than run an ACH transaction. However, it's crucial to keep an eye out for any additional fees like gateway or the gateway or merchant account setup fees.
"Many processors have the option of a fixed cost per transaction , along with a percentage of the transaction ," Rahul Mohanachandran, co-founder of Kasera, clarifies. "Also ensure that you examine these fees when you are shopping for greater volume, as it will be less expensive in terms of transaction."
5. Are they highly customizable?
As well as the billing options and payment localization, make sure that the service is configured to manage all your existing offerings. Does it offer recurring billing as well as one-time payments? Do you have usage-based or additional advanced membership plans?
"When you're using multiple payments, you'll need an expert in payment solutions that can cover all of them," says Alina Clark, co-founder & marketing director for CocoDoc. "Being able to customize payment systems to your business procedure is essential for your the efficiency of your business."
6. Does it provide dunning management?
"It's difficult to perform this," Dussud admits, and so you should find a business which can handle it for you.
7. Does it make sense for the employees as well as customers?
The founders of the technical team often talked regarding user-friendliness and ease of use, talking about both back-end and front-end components.
"Your employees should be able to access the system and check for problematic payments, chargebacks or refunds. For clients, it's essential that the system is easy to navigate to avoid the possibility of abandoning their carts and abruptly removing them from the business funnel," explains Lawmatics founder and CEO Matt Spiegel.
It's hard to determine how user-friendly an application will be until you're able test all of the features and incorporate the software with your current data as well as your technological stack. To this end, look for solutions that offer trial periods that are free.
8. How reliable can you say about the API?
"Given the level of development time needed for setting up the payment method, choosing an API provider with a very robust, well-documented API will be vital," explains the co-founder of Fox-Listed, an online marketplace to purchase auto parts in Australia.
9. Will it easily integrate to your website?
Alongside having a robust API and payment gateway, your payment method must be able to seamlessly integrate with your existing website. Eric McGee Senior Network Engineer, TRGDatacenters. It is important to note that:
"You need to choose the payment gateway that easily integrates to your website's commerce features. Otherwise, the payment process gets slower, which can affect the level of quality your site's user experience. Go for a platform whose integration instructions are clear, simpleand easy as well as whose support is easily accessible for assistance when it comes to the payment system."
10. Do you think it will scale up with your needs?
"Measure your own company's potential for growth against the growth of the payment processing network that you are evaluating," advises Austin Dowse Aimvein's CEO. Aimvein.
As Dowse explains, "It is important that the payment processor you choose to use can be able to adapt to grow and change with the same speed as your business."
Offers SaaS Payment Processing -- and Much More
If you require an answer that incorporates:
- Global processing of payments, with check-out localization as well as the management of taxes across borders.
- Flexible subscription managementthat includes free trials, monthly, annual paid plans, proration, and discount management.
- SaaS B2B sales management like electronic invoicing, interactive quotes and integration with CRM.
