SaaS Payment Processing: 10 Questions to Ask when comparing solutions -
What is the reason why a business chooses one SaaS payment processor over one?
Through my interactions with technical founders over the years, I've heard how complicated these tech stack choices are to take.
However, we would like to hear directly from technical founders and software developers about what you should need to consider when choosing an SaaS Payment processing services.
Does it have to do with the interface? Conversion optimization options? Integrations? The API documentation?
We asked a small group consisting of SaaS creators as well as software engineers about what they are looking for when they are looking for many different answers, including:
- Management of subscriptions
- Payment methods
- Fraud detection and prevention
- PCI compliance
- Conversion of currency
- Localization
- Sales tax and VAT
These are the ten most frequently asked questions that came up over and over in our conversations
Evaluation Checklist: 10 Questions to be asked by SaaS Payment Processing
1. Are you sure? PCI Compliant?
Based on the 2020 Verizon Payment Security Report the report shows that less than 28% of businesses studied were in compliance to the Payment Card Industry Data Security Standards (PCI DSS) -- a percentage which continues to fall each year.
How do you know whether the credit card processing company is fully PCI certified? Lee Grant, CEO of Wrangu suggests asking questions regarding their encryption practices.
"Tokenization is one of these standard that totally erases cards' data and provides an extra layer of protection. Additionally, secure gateways lower the risk of fraud and in turn, achieve cheaper processing costs."
2. What is the best way to safeguard against payment fraud?
"What measures does it impose to ensure it's secure from scams, phishing, and other digital hacks, which can scare clients away?" David Levi, creator Cryptoner, founder Cryptoner recommends asking. He also recommends asking companies what tools it uses for resolving issues with transactions. Consider asking what their average response time for a cyber-security threat.
"These are just some of the questions you need to think about before evaluating the payment solution you are considering as those are ones your clients will have to ask," Levi says.
3. Does it accept a wide variety of payment options?
Be sure to keep in mind things such as coupon codes and special promotions, customized invoices, refunds and other forms of payment -- the things you'll need for optimal customer relations and to maximize conversions.
When evaluating billing systems, you'll want to see the complete listing of the payment methods they will accept, as well as the currencies they accept.
"It's essential that you have access to an array of payment options that will enable you to conduct financial transactions worldwide and accept transactions in many currencies and more," advises Eden Cheng co-founder of PeopleFinderFree.
4. Do you know the costs?
You must be aware of the amount you'll have to pay to use the SaaS payment processing service. Processing payments is inherently complicated. There are unique fees associated with different types of transactions. In particular, it's more expensive to process a credit card than run the ACH transaction. However, it's crucial to watch out for extra charges, such as merchant account or gateway setup fees.
"Many processors have a fixed fee per transaction along with an amount of the transaction ," Rahul Mohanachandran, co-founder of Kasera, describes. "Also be sure to look for fees that apply to greater volume, as it will get cheaper in terms of transaction."
5. Can it be made highly adaptable?
Alongside the payment options and billing localization, make sure that the service is configured to take care of all the existing services. Does it offer recurring billing and one-time payment? Are you able to offer usage-based plans or other advanced membership plans?
"When you have different payment systems, you'll need a provider of payment solutions who can cover all of them," says Alina Clark Co-founder and Marketing Director for CocoDoc. "Being able to customize payment systems to your business process is crucial for the efficiency of your business."
6. Does it provide dunning management?
"It's annoying to do this," Dussud admits, so find a company which can handle it for you.
7. Are they user-friendly to both the employees as well as clients?
Technical founders talked a lot about ease-of-use, speaking about both back-end and front-end components.
"Your employees must be able to navigate the system to check whether there are any issues with transactions, chargebacks, refunds, etc. In terms of customers, it's crucial that the system be simple to use to prevent the possibility of abandoning their carts and abruptly removing them from the business funnel," explains Lawmatics President and Founder Matt Spiegel.
It's not easy to gauge how user-friendly an application will be unless you're able to test every feature and connect the system to your current data as well as your tech stack. For this, look for products that provide trial periods that are free.
8. How secure is the API?
"Given the development time needed to set up the payment method, choosing a provider that gives an extremely robust and well-documented API is vital," explains the co-founder of Fox-Listed, an online marketplace for auto components in Australia.
9. Does it integrate easily into your site?
In addition to having a strong API, the payment system needs to easily integrate to your website. Eric McGee Senior Network Engineer, TRGDatacenters. The company reiterates the importance of this:
"You should select an online payment system that is easily integrated with your eCommerce website. In the absence of this, payment processing gets slower, which can affect the overall quality of your site's user experience. Pick a system whose the integration procedures are clear, easy to follow as well as one whose customer support is readily available in case you require assistance with the payment system."
10. Will it scale with you?
"Measure your business's capacity for growth against that of the payment processor that you are evaluating," advises Austin Dowse the CEO of Aimvein.
As Dowse states, "It is important that the payment processor you choose to use can be able to adapt and expand in the same way that your company does."
Offers SaaS Payment Processing for- and Many More
We're there for you when you're in need of solutions that include:
- Global payment processing , including check-out localization as well as cross-border tax management.
- Flexible subscription management, including trial periods, free trials, annual plans with paid subscriptions, proration, and discount management.
- SaaS B2B sales management , such as online invoicing, interactive quotations as well as CRM integration.
