Payment Processing Pain Points and How to Solve Them
In today’s market, there is a high demand from consumers for electronic payment processing. ePayments offer buyers the flexibility of real-time payments and require less effort than traditional paper payment methods. In turn, most businesses want to offer electronic payment options to their customers, like credit cards, but they often run into these three main problems: disconnected systems, security, and cost.
We’ve broken down these top three pain points and the ways that you can alleviate them.
Problem #1 – Disconnected Systems
Chances are you have multiple avenues for collecting payments from your customers:
- Customer service reps taking orders in the field or over the phone
- Accounting team members collecting payments on open invoices and recurring bills
- Counter sales where customers come into your place of business
- A website where customers purchase products and services online
Usually, each of these scenarios operates out of a different software application (SalesPad, accounting system, web store, etc.). Companies often end up processing credit cards in one system and then manually entering that payment data into their other systems because they lack the proper tools to connect everything together.
Instead of offering you a ‘quick-fix’ payment tool that forces you to change your daily process in order to accommodate it, a good payment provider should help you integrate your payment processing into your business applications. Finding a single payment processing platform that can connect to every application will create a seamless sales cycle for your customers, save you time, and reduce the risk of human error. Start by creating a list of all the different avenues where you want to accept credit cards and provide this list to your current and potential payment providers to see how they can help.
Problem #2 – Security
Every merchant who processes credit card data must abide by the rules of the PCI Security Standards Council. The PCI Council looks into many factors revolving around the security of credit card information, including how businesses are collecting credit card numbers and where they are storing them. Achieving and maintaining PCI compliance can be difficult for merchants due to the large amount of IT resources needed to store payment data in-house and keep current with all the latest PCI regulations.
Solution – Cloud Data Entry and Storage
Moving away from locally entered and stored credit card data can significantly reduce the IT resources needed to secure the data and maintain PCI compliance. Instead, companies can use tokenization technology to store a tokenized payment record within their database and store the actual credit card data in the cloud. Just be sure that the vendor you are using for tokenization and cloud storage is PCI-DSS validated.
Problem #3 – Cost
Every credit card processed will incur a processing fee by the associated card brand and bank, which sometimes discourages businesses from accepting large amounts of credit card transactions if the fees are too high. Unfortunately, processing fees are just part of the payment territory, but there are some things you can do to make sure you are getting the lowest possible rates.
Solution – Level 2 and 3 Data Processing
Card brands want to help large corporations and businesses monitor and track their expenses by collecting a set of line-item details during transaction processing. By passing this additional data, which they call level 2 and 3 data, the merchant can significantly lower their interchange rates on their credit card transactions.
As a merchant, you can speak with your payment provider about qualifying for level 2 and 3 data processing and how it can help lower your transaction fees.
How PayFabric Helps Payment Processing
SalesPad is utilizing PayFabric, a cloud-based payment processing platform and storage hub, to integrate payment processing directly into the SalesPad application. PayFabric enables you to stay within SalesPad, or any of your other applications, when processing a credit card or ACH transaction. PayFabric centralizes the stored payment data from each integrated application, creating a seamless A/R process and omnichannel user experience.
PayFabric also offers flexibility for merchants with business needs to support card-present transactions via EMV hardware terminal devices. Merchants are able to view and manage all EMV transactions in real-time on PayFabric’s portal.
Finally, SalesPad customers are seeing between 15% and 35% savings in their monthly credit card processing fees by switching to PayFabric services, which include Level 2 and 3 data processing.
To see how PayFabric integrates with your SalesPad application, check out this demo video.
If you are interested in learning more about how SalesPad and PayFabric can alleviate the hassles of credit card and ACH processing, reach out to us.
This blog post was written by creators from PayFabric. Learn more about them at payfabric.com