How to Find the Best Integrated Payment Processor for Your Customers
In Brief: Many software companies are looking to reduce the number of payment integrations in their software to reduce costs and improve customer experience. This strategy brings forward the critical decision of which payment providers to keep and/or partner with. To help make a sound strategic decision, Wind River provides five key attributes to look for in a payment processor when deciding which integrations are the optimal choice for your software.
A rising trend among software companies is to harness costs by scaling down the number of payment processors and payment gateways they support in their platform. They have discovered that too many integrations result in an unwieldy environment that drains both resource time and budget dollars as well as creates an inconsistent experience for customers. And that inconsistency was pushing customers to alternative platforms.
But, if you are downsizing your integrations, how do you know which are the best integrated payment processors to keep for your business? Should you get rid of all your current integrations and start fresh with a new partner? Is there a list of top providers that can help?
“Alexa, Who Are the Top 10 Payment Processors?”
First of all, simply performing a Google search of the Top 10 Payment Processors would not really help you find the best for your business. The word “Top” is just too vague. Top at what? Number of customers? Customer retention? Low cost? The list of potential “tops” can be endless.
To help you with your search, we have compiled a list of five attributes that any provider should possess if they want to be “the best.” Then, you can see if any of the processors you currently work with or others you are considering meet this criteria. As a result, you will land on the best integrated payment processor for your business.
First Attribute:
The Best Integrated Payment Processors have the Tech to Meet Your Customers’ Needs
The last few years have seen rapid changes in customer preferences and methods of engagement. Consumer trends and advancements in technology should always be on the radar of forward-thinking payment processors, and the best payment processors are prepared to act and roll out features when the needs arise.
Take for example just a few of the changes we have seen in recent years. These include features such as:
• The increased use of contactless payments
• The introduction of Buy Now, Pay Later
• A resurgence and need for ACH payment options
• The need for mobile wallets and tokenization
• The demand for Text to Pay
The best payment processor will help you create an integrated payment solution that meets your customers’ needs today and tomorrow.
Second Attribute:
The Best Integrated Payment Processors Focus on Service and Relationships
When you integrate payments in your software platform, you are turning your customers over to a third-party for billing, service, and support. It is a good idea to know that party’s track record before you introduce your customers into the relationship.
If your payment processor overcharges them, deprioritizes their phone calls, or delivers mediocre support, you are risking those customer relationships. Poor service is a direct reflection on you – whether you directly delivered it or not. You are the one that chose the payment provider, so the ultimate responsibility for customer payment satisfaction falls on your shoulders.
The best integrated payment processor will have a customer retention rate of 90 percent, at a minimum. If current customers are sticking around, they must be doing something right.
Third Attribute:
The Best Integrated Payment Processors Put an Emphasis on Data Security and PCI Expertise
According to Norton, there are roughly 2,200 cyberattacks per day. And while the number of successful breaches is (thankfully) not increasing, the costs are skyrocketing. Merchants can be accountable for tens of thousands of dollars in fees and fines if they are the victim of a data breach. This means that you are compounding the risk for your customers if you are working with a payments partner that is not helping them to maintain PCI compliance.
The best integrated payment processors will validate PCI compliance with your merchants. They will ensure that they have P2P encryption to help reduce PCI scope. They will include added security features to minimize risk of a breach. And they will encourage your customer to have a breach protection policy. Also, they will have tools in place to help your customers fill out the Self-Assessment Questionnaire (or SAQ) that is mandatory for PCI compliance.
Fourth Attribute:
The Best Integrated Payment Processors Offer Fair and Competitive Pricing
The old adage of “you get what you pay for” has never been truer than in the world of payment processing. While it might be tempting to chase an integrated payment partner that is going to offer the cheapest rates to your customers, this is not a beneficial tactic in the long run. More often than not, a too-good-to-be-true deal on processing rates will see your customers slammed with hidden fees and poor service. The best integrated payment processors understand how to walk the tightrope of price and service and are able to offer the value your customers demand while maintaining the same level of exceptional service you offer to them through your software.
In fact, with the recent surge in mergers and acquisitions in the payments industry, we have seen service fall through the floor and costs drastically increase. Merchants who saw their payment processor get gobbled up by a larger corporation have noticed their basis points quietly increased and additional fees stacked on top of their merchant statements, which leads us to our fifth attribute.
Fifth Attribute:
The Best Integrated Payment Processors Value Stability
As noted, mergers and acquisitions have run rampant over the last few years and caused a significant lack of stability in the industry. This has led to many integrated payment solutions now operated by giant conglomerates with a corporate mentality and a razor blade approach to accounting that increases profit margins.
This means the best integrated payment processors are those that focus on stability. Fortunately, the signs you are working with a stable partner are easy to find. Look at their tenure in the industry and whether they have had consistent ownership. Evaluate both their customer and employee retention rates. And lastly, ensure that they are transparent in their pricing and policies.
So there you have it – five attributes you should keep in mind when searching for the best integrated payment processor. If you are in search of the best partner for your payment program, shoot me an email. I have been in the business for many years, and I can help point you in the right direction.
