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What is payment processing software?
In the U.S., 50% of all credit card spending now happens online. World-wide that number is 33%. Online payments are everywhere - and if you’re a business, you need a way to process them quickly, safely, and easily.
In this article, we’ll talk about the software you need to get it done. We’ll explain what payment processing software is, walk you through finding a solution that works for you, and more.
We’ll also cover our own payment processing software - Salesbricks - and explain how it can save you time and money. We’ll start with…
What is payment processing software?
Payment processing software is how businesses accept, process, and manage customer payments digitally. It’s the online equivalent of a credit card machine you’d find at a checkout counter.
As online payments become more popular, businesses need this kind of software. This likely includes your own business, especially if you’re in digital niches like SaaS and e-commerce.
How payment processing software works
Payment processing software is easy to install and intuitive to use. You don’t have to know how it works - but might want to.. Here's a brief overview:
Integration
Payment processing software is integrated into the company's website, point of sale (POS) system, or other payment channels to facilitate electronic payments.
Encryption
A big worry with online payments is the potential for fraud, which encryption can reduce. The software automatically encrypts customer payment information, providing a secure way to accept payments.
Routing
Once a customer makes a payment, the software routes the transaction to the appropriate payment gateway or financial institution for processing.
Processing
The payment gateway or financial institution then processes the transaction and sends authorization back to the software. This indicates whether the payment was approved or declined.
Settlement
Once a transaction is approved, the payments are settled by transferring funds from the customer's account to the business's designated account.
Reporting
Payment processing software can also provide reporting and reconciliation features, allowing businesses to track payments, view detailed transaction histories, and generate reports.
Benefits of using payment processing software
Both customers and businesses benefit greatly from using payment processing software. It serves as a gateway to increased convenience and financial security, meaning everyone involved can reap the rewards.
Here are some of the key benefits payment processing software gives businesses:
- Faster payment processing times mean businesses can have quicker access to their funds.
- Automated software improves accuracy and reduces the risk of human errors in payment processing.
- The increased security measures add an additional layer of protection for both you and your customers.
- A streamlined invoicing and billing process offers fewer friction points for customers, which can increase conversion rates.
- Payment processing software offers greater flexibility in payment options, which can include credit/debit cards, electronic cheques, and mobile payments.
- The increased data insights and financial reporting capabilities allow businesses to understand payment trends better and improve financial decision-making.
- Payment processing software can effortlessly integrate with other business resources, such as accounting software.
- Software can have lower payment processing costs compared to traditional payment methods.
- Electronic payments are usually the preferred choice of the modern customer.
It's no secret that automating certain aspects of your business can help you save time and money. Using dedicated payment processing software allows businesses to keep up with the competition and provide customers with a friction-free payment experience.
Salesbricks can take care of all your payment processing needs, allowing you to focus on other important tasks that need your attention.
4 types of payment processing software
There are various payment processing software options available to choose from. The one you opt for entirely depends on your business needs.
Point-of-Sale (POS) Systems
This option allows businesses to process payments in person. It can also offer features such as secure online payment gateways, e-commerce capabilities, and inventory management.
POS systems are ideal for physical stores that need to take payments upfront but also want the ability to process payments online.
Mobile Payment Processing Software
Designed for businesses that need to accept payments on the go. Mobile payment processing software can be used with smartphones and tablets, often offering features such as mobile-optimized checkout experiences.
Mobile payment software is ideal for businesses like food trucks or delivery services that may not have a physical storefront and cater for live events such as music festivals.
Online Payment Processing Software
Online payment processing software is targeted at businesses that sell their products or services online. It offers features such as secure checkout pages, automated invoicing, and digital receipts.
Online payment software is best suited for any business that needs to accept payments over the web – including SaaS businesses.
Subscription Management Software
This type of software is designed specifically for businesses that offer subscription services. It can help manage recurring billing, customer accounts, and due payments.
Subscription management software is perfect for subscription box companies, streaming services, or SaaS businesses using the subscription pricing model.
How to choose payment processing software
Good payment processing software will take the hard work out of collecting payments. It should be secure, easy to use, and offer the necessary features your business needs.
When choosing a payment processing software, consider the following points:
- Does it offer secure and encrypted payment processing?
- Can it support the payment methods your customers prefer?
- Is the interface user-friendly and easy to use?
- Does it offer additional features that are beneficial to your business?
- Do you consider the cost reasonable?
- Does it integrate with any other software that your business currently uses?
- Is there customer support available, if needed?
- Does it meet the compliance standards of your industry?
Once you find the right payment processing software for your business, you will have the tools to quickly and securely process payments with confidence.
Choose the best payment processing software for your business
- The world is ever-evolving, which means your business needs to keep up. Payment processing software makes it easier for your customers to pay and for you to collect those payments.
- Online businesses, like SaaS companies, must have reliable payment processing software. Digital payment is the only viable way to pay for these services, as physical payments are not always possible.
- Salesbricks can help make payment processing for SaaS businesses easy and stress-free. With secure payment processing, automated invoicing, and CRM and ERP integrations, you'll have everything you need to accept payments without any hassle. Book a free demo today to see for yourself.
we do here at Salesbricks.
