Tag Archives: digital payments

Top 10 Questions to Ask When Choosing the Right Payment Processing Software

mimo_logo_x1024_@
+91 1141182211
blue

Top 10 Questions to Ask When Choosing the Right Payment Processing Software

Online transitions have become familiar, and the eCommerce industry has obtained an excellent boost due to the familiarity with online payments. A seller can now create a website to sell his goods and get paid through an online payment processing system. However, every online business should integrate a safe online processing system. Making sure payments are safe improves the customer experience and can help your business grow in the long run. While choosing the right payment processing software, online businesses may ask the following questions.

Table of Contents

#1. Is the payment processing software compatible with your currency?

The payment processing tools are registered in different countries. Most software developers register their tools in multiple countries, though some tools are dedicated to serving a particular country. So, you need to check the compatibility of the payment processing software with your trading currencies.

Customers from a particular country will not be able to pay for the products or services through your web store if the payment gateway does not support that country’s currency. Therefore, judging by the geo-location of your target audiences, you should choose a payment gateway system for your eCommerce platform.

Many businesses integrate multiple payment gateways to serve customers from different countries. Multiple payment gateways are also a good thing for the buyers’ currencies to receive money. Irrespective of the number of payment gateways you integrate with your online business, you must check the currency compatibility of those payment processing systems.

#2. Is the payment processing software PCI compliant?

While accepting online payment, a business is responsible for maintaining top-notch security for the buyer’s financial data. Therefore, you should choose the SaaS payment processing systems that come with PCI compliance. If you have not heard the term, PCI DSS stands for Payment Card Industry Data Security Standards.

In 2020, a report claimed that only 28% of online businesses in the USA had PCI compliance. The shocking revelation is that the number has been dropping in the last few years. If you choose payment processing systems that aren’t PCI compliant, you might break security rules. As a result, the financial data of customers will not remain safe.

The best way to see if a payment processing system is PCI-compliant is to look at how it encrypts data. Tokenization is a standard way to encrypt data that takes out credit card information to add an extra layer of security. Such payment gateways are PCI-compliant payment processing gateways.

#3. What should the business expect after onboarding?

Every payment solution is unique, and the onboarding experience varies from one provider to another. A more rapid and seamless onboarding process is critical for a positive customer experience. While choosing a payment gateway, eCommerce businesses should keep the following things in mind.

  • Fast Customer Onboarding: Fast customer onboarding is essential for a good payment processing system. Creating a merchant account quickly saves time for businesses.
  • Availability of Tools: A payment processing system offers multiple tools to customers. For example, merchants should look for the self-serve option in the payment processing software.
  • Relationships with Banks: For faster and easier payment transactions, banks and payment processing software need to have good relationships.

#4. Does the payment processing software accept multiple payment modes?

A reliable and professional SaaS payment processing service in India should offer a payment gateway that works with more than one payment method. In India, debit and credit card payments are popular, though UPI payments have also become convenient for buyers.

Besides these conventional payment options, the payment gateway should support digital wallet payment, internet banking, pay-later features, and many more. Featuring multiple payment gateways, it attracts more buyers to an online store.

Still, the payment processing system is a key part of keeping customers returning to an online business.

#5. What Is the Cost of Payment Processing Software?

Nowadays, merchants can find multiple payment processing systems to integrate into their online stores. But the price of a tool for processing payments depends on its features, security, and other factors. Since the market has become competitive, most SaaS payment processing companies offer low-budget deals to their customers.

However, it is still crucial for merchants to check the cost and features before choosing a payment gateway. You can check out multiple software packages and judge which one is the most cost-effective one for your business. Typically, the payment processing gateways come with a monthly package cost. In a few cases, they have fees for particular payment methods.

#6. Can You Customize the Payment Processing Software?

Every business is different, so owners need customized software as a service (SaaS) to keep track of all their tasks. So, it would help to look for a customizable payment processing tool for your online store

Customizable tools help businesses add or delete payment processing gateways according to their requirements. For example, some businesses want to offer a “pay later” option to buyers to lure more buyers. This payment option increases the conversion rate because it makes it easier for buyers to buy and pay for a product later

Some businesses receive a good number of buyers from a specific country. In such cases, the sellers want to offer currency compatibility to such buyers.

#7. Will You Be Able to Switch Providers Quickly?

While choosing payment processing software, eCommerce businesses seek long-term cooperation with the service provider. However, it does not happen that way in a few cases, and online businesses are looking for a better option.

You can easily find better options due to the availability of multiple payment processing gateways. However, migration from one service to another can be a daunting task. Businesses do not want to lose customers due to technical hiccups during the migration.

Before choosing a payment processing system, you should look at the terms and conditions for migration. It will help you to migrate easily if such a requirement arises.

#8. Does the company offer dedicated customer support?

Profound and dedicated customer support is essential for choosing the right SaaS payment solution. If a company doesn’t have good technical support, it could be challenging for eCommerce merchants to work with them in the future.

Nobody likes losing customers due to technical glitches on the payment gateway. Moreover, frequent glitches on the payment gateway are unsuitable for your business reputation. Effortless customer support is essential to deal with such technical glitches.

#9. What Is the Company’s Expertise in Fraud Management?

SaaS fraud management for SaaS payment processing is essential to protect customers from financial fraud. People lose money due to fraud, and gaining back the trust of such people becomes difficult. It is difficult to bring back a buyer once you have lost him. Therefore, you must have a payment gateway system with an efficient fraud management mechanism.

#10. Is the payment processing software tax-compliant?

The payment processing software should be tax-compliant to reduce your hassles in dealing with taxes. The payment gateway should add GST for domestic and international transactions. At the same time, it must include additional transactional fees for international payments. Choosing such a payment processing tool reduces hassles for small-scale eCommerce stores.

Conclusion

So, these are the questions you should ask before choosing the SaaS payment processing provider in India. Finding reliable payment processing software can improve the conversion rate of your business. At the same time, it enhances the momentum of customer retention by making things easier for them.

Like this article?

Share on facebook
Share on twitter
Share on linkedin

More To Explore

How Electronic Payment Solutions are the First Step into the Digital Age

mimo_logo_x1024_@
+91 1141182211
ffirst step into

How Electronic Payment Solutions are the First Step into the Digital Age

Finance is a big part of people’s daily lives— both on a consumer and professional level. We rely on financial transactions for so much of our day-to-day living. We buy groceries, pay our bills, receive salaries and sales, budget our finances, and so much more. Over the years, many of these activities have moved to electronic platforms, sparking a vast movement in financial technology or fintech.

Nowadays, 64% of consumers use some form of fintech platform. And while the adoption of these tools for payment has increased, there is still some pushback. But the importance of electronic payment systems cannot be denied. We rely on it heavily today. So do businesses. And soon, there might come a time the majority of our transactions will happen electronically.

Table of Contents

Aspects of Payment You Can Digitize

Just what can businesses and people digitize today when it comes to our finances? There are many aspects that have now gone electronic when it comes to money. Here are just a few of them.

Purchasing

Probably one of the biggest shifts in the past half-decade has been the growth of e-commerce. Consumers are no longer just buying more online. They’re actually at a point where many of them prefer it over offline methods. In 2020 alone, amidst the height of the pandemic, e-commerce grew by 27.6%.

Hence, there has been a massive shift towards online payment gateways and systems. Some electronic payment system examples we might be familiar with include PayPal, GooglePay, ApplePay, AmazonPay, Stripe, and so many more. Another growing option is TraQPayments, which merchants can use to collect money via payment links.

B2B Payables

Not only are people buying more in a B2C setting. They’re also starting to shift many of their B2B payables online. Businesses prefer to pay their suppliers, providers, and utilities online. Doing so is not only more productive. It’s also easier to track. Without the problem of unnecessary travel times and queues, business owners and managers can now allot their time towards other more important activities in the business.

Invoicing

People no longer just want to pay online. They want to be paid online as well. Online invoicing has radically shifted accounting and finance in a whole new direction. Because merchants want to pay online, companies should now start thinking about providing digital invoicing options online. These invoicing softwares do more than just online billings— which accounting can then file much easier. They also allow invoice recipients to settle payments online with ease.

Some of the invoicing software and examples that people should start looking into are PayPal and Stripe. However, these two options can be known for their massive fees. So you might also want to look at TraQPayments as an invoicing software option, given it has competitive fees and many other features and benefits.

Accounting and Book keeping

Now that so much money is moving online, 40% of accountants want to automate accounts payable and invoicing. By doing so, they’re able to accomplish bookkeeping and finance tracking tasks faster. For an accounting firm, this advantage could mean being able to get more clients. For an accounting department in a large corporation, that means that accounting managers will be able to stay up-to-date on all finance tracking with very little chance of falling back on work.

Personal Budgeting

Not only can professional accountants automate their bookkeeping. Individuals can also do so at a personal level. For someone who wants to pay their internet bill or water bill, electronic payments will most likely be a more viable option. It removes the hassle of having to leave the office for an hour to head over to the nearest payment center, for example.

There’s also the abundance of budgeting apps on mobile phones now that make it easier for people and families to get better control of their finances.

Payroll

Human resource departments also get to benefit from the growth of online payments’ popularity. 54% of small businesses say that there is room for improvement in their payroll policies and systems. Switching to online payroll services could be one of those improvements for your business.

Online payroll systems help HR departments save time and energy by automating salary computation and making it possible to disburse payments to employees virtually. That, in turn, speeds up the payout process. When employees get paid faster and more promptly, you’ll also have happier staff in general.

Expense Management

If your business still relies on manual systems to disburse, liquidate, and report back petty cash expenses, travel expenses, and so on, then there’s a chance you’re leaving money on the table. Expense management software makes small expenditure management more convenient for entrepreneurs, managers, and finance departments. Because most expense management systems are cloud-based, companies can also collect reports from traveling staff even before they get back to the office. This added edge allows for smoother accounting and more accountability.

Advantages of Going Electronic With Your Payments

All in all, it’s safe to say that electronic payments make our lives easier. And there are many advantages that build that case. If you’re not convinced, these benefits should be able to solidify this case.

Ease of Business

The ease of doing business should be a priority across economies, especially for small to medium-sized businesses. With the added features of electronic payment systems, SMEs can transact faster, take payments from clients and customers wherever they are, and grow much easier than traditional methods alone. 

The pandemic taught us that e-commerce and digital business should be a staple for any business, no matter how large. And more innovations in electronic payment markets make it easier for everyone to do that. Mobile adoption has also helped increase the ease of doing business. 90% of fintech users have used some form of mobile payment.

Saved Time and Resources

Electronic payment options save everyone time and resources. Imagine the decreased hassle of having to buy food because food delivery apps now make it possible to order and pay for food without leaving their home or office.

The cost savings brought about by electronic payments also compound massively. For instance, the cost of sending digital invoices is much lower than having to print and freight hard copy invoices. Invoice management software can also automate payment reminders so that business owners and finance staff no longer have to do so manually when clients fail to pay on time. 

Security

There’s an ongoing debate about the security of online payments, given how cybersecurity threats have risen with time. But overall, online payment options can provide more layers of security. Processes like KYC procedures and authentication steps add more layers of protection to people who send or receive payments online.

The security advantages of electronic payment systems will only improve through time as more protection innovations arise. We’re in the early stages of digital adoption still, and there’s plenty more room to grow, particularly around financial security.

Increased Reach

Businesses that use electronic payment options like e-commerce and online invoicing now have the ability to reach more clients, no matter what part of the country (or even the world) they are. Purchasing trends like cash on delivery and digital wallets are improving transactions online and encouraging more customers to buy virtually. As that reach grows, businesses will only grow more.

The Future of Business with Electronic Payment

All in all, the business world has drastically improved as electronic payment solutions improve with time. And those two will only keep growing together as more businesses and consumers start adopting this new era of commerce.

Like this article?

Share on facebook
Share on twitter
Share on linkedin

More To Explore

How much does it Cost to Send an Invoice? How to do it Digitally?

mimo_logo_x1024_@
+91 1141182211
Digital Invoicing

How much does it Cost to Send an Invoice? How to do it Digitally?

Did you know that 90% of all invoices are still processed manually around the world? So, how much do your invoices cost? While you ideally get paid every time you send out an invoice, you still need to figure out how to keep the expense of each invoice to a minimum. 

Creating, delivering, processing, and occasionally amending invoices can be a time-consuming procedure. Business leaders can be empowered to make sound data-driven decisions about optimizing their invoicing process by evaluating the cost of sending manual invoices. This allows their company to expand with confidence, knowing that they’re supported by a scalable invoicing automation technology that actually saves them money. 

Table of Contents

Manual Invoices: How much do they Cost?

Although sending manual invoices is costly, the majority of firms continue to do so. So, let’s take a look at the invoicing process’s costs. 

Direct Costs

With paper invoices, there are fees associated with the paper, ink, and mailing costs that must be incurred. Obviously, this will differ from business to business. With e-invoices, you avoid incurring these expenses. 

Indirect Costs

These are the expenses that are incurred in order to perform a task that includes an employee being compensated for packing paper invoices into envelopes, and the amount of time it takes you to enter all of the necessary information to generate an invoice, such as the client’s name and address. Manual invoicing is more expensive due to the additional manpower required to do the task. 

Hidden Costs

When it comes to invoicing, there could be a number of hidden fees to consider. Invoice lag results in a negative cash flow situation. It takes several days for a client to receive, examine, and respond to a bill that has been sent via snail mail. In the meanwhile, you are unable to pay an expense because you lack the funds, and you are assessed a late fee. Electronic invoices can be paid instantaneously because they are digital. Furthermore, what happens if there is a mistake? 

Examine the following six elements if you wish to assess your invoice processing costs:

  • The amount of time it takes to process and send invoices.
  • How many hours do you spend going over each invoice?
  • How much time do you spend looking for and fixing data entry errors?
  • Each invoice's shipping and storage costs.
  • How many hours of work have you lost due to invoicing?
  • How much revenue did you lose due to early-bird discounts or late fees?

Digital Invoicing

It’s no wonder that e-commerce enterprises are struggling to keep up with demand, especially because the E-commerce boom shows no signs of slowing down anytime soon. Working smarter, not harder, has never been more important, especially in light of rising customer expectations and constraints such as supply chain issues and transportation shortages. Digital invoicing may have been disregarded as many e-commerce enterprises attempt to expedite their procedures in order to keep up with demand. 

Digital invoicing is a more current method of reconciling online payments against invoices, which cuts down on the time and expenses of preparing, sending, and receiving digital invoices. It also eliminates the need for paper because you can send and receive invoices online, straight into your and your supplier’s accounting software. It’s merely one component of a comprehensive e-commerce strategy. 

What is digital invoicing, and how does it work?

The process of sending a customer a bill for goods or services by email or through your website is known as electronic or digital invoicing. Customers can usually pay their bills electronically if they receive an e-invoice. It can also refer to mailing a paper invoice with a request for payment via a website or secure payment form. 

Ecommerce shopping sites use a different form of electronic invoicing. A request for payment is launched by the business for goods or services that have been given or will be provided under agreed-upon terms using electronic invoicing. The customer initiates payment on ecommerce purchasing sites. 

What Does It Mean for Businesses?

The method for creating digital invoices differs depending on the service. Some systems let you send e-invoices directly from your accounting software, while others provide an invoice generating tool to help you get started. Specific functionalities differ depending on the processor or service. Some processors allow you to personalize the invoice‘s appearance, include logos, provide a discount for early payment, or automatically add late fees when invoices are past due, among other things. 

An invoice’s content is frequently customizable, and it may include information such as the customer’s name, a purchase order number if applicable, the invoice number and date, and payment terms. 

You may be able to set the invoice up as a one-time bill or as a regular bill. Setting up recurring billing is perfect for cases when you need to bill your customers on a regular, predetermined schedule, such as for memberships or monthly product “clubs.” With recurring billing, the client’s preferred payment method (typically a debit or credit card) is automatically paid at a pre-determined interval. Customers may view online payments, update their card and billing information, and more. Some providers offer a card update feature to prevent recurrent billing charges from being refused owing to expired or unusable cards. 

How It Works for Customers

When a customer receives an e-invoice, they will receive the information as well as the option to pay online. The link to pay online will usually be sent to a secure website through the gateway of your credit card processor. All of the information that the business provides in the invoice is visible to the customer, including the amount due, payment terms, due date, purchase order number, and any other items selected. Even though recurring billing is sometimes associated with e-invoicing, most recurring billing services do not send an e-invoice or request payment. Instead, payment is automatically debited to the client’s card or account. 

Is it possible for consumers to make changes to their e-invoice details themselves?

Customers are unable to update invoice specifics (such as the amount owed) because e-invoices are frequently converted to PDFs before being distributed. If there is a discrepancy, the customer can contact the company that sold the product or a third-party vendor (who is responsible for the invoice and billing service) to rectify the issue and request that a new invoice be issued with the proper information. 

When setting up a digital invoicing system for a business, what are the most important factors to consider?

Accounting and Digital Invoice Integration

Check for compatibility with your existing accounting software or systems when looking into how to send digital invoices with your processor or other invoicing provider. For easier reconciliation and record keeping, several e-invoice providers can link with QuickBooks and other accounting applications. 

Security

Security is vital for both your business and your customers when using any method of receiving online payments. Make that your digital invoice service (which is normally provided by your credit card processor) is PCI compliant and up to date on current security technologies. Tokenization, encryption, and other card security procedures are examples of security features. 

Costs

Depending on your processor, the cost of electronic invoicing will vary. Some processors provide the service free of charge in addition to your card acceptance rates and costs. Your clients won’t have to pay more for the convenience of paying by card through your digital invoice because e-invoicing is usually free. 

Final Thoughts:

Businesses can’t afford to ignore minor modifications to their processes in a time when consumer expectations are high, delivery costs are rising, and competition is fierce. Those who do not want to implement digitized processes risk slipping behind larger corporations and peer-level competition. 

 

If administrative activities are eating up too much time and preventing you from focusing on other elements of your business, digital invoices can help save a lot of time. Whether you’re an online shop, a third-party logistics (3PL) provider, or a warehouse, automating the invoice process is a cost-effective approach to communicating with clients about online payments and keeping track of your revenue. In a nutshell, digital invoices help with accuracy, metrics, time, and money benefits. 

Like this article?

Share on facebook
Share on twitter
Share on linkedin

More To Explore