29 Jul 6 Things Software Companies Should Look for in a Credit Card Processor
Every customer of your software company is valuable. And when you’re searching for a payment processing partner, you want a company that values your customers as much as you do. Working with a credit card processor is an endorsement of your partner’s services. Don’t put your reputation on the line by recommending subpar service to your customers.
Here are 6 things software companies should look for in a payment processing partner:
1. Seamless Integration
Independent Software Vendors (ISVs) and Software as a Service (SaaS) providers have a lot to gain by integrating payment processing within their platform. Payment processing integrations can add value and convenience for your customers. But an integration with the wrong partner can be a nightmare for your developers and can even compromise the security of your software.
Your processing provider shouldn’t just make life easier for your customers. They should offer added convenience for you and your developers as well. That means a user-friendly API and frequent interaction with your development team throughout the entire integration process, for a truly seamless experience.
2. Simple Application Process
You want to get your merchants up and processing quickly, and that means finding a processor with a straightforward application process. Ask prospective partners how long the approval process generally takes. 1-2 days is the gold standard. Will your dedicated rep assist you with getting merchant accounts approved? And will you receive timely and transparent communication throughout the entire life of the application? Any potential partner should be just as invested in helping your merchants through the approval process as you are.
3. A Lucrative Revenue Share
Your partner should be dedicated to a productive and mutually beneficial relationship, and that means compensating you fairly for every merchant in your portfolio. Unfortunately, that’s not as straightforward as just saying, “You’ll receive X percent of revenue generated on accounts.” In order to generate profit, an account will need to overcome hard costs. In the industry, these hard costs are referred to as “buy rates.” This is where the transparency and integrity of any prospective processor will be put to the test.
When negotiating your revenue share, don’t allow yourself to immediately be swayed by a higher percentage. Some providers exaggerate their buy rates to justify charging higher fees. In this scenario, your merchants are paying more and the threshold of revenue that each account must generate before you receive your agreed-upon revenue share is increased. Even with a revenue share of 100%, this often means you are making less money and you’re losing merchants because pricing is not competitive.
We recommend shopping multiple processors to compare both buy rates and revenue shares.
4. A Proactive PCI Compliance Program
When it comes to PCI Compliance, most processors leave merchants to fend for themselves. The process can be complicated, so this can be incredibly frustrating, especially when your processor begins charging a monthly non-compliance fee. So, do you want a partner that just sits back to collect easy money, or do you want to work with a provider that actually cares about the security of your merchants?
Before choosing a processing partner, ask about their PCI Compliance program. First, do they even have one? Is it in-house? How much assistance do they offer to merchants? Ideally, you’ll find a partner that will proactively reach out to each of your customers to walk them through the entire process. Any merchant acquainted with the typical approach to compliance will be hard-pressed to leave you once they’ve enjoyed the benefits of a comprehensive, proactive program.
5. A Stellar Merchant Retention Rate
When reviewing a potential credit card processor, be sure to take their annual merchant retention rate into consideration. A processor with a low-level of service will drive customers away, negating your sales and marketing efforts and leaving you with a stagnant portfolio. Before you choose a processor, ask what tools they have at their disposal to help you retain merchants.
Per every 100 merchants, a 5% increase in retention equates to approximately $10,800 of annual income. For those same 100 merchants, a 90% retention rate would generate $32,400 more in annual revenue than a 75% retention rate. Retention will have a huge impact on your bottom line, so be sure to do your due diligence before making a decision.
6. World-Class Service
The number one thing you can do to retain customers and grow your portfolio is offer the best possible customer experience. And any extension of your own company, including your credit card processor should meet those same high standards of service.
Be sure to ask about a prospective processor’s support team. Are they located in-house, or do they outsource their customer support? How long is the typical hold time? And how much experience does their average customer support representative have? Long hold times, automated phone systems, and inexperienced reps can become a huge headache for you and your merchants. Calling a processing provider’s support number will be a good indication of the service you can expect to receive.
Final Thoughts
When your customers need a credit card processor, you want to refer them to a partner you trust. Any provider you choose should enhance relationships with clients and represent you in a way that adds value for your customers.
The bottom line is, your processor is your partner, and a true partner will work with you to set goals, grow revenue, and give your portfolio the support it needs to thrive. If you’re searching for the right partner, give BASYS a call. We’re the trusted processor of numerous software companies, because we protect our partners’ reputations as if they were our own.
BASYS Processing as a business partner
If your processor doesn’t offer seamless integration, an industry-leading revenue share, and personal service for your users, please call BASYS Processing at (800) 386-0711. Let’s talk about creating a business partnership that will help you meet and exceed your goals.
BASYS Processing features:
• User-friendly API allowing for seamless integration into your software.
• Competitive revenue share, and easy-to-read revenue share reports tracking growth.
• Personalized customer solutions including automated recurring billing, secure customer vault, and more!
• A friendly, live voice will answer the phone when you or your customers call; no automated phone systems.
• In-house PCI Compliance team to walk your customers through the process step-by-step, improving security and reducing costs.
• Access to our marketing department, plus a full suite of marketing materials, blogs and videos
About BASYS Processing
BASYS Processing provides credit card and debit card processing services, plus solutions that include terminals, virtual terminals, e-commerce, mobile, and point-of-sale, customized to fit any need. Banks, associations, and software partners depend on us to strengthen their reputations and relationships with their customers by providing remarkable service paired with ultimate flexibility and pricing. Merchants depend on us to make accepting credit cards and debit cards convenient, safe and affordable. BASYS was founded in 2002 on one philosophy: to take care of our merchants, partners, and employees so they never want to leave. We are dedicated to working one-on-one with our customers to design the perfect solution. BASYS is Personal Payment Processing.
Learn more at basyspro.com, and connect with us online at: