Eight Key Considerations for ISVs When Choosing a Payment Processor for Maximum Success and Profitability

In today’s digital world, credit and debit cards are the primary payment methods used for payments. In fact, according to a recent Forbes Advisor survey, 54 percent of respondents reported they make purchases with a physical or virtual debit card, and 36 percent use a physical or virtual credit card.

A step further, the survey reported that more than 70 percent of respondents said they plan to make virtual cards or digital wallets their primary method for payments, with 51 percent saying they will stop making purchases from merchants who do not accept these payments. Only 9 percent of respondents reported that they pay using cash.

With the growing popularity of credit and debit cards, virtual cards, and other contactless methods of payment, not only among consumers but also the growing use of virtual, corporate, and purchasing cards for B2B transactions, Independent Software Vendors (ISVs) must integrate payments into their offerings in order to build more functional software solutions by partnering with a plug-and-play payments solution provider.

With countless payment processors in the market, each with unique features and offerings, how do you know which ISV payment partner to choose?

Here are eight key considerations for ISVs when choosing a payment processor:

1. Accommodation of Transaction Type. It’s important to ensure that your payment processor can handle the types of transactions your merchants will accept, such as in-person, virtual card, digital wallet, online, corporate, and purchasing cards. etc.
2. Acceptance of All Major Credit Cards and Payment Types. Your payment processor needs to accept all major payment types.
3. Support for Recurring Billing. Ensure that your payment processor can handle recurring billing situations, such as for ongoing subscriptions and card-on-file transactions.
4. Virtual Card Support. According to a recent Forbes survey, 53 percent of respondents use digital wallets more often than traditional payment methods, so it’s important to choose a payment processor that supports virtual card capabilities.
5. Payment Processing Transparency. Make sure your payment processor explains the total cost of payment processing, including interchange fees, transaction fees, monthly fees, chargeback fees and sometimes also less obvious costs, such as membership fees, set-up fees and Payment Card Industry (PCI) compliance fees.
6. Payment Terminal Support. Ensure that your payment processor supports the way your merchants accept payments for in-person credit card payments, such as payment terminals (also called payment devices) and Point-of-Sale (POS) devices as well as associated applications and software.
7. Fast Deposits. Merchants expect the funds processed from a card to be deposited into their bank accounts as quickly as possible. In traditional payment processing, funds are processed within two days. With Real-Time Payments (RTP), funds are deposited into the merchant’s account immediately after the transaction is completed. See our blog on RPT here.
8. Payment Security. In addition to ensuring that your payment processor’s transactions are PCI compliant, ask about their security technologies, such as encryption and tokenization for payment card data, that replace actual payment card data with letters, numbers and symbols that are meaningless to a potential fraudster. This means that if your system is hacked, no valuable information can be found to commit fraud or be resold on the Dark Web.

Want to get started with ISV payments process today?

PayNation can help! Whether you currently have a payments processor or are new to B2B payments, connect with PayNation today.

Extend Your Reach and Revenue with PayNation

• Streamline your payments.
  • Gain a unified solution that simplifies the B2B payments process. PayNation removes the complexity of dealing with multiple vendors and gets your payments to you faster.
• Gain single-source success.
  • Use a single source for your B2B payment platform, merchant account options and equipment. PayNation has a proven track record as a one-stop-shop for its customers.
• Increase payments security.
  • Protect your customers and your business with PayNation’s exceptional security. Its frequent, intensive penetration testing ensures that your business complies with all PCI DSS standards.
• Enable omni-channel processing.
  • Accept B2B payments from virtually anywhere. PayNation enables multiple customer interaction points, including e-commerce and in-store.
• Integrate with your ERP and accounting solutions.
  • Integrate your B2B payments processing with your existing ERP and accounting solutions. PayNation helps you access information the way you want while improving the speed of receiving payments.
• Automate B2B payments processing.

Reduce time spent on billing and reconciliation. PayNation delivers an all-in-one automated solution that improves efficiency by automating accounting processes.