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Benefits of Integrated Payments for Software Vendors

Today, a leading advantage for many Independent Software Vendors (ISVs) and Value-Added Resellers (VARs) is the revenue-producing power of payment processing. Frictionless payment processing gives exceeding value as one of the most profitable opportunities channel companies offer with integrated payment technology. 

An ISV or VAR can capitalize on recurring revenue streams by choosing the right processing partner. Systems capabilities have proven to increase customer retention. This blog will explain how to select a payment gateway provider to assist you in maximizing your merchant relationships in ISV payment software applications. 

 

Benefits of Integrated Payments:

  • Optimal solutions
  • Flexibility in customization and growth
  • Consistent protocols
  • Avid awareness of security standards and threats
  • Multiple options to accept payments as the need for digital payment processing evolves
  • Seamless processing that integrates with IVR and mobile interfaces
  • Ability to set up automatic recurring payments
  • Detailed data-driven analytics for efficient reporting

 

The Top Features of an Integrated Payments Platform

One of the biggest challenges for ISVs and VARs that an integrated payment gateway resolves includes the oversight of IT product updates, technical certifications, and procedural modifications required for compliance with evolving regulatory standards for independent software vendors accepting payments. Additionally, a developer-friendly gateway will offer tools to simplify integration

ISVs and VARs should prioritize gateways with value-added features that will scale and grow with clients using their software applications, especially for large enterprises, which present lucrative targets for developing business. A fully integrated gateway helps future-proof client businesses, an effective retention strategy for ISVs and VARs looking to integrate software application payment technology. Enterprise-level industries need the efficiency and customization options to run at a more extensive operation level. 

 

Security Centric Solution

As payments become more digitized, cyberattacks and fraud remain persistent threats. For ISVs and VARs, security is a necessary feature to evaluate at the forefront of any strategic software vendor and payment gateway partnership. Unfortunately, many merchants remain unaware of existing system vulnerabilities, which an ISV or VAR can address with an integrated payment solution. The must-have security features include:

  • Inline frame (iFrame) webpage protection
  • Real-time front-end account validation to prevent fraudulent transactions Bank Identification Number (BIN) intelligence and filtering to identify banks and issuers quickly,
  • Point-to-point encryption
  • Tokenization to safeguard payment data, 
  • Transparent redirect to allow merchant client websites to post payment details to the gateway server

Also, the gateway provider should enact the most current Payment Card Industry Data Security Standard (PCI DSS) guidelines for credit card processing and National Automated Clearing House (Nacha) guidelines for ACH processing.

 

Choose an Omnichannel Approach

An omnichannel approach involves more than just payments, representing a fundamental shift in commerce that dynamically connects 24/7 consumer-driven experiences. To make these interactive experiences work, merchants must appeal to consumer preferences throughout the sales cycle. This includes seamless multichannel connectivity across POS, online, mobile, kiosk, and interactive voice response (IVR) systems. It must also accommodate the most widely used payment methods across channels, including credit and debit card payments, ACH direct bank-to-bank funds transfers, remote deposit capture (RDC), eChecks, and recurring payments.

 

Frictionless Processing Tools

Producing frictionless commerce experiences requires high-quality processing tools. Hosted payment pages enable ISVs and VARs to preauthorize, tokenize, encrypt, and process ACH and credit card transactions online. A virtual terminal provides a secure web-based interface, so merchants can safely access accounts and process transactions using any internet-enabled device. 

Automated recurring bill payments allow ISV/VAR clients to invoice and receive payments for subscription, membership, utility, insurance, installment, rent, mortgage, and other recurring charges. A mobile application with robust security features that accepts and embeds mobile payments into the overall merchant experience and an IVR system that automates phone orders completes the shortlist of indispensable tools gateway partners can deliver.

 

Choosing the Right Partnership

When evaluating partners, choose a provider that adds value to your software options and recurring revenue share opportunities beyond traditional software-based income streams. 

Seamless integration of payments automation and reconciliation and real-time data analytics with detailed metrics, reporting, and exception handling features add to your value proposition. You can reduce the PCI compliance scope for your clients with a partner who understands merchants’ security needs. Their system needs to be modular, configurable, and flexible, made possible through the API, so that your ISV or VAR business can create a roadmap and pricing that puts your merchants in complete control of the payment experiences they envision for their customers.

 

How to Get Started? 

Merchants can implement a fully developed payment gateway solution with a reputable gateway/service provider. A fully integrated system in application programming interface (API) advantageously allows the entire system to reside within a merchant’s infrastructure. With this integration, merchant POS systems, terminals, online storefronts, mobile apps, and firewalls connect directly to the host payment processor for optimum security and flexibility.

Integrated payment gateways give merchants greater control, faster processing and reconciliation capabilities, and more value-added features than less versatile non-integrated or semi-integrated systems, which can be cumbersome to manage. Moreover, you can meet a merchant’s highest-level data security and compliance needs by selecting a PCI DSS Level 1 certified Nacha Preferred Partner, such as iCheckGateway.com. 

Our technology team stands behind its industry-compliant, easy-to-integrate, simple-to-navigate platform, a system designed and engineered to capture, retain, and protect ISV and VAR commercial customer merchant accounts now and into the future. Contact us to join our partner program.

 

Date Originally Published: December 07, 2020

Date Updated: August 1, 2022

By By ICG Digital

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