Integrating Payments with Accounting Software
Can you see the benefits of integrating payment technology with ABC Accounting Platform or XYZ Backoffice System?
More than likely, yes, you can!
Hosted payment solutions offer tremendous value to merchants and Independent Software Vendors (ISV).
- Saving Development bandwidth
- Improving ease of use
- Reducing PCI scope
This integration occurs in the back end for the merchants’ added value to their accounting software.
From the customer’s perspective, the ability to view current details about their account balance, payment history, or invoice details enhances the payment experience. At the same time, reduce the need for support through readily available self-service tool options.
Though standalone payment tools can meet numerous use cases, a more data-driven approach typically optimizes the process from all sides by integrating payment technology.
All integrations in the payment revolution forged with two strategies:
- API Integration
- Data File Transfer
The strategy selected will depend on:
- The technology available in the merchant or ISV system
- The defined business requirements for speed of delivery.
Leveraging API endpoints
This payment technology can provide real-time customer information to the payment vendor solution. It also allows real-time payment posting for reconciliation in accounting software.
Usually, this is the preferred route, especially for industries that rely on up-to-the-minute account standing. For example, consider a utility company accepting payments for a particular service. The merchant presents customers with many valuable details about their accounts. The options vary, such as the amount due, due date, usage stats, last payment details, etc.
To clarify, in the case of an unpaid overdue utility bill, disconnection notice and service interruption occur on a utility-defined deadline. The payment gateway virtual terminal provides the metrics to post for the merchant to use how they see valuable, based on their product or service management software and accounting software. From there, real-time payment posting remains imperative to prevent illegitimate service interruptions for payments made.
Implementing Data File Transfer
Delimited data files can be pushed or pulled via Secure File Transfer Protocol (SFTP). This is technically performed manually. The best way to proceed enables a scheduled process to handle the transmission. Then developers can parse the information automatically on a defined schedule. Once per day usually satisfies the use cases for most data file transfer configurations, and more frequency is undoubtedly an option.
By pushing or pulling the delimited accounting software data file, payment solution vendors provide relevant customer account details. This data essentially updates what the customer sees (or hears), depending on the technology used. In return, the payment vendor solution can provide a delimited payment confirmation data file, including all payments processed for the defined interval. This allows customer accounts to be updated automatically.
Why handle it any other way? Armed with technology, end the days of manual payment posting, spreadsheet shuffling, and customer confusion!
Originally Posted on LinkedIn as an Article by Jason Estes, CEO
Date Originally Published: October 1, 2021
Date Updated: August 1, 2022