Some say that Payment processing is a commodity and variables that set one payment vendor from another are becoming blurred. This is overwhelmingly true for payment vendors that primarily promote stand-alone hardware for accepting payments. But, what about integrated paymentsIf payment processing is embedded into another  application, how does it improve the user experience? And, how many payment processors have an established model, secure processing technology, and the expertise for developing solutions in tandem with software vendors in an effort to improve the user experience?

Looking to develop a unique payment experience for your software application?

Access our secure payments api now!


The Race to Zero

As with any commodity, margins dwindle and competitors unable to adapt to new technologies exit the industry. Without the agility of creating value around more secure payment methods, a more unique user experience, and integrated payments that add value,  payment processing vendors appear dated and turn to pressure and fear as a primary sales tactic. Following are some familiar examples of such employed by these merchant level salespeople:

  1. Your not PCI Compliant and must act now!
  2. You must upgrade Hardware to avoid penalties/fees etc.
  3. We’re a “direct processor” for Visa and MasterCard.
  4. Offers end at the end of the week, month, etc
  5. Send me your statements, and we’ll perform a “complimentary” analysis.

While these tactics are not confined to the payments industry, this industry does tend to create much of it’s own confusion around the cost structures and compliance requirements that are placed on the individual merchant.

Visa and MasterCard; the main culprits

Visa and MasterCard have set the stage for price confusion. Interchange, which is the largest component of the wholesale cost of the transaction, is set by the card issuers. With hundreds of different interchange categories, no one can truly understand what the final cost of any transaction will be at the point of sale. Merchants are left guessing and are easily frustrated by surcharges, downgrades and compliance fees assessed at the end of the month, long after the transaction happened.
PCI Compliance (Payment Card Industry) adds to this confusion, by creating a set of standards that every merchant that accepts credit cards must comply with.  Enforcement and reporting of these standards is the responsibility of the payment processor. With the evolving methods for accepting payments, compliance continues to be a challenge for both merchants and processors. The result, merchants are non-compliant and don’t have the tools, resources or time to follow up with the requirements.

A better way to improve the user experience

Software vendors hold the key. The growing proliferation of the tools that help retail businesseshealthcare providers, and field service platforms manage every critical component of their business,  continue to highlight the importance of a streamlined and secure payment solution. In fact, the push to move payments into the background is at the cornerstone of the phenomenon companies like Uber and Airbnb are capitalizing on. By removing payments from the user experience with the vendor, these companies are seeing unprecedented growth. Additionally, since the individual vendors never touch credit card data, they are completely “Out of Scope” for PCI Compliance.

The result: payments just happen, in intuitive, natural ways.

Friction from payments are removed for both the seller and the buyer, creating a positive payment experience that is being shared socially.  The key: tuck payments into the background and let the software application run the show.
Go Cardconnectis dedicated to the art of improving payment functionality by streamlining the transaction flow and provide the security necessary to properly scale a payments division within your software solution. With our Patented Point to Point encryption and tokenization technology, and our easy API’s for integrated payments, comprehensive reporting and ease of on-boarding, we are uniquely qualified to help grow your software business.

Looking to develop a unique payment experience for your software application?

Access our secure payments api now!