Payment processing software serves as an intermediate between the buyer’s bank and the merchant’s website. A merchant’s bank, in this case, processes the transaction made with the client’s credit or debit card.
It is a comprehensive processing solution developed to accept and process all modern types of non-cash payments for goods and services in any area of business as well as government organizations.
Payment gateway software in a nutshell
Every time a user makes a purchase on the Internet, it seems to him that the process is very simple. This is largely due to the fact that the payment gateway software does all the basic work seamlessly.
Let’s dive a little deeper into the technical process of transferring payment data.
When buying something, the user enters the card number, expiration date, CVV code on the payment gateway page. Data transmission to the payment gateway is carried out via an encrypted data channel. All payment details are also encrypted and transmitted to the payment processor.
In the future, the bank that issued the card checks the availability of a sufficient amount of funds and, after verification by the acquiring bank, the transaction is approved or rejected.
Types of payment processing software
White–label payment gateway
A business model called “white–label” means that the company does not manufacture a product on its own, but buys the right to sell the product under its own brand. In this case, the software company can grant the right to sell the product to several companies at the same time and receive a percentage of the sales. Overall, this is a turnkey solution that allows payment processing companies to make money just by providing the solution.
Understanding the main benefits of using white–label business software
- Speed.
It can take years and a development team to develop your own payment solution. In addition, appropriate licenses must be obtained and audited regularly. By choosing the white–label method, you will receive everything you need to organize payments within a week; - Price.
Software development is costly. Sometimes funds are just wasted. It is better to entrust payment processing to professionals. It is both more reliable and cheaper; - Simplicity.
The software solution provided by payment processors often includes both the installation of a payment gateway, its configuration and further maintenance; - A set of ready-made solutions.
Constant competition in the processing market forces developers to provide more modern solutions, and you as a merchant just need to choose the best one. There is no need to waste time on quality control, as almost all white label companies try to offer the best possible credit card processing software.
A great example of a reliable white-label payment processing software is Akurateco. Over the years, the company has been developing top–notch payment processing solutions and offering it to the payment providing companies using a white-label model.
The company offers the following features:
- Payment routing to grow the transaction approval ratio by 20%;
- PCI DSS certification for merchants;
- Cascading to improve the conversion rate by up to 30%;
- Smart invoicing, payment calendar, reconciliation, etc.
Third-party payment processing software
Third–party payment processors often use their commercial bank accounts to conduct payment processing for their merchants.
Why does one need a third party payment processing software?
No matter what size your business is or what transaction volume you have, creating a merchant account can be quite an expensive and time-consuming procedure.
For many entrepreneurs, onboarding with third–party processing software institutions is the most optimal solution, and here is why:
- Cost savings.
Processing transactions using third–party services is much more cost–effective than creating your personal merchant account. No monthly fees required. - Easy to integrate.
Registering an online business with a third–party gateway usually takes a week. Plus, you get a fully customized payment solution to fit your needs. - Flexibility.
Companies always meet the needs of their customers and can both provide enhanced business opportunities and lower transaction fees.
Cashier service
Cashier is a kind of buffer between the payment processing company and a merchant. With the help of this software, the merchant can connect to several payment service providers in just one integration.
The main task of such a system is to provide a single back office for managing multiple payment channels all in one place. It’s perfect for both local and international businesses using more than one payment method.
Ikajo Cashier helps businesses support multiple processors, regulate traffic flow, and direct specific customers to their desired payment solutions. In addition, the company not only allows you to manage multiple websites, but also helps increase conversions, provides a secure payment ecosystem, and conducts all necessary checks.
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Remittance processing software
Remittance software solutions are in charge of money transfer between users. It is more often used to transfer funds between family members who have left to work in another country, or between relatives.
An example of such a solution is the world-famous money transfer company Western Union.
The bottom line
The online payment market is constantly evolving. In this regard, new innovative solutions appear to facilitate the financial side of this coin. No matter what your business model is, you should always be extremely careful when choosing payment software. Pay attention to the convenience of the system, commissions, and, from a long–term perspective, technical capabilities.
Don’t be in a hurry. Remember, the more suitable the system you choose, the more profits it will bring you.
