by Ty Hardison

The financial consequences of implementing the wrong payment solution

Obtaining the right payment platform can be a challenge because there are a myriad of options to choose from.  Failure to understand the key factors that determine your payment acceptance fees can be costly, and buying a system simply because it's inexpensive or well known could be a big mistake. A platform without the right features and functionalities can wind up costing an organization more money over the long term, so it's important to understand what to look for before procuring a new solution.

Suppose you are a merchant selling to other businesses and you're accepting purchasing cards or commercial rate business and corporate cards. Or maybe you sell to the government and accept GSA cards.  You will be at a disadvantage if you misappropriate a B2C payment gateway or provider for the task.  You need to make sure you are processing these transactions with Level 3 line item detail.  Qualifying for incentive Visa Level 3 and MasterCard Data Rate 3 Interchange can generate significant ROI contribution with bottom line card processing savings.  In addition, GSA transactions will require line item data

When evaluating ERP, CRM or B2B ecommerce solutions for your business, you will need to ensure the system you ultimately procure is Level 3 processing compliant.   Not all payment modules are the same and to ensure the highest possible return on investment you must procure the right solution and partner who can provide you the tools needed to manage your commercial card Interchange qualifications.

Another important financial consideration involves the costs of ongoing security and compliance.  Merchants should go through a checklist of needs before implementing a solution. Does the provider have a PCI DSS level 1 compliant payment data center?   How will repeat and recurring payment and customer profiles be stored to keep it protected from targeted attacks?   How will sensitive data be collected initially, including support for sending electronic invoices and hosted secure check out functionality?   

Ultimately, merchants are responsible for the protection of this information.  Following security best practices to process payment transactions will reduce the risk of security related incidents.  Implementing security solutions like encryption and payment tokenization can also help reduce the expense of annual PCI compliance audits.

Regardless of whether you need a simple yet feature rich virtual terminal or API software integration into your ecommerce, ERP, CRM or accounting systems, businesses both large and small can benefit from business-specific payment services to lower cost, increase productivity and enhance security. Talk with a VantageB2B payments advisor for a free consultation.

by Ty Hardison

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