Showing 1-20 of 33 products
Tipalti is a cloud-based accounting management solution that helps users automate their accounts payable process. It offers a variety of features, including invoice automation, payment remittance, regulatory compliance management,... Read more
Stripe is a cloud-based solution that offers a varied set of unified APIs and tools that enable businesses to manage and accept payments online. Stripe handles key payment functions, such as subscriptions, storing cards and direct... Read more
RevCent is a cloud-based online payment solution that helps businesses manage transactions and streamline eCommerce operations such as shipping, order fulfillment and more. Professionals can create rule-based payment profiles and process... Read more
Chargebee is a cloud-based accounting solution for businesses of all sizes across various industries such as telecommunication and media, e-commerce and IoT. The solution is PCI Level 1 certified and offers features such as subscription... Read more
Prodoge is a cloud-based solution designed to help businesses and professionals automate processes for accepting payments online through credit/debit cards and cryptocurrencies. Key features include in-person payments, point-of-sale... Read more
SuperPay is a cloud-based payment processing solution designed to help businesses set up, manage and authenticate one-time and recurring transactions. Features include single sign-on, bulk data upload, customizable branding, two-factor... Read more
PayPal is a digital payment platform that enables businesses and individuals to pay and accept payments through an online portal without revealing any financial details. The solution is suitable for businesses of all sizes. PayPal... Read more
Square Point of Sale a mobile POS system available for iOS and Android devices. Key capabilities of the Square POS system include online payment processing, sales reports, inventory tracking, digital receipts, Square marketing campaigns,... Read more
Bill.com is a cloud-based accounting solution specializing in billing and invoicing. With Bill.com, users can receive payments from clients, pay vendors and contractors and handle financial reporting. Bill.com includes an accounts... Read more
Pushpay is a cloud-based online payment solution that helps organizations like schools, churches and education providers to centralize donation data and manage payment operations. Key features include transaction import, donation statement... Read more
PayJunction is an all-in-one cloud-based payment processing solution designed to empower businesses to elevate their payment experience for future payments. Users are able to recharge accounts, process payments for credit cards and... Read more
OmniFund is a cloud-based PCI-compliant online payment processing solution designed for small and midsize companies. It offers card payments, invoicing, recurring payments and reporting functionalities within a suite. OmniFund features... Read more
PaySimple Pro is a cloud-based service offering point of sale, payment processing, billing and invoicing and customer relationship management (CRM) tools within a suite. It is suitable for small to midsize businesses in industries... Read more
PDCflow offers a cloud-based digital signature solution that allows users to receive e-signatures from customers. It is suitable for businesses of all sizes across various industries including hospitals, medical billing, law firms... Read more
Tuio is a cloud-based online payment application designed for schools, preschools and daycare centers. The solution provides an online portal for parents that allows them to access a personalized dashboard and pay fees using debit... Read more
Payzer is a cloud-based financial tool which assists small and midsize enterprises in making payments and managing other financial activities. It features online payment services, through which users can submit and accept payments... Read more
LawPay is an online payment technology that caters to the law industry, where it offers law professionals a secure and easy platform for making payments anywhere, anytime. The software guarantees user's payment acceptance in compliance... Read more
Intuit GoPayment is a mobile payment gateway best suited for small to midsize organizations. The system comes with transaction software, a card reader plugin and a mobile application, which provide instant processing of all major credit... Read more
Raklet is a cloud-based club and event management solution that provides an integrated workflow for maintaining a contact database, collecting payments, organizing events and automating email and SMS communication. Raklet enhances... Read more
Formerly known as Merchant Warehouse, Cayan is a cloud-based online payment processing solution designed for small and midsize companies. The product caters to both in-store retail as well as e-commerce businesses. Cayan supports... Read more
Any business that accepts payment via credit or debit card, i.e., nearly every business, requires payment processing software. Those that have an online presence* in addition to a brick-and-mortar store require online payment processing.
The right online payment processor for your business will largely depend on the payment methods your customers typically use. With recent technology advances, including mobile payments and digital wallets, there are several factors you need to consider when selecting online payment software.
Whether you're looking to invest in an online payment processing system for the first time or looking to upgrade your current software, this guide can help you make a more informed purchase decision.
Here's what we'll cover:
*If you aren't set up for e-commerce, you should be. Head over to this article detailing why every store should have an online component and read our tips for how to get started.
What Is Online Payment Software?
To understand the role that online payment software plays in payment processing, you need to first understand the payment processing value chain, and second need to know how payment processing works.
There are several parties involved with the payment processing value chain:
- Issuer: Bank that provides the cardholder with a credit/debit card. The bank approves/denies any transactions, bills the customer and collects the owed funds.
- Cardholder: Consumer who initiates a sale at a business with their bank-issued card
- Merchant: Business owner who submits transaction authorization request to an independent sales organization (ISO)/acquirer
- Acquirer: Or, merchant service provider (MSP). Owns the merchant account enabling the merchant to process transactions, i.e., payment gateway
- Card associations: E.g., Visa, MasterCard and Discover. Govern bank cards, monitor processing, manage clearing and settlement/funding of transactions.
- Payment processor: Organization/vendor that partners with acquirer to open merchant accounts. Provide technology and support and oversees payment processing for acquirers.
There are four key stages in how online payments are processed when businesses use a traditional merchant account:
- Authorization: Customer initiates the sale; merchant requests authorization from customer's issuing bank via payment processor. This request route is known as the payments value chain (see above).
- Batching: Merchant compiles daily sales and submits transactions in a batch to the acquiring bank for payment. Batching is important to allow time to manually review orders to check for fraud.
- Clearing: Acquirer/MSP accepts batched transactions from the payment processor, forwards them to the card networks, who then distribute payment to the corresponding issuer. The issuer then debits the funds from the cardholder's bank account, routing the funds back to the acquirer through the card network.
- Funding: The acquirer/MSP deposits the funds into the merchant's account.
Fees accrued during this process are subtracted from the funds the merchant receives: The issuer collects an interchange fee; the card network collects an assessment fee; and, the payment processor collects a processing fee.
Online payment processing software plays a pivotal role in this process, helping to pass authorization from the merchant to the issuing bank, payment through the card network from the issuing bank and settlement between the merchant site and the MSP.
Common Features of Payment Processing Software
While features will vary from system to system, online payment software should contain some or all of the following capabilities:
|Online payments||Payment pages, merchant accounts and payment gateways allow merchants to accept payments for e-commerce, membership drives, event registration and more.|
|E-commerce support||Market your business, showcase and sell your goods or services online. Link online shopping cart to inventory, report on sales and manage customers. Mobile store (m-commerce) enables customers to access an ecommerce website from a mobile browser or app.|
|POS transactions||Allows sales staff to process transactions for customers and ensures pricing is correct, inventory is adjusted and receipts are printed/emailed. Ability to accept multiple payment types, e.g., cash, check, electronic funds transfer, credit/debit cards (swipe and chip/EMV cards and both card present and card not present) and mobile payment apps.|
|Gift card management||Merchants can purchase gift cards through their POS vendor, or through a third-party supplier, depending on the POS provider. Merchants have several options for setting up a retail gift card program, from using them in brand marketing or in a loyalty program (read more about that here).|
|Customer management||Collect customer information including contact information, billing and shipping information, purchase history and recent searches. Use key dates like birthdays and anniversaries to target marketing efforts and tailor deals and loyalty programs to customers. Encourage customers to create and maintain user accounts.|
|Recurring billing||Set up customers on subscription plans for products or services, save payment information and bill them on a recurring basis, e.g., weekly or monthly.|
|Reporting and analytics||Track business performance and sales. Manage cash flow, automate invoicing and gain customer insights.|
What Type of Buyer Are You?
Traditional business (with an online store): The ecommerce payment process referenced above will be the norm for most businesses with an online component. Customers can shop in the brick-and-mortar or visit their online marketplace, and inventory will be the same across both. Business owners require online payment processing to handle online purchases/returns.
E-commerce business: A fully ecommerce business will follow this payment process as well. E-businesses will require online payment software to connect them to a merchant account and payment gateway and to process transactions, and won't require an in-store POS to handle card-present POS transactions.
Subscription economy business: Subscription economy businesses are relatively new. Examples include Blue Apron and Netflix. This business model is based on membership and recurring subscription fees. Most will be E-businesses without a brick-and-mortar. The focus is on marketing the brand, improving the customer experience and retention.
Key Purchase Considerations
Implementing POS software: If you're considering opening a retail shop, you'll need to implement a POS system to help you manage sales, inventory, accounting and customer management. Download our POS implementation checklist to help you as you get started.
Setting up an online business: Once you have your retail store set up and your POS system in place, you need an online presence. It's important to align your ecommerce strategy with your POS platform. Jordan Brannon, president at Coalition Technologies (a leading provider of online marketing services to small and midsize e-commerce retailers) says that if either the POS or ecommerce platform lacks an API, or pre-built integration, business owners should walk away.
Retail technology disrupters: On-demand services and support, i.e., subscription-based businesses such as Uber, Instacart and Stitch Fix, are considered to be the number one technology disrupter in the retail industry. This business model reflects how consumer expectations have changed regarding their retail experience. This includes a heavier focus on building relationships, creating memorable experiences and emphasizing personalized services.