We all know it: the need for efficient and secure payment processing solutions is more critical than ever. More and more shoppers in the UK are transitioning towards digital payments and failing to adhere to this trend can result in losing sales and revenue.
Integrated payment solutions have appeared as a breath of fresh air for businesses in the UK. This article on integrated payments delves into what integrated payments are, their benefits, and how to implement them.
What are Integrated payments?
Integrated payments mean an automated payment processing system gets incorporated into your existing business software system, such as point-of-sale (POS) systems or e-commerce platforms.
This integration allows businesses to handle transactions directly within their operational software without needing multiple disconnected systems or manual handling.
Integrated payment system example
Imagine you own a shoe retail business using an integrated payment system within your POS software. When a customer buys an item and pays with a credit card, the payment process begins the moment the card is swiped or tapped.
The POS system sends the information to the payment gateway that processes the transaction by communicating with necessary financial institutions. After the transaction is verified, funds are debited from the card. Along with that, the sale gets recorded in your system and the inventory is adjusted in real time.
Did you see how seamless it made the entire payment process for you and your customer?
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Key features of integrated payments
- Efficient processing of the transaction: Payments are processed directly within the business’s software which eliminates the need to switch between multiple systems.
- Data is synchronised: The transaction data is updated in real-time which provides instant visibility of sales, inventory, etc. to businesses.
- Enhanced security: Superior security features like PCI compliance and tokenisation.
- Ability to accept multiple payment methods: The system supports various payment methods like cards, digital wallets, mobile payments and ACH transfers.
Benefits of integrated payments
Integrated payment solutions are advantageous for your business in several ways. Let’s be honest, if you have an automated payment system that is intuitive for your customers as well, wouldn’t it be great? That’s what integrated payments make possible.
1. Increases efficiency
It enhances efficiency in 3 ways. Firstly, it consolidates the payment onboarding, underwriting and software processes. Secondly, you have to only manage one vendor (who provides the integrated payments service). Thirdly, it enables the provision of unified tools that reduce errors and save processing time.
2. Promotes higher transaction rates
Another benefit of integrated payments is a boost in transaction rates. It enables that in 3 ways:
- It integrates the payment processing directly into the website or POS system. This makes the checkout process efficient as customers are not redirected to any other page or system.
- It supports multiple payment methods which enables the customers to pay using their preferred method.
- It synchronises transaction data with inventory, sales and accounting systems. This reduces the chances of errors and discrepancies that can occur in manual data entry. This accurate payment processing builds customer trust.
3. Enable cost savings
Integrated payments help businesses save on processing costs in 3 ways:
- Integrating payment processing with your ERP system allows for more comprehensive transaction data to be shared with the bank. By providing detailed transaction information like destination ZIP code, freight amount and tax rate, the bank has to work less hard to verify the payments and thus charge lower interchange rates.
- It combines various payment methods into a single processing flow. This consolidation reduces the number of individual processing fees incurred from multiple payment gateways or processors.
- It automates many aspects of the payment process, from data entry to reconciliation. This minimises the risk of human error and the costs associated with correcting these errors.
4. Provide detailed reporting and data tracking
Where do I start? Well, integrated payment solutions can be combined with CRM and ERP systems that enable real-time data tracking and analytics. This gives precious insights into sales performance and customer activity. The businesses can then make informed decisions accordingly to adjust their marketing and inventory strategies.
It can also capture customer data including purchasing history and preferences which businesses can use as well to segment customers based on their behaviour and apply customised strategies.
Moreover, these solutions come with advanced reporting tools that generate detailed reports on metrics like product, region and time.
5. Offers enhanced security and compliance
These solutions often come with advanced security features and are compliant with industry standards such as PCI DSS. This ensures that sensitive customer data is protected and reduces the risk of fraud and data breaches.
How to implement integrated payments
1. Identify your business needs
Look at your current payment processing system and identify the areas that need improvement. Consider factors such as transaction volume, types of payments accepted, and loopholes in the existing system.
2. Choose the right provider
Select a payment provider that suits your unique business needs the most. Evaluate the features, pricing and support offered by different providers.
3. Integrate with the existing system
Work with your payment provider to integrate the payment solution with your existing software systems. This may involve API integrations for which you might have to hire developers or take help from the available documentation. Pre-built plugins are also available; they simplify the setup process.
4. Complete the security check
Ensure that the integrated payment system complies with industry security standards and regulations. This includes PCI DSS compliance and any other relevant local regulations.
5. Train your staff
Provide training to your staff on how to use the new integrated payment system. This will help ensure a smooth transition and maximise the benefits of the new system.
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An example of integrated payments is when a point-of-sale (POS) system in a retail store automatically syncs with accounting software. When a customer makes a purchase, the payment data is instantly recorded in the store’s financial system to streamline bookkeeping and inventory management.
Integrated payments provide a streamlined payment operation, increased transaction rates, reduced errors and real-time financial tracking. They eliminate manual data entry which also saves time. As a result, the cash flow is managed more efficiently and the customer experience is improved.
Payment integration connects your payment processing system directly with your business software, like accounting or CRM tools. When a transaction occurs, the payment details are automatically recorded in your systems and alongside that, the inventory and customer data are updated in real-time.
