A Comprehensive Guide to Integrated Payment Software

As retail businesses increasingly work across different platforms and locations, using various software and hardware, integration becomes ever more important to them. The term can be used in several ways – integration across locations, integration between in-store and online operations, and integration between different software tools. One of the most important senses in which it is used is in the area of payments. Every retail business wants the most efficient methods to accept and process payments at all their points of sale. They also want to integrate those points into a cohesive, functioning whole. This is why integrated payment software is so important.

First of all, what do we mean when we talk about integrated payments? Integrated payment software involves the connection of payment processing systems with all other relevant systems used in a business, including the POS system, customer relationship management (CRM) software and accounting software. All of these essential components are joined into a functioning whole, in which payments, client information and company finances can all be managed holistically. Payment methods, real-time inventory updates and sales data are all managed on a single platform.

The most important point of integration is between the POS and the payment processor. An integrated payment system is one in which the POS works in tandem with the payment processor. With non-integrated systems, a sales clerk would have to ring up a sale on the POS and then process that sale separately on the card terminal. Once the sale is processed on the terminal, the clerk then has to mark the sale as complete on the POS. With an integrated system, the clerk interfaces only with the POS screen, managing the entire sale and payment processing from there.

Since integrated payment systems are linked to the POS, they can feed important data directly into the POS and its connected tools, and these can then be used for reporting, inventory management, analytics and accounting.

Since integrated payment systems are directly linked to all the other software a company uses, it can process payments internally and then post all related data on the POS, inventory and accounting systems as required. When a customer taps or inserts their credit card, the payment processor then authorizes the sale by communicating with the relevant banks and credit card networks. Then, once the sale is authorized, the transaction is automatically completed and recorded on the POS system.

Why do you need integrated payments? Consider these important benefits:

Integrated payments are faster, easier and more efficient than non-integrated ones. Sales staff have fewer steps to go through to complete a sale, which also means there is less room for error. Customers also get the convenience of completing their purchases quickly. Accurate data is then sent to the relevant integrated software in real-time. Sales are instantly recorded in the accounting software, just as inventory numbers are immediately updated.

Since the integrated sales process is so fast and efficient, your customers enjoy a more convenient, fuss-free shopping experience. Online shoppers don’t have to go through the extra steps of being redirected to a third-party merchant services company. In-store shoppers can simply tap and go – and it’s all safe and secure, with all their financial data protected by encryption and other security tools.

Integrated payment systems enable better reporting and analytics as they update sales and financial records in real-time. This is a benefit for accounting and financial management, but it also helps you to create better marketing campaigns. An integrated payments system can work alongside your customer relationship management system (CRM) so you can sort customers by the products they buy, the amounts they spend and the frequency of their visits to your store.

An integrated solution for payment processing reduces the need for manual data entry, which saves time and reduces opportunities for human error. Errors made at the point of sale can lead to further errors downstream, such as accounting and inventory problems. Integration reduces these errors and makes your business more efficient and accurate.

While integrated payment systems offer a lot of benefits, it is worth bearing the following potential drawbacks in mind:

Let’s take a closer look at the differences between integrated and non-integrated payment systems so you can better understand the benefits of integration.

An integrated payment processor communicates directly with your POS system in order to process transactions. These transactions are then recorded automatically in your POS system and other related software tools. When it comes to e-commerce, an integrated payment processor means your customers enjoy a quicker checkout without being redirected to third-party sites.

When your payment system is not integrated with your POS, there is no communication between the two. Transaction data is not automatically sent to the POS, meaning this information has to be entered manually.

In short, integrated payment systems are more efficient and more convenient than non-integrated ones, resulting in a better experience for both businesses and their customers. Non-integrated systems are not as efficient, they take longer to complete transactions, and they also create more opportunities for errors and security breaches. There are not many good reasons to opt for a non-integrated system.

If you choose to integrate your payment system, shop around for the best option and keep the following key features in mind:

Convenience and speed may be important factors, but security is even more so. Payments must be protected and as fraud-proof as possible. Ask the service provider what security measures are included in their system. These should include encryption and tokenization, among others. Also, check that the vendor is compliant with the Payment Card Industry Data Security Standard (PCI DSS) and other relevant national or international standards.

Integrated payment software should enable payments on every available platform and channel, including bank transfers, online payments, digital wallets, as well as credit and debit cards.

Payment processing hardware and software should be designed with versatility and agnosticism as a core requirement. Look for one that is capable of integrating all your current systems without any problems. If there are limitations on its integration capabilities, you may want to consider another option.

As with all of your POS and business management systems, your integrated payment software should be capable of growing with your business. You don’t want to get to the point where your business is growing and you suddenly have to invest in a new payment system. You need a system that is capable of expanding to accommodate increased transaction volumes and overall business growth.

Real-time reporting is an important feature across all of your business software, and that includes your payment processing system. Look for one that automatically sends information to your accounting system, CRM system and inventory system, ensuring updated records at all times.

When shopping for a payment solution, watch out for these key points:

What are your current business needs? Why do you think you need integrated payment software? Make sure that the solution you choose is suitable for your business where it currently stands while also providing room for future expansion and modification. It might be worth thinking in terms of a payment system that will facilitate future growth.

Each payment solution usually has a unique pricing structure. Most of them will charge a percentage of each transaction. Depending on transaction volumes and other criteria, this could be charged as a flat rate or on a shifting scale. Go for a pricing structure that makes sense to you and that suits your budget. Always ensure that there are no hidden costs, and that all prices are spelled out before you sign up for the service.

Most importantly, your integrated payment software should be one that you enjoy using and that works for you. The user experience should be intuitive and easy to master. In addition, always choose a payment processor that provides ongoing support, including updates and upgrades when necessary, and 24/7 customer service via a variety of channels.

If you run an e-commerce platform, you will need a payment gateway. A payment gateway is a secure platform that allows businesses to accept payments from customers online. To integrate your gateway, you have to start by securing your website with a secure socket layer certificate (SSL). This adds encryption to the movement of data to and from your website. Once you are certified, your website is ready to incorporate a payment gateway. This is generally quite easy to do, and the gateway can be integrated for you by your service provider, or you can do it yourself using the instructions provided. 

Access2Pay is a product of InfoCorp Computer Solutions, a world leader in integrated revenue management and system integration. We have built our reputation on a foundation of providing solid products as well as qualified professionals who work alongside our business partners to solve each client’s unique revenue management needs. Our solutions have grown over the past few years into leading scalable and modular systems. In working with our clients, it became evident that the high investment that organizations have made in their existing systems required a robust and flexible system. Our POS solution is designed to integrate with all components necessary for the running of your business, including integrated payment software. Contact us for more information on these integrations and the best options for your business.