B2B and B2C payment integration, also referred to as billing and accounts receivable (A/R) management, is a vital part of the overall financial lifecycle for businesses. Payment integration strategies are typically associated with SaaS vendors that have either self-service or assisted implementations. A robust configuration that offers the ability to process payments in a variety of ways, including card-based and invoiced payments, is critical to the success of a growing vertical SaaS business.
Payment integration strategies include the use of merchant accounts, payment gateways, and processors. In addition to these providers, a company should consider using a third-party billing and A/R provider. This type of company specializes in the billing and invoicing process for technology companies, handling all aspects of invoicing, collections, and payments.
A payment gateway is a critical part of any payment integration strategy because it provides the secure connection between a business and its customers' credit cards or bank accounts. The gateway facilitates the communication between the bank or card processing company and a merchant account. A SaaS business can choose from two types of gateways: hosted and on-premise. Intuit's GoPayment gateway is an example of a hosted payment gateway, while Authorize.Net is an example of an on-premise solution.
Connecting a SaaS business to a payment gateway is only the first step in the payment integration process. The next step is to set up a merchant account with a credit card processing company. A merchant account is needed to accept payments from customers who do not have a bank account or credit card. The most common type of merchant account is a normal merchant account, which is a bank account that has been approved to accept payments. Intuit and PayPal are two examples of companies that offer merchant accounts.
Once a SaaS business has set up a payment gateway and a merchant account, the final step is to configure the billing system to process payments. This process includes setting up the customer's credit card or bank account information in the billing system and configuring the billing system to automatically process payments. The billing system should also be configured to generate invoices for customers who prefer to pay by invoice.
A payment integration strategy is a vital part of any growing vertical SaaS business. By using a payment gateway, a SaaS business can ensure that its customers' financial information is secure. A merchant account with a credit card processing company enables a SaaS business to accept payments from customers who do not have a bank account or credit card.
In addition to these providers, a company should consider using a third-party billing and A/R provider. This type of company specializes in the billing and invoicing process for technology companies, handling all aspects of invoicing, collections, and payments. By using a payment integration strategy, a SaaS business can ensure that its customers' financial information is secure and that payments are processed quickly and efficiently.
