A SaaS provider has tremendous opportunities available with an integrated payment processing function. To take full advantage, though, you need to be prepared for the challenges that arise. Payment systems need to be able to manage different currencies and navigate regulatory systems in place. Working with robust payment processing can make all the difference.
If you are selling software, you want to reach more than a local customer base. You want to sell as widely as possible, to companies that operate internationally or sell beyond borders. In either of these instances, processing that only works with one currency will hold you back. It will subject users and customers to conversion fees and pricing that customers don't understand, leading to chargebacks and returns that frustrate your clients.
To solve this challenge, you need a multi-currency option. The payment processing solution you build into your software should translate prices into the currencies end customers use and take payments accurately in those currencies. The most robust processing options navigate this for you, giving technology you can either build in or outsource to get where you need to be.
Similarly, collecting taxes appropriately can create headaches if your system is not set up properly. Federal, state, and local taxes change every day. Further, different states and local jurisdictions charge sales tax at different levels, so there is no one size fits all solution. Even when you do input tax rates that align with all of the current rules, a single legislative session can change the rates. You may even have to manage some products with different tax burdens from others within the same jurisdiction!
This is a place where you need to have consistent updates in place. Some vendors offer service packages that focus almost exclusively on building tax code updates into SaaS offerings. You need a service team, whether under your roof or outsourced, that remains on top of these issues and delivers patches the moment a change takes effect.
Collecting and Protecting Data
Finally, to get the most out of your payment processing, you have to collect and manage data effectively. Electronic payments do more than just move money from one account to another; each transaction comes with data that helps identify and verify customers. This gives you market data you can use to focus business plans and marketing plans but also gives you the means to confirm purchase information and ensure transactions are legitimate.
If your software does not both capture and protect this data, you can get into trouble. Build in data encryption and processing that integrates payments with other functions for your customers, while preventing bad actors from being able to access or use it.
A SaaS payment solution gives you access to revenue streams that enhance your bottom line. Make sure your solution is robust enough to navigate the challenges ahead so you can take full advantage of the opportunity.