Payment acceptance software is revolutionizing the way businesses process payments, providing a seamless and secure experience for both merchants and customers. With a wide range of key functions and features, this software streamlines payment acceptance, improves financial operations and increases overall efficiency.
From integration with multiple payment gateways to robust security measures and insightful reporting tools, payment platform enables businesses to accept payments across multiple channels while maintaining data integrity and delivering a superior customer experience.
In this article, we will explore the core features and functions that make payment acceptance software an indispensable tool for FinTech companies.
Table of contents
What is payment acceptance software?
The term ”payment acceptance software” refers to computer programs or applications designed to facilitate the acceptance and processing of payments. It enables businesses to securely process payments from customers through various channels, such as credit cards, debit cards, mobile payments, or online platforms.
By integrating payment acceptance software into their systems, businesses can streamline their payment processes, increase efficiency, and improve customer satisfaction. These software solutions typically offer features such as payment gateway integration, transaction management, reporting and analytics, fraud detection, and security measures to protect sensitive payment data.
How does payment acceptance software work?
Payment acceptance software facilitates the secure and efficient processing of payments from customers to businesses. Here is a general overview of how payment acceptance software works:
1.When a customer makes a purchase, the payment platform captures relevant payment information. This can include credit card information, bank account information, or digital wallet credentials.
2.The payment processing software acts as a bridge between the business and the payment gateway. It communicates securely with the payment gateway to transmit the payment information for authorization and processing.
3.The payment service provider sends the payment details to the payment gateway, which then verifies the customer’s payment data and checks whether a credit balance or credit line is available.
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4.The payment gateway communicates with the appropriate financial institutions, such as banks or credit card networks, to authenticate and authorize the transaction.
5.Once the payment gateway receives authorization from the financial institutions, it sends the approval status back to the payment acceptance software. When the transaction is approved, the software completes the payment process.
6.The financial software initiates the settlement process, where funds are transferred from the customer’s account to the company’s account. This requires coordination between the payment gateway, financial institutions and the company’s bank account.
Throughout the process, the payment platform ensures data security, compliance with industry standards (e.g., PCI DSS), and a smooth payment experience for businesses and customers. The specific workflow may vary depending on the software provider and supported payment methods.
The way payment processing works
Source: Choco Up
The key 8 features for payment acceptance software
Payment software offers a number of features that enable smooth and secure payment processing. Below are the most important features of the payment platform.
Payment processing is a basic function of a financial platform. It includes the tasks and functionality required to process transactions securely and efficiently and facilitate the transfer of funds from the customer to the business.
Payment gateway integration
Payment acceptance software integrates with payment gateways and enables businesses to securely accept payments through various channels such as credit cards, debit cards, mobile wallets, and online platforms.
By integrating with a payment gateway, businesses can accept a wide range of payment methods, including credit cards, debit cards, digital wallets and alternative payment methods. This versatility allows businesses to cater to their customers’ preferences and provide a convenient and seamless payment experience.
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Payment processing software must support multiple payment methods to meet customer preferences and provide flexibility for payment process.
For example, it must support the most popular payment options such as credit and debit cards; digital wallets such as Apple Pay, Google Pay, and PayPal; ACH wire transfers allow customers to make payments through electronic funds transfers from their bank accounts.
Adding custom payment methods to payment acceptance software provides businesses with additional flexibility and addresses specific customer preferences.
Read this article to consider 5 factors when creating your payment service provider software.
For businesses that require recurring payments, the payment processor allows you to set up and manage automated recurring invoices for subscriptions, memberships or ongoing services. With recurring billing, businesses can automate the collection of recurring payments, such as subscriptions or memberships.
By automating the billing process, recurring billing eliminates the need for manual intervention, reducing administrative overhead and saving businesses time. They streamline payment collection, billing, and dunning, freeing up resources to focus on core business.
Digital security measures
Payment processing software incorporates various digital security measures to ensure the protection of sensitive payment data and prevent unauthorized access or fraudulent activities.
For example, compliance with PCI DSS ensures that the software maintains robust security measures and undergoes regular audits to maintain data integrity. Read the article on Payment processing trends, challenges and opportunities to find the right solution for your payment business.
Fraud detection and prevention
Advanced payment processing software employs fraud detection algorithms and mechanisms to detect and prevent fraudulent transactions. This protects both businesses and customers from potential financial loss.
Integration with accounting systems
Some payment processing software integrates with accounting systems, enabling seamless synchronization of payment data with financial data and simplifying reconciliation processes.
For example, payment software integrates with popular accounting systems such as QuickBooks, Xero or Sage. It establishes a connection between the payment software and the accounting software, enabling automated data transfer.
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Mobile and online payments
Payment processing software supports mobile and online payments, accepting payments online via websites, mobile apps or virtual terminals. This is especially useful for e-commerce businesses or businesses that operate remotely. Explore our article about the features and benefits of Mastercard Payment Gateway Services for payment acceptance businesses.
How SDK.finance can help build a payment acceptance system?
SDK.finance provides a payment acceptance software solution that enables companies to manage and streamline their payment processes. The system offers a shortcut to the product development cycle, so that you are right in front of the product launch and do not have to start from scratch.
The financial software offers a wide range of features to support secure and efficient payment acceptance. Here are some of the core features of SDK.finance payment acceptance software:
SDK.finance payment acceptance software features
|Customer onboarding||Creating online accounts, uploading documents, collecting KYC-related data manually|
|Transactions management||Transaction history, view details of each transaction , transactions on the map|
|Online POS||Online POS registration, web-payments acceptance , configurable checkout page|
|Payment initiation||Sending invoices and payment requests through|
|Payment acceptance||In-store payments, online payments, tips acceptance|
|Instant/regular payouts||Receiving settlement amounts to the merchant’s: bank account, card, mobile phone, digital wallet|
|Receipts generation||Manually, from transaction history via sending email receipts after the transaction|
|Refunds initiation||Initiating refund transactions on the customer’s demand|
|Merchant’s digital wallet||Opening a digital wallet for the merchant’s personal use|
|Roles and permissions management||Individual, merchant, administrator, accountant, compliance manager|
The cloud-based payment acceptance system serves as a flexible foundation for financial companies and accelerates the development process.
With a robust set of over 400 API endpoints, you can easily connect to a wide range of third-party services. This enables seamless integration with various external systems, extending the functionality and capabilities of the software.
Our digital payment processing solution is available in two variants:
|A hybrid-cloud version||Available on major cloud providers marketplaces like AWS or Azure, with a subscription-based payment model, where the app is deployed on the cloud, while the database is hosted on the user’s own server to ensure compliance with regulations and enhance security.|
|An on-premise version with source code||This version is offered for a one-time flat fee, allowing users to have full control and ownership of the software, hosting it within their own infrastructure.|
Payment acceptance software plays a critical role in revolutionizing payment processing for businesses, providing a seamless and secure experience for both merchants and customers. With a wide range of key functions and features, this payment solution streamlines payment transactions, improves financial operations, and increases overall efficiency.
You can start developing payment acceptance software in-house or speed up the process with pre-developed financial solutions. With SDK.finance software, you save on feature development and speed up release thanks to the integration-ready architecture. You can increase your revenue by offering a complete stack of online and offline payment acceptance services.
What is payment acceptance software?
Payment acceptance software refers to computer programs or applications that facilitate the acceptance and processing of payments. It allows businesses to securely receive payments from customers through various channels such as credit cards, debit cards, mobile payments, or online platforms.
How does payment acceptance software work?
Payment acceptance software works by capturing payment information from customers and securely transmitting it to a payment gateway for authorization and processing. It communicates with financial institutions to authenticate and authorize transactions, and then facilitates the settlement process to transfer funds from the customer's account to the business's account.
What are the key features of payment acceptance software?
Key features of payment acceptance software include payment processing, payment gateway integration, support for various payment methods (credit cards, debit cards, digital wallets, etc.), recurring billing for subscriptions or memberships, digital security measures to protect payment information, fraud detection and prevention, integration with accounting systems, and support for mobile and online payments.
How can payment acceptance software benefit businesses?
Payment acceptance software streamlines payment processes, improves efficiency, and enhances customer satisfaction. It allows businesses to accept payments through multiple channels, cater to customer preferences, automate recurring billing, ensure data security and compliance, detect and prevent fraud, synchronize payment data with accounting systems, and accept payments online or through mobile devices.