March 1, 2024

What Is Payment Integration & How Does It Help Your Business?

As a business owner, you have had experience with payment processing and all of the complicated issues surrounding it. As an integral part of any business, payment processing can needlessly lower your productivity with all of its moving parts, especially if you have difficulties understanding its intricacies. Payment Integration is a solution that many businesses have adopted to smooth out payment processing. In this article, we will discuss what payment integration is and what kind of benefits it can bring.


Payment Integration can be extremely beneficial in improving your business’ efficiency.

What is Payment Integration?

Payment integration is the process that takes place when a customer makes a payment through a merchant’s payment processor without the need for manual processing. On e-commerce platforms, this allows customers to process a payment without having to leave the platform or switch to another website/application.

Payment integration ensures your cutomers will be able to use their payment method without hassle. For example, paying for an online order on a platform like Skip the Dishes on an iPhone will use Apple Pay as a payment integration process. With a simple tap of a button, the customer is able to pay for their product/service without any extra steps. This ultimately increases efficiency, improves security, and streamlines the user experience.


How Do Payment Integrations Work?

Payment Integrations are facilitated through Application Programming Interfaces (APIs). These allow for software applications to communicate and process payments with each other. Think of APIs and Payment Integration as the middleman between your payment processor and your business’ software.

Payment APIs make it easy for different websites, platforms, applications, and software to communicate with each other. However, there are some constraints to keep in mind when using payment integration. For example, Payment APIs can tie you to a single payment processor. This means that you will be limited to a payment processor that may have higher rates than others simply because it is compatible with your current CRM. You can choose lower priced payment APIs, but if they do not work with your CRM, you’ll be left with the complicated process of having to adjust the entirety of your CRM system to accommodate this change. Ultiamtely, while Payment APIs can streamline your business operations, it can remove some aspects of choice as a business owner.


How To Get Around Processor Exclusivity

To put it simply, there’s no surefire way to get around processor exclusivity. You can, however, use a Connector to give you the best of both worlds. Connectors are customized software that use APIs to establish communication between two applications that were not meant to work together. By using a connector, you can test new payment processor that was not compatible with your current CRM, giving you back the freedom to choose the best payment processor for your business.


How To Get a Connector

Connectors are not going to be freely advertised by payment processors. You will need to find third-party companies that develop connectors and have them develop a custom connector or license out a pre-built connector. Both options will come at a cost but the potential savings is more than worth the price of admission.


If you require assistance in finding the right kind of payment processor, Payment API, or connector, use a third party cost savings management company like Watchdog Management Services to conduct an internal audit. Our services can help you find savings where you never thought possible and help you keep your focus on the core aspects of running a business.


To find out more, be sure to get in touch with us today!

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