Integrated payments make transactions easier for customers and businesses alike. A strong integrated payment system is the connective element between business systems and software that keeps operations running smoothly, delivering a quality customer experience.
Integrated payment systems are trending with businesses of all sizes as they work to deliver the best possible experience for their customers while simultaneously streamlining operations. However, without a clear understanding of integrated payments, you risk choosing integrated payment solutions that don’t fit your organization’s unique needs.
The post will explain integrated payments and explore the reasons your business should consider switching to an integrated payment solution.
What Are Integrated Payments?
Integrated payments refer to the solution that connects payment processing functions with business processes and software. Integrated payment processing helps merchants consolidate transaction data.
An integrated payment solution must be flexible since each organization will have unique business processes and use a different combination of management and accounting software. In addition, an integrated payment system must also facilitate open communication between all business-critical systems.
The Benefits of an Integrated Payment Solution
There are several great reasons to consider implementing an integrated payment system in your organization. Processing payments is an integral part of business operations, and there is a lot of value in sharing payment data across systems. The top benefits of integrated payment solutions include the following:
- Streamline operations
- Reduce errors
- Enhance customer service
- Improve marketing and sales efforts
- Simplified tax preparation
The most significant benefit of an integrated solution is that it will streamline your business operations and reduce labor requirements. In addition, several administrative and data input tasks are simplified or eliminated with integrated payments.
With an integrated system, you no longer have to consider manually sending payment information to any of the systems it needs to go to. So, for example, you won’t have to batch transaction data and input it into accounting software.
In addition, you wouldn’t have to check your accounting software to see what customers have paid you and cross-reference that information with your CRM or analyze data from your payment gateway and cross-reference that data with the CRM to get insights into customer habits and cash flow.
Integrated payment systems streamline operations and free up employees to focus on core tasks related to the success of your business.
Manual entry of financial transactions leads to errors. Integrated payment systems reduce entry errors that occur due to manually entering data. Organizations without an integrated system have to manually enter payment details from their POS to the accounting system.
Common errors include calculation errors, transcription mistakes, and even double entries. Data errors in your organization’s payment processes can cause headaches. Beyond having unreliable data, accounting errors can lead to fines and other penalties.
Integrated payments work to reduce errors in the payment process and give your business confidence in knowing that its information is correct.
Enhance Customer Service
Long checkout lines lead many consumers to ditch a purchase and head elsewhere. If you are an online business, you don’t have to consider how integrated solutions can reduce checkout lines. However, these integrated payment tools can still help you deliver a better customer experience.
As previously noted, integrated tools streamline operations and enable employees to focus on critical tasks that add value to the business. In addition, customer service is a big part of building brand loyalty and driving customer retention efforts.
Employees who don’t have to focus on manual data tasks can spend more time helping customers, whether online or in-store. All businesses that want to grow their brand should focus on delivering the best possible customer service.
Improve Marketing and Sales Efforts
The most effective way to improve marketing and sales efforts is to use more data. Integrated payment tools enable businesses to improve marketing and sales efforts through additional data.
For example, an integrated payment solution enables organizations to analyze their customers based on volume, top products, demographics, lifetime value, etc. When you gain an understanding of what customers want and need, it is easier to market and sell to them.
The more data your business is able to collect and analyze, the more insights it can gain and use to improve business outcomes. An integrated payment system is far from the only data tool your organization will need, but it does play a significant role in understanding how your business performs.
Simplified Tax Preparation
Doing taxes can be complicated, especially when you accept payments without automatically updating your books. Online payments have only increased the volume of transactions for many businesses, but without a good system in place, accurately reporting all of these sales gets difficult.
Integrated payment systems simplify tax preparation from the moment you process payments until the moment you file your organization’s annual taxes. Your accounts can spend less time ensuring all transactions are present and accurate and more time looking for tax write-offs.
Sorting through all of the integrated payments providers can be difficult, especially when you have little experience with these tools. Understanding what your business objectives and needs are is an important first step in acquiring the right solution.
Koombea can help your business evaluate its needs and the available integrated payment tools that best meet them. Contact our team of experienced developers and eCommerce experts to learn more about integrated payment solutions.