One of the biggest challenges facing merchants is how customers expect to receive and make payments, said Jayme Moss, executive vice president of payment operations and strategy at VersaPay.
When it comes to payment processing, merchants are also increasingly aware of the blind spots they have encountered when engaging with their partners, as well as potential buyers. Additionally, the payment experience has become a point of contention, and when it comes to how buyers and sellers interact with each other, we are seeing a shift towards merchants becoming more customer-focused and allowing their customers to pay as they wish. digitally and on their terms.
âWith remote work, it was really difficult for [our] customers receive payments, especially paper checks, âMoss said.
Even though they had been paid with paper for decades, she noted, many businesses could not operate as before while the pandemic raged.
âWe recognized that a much broader customer-centric approach was needed,â she said. And with a nod to Versapay, she said, âwe have really gone out of our way to help our merchants enable their customers to pay the way they want, whether through customer portals or with ACH. or a number of other ways to pay. “
Having survived the pandemic so far, many merchants expect more from their payment providers, Moss said, noting that merchants are increasingly aware of transaction flows. While any processor can do this, there is added value in knowing what information can be sent with transactions and how efficient flows can help increase margins.
Merchants can see fees 40% higher than they would otherwise be by simply engaging with processors who don’t know how to effectively handle payments. One of the main ways to reduce transaction âfeesâ is to tackle interchange fees. Optimizing this part of the transaction can reduce the largest share of the transaction cost that goes to merchants.
Cut the exchange
As Moss told PYMNTS, there are several factors that factor into redemption costs, such as the type of card, the amount of information transmitted with a transaction, the time between authorization and settlement, and if there are multiple permissions.
âIf you take a more sophisticated approach and use a processor that really understands this flow of transactions through automation, you can re-authorize stale transactions,â she said. âYou can revoke permissions on unused permissions. You can even complete partial authorizations when a product is only partially shipped and the rest is shipped later.
This is because processors can pass additional data (called Level 2 and Level 3) with the transaction, be it product codes, invoice numbers, or tax rates. Merchants are able to realize greater savings when more data is sent with a transaction.
It is also the responsibility of processors to operate efficiently, Moss said.
âIf you don’t control the entire flow of transactions with your merchants, it really does have an impact, whether it’s an increase in fees or just a more difficult customer experience,â he said. she declared.
Currently, many payment processors rely on multiple vendors to meet the payment needs of their customers – and therefore they don’t control the entire customer experience. They often take advantage of the shopping carts, plugins, gateways and customer portals of various third parties, as many of them are unable to provide a holistic suite of services on their own.
âControlling the entire customer experience can enable merchants to accept payments faster,â she said, especially with integrated payment solutions.
VersaPay, operating as a payment facilitator, can perform subscription, integration and other functions.
âWhen you have your own gateway, you can do routing at a lower cost, which also means huge savings for the customer,â she said. âSo we really made it a priority to develop and control every facet of the transaction. “
Ubers and Amazons around the world have played a pivotal role in transforming the payment experience, and now buyers in the B2B community expect the same seamless, easy-to-use billing and payment process.
âAnd we want to bring exactly the same experience to the B2B market,â she said.