Payment Gateways and POS Solutions for Independent Software Vendors

• Independent software vendors often have a very specialized set of payment processing criteria
• Meeting the needs of ISVs, merchants, and customers requires a unique approach to payments
• ISVs benefit from a payment processing partner that offers turnkey payment systems and support

For many Independent Software Vendors, also known as ISVs, it can be a challenge to select the optimum payment processing solution for their unique application. There are many factors to consider, and selecting the best combination of payment software and hardware can have a big impact on customer satisfaction and profitability for ISVs and their merchants.

Payment processing technology has evolved dramatically in recent years, and continues to do so at a rapid pace. While there are numerous advantages to adopting the latest payment technology, for businesses like independent software vendors, it can present quite the conundrum. App developers and business software providers always need to be thinking about compatibility, flexibility, and ease of use, and this extends into the payment experience. This is particularly relevant as the demand for ISV software solutions surges, and value-added functionality (such as payment processing) within ISV software products becomes a major competitive differentiator.

Because of this, it is critical that independent software vendors align themselves with the right payment processing provider, but doing so takes careful consideration. With so many different types of payment solutions to choose from, and factoring in the level of service and support an ISV needs to succeed, selecting the best payment system is a challenge in and of itself. However, this can be made easier by clearly defining what your ISV business requires from a payment processing solution, and then comparing the advantages and disadvantages of the available options.

Unique Payment Challenges Faced by Independent Software Vendors

Integrating payment functionality into software and apps is not to be taken lightly. There are many vital factors to evaluate when determining how best to incorporate payment technology, and there is no one-size-fits-all solution that works for every application. What works for a mobile app developer to take payments will certainly be very different from a payment solution developed to run on proprietary hardware managed by a business systems provider. Here are two examples that illustrate some of the payment challenges for ISVs and the merchants that utilize their software.

Example 1 – Unattended Payments for Self-Serve Car Wash Manufacturers

Like many other companies that manufacture self-serve and unattended systems for a wide range of business applications, carwash manufacturers utilize proprietary software from an ISV along with their own hardware. The software runs on essential carwash components like timers and wash bay meters, which can be integrated with a payment terminal to create a turnkey solution. However, in order for the payment terminal to function, it must be connected to a payment gateway to perform the actual payment authorization with speed and security. In this case, the carwash hardware manufacturer works with a third-party merchant services company in order to deliver the payment gateway needed to complete the solution. This complete solution is then sold to carwash owners as an all-in-one system. 

Example 2 – Integrated Checkouts for Mobile Smartphone Apps

Developers who create software apps for smartphones are often tasked with incorporating an ecommerce element for the businesses that are their customers. To add ecommerce checkout functionality within an app, the same type of payment gateway used to enable payment processing at a physical terminal is needed. In this case, there is no physical hardware required, as this is all recreated digitally within the app. These app developers work jointly with the business they are creating the app for, as well as a third-party merchant services partner that provides the gateway connection for processing payments made in the app.

In both of these types of situations, the key factor in a successful implementation of a payment solution for ISVs is the merchant services partner. You see, not all payment processing providers offer the same types of payment gateways and POS terminal hardware, nor are they equal in terms of the technical expertise, customer service, and support that they are able to provide to clients. When evaluating the different potential merchant services providers, it’s vital to look at these aspects to determine which will be the best fit and most supportive partner for your ISV company.

Choosing Between Payment Gateway Certification or Direct Device Certification for ISVs

Another important consideration for independent software vendors that use physical devices to process payments is which type of certification will best suit their requirements. Direct certification takes place at the device level, and necessitates all devices used by the ISV to process payments to be of the same type. Gateway certification takes place with the third-party payment processor, thereby allowing the ISV to leverage a variety of different devices and enabling greater levels of customization in the solutions they provide to their merchants.

There are advantages and disadvantages to each certification method. With a direct payment certification model, there are no additional service fees to be paid to a third-party payment provider for this step of the process. However, with a direct certification approach the ISV is limited to a certain type of device, which may affect the nature of future software capabilities they wish to develop. While some ISVs may not specifically be hindered by this, others may find that reliance on a single type or family of devices may limit innovation and the ability to incorporate new functionality down the road.

Gateway payment certification allows for far greater flexibility and innovation in software development, but carries additional costs in the form of higher processing fees. Furthermore, not all gateway providers offer comprehensive customer service and technical support, which means that an ISV may have difficulty in achieving the necessary level of customization in their systems to meet their objectives. By opening the door to unlimited customization, ISVs who leverage gateway certification can be more nimble in adapting to evolving market conditions and can capitalize on emerging markets with greater speed.

 Powerful and Flexible Payment Processing Solutions for Independent Software Vendors

It bears repeating that the one thing that most directly impacts the successful implementation of a payment solution for ISVs is the merchant services provider they choose to partner with. The last thing your business needs is to repeatedly look for additional providers to fill the gaps of a merchant services company that does not offer complete end-to-end payment processing solutions. Ideally, your payment processing partner should be able to deliver physical payment hardware, online payment gateway connections, systems integration services, and payment certification all in one complete package.

MONEXgroup is your all-in-one merchant solutions provider, and we are able to support all ISVs with comprehensive turnkey payment processing systems to suit any application. In addition to offering multiple online payment options in the form of ecommerce payment portals and virtual terminals, we also provide a complete suite of in-store POS solutions and a diverse array of unattended and self-serve payment terminals that can be integrated into all types of systems that rely on software created by ISVs.

Whether you believe your business would be best suited to use a direct payment certification approach or gateway payment certification, we are able to deliver and support both types. Furthermore, while some payment processors only work with one particular type of payment gateway, MONEXgroup is able to support any gateway. This has the advantage of giving your business unparalleled choice and flexibility to adapt to changing market conditions and customer demands.

When a physical payment terminal is needed to complete the systems your ISV provides to your customers, look no further than the MONEXgroup Unattended  payment processing terminal. Featuring a fully customizable touch-screen interface, durable construction, intuitive design, and total compatibility with all credit card, debit card, and digital payment methods, these powerful payment terminals are ideal for a vast array of applications. For ISVs who produce software for systems used in businesses such as car washes, parking lots, self-serve vending, laundromats, EV charging stations, and more, there’s no better unattended payment terminal.

MONEXgroup also supports software developers with online payment gateways and ecommerce systems that can be integrated in all types of apps where payment functionality is required. Our team works directly with you to ensure 100% compatibility with your software and the payment processing gateway, and provides 24/7/365 technical support to answer any questions or assist with any need your business may have.

Contact MONEXgroup today to learn more about payment solutions for ISVs and get a quote! Our turnkey payment solutions make it easy for your ISV company to integrate full functionality for payments.