THE SWITCH KIT Your Ultimate Guide to Switching Payment ......Fortunately, when you switch payment gateways and are using a trusted provider, IT teams need not worry. A good payment
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THE SWITCH KIT
Your Ultimate Guide to Switching Payment Gateway Providers
Table of Contents
Introduction
The Switching Process
The Contracting Phase
Technical Integration Phase
Common Concerns and Myths
How Other Merchants Have Benefited from Making the Switch
Conclusion
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Do you ever feel like your business is outgrowing your payment
gateway provider? Perhaps your sales are not improving and
you suspect your payment gateway may have something to do
with it. Or maybe you’re just ready for better service, greater
value and more robust features.
Whatever the case may be, it looks like it’s time to switch payment providers.
Whether you’re a small startup or a Fortune 500, switching
payment providers can seem like a daunting task. This eBook
will walk through the steps of the switching process and
explain some of the misconceptions related to switching
payment gateway providers. Change can be hard, but when
it comes to switching payment gateways there really isn’t
anything to fear, just a whole lot to gain.
The Switch Kit: The Ultimate Guide to Switching Payment Gateway Providers / 3
The Switching Process
The switching process, although it might sound complicated, is actually quite simple.
While the process will be slightly different for each business, it generally breaks down
into two phases that occur simultaneously:
the Contracting Phase and the Technical Integration Phase
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The Switch Kit: The Ultimate Guide to Switching Payment Gateway Providers / 5
The Contracting Phase
Prove Your Business is in Good Standing
Document Your Business’ Beneficiary
WHAT YOU WILL NEED TO PROVIDE
Three months of processing statements
If you are switching from another payment gateway you will
need to provide three months of processing statements.
This information is generally required in order to prove to
the gateway provider that your business is in good standing.
The new gateway will use the statements to validate your
business by looking at your sales volumes, chargebacks,
refunds, etc. Payment companies are required to validate
this due to the nature of card payments. Because card
charges can be reversed, the networks require that
businesses are in a financial position to handle these
fluctuations in order to approve them for processing.
WHAT YOU WILL NEED TO PROVIDE
Proof of business beneficiary
Payment gateways need to know who owns your business
and who the ultimate beneficiary of that business is. While
this may sound like a minor detail it is actually a crucial piece
of information for most gateway providers. Payment gateways
are required to ensure that the money they process will not
be used for illegal activities.
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WHAT YOU WILL NEED TO PROVIDE
Contract Approval
At this stage the contract will be drawn up and signed
and the underwriting process will begin. If you want the
process to go quickly make sure you use a gateway that
does in-house underwriting. Some gateways farm out
their underwriting to large banks that often move at a
snail’s pace. Others use a hybrid approach, doing their
own underwriting for domestic business and farming out
the underwriting for international business. By choosing
a provider that does it all in-house you ensure a timely
turnaround and a streamlined process.
It is important to note that not all gateways require that
underwriting happen during the contracting phase. Some
providers will auto-approve you right away and skip the
underwriting process, but this doesn’t mean it’s forgotten.
With these providers, once you hit a certain sales
threshold they will freeze your payouts (and possibly your
ability to process) until you provide documentation and
are approved.
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The Contracting Phase
Sign Contract and Begin Underwriting
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Getting approved up front ensures you will not run
into any roadblocks down the line.
Technical Integration PhaseKeep in mind that this phase occurs simultaneously to the Contracting Phase.
1. Sandbox and Developer Testing
You will be invited into the sandbox, a replica of the production environment, where you
can get a hands-on feel for the capabilities of the payment platform, start building out
concepts, and test and preview the new checkout process with stakeholders.
Some payment gateways also offer a developer hub where you can simulate code before
you have access to the sandbox. This will allow you to send real API calls and get a
thorough understanding of how the API (Application Program Interface) works. This can
be extremely helpful when vetting providers, as you will be able to see exactly how your
code will translate into a final product.
Look for a provider that offers full development support, thorough documentation and
will be able to help you code if needed.
2. Set-Up Production
Once you’re happy with the checkout flow in sandbox, you will move it along to
production. The production environment should be completely separate from the
sandbox environment for security purposes.
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A developer hub combined with strong guidance and support from the payment gateway provider will put you at ease as you move forward with the switching process and get sign-off from stakeholders.
3. Data IntegrationDuring the data integration phase your data will be ported over from your previous
provider and you will set up any additional features you have decided to take advantage
of such as an account updater service. During this phase you will also decide if you
are going to leverage subscription management capabilities and set up your reporting
dashboards.
PORTING DATA
Perhaps you have a third-party provider that is storing your shopper or subscriber
information or maybe you are storing this information in your own system. Whatever
the case, you are likely wondering how that data is going to be migrated into the new
gateway. Your payment gateway provider should be able to seamlessly port over your
current data, no matter where it is stored, by extracting that data and breaking it up into
smaller pieces.
It is important that you ask any potential payment gateway provider you are considering
how they handle the porting over of data. Some have more experience than others and
you want to ensure you are working with a provider that has a proven track record and
secure process for porting this all-important customer information.
TOKENIZED BILLING
If your current provider uses tokenized billing then that data will be imported into the
new system, where new tokens will be created to represent each shopper. If you are
not porting over customer data, you can still opt to tokenize future customer data. The
tokenization of customer payment data eliminates the need for you, the merchant, to
store customer account data, which reduces the PCI compliance burden and benefits the
customer who doesn’t have to re-enter their payment information every time they shop
on your site.
Technical Integration Phase
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ACCOUNT UPDATER SERVICE
Some providers will offer merchants the option to use an account updater service
because cards expire, get stolen or lost, and are occasionally upgraded. The account
updater service helps merchants like you stay in front of these changes that could
otherwise cause declines at checkout. This is an extremely valuable feature, especially for
those customers in a subscription or recurring billing model. Account updater services
also help to:
Prevent interruption of customer service due to missed payments
Reduce customer cancellation by maintaining the payment relationship
Minimize costs associated with collections and with updating accounts manually
Keep the updating process transparent to customers
INSTANT PAYMENT NOTIFICATIONS (IPN)
IPNs are offered by most providers and are set up during the integration phase. These
are notifications to you, the merchant, that a purchase has been made, a refund has
been requested or a dispute has been issued. By default a CHARGE IPN is sent with each
successful sale and a CHARGEBACK IPN is sent when a cardholder disputes a charge with
their bank.
Most gateways will maintain a broad set of IPNs; be sure to identify the IPNs that your business process requires.
Technical Integration Phase
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SET UP OF PROCESSING AND CURRENCY PAY OUT
If you’re selling internationally (which is highly recommended in today’s global market!)
you will want to switch to a payment provider with robust global capabilities. This includes
access to multiple acquiring banks, the ability to process payments in multiple currencies,
and the ability to pay out in multiple currencies. With the right payment provider all you
have to do is choose which countries you want to sell in. The payment gateway provider
will take care of the rest, ensuring that you are offering a local experience to shoppers no
matter where in the world they are located.
QA TESTING AND LAUNCH
This phase will vary depending on your preferences. If you want to spend a few weeks QA
testing the capabilities, providers should have support teams to help you along the way. If
you think an afternoon of QA testing is all you need, your site can be up and running in a
few days.
If you’re selling internationally, you will
want to switch to a payment provider with robust global
capabilities.
Technical Integration Phase
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Common Concerns and Myths
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If you’re like the majority of merchants, you have some apprehension when it comes to switching payment gateways.
Often these apprehensions are due to misconceptions about the process. With the
right gateway provider, the switching process is simple and can be completed in less
than a week.
Here are the most common concerns among merchants and what you need to know
to dispel your fears.
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The cost of switching providers is typically at the forefront of merchants’ minds. Rightly so, many merchants like you are worried about hidden fees that could eat
into margins. This is a valid concern as many providers, possibly even the one you are
currently using, charge a variety of fees that are typically buried in your billing statement.
Besides asking a potential provider about their billing structure and how they handle
fees, you can ask them to take a look at your current statement to see what types of
fees you might be currently paying without even realizing it. The providers that take the
time to go through your current statement with you, acting as consultants and not just
vendors, will be the most likely to offer you full support throughout the extent of your
relationship.
Fortunately, not all payment gateway providers believe in charging fees. Some gateway providers today use an all-inclusive pricing model that removes fees, making the bottom line more transparent and forecasting much easier for merchants.
MYTH:
There Will be Hidden Fees That Will Impact Profit Margins
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When it comes to switching payment gateways, merchant IT teams typically worry about time to market and how long the transition will take.
They want to be sure development cycles will align and the integration will run smoothly.
Fortunately, when you switch payment gateways and are using a trusted provider, IT
teams need not worry.
A good payment gateway provider will work with you to establish a timeline and a go live
date from which they will work backwards in order to meet deadlines.
The payment gateway provider should be able to
move as quickly, or as slowly, as your team desires.
Development Time Will Take Too Long
MYTH:
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This is a huge concern for most merchants – and it should be.
An unstable platform means you are at risk of experiencing downtime and a host
of other issues, which could severely impact your business. But there are plenty of
payment gateway providers out there today that have put security measures in place to
ensure a stable platform.
This means that a gateway provider has two simultaneously running servers or data
centers so that if one crashes, the other can immediately take over so you will never
lose any business.
Look for a provider that offers failover protection and uses a “hot-hot” technology stack.
The New Platform Won’t Be Stable404MYTH:
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A few payment gateway providers have developed extensive and user-friendly reporting capabilities for their merchants while others simply offer dashboards with summary level information, making the reconciliation process a difficult one.
And then there are some who partner with third-party software providers who, at an
additional cost, assist with reporting.
Robust analytics give merchants the ability to slice and dice data every which way, and
create custom reports for every different department and business need. For example,
a robust analytical platform can provide data relating to sales trends, active subscribers,
orders by country, currency, payment type, fees deducted for each transaction, deposit
dates, currency and payment methods used, etc. Based on the data collected, you can
build customized reports to share with sales and marketing teams, finance teams, and
investors to analyze the data relevant to their efforts.
Creating custom reports for each department can help not only reconcile funds but increase revenue by identifying trends and spotting problem areas.
We Won’t Receive the Robust Reporting Needed to Support Our Business and to Reconcile Payments
MYTH:
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Some of the most well-known payment gateway providers offer minimal live support.
This can be an issue if your site goes down or you have some other major event with
your gateway and you need immediate assistance, not to mention if you would just like
some guidance working through specific functionality related to your gateway.
The best advice is to find a provider who will be fully available to you and your business
needs not only during the switch-over process but throughout your entire relationship.
Make sure you understand how you will receive support throughout
the entire process to ensure everything runs as smoothly as possible and all your questions
are answered.
Merchant Support Will be PoorMYTH:
How Other Merchants Like You Have Benefited from Making the Switch
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You aren’t alone in considering a new payment gateway provider. Merchants like you are making the switch every day and realizing tremendous benefits as a result.
So, if you are thinking of switching payment gateway providers consider these merchant
stories. Because while hearing how easy the switching process can be and reading
about all the benefits a really robust gateway provider can offer is great, actually seeing
how other eCommerce companies like yours made the switch, and with what degree of
success, is often the best form of reassurance and proof you will find.
The Switch Kit: The Ultimate Guide to Switching Payment Gateway Providers / 18
WHO THEY AREAutodesk is a multinational corporation that is
a software business leader for a vast array of
industries. Their consumer services are mostly
sold online, where the focus is on their 3D cloud
based design, engineering and entertainment
software.
THE PROBLEMAs a fast-growing global company with a
multitude of products and subscriptions plus
single-use payment options, Autodesk was
facing a problem when it came to frictionless
checkout for international consumers.
They needed a payment processor that could
consolidate all their online businesses into one
place in one MID. Not only did they want one
processor, they also wanted:
To build their own checkout with more control over their checkout flow
A scalable architecture that made it easy to integrate checkout pages into their new businesses
Ability to process subscriptions
Global reach to expand beyond the United States and allow global shoppers to check out in their own language and currency to increase conversions
The ability to accept alternative payment types
A single connection to one gateway
THE OUTCOMEAfter switching to a gateway provider that
allowed for all of these capabilities, offering
full global support, flexible integration, a
subscription billing engine and a robust API,
Autodesk was able to, among other things:
Increase conversions by 20%
Reach shoppers in 131 countries
Achieve a substantial increase in recurring revenue
WHO THEY AREDisruptor Beam is a gaming company focused
on creating community and story-driven games.
THE PROBLEMAs games so often tell a story, Disruptor Beam
was looking for a partner that could help them
facilitate frictionless in-game transactions for
their web-based players without interruption.
User experience was the highest priority, as
they wanted their players to be able to have
an easy, frictionless experience when buying
upgrades, items and quests in the game. They
also wanted to make sure they were converting
their customers appropriately with a global
player base, which meant making sure that
customers were comfortable checking out and
that payments were not being declined.
THE OUTCOMEDisruptor Beam chose a gateway provider that
offered hosted checkout pages, meaning they
were able to reduce the development time
needed and be up and running in under a week.
As a result of the switch they were able to:
Reduce the amount of fields needed at checkout
Allow customers to check out in their local language and currency
Connect to more than one bank, ensuring that their global customers’ payments would be routed to a local bank to increase payment success rates
As a result they witnessed:
Increased profitability on each transaction by more than 20%
An expanded reach into over 100 countries
Repeat in-game purchases enabled by turning on relevant currencies and localized payment options
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Remember switching providers can offer up a host of benefits for your business.
By choosing a provider that offers robust global support you will be able to expand
your international reach and increase revenue.
Furthermore, a strong payment gateway provider will be able to identify and
eliminate the friction within your checkout and payment process whether you sell
internationally or not.
You read that correctly. By eliminating the checkout abandonment you might not
even realize you have, you could increase your online sales by almost half. Now that’s
a reason to switch payment processing providers!
Finally, a strong payment gateway provider will be able to implement best practices
across the board, extensive and user-friendly reporting, and offer robust merchant
and customer features. Need more reasons to switch?
We can discuss any other concerns you may have and access your current billing
statements and sales record to determine if a switch is the right move for you.
The result of this can be huge and create as much as a 40% increase in sales.
Contact One of Our Conversion Consultants Today
BlueSnap is a global payments company that looksat eCommerce a little differently.
We believe every customer has the right to a seamless online experience and the
ability to purchase easily, quickly and securely. And because merchants spend
countless hours bringing their products to market, they deserve the technology,
tools and support to create an exceptional buying experience — one that is simple,
powerful and dramatically elevates shopper conversion. That’s the standard we hold
for ourselves and deliver to our merchants.
Today, with so many options, market expectations are too high to settle for less.
Which is why our merchant success is truly our success. Contact us to learn more
about how BlueSnap can help move your eCommerce to the next level.
Get Started Today
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