Credit Card Processing and How It Can Affect Your Business When Purchasing New Software

Many businesses use payment processing terminals or mobile based application to collect funds for credit card transactions. At the end of each day, the funds batched and later reconciled against a bank balance. If the card fails the result is often instant and the user knows to ask for another card. The record of the funds being received is then keyed into an accounting system. A customer considering a new ERP system may think that credit card processing will remain the same, but it is often not true. Integrating everything into a cloud-based solution may be more convenient but the day to day businesses processes could change.

What do they mean by the process will change?

An ERP systems require you to authorize, or hold onto a piece of the customer’s credit line, while the new order is being processed. When the item is marked shipped and the order is billed, the funds are captured. That could leave you with a failed credit card transaction and already shipped goods. How does this affect you? Would your business rather charge the entire order up front? Perhaps take a deposit and then charge the balance on terms. A good VAR will be asking these types of questions.

OK, I want to process credit cards through a new ERP. Now what?

Not so fast, there are several factors to consider before deciding to bring credit card processing into your ERP system:

Does my current processor link with the software I am purchasing or do I need a new processor?
You will most likely need a gateway program like Solupay or Cybersource. These companies can process for you or just pass information from NetSuite to the processor. What are the monthly fees and are the reasonable compared to what I am paying now?
Can my website process through this system as well?
How many days will the funds take to reach the bank compared to my current process? Adding an extra day to receive funds may restrict certain businesses.
Can I set the batch time?
Will my processor or gateway allow me to over capture more then I authorized for or will I have to create two separate transactions?
Last but certainly not least … will I have to learn a whole new software, in addition to the ERP, to process cards? This can be a big factor and surprisingly time consumer for those not expecting it. How do I deal with stuck or failed transactions? Who do I call if it’s broken? Before we would just swipe a card.

A Final Note on Processing: PCI Compliance

PCI compliance is a standard for which processors ask that credit card information is handled and stored. You may be shocked to find out that the way your company is storing card number is currently insecure and technically not PCI compliant. There are companies that offer card number storage software and “certificates” of compliance. In addition, many processors might even sneak in fees for being non-complaint that are lost somewhere on the monthly invoice.

So what does this have to do with Netsuite?

The NetSuite software and all of their processing partners are PCI compliant. The information they store is encrypted and passed through safe channels on your behalf if the software is used correctly. This credit card information will be stored for you but also safely deleted when needed. Processing credit card information through your ERP system may be the future of your business but please dedicate time to getting solid answers to all of the questions above. Let us help you make the right choices for the future of your company.

Learn more about our NetSuite services or schedule a free consultation with us to get started.