When it comes to managing payments, selecting the right strategy is essential. Should you use a direct integration with a payment service provider (PSP) or opt for a solution like FinDock, which is natively integrated with Salesforce and routes all your payments, across multiple PSPs, through your Salesforce CRM?
In this blog post, I'd like to explore the differences between these two options to help you make the best decision for your organization!
The traditional route: direct PSPs
"How do we manage our organization's online payments?" Once this question is asked, the first option that comes to mind is likely the traditional approach of building a direct integration with a payment service provider. These offer a straightforward method for handling transactions: a payment form on your website connects directly with the PSP, which processes the payment. It's simple and effective, but it also comes with limitations.
If you only handle one-time payments and don't want to offer a wide variety of payment methods, a direct integration might be the best choice. For example, organizations that aren't dealing with recurring transactions and only accept credit card payments may not require an integrated solution. However, keep in mind that this model lacks flexibility and comprehensive data integration. If you expect to expand in the future, you might want to reconsider.
Payment forms usually only communicate with one PSP, which can pose challenges if you need to add new payment methods or providers. On top of that, transaction data is often isolated from other customer information, making it difficult to provide a seamless customer experience or gain insights from payment data.
Another significant drawback is that you'll likely have to deal with delays and fragmented data. Often, there's a lag between what the website 'knows' and what the CRM system 'knows.' This may hinder (near-)real-time reporting, cause inefficiencies, and increase confusion. Suppose a payment fails, or a customer believes it has failed due to a technical issue. In such cases, the support team might have to log into multiple systems to understand the transaction status. That complicates the process and will likely frustrate the customer.
The power of integration: centralizing payments with FinDock and Salesforce
If you integrate payments with a solution like FinDock, which is native on Salesforce, you can transform how your organization manages transactions. Unlike direct PSPs, FinDock centralizes all payment data within your Salesforce CRM. It provides a comprehensive overview of each customer and every transaction.
As all payment information flows seamlessly through your CRM, the web form doesn’t even need to know which PSP is involved, which significantly simplifies the process. Furthermore, you will no longer have to deal with data silos. And since Salesforce provides real-time insight into transactions, you will always be up to date. Do you want to know which payments have been initiated and what their current status is? That information is just a few clicks away.
One of the main advantages of this solution is the ability to route transactions based on factors such as cost, compliance, and geographical location. You can, for example, set up FinDock to select the most cost-effective or compliant PSP for each transaction. (This is called 'payment orchestration,' which we discuss in more detail in the next section.) So, it's pretty easy to optimize your payment process — especially if your organization offers multiple payment methods or operates in different regions.
Moreover, integrating payments with Salesforce enables you to optimize customer relationship management. Since all payment data is connected to individual customer profiles, you can personalize communications, improve customer service, and gain deeper insights into customer behavior. This allows you to create more tailored marketing strategies and enhance customer satisfaction.
Payment orchestration: crafting the perfect ‘payment symphony’
We briefly mentioned the concept above, but it deserves its own section: payment orchestration. When taken to the next level, managing payments is like conducting a symphony: each payment service provider is like a musician that plays its part in harmony. With payment orchestration, you can select the best PSP for each transaction based on various criteria. These may include cost, compliance, security, and geographical location. This optimization ensures that your organization can process payments efficiently and cost-effectively.
Example 1: one-time and recurring payments
Let's consider two examples to clarify what payment orchestration entails. Suppose a UK customer makes a one-time payment. In that case, the system might route the transaction to your Worldpay Business Gateway 350. But if it’s a recurring payment (which is not supported with this type of Worldpay account), the system can route the payment to Stripe to obtain the recurring payment authorisation.
Example 2: local payment methods
Now, let's consider another situation. Say, your organization operates in Switzerland and Germany. TWINT is a popular local payment method in Switzerland, but PSPs outside the country don't widely support it. So, you'll want to offer TWINT to your Swiss customers by routing transactions through a PSP like Saferpay by Worldline. For German customers, where you will want to offer the payment method Sofort, you could route transactions through another suitable PSP that supports this payment method such as Mollie or Buckaroo. This flexibility enables your organization to maximize efficiency and offer a varied mix of local and global payment methods to meet your customers preferences.
And the cherry on top? With FinDock you are not just limited to using payment service providers for transaction routing. FinDocks ability to work with offline/file-based payment methods like Direct Debits allows you to use low cost transaction options like processing Direct Debit runs directly with your bank or service bureau. Often at a fraction of the cost per transaction. Ensuring optimal results from both a cost and customer engagement perspective.
What’s the best path for your payment needs?
Would you like to determine the right payment management approach for your organization? It all depends on your specific needs. If you only process one-time payments and exclusively accept credit cards, a direct PSP integration might be your best choice. For a more customer centric approach, FinDock’s ability to mix and match PSPs, payment methods, and channels offers significant benefits.
It’s important to realize that FinDock isn’t a payment service provider — it manages connections but doesn’t access the actual funds. The latter are handled by the PSP.
Would you like to discuss the challenges you encounter in your payment processes? Are you ready to optimize and streamline your transactions? Contact us to learn how FinDock can help enhance your payment strategy and improve customer payment happiness.