THE SWITCH KIT Your Ultimate Guide to Switching Payment ... · The Switch Kit: The Ultimate Guide...

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




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.


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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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.



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.


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.



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.



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.



Common Concerns and Myths


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.


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


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:


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:


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:


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


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.


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



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

https://home.bluesnap.com/get-started/

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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