Integrating a business software package with a payment processing module is simple. The module can be fully integrated with a tabbed section inside the application or accessed via buttons within the applications. Or, it can be created as an external module that uses batching for transferring data between the processing program and the main application. Payment processing can also be provided as a separate online bill-pay feature that does not directly integrate with the main application database. This integration technique can also be used to embed a “pay now” link in email invoices generated by the business software package. Examples of each kind of implementation, along with general guidance on implementation time, cost, and revenue potential, are provided below.



FULLY INTEGRATED

A payment processing module can be integrated into any business management software be creating a button that links to the processing module. By clicking on the “payment processing” button, users will be able to collect on any individual invoice. By selecting a recurring billing option from the menu, they will be able to process all recurring transactions queued in the system. By using the payment processing system's API, the core business application can be mapped to the payment processing component for completely seamless integration. Typical Integration Time: 3 days (programming time)

Cost of implementation: $3000

Cost to support payment processing functionality: $0 (payment processing company absorbs all cost)

EXTERNAL MODULE

Data can be transferred between a business software application and a payment processing application using a pre-programmed export module. Field-mapping is programmed into the module in advance to enable one-click integration. For example, a simple modular interface can enable invoices from QuickBooks® to be exported, using pre-defined field mapping, as a batch for payment processing, and then the batch results can be uploaded back into QuickBooks for reconciliation.

Typical Integration Time: 1 day (programming time)

Cost of implementation: $1000

Cost to support payment processing functionality: $0 (payment processing company absorbs all cost)

ONLINE PAYMENT FORM

Any business software application that includes invoice printing functionality can easily include online payment functionality as an option for customers. This simple step can completely eliminate the need to print and mail paper invoices. Instead, electronic invoices which include a link to a secure online payment form are emailed to customers. The customer clicks the link and can pay the invoice online via credit card or direct debit from a checking or savings account. With a marginally more complex link, fields such as invoice #, amount, and customer number can be embedded within the link and auto-filled in the online payment form. Payment processing companies can often host this online payment form, so a user need not have a website to benefit from this type of system. See an example of this type of form.

While this type of integration is clearly the easiest to implement, it does have the drawback of requiring the customer to maintain a payment processing database separate from the main business application. However, most payment processing applications, including PaySimple, have customizable export functions that can be leveraged to transfer transaction results back to the main business application.

Typical Integration Time: 3 hours (programming time)

Cost of implementation: $300

Cost to support payment processing functionality: $0 (payment processing company absorbs all cost)

ADDITIONAL REVENUE POTENTIAL

There are multiple options for payment processing providers available to business software developers. However, some large companies do not offer the developer a revenue share. There are other choices—and it is best to select one that offers an ongoing revenue share for all transactions processed by the partners' customers. In addition, the best payment processing partners also offer marketing programs, and technical support for their systems. The following is a breakdown of potential revenue. Marketing Cost: $0 (payment processing company absorbs all cost of marketing add-on functionality to software customer base, and of marketing electronic payment option to their customers.)

Revenue Share: A number of variables will determine potential revenue share includingsize of customer base, percentage adoption of electronic payment functionality, percentage of end-user accounts paying electronically and type of transaction (ACH or Credit). The following is a typical scenario.

Customer Base: 3,000 (compaines using the business application)

End-User Accounts Managed: 650,000

Revenue Generated @ 15% Penetration: $17,000/month

Revenue Generated @ 30% Penetration: $35,000/month