As a SaaS business owner, you are always looking for ways to improve your software and boost your bottom line. One core area of focus is customer support, which adds immense value to every business when done correctly. When adding payment features for software users, the importance of including customer support for payment processing is no different.
There is a constant debate regarding the cost benefits and challenges of outsourcing customer support when looking into adding payment integration features for your software users. On one hand, your customers pay a premium for your software and they deserve the best in-house support possible. However, in many cases, SaaS companies don’t have the time, resources, or cash flow to allocate toward providing additional support for new features, and they could be suffering.
When choosing an integrated payment system, SaaS companies need not only the ability to enable a robust set of payment features but have the option for users to have support for their payment method. This adds greater software value, as payments can be very complex for businesses unfamiliar with how payment processing works.
Clearly, you can increase customer loyalty and retain valuable business users with added support.
Your integrated payment solution could offer features like around-the-clock payment integration support, which would ensure that businesses receive support whenever they need it. With the SaaS industry becoming increasingly global, software users are working at different times and need support on their own schedules.
An outsourced integrated payments support team could also assist business software users with their unique issues or questions about security and compliance. For example, who would they reach out to for help if their customer’s payment keeps timing out? A customer could become frustrated with the business and in turn, the business may not want to utilize the software anymore.
The right outsourced integrated payments support team could resolve these issues quickly and help you keep your software users, and their customers, happy at all times.
TL;DR
- Integrated payments enable SaaS platforms to embed payment processing for a seamless user experience.
- Outsourcing payment support can save costs, provide 24/7 assistance, and ensure compliance expertise.
- Key benefits include improved customer retention, operational efficiency, and expert-led security.
Here are some factors to examine when making a decision to Outsource Integrated Payments Support.
Here are some factors to examine when making a decision to outsource integrated payments support.
The Pros of Outsourcing Payments Support
1. Cost savings
An obvious pro of outsourcing your support is cost savings. Hiring in-house customer support reps and training them can be quite costly. SaaS companies would need to learn everything there is to know about payments processing, which could at the very least take several months, or maybe even years. Plus, it takes a lot of time to build the right team, hire individuals with the right experience, and get them trained to deliver the best support experience possible.
Payments are the backbone of businesses. You not only have to satisfy customer expectations, but you also have to ensure that your payment processing goes as smoothly as possible. By tapping into a team of experts, you’re able to provide valuable support in a shorter period of time. That means less time troubleshooting with business users and more time on retention and growth. (Plus a stronger cash flow.)
2. 24/7 customer support availability
The ability to have 24/7 support for payments is a huge advantage as well. Customers don’t expect anything less than instant support these days (especially for debit card and credit card payments) and your team may not have the time and resources to offer that level of service as quickly as they need it. It’s much easier when a payments provider can be there for your customers whenever they need help.
3. Expertise in payment security & compliance
Processing payments, like all financial transactions, comes with numerous security and compliance concerns. SaaS companies must adhere to industry standards such as PCI DSS to ensure customer transactions are safe. An outsourced payment support team with expertise in handling security concerns can help ensure that businesses stay compliant with regulations while offering the best possible security to their customers to protect their transaction data.
4. Focus on core business operations
Having outsourced integrated payments support will also give you the ability to focus on other business priorities. If you are constantly fielding customer support requests, you run the risk of not having the time or energy to focus on your everyday operations.
The Cons of Outsourcing Payments Support
1. Lack of deep knowledge of your software
You and your team are intimately familiar with your software, while an outsourced integrated payment solution is not. They need to be willing to learn your company’s language and all of your software’s features prior to signing on. This is something not all integrated payment systems may do.
2. Loss of control over user experience
With an outsourced integrated payment system in charge, there is also a risk when you do not have full or even partial control of the user experience. There could also be challenges integrating third-party payment systems support within your existing software infrastructure. That means less consistency in how payment processes support is handled.
3. Potentially slower response times
Additionally, outsourced integrated payment systems are handling other companies’ customer support needs. They may not be available to answer questions all of the time, and you will have to exercise some patience as they learn the rhythm of your company and figure out exactly what you and your users need from them.
Types of Integrated Payments Support Models
SaaS companies have several options when it comes to integrated payment system support models. The choice depends on business size, budget, merchant services already in use, and customer service priorities. Here are three common models:
1. In-house support
For SaaS companies looking for maximum control over their payment support services and payments systems, an in-house model is the most comprehensive option.
- High Level of Control: Companies manage all aspects of customer interactions, ensuring a seamless and branded support experience.
- Direct Oversight: Internal teams handle customer issues directly, leading to potentially faster resolutions and better alignment with company policies.
- Cost and Resource Intensive: This model requires dedicated staff, ongoing training, and investment in support infrastructure.
- Expertise Required: Companies need in-house knowledge of payments technology, compliance, and troubleshooting.
2. Fully outsourced support
In this model, payment support is entirely handled by a third-party provider, allowing SaaS companies to focus on their core business functions.
- Cost-Effective: Eliminates the need for hiring and maintaining a dedicated in-house team.
- 24/7 Availability: Many third-party providers offer round-the-clock support, ensuring help is always available for users.
- Less Control: Companies may have limited influence over the quality and consistency of customer interactions.
- Potential for Delays: Third-party providers may not always be as responsive or knowledgeable about company-specific policies as an in-house team.
3. Hybrid support model
For SaaS companies seeking balance, a hybrid model offers the best of both worlds by combining in-house expertise with outsourced efficiency.
- Strategic Resource Allocation: Internal teams handle high-priority or complex issues, while routine queries are managed by external providers.
- Flexibility: Companies can scale support levels based on demand, optimizing costs and efficiency.
- Maintains Quality Control: Retains some level of direct oversight, ensuring critical customer interactions meet company standards.
- Requires Coordination: Managing a mix of in-house and outsourced teams requires strong communication and integration efforts.
Key Features to Look for in an Integrated Payments Support Provider
When evaluating a potential integrated payment processing support provider, SaaS companies should look for these critical features:
1. Response time and availability
Fast response times are essential for resolving payment-related issues efficiently.
- 24/7 Support: Ensure the provider offers round-the-clock customer assistance.
- Defined Service Level Agreements (SLAs): Look for guaranteed response times to prevent extended downtimes.
- Phone, Email, and Chat: A reliable integrated payment processing support provider should offer multiple communication channels to accommodate different user preferences.
2. Expertise in payment security and compliance
Handling sensitive financial data requires robust security measures.
- PCI Compliance: Ensure the provider adheres to industry-standard security protocols and protects your customers’ payment data.
- Fraud Prevention: Look for proactive measures such as encryption, tokenization, and real-time fraud monitoring.
3. Scalability
As your SaaS company grows, your support provider should be able to keep up.
- Adaptability: Ensure they have experience supporting businesses of all sizes.
- Future-Proofing: A modern integrated systems provider should be equipped to handle increased transaction volumes and evolving customer needs.
Bonus Tip:
Look for integrated payment solutions that are easily able to integrate with your related systems like your accounting software, point of sale system (POS system), CRM system, and other software.
Questions to Ask About Support for Integrated Payments
Before outsourcing your customer support, ask the provider of your integrated solution these questions to determine if you’re making the right decision:
- What methods of support do you offer? Phone, email, chat, etc.?
- How do you protect payment data? Where do you store payment information?
- Have you worked with other SaaS companies? If so, which ones?
- What are your customer ratings?
- How big is your team?
- How quickly can you begin providing support to our software users?
- Will you provide 24/7 support to customers?
- Do you provide 24/7 support to my company in case we have any issues?
- How much do your support services cost?
- Do you require us to sign a contract? If so, how long is the contract?
Seek out a payment processing provider that has worked with other SaaS companies and is willing to take the extra time and energy to learn all about your software company. They should be willing to dedicate themselves 100% to providing the best customer support and smooth payment gateway because if they do, it will reflect well on your business.
Hidden Costs and Risks of Outsourcing Payments Support
While outsourcing payments support offers cost savings and efficiency, there are some hidden costs and risks to consider:
1. Vendor lock-In
One of the biggest risks associated with outsourcing payments support is vendor lock-in. Some support providers require businesses to sign long-term contracts, making it difficult to switch providers if their service fails to meet expectations. This can leave businesses stuck with subpar support, which may negatively impact customer satisfaction and retention.
How to mitigate this risk: Before committing to a provider, carefully review contract terms to ensure flexibility. Look for options that allow for periodic assessments, opt-out clauses, or short-term agreements that enable you to change providers if necessary.
2. Additional service fees
Many outsourcing providers offer tiered pricing structures that may not always be transparent. While the base package might seem affordable, businesses often encounter extra charges for services such as:
- 24/7 customer support
- Faster response times
- Handling high transaction volumes
- Dispute resolution and chargeback management
These hidden costs can quickly add up on top of your existing payment processing costs, negating the initial cost savings of outsourcing.
How to avoid unexpected expenses: Before signing an agreement, request a detailed breakdown of all potential fees. Ensure the pricing model aligns with your business needs and that there are no hidden charges that could impact profitability.
3. Compliance and data privacy risks
Payment processing involves handling sensitive customer information, making compliance with security standards such as PCI DSS (Payment Card Industry Data Security Standard) essential. If an outsourced provider fails to meet these compliance standards, your business could be exposed to serious legal and financial risks, including fines and reputational damage. You could face a data breach of all your payments data, so risk management is crucial, both for large and small businesses.
How to safeguard compliance: Vet potential providers thoroughly, ensuring they have a proven track record of maintaining compliance with industry regulations. Request documentation on their security policies, fraud prevention measures, and incident response procedures to minimize risks.
How to Transition Smoothly to Outsourced Support
If you decide to outsource your payments support, consider these best practices for a seamless transition:
1. Establish clear communication channels
Effective communication between your business and the outsourcing provider is crucial to maintaining high service levels. Define expectations upfront regarding:
- Response times
- Escalation procedures
- Performance reporting
- Issue resolution timelines
Regular check-ins and performance reviews can help maintain alignment and address any concerns before they escalate.
2. Train the provider on your software
A payments support provider must fully understand your platform and customers to provide high-quality support. Without adequate training, they may struggle to troubleshoot issues, leading to delays and customer frustration.
How to ensure effective training: Provide detailed onboarding materials, including documentation, FAQs, and case studies on common issues with payment acceptance and recurring payments.
Conduct live training sessions and offer ongoing support to keep the provider updated on any software changes.
3. Start with a trial period
Before committing to a long-term contract, consider starting with a trial period. This allows you to evaluate the provider’s effectiveness, responsiveness, and ability to handle real-world issues.
Key Performance Indicators to monitor:
- Average resolution time for payment acceptance inquiries
- Customer satisfaction scores
- Escalation rates and response times
- Adherence to service level agreements (SLAs)
If the provider meets your expectations during the trial phase, you can confidently proceed with a longer-term contract.
How Stax Approaches Customer Services for SaaS Companies
Stax, an integrated payments partner, offers top-of-the-line customer support to SaaS companies. With an NPS score of 80+ points higher than the industry average, they will ensure both you and your software users have the best experience possible.
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FAQs about Integrated Payments Support
Q: What are the benefits of outsourcing integrated payments support for SaaS companies?
One of the key benefits of outsourcing payment support is cost savings. Training and maintaining an in-house customer support team can be expensive and time-consuming. With outsourced support, SaaS companies can focus more on improving their software and operations.
Q: What are the potential drawbacks of outsourcing payment support for SaaS companies?
Outsourcing payment support might mean less control over user experience. There could also be inconsistencies in support handling because of third-party involvement. Moreover, if a payment provider handles multiple companies, they might not always be able to respond to queries promptly.
Q: How can outsourcing payment support add value to SaaS companies?
Outsourcing enables 24/7 professional customer support, even as businesses grow and expand globally. With a competent team handling complex payment issues, SaaS companies can preserve customer loyalty and retain valuable business users.
Q: What questions should I ask before deciding to outsource integrated payment support for my SaaS company?
Inquire about the methods of payment support they offer, their experience, customer ratings, team size, availability for 24/7 support, costs, and any required contracts. Also, ask about their familiarity with your specific software and features.
Q: Why is customer support crucial in integrated payment processing for SaaS companies?
Providing customer support for payment processing can help increase customer loyalty and retain valuable business users. The support team can address unique payment issues or concerns about security and compliance, thereby ensuring a smooth and positive user experience.
Q: What factors should be considered when outsourcing integrated payments support for SaaS companies?
SaaS companies should take into account the cost, expertise, and reliability of the third-party support team, the need for 24/7 availability, and the ability of the provider to understand and adapt to the specific software language and features. It is also important to consider the potential impact on user experience and satisfaction.
Q: What are some examples of providers that offer integrated payment support?
Stax is an example of a payments processor provider offering personalized customer support to SaaS companies. They have a dedicated in-house business success team committed to ensuring a good experience for both the company and its software users.
Q: Why might SaaS companies opt not to outsource their integrated payment support?
If a company has particularly specialized or unique software, they may feel that only an in-house team can provide the level of familiarity and expertise necessary for high-quality support. Furthermore, companies may prefer to maintain control over all customer interactions, and in-house support affords this opportunity.
Q: How does outsourcing payments support impact customer retention and growth in SaaS companies?
By ensuring that customer queries and problems are promptly addressed even outside of normal business hours, outsourcing payment support can contribute to customer satisfaction and retention. Additionally, with less time spent on troubleshooting, more time and resources can be devoted to company growth and development.
