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Payment Processing Software Explained

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Last editedSep 20222 min read

As a business owner, learning about the best ways to collect payments is an essential part of boosting your revenue and keeping customer satisfaction high. Long gone are the days where you could simply use cash, cheques and credit cards – it’s now important that you get a good understanding of payment processing software to make life easier for both you and your customers.

Business owners who are new to payment processing software tend to have a lot of different questions, such as “What is payment processing software?” and “What is the best payment processing software?”. These software solutions allow you to collect payments automatically with minimal effort.

Learn more about how payment processing software could help your business with this simple guide, and discover the benefits of GoCardless as a payment processing software.

What is payment processing software?

Before diving into some of the more detailed information, it’s important to first understand what is meant by software for payment processing. Put simply, it’s an easy way to automate payments for your business, reducing work for you and your customers and avoiding the risk of late payments.

Software for payment processing works by first collecting your customers’ payment data and authorization to collect payments. Once it has this information, it can automatically credit money to your bank account on the due date and can even be used for repeating payments if you’re offering a subscription service.

As an added bonus, payment processing software has strong security measures that can help to verify the card data and encrypt the data that you have on file to protect it from fraud.

Key benefits of payment processing software

Using software for payment processing is one of the most modern and up-to-date ways of collecting payments from your customers, since it cuts out so much work for both you and them. Some of the main benefits of using payment processing software include:

  • Faster payments for you. Whether your customers are using credit card, debit cards or ACH, the payments will be added to your account immediately on the date you specify.

  • Customers get a more convenient and seamless experience, with a personal payment portal that can match your company’s branding. There’s no need to re-enter card information after they have done this during the initial set up.

  • You can integrate with accounting software so that payments reconcile with accounts receivable, giving you accurate and up-to-date financial reports.

  • It’s a highly secure payment method, protecting both you and your customers from potential fraudsters.

Using GoCardless as payment processing software

One of the best payment processing software options available is GoCardless, creating a seamless experience for both you and your customer base. GoCardless has several features that make it easy to use, saving you time and ensuring you get paid promptly.

GoCardless is well suited to both recurring and one-off payments. After a simple set-up process, during which customers provide payment information and authorization, they will be automatically charged on the payment due date. This is a pull-based system, leaving you in control of when you receive payments rather than waiting for your customers to take action.

What’s more, the payment intelligence system Success+ automatically tries to re-collect payment after an initial failure. As a result, 70% of payments that initially fail end up being collected by GoCardless, without you having to chase up your clients.

We can help

GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.

Over 85,000 businesses use GoCardless to get paid on time. Learn more about how you can improve payment processing at your business today.

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Interested in automating the way you get paid? GoCardless can help
Interested in automating the way you get paid? GoCardless can help

Interested in automating the way you get paid? GoCardless can help

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