Credit Card Processing Software

The Advantages of Using Credit Card Processing Software

Unlike a credit card reader, credit card processing software can be easily upgraded, rather than having to be discarded once it's out of date. As companies try to stay one step ahead of credit card fraud, this can save headaches when the changes involve equipment. Similarly, software can be reinstalled if there's a failure of some kind, while hardware, like a reader, has to be replaced.

Credit card transaction software can also capture more information about a transaction and automatically integrate it into your other programs, such as an accounting system or customer database. The software also has significant advantages if you do regular billing such as installment payments or monthly subscriptions, since it can automatically set these up and even integrate with your order fulfillment systems.

Many merchant processing service providers offer credit card processing software along with other credit card services, and they also integrate additional services such as check processing, credit card fraud protection, and address verification.

Disadvantages

Hardware like a credit card reader is vulnerable to physical hacking such as credit card skimming machines as well as to physical damage, but software is of course much more vulnerable to electronic attacks. You'll also have to download and install upgrades as needed.

It also makes you far more dependent upon your computer system's reliability. If you have serious computer problems of any kind, such as problems connecting to the Internet or a hardware or software failure, you may not be able to accept or fulfill credit card orders at all.

Selecting a Software Provider

Reliability

The most important thing to consider is reliability. Some aspects to examine:

• Does the provider have a good reputation?
• If the provider is a hosted service (you link to the software on their server rather than running the software on your own site), what kind of server downtime might they have? Do they have redundant servers at multiple physical sites?
• How good is their technical support? How quickly do they respond to problems? If you can, ask other merchants whether when you call with a problem, they get the dreaded, “Sorry, it must be your hardware” knee jerk response.
• What kind of guarantees do they provide with the software?
• Can the software store transactions if there's a problem with sending them immediately to be processed? This provides a valuable backup if you lose your internet connectivity.

Features

• What kind of operating system does it need, if it has to be installed on your PC or on your own server? How much memory does it take up? What kind of processor does it need?
• About how long does it usually take to process a credit card transaction?
• How easily does the software integrate with the rest of your system, such as customer databases, inventory tracking, accounting system, or automated shipping? How easily does it integrate with your merchant accounts?
• If you need to, can you add a USB credit card reader?
• How easy is it to use?