Category: News

How Integrating Payments Enhances User Engagement and Drives Revenue: Insights from CSG Forte and Rentec Direct

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Seamless payment integration is no longer a luxury; it’s a necessity for software companies. By embedding payment capabilities directly into their platforms, businesses can offer a more streamlined and efficient user experience, ultimately driving engagement and revenue.

In a recent podcast featured in Payments Journal, Jessica Tate from CSG Forte chatted with Nathan Miller, president and founder of Rentec Direct, and Don Apgar, director of merchant payments at Javelin Strategy & Research, about the transformative power of integrating payments into software platforms. The podcast, titled “How Integrating Payments Enhances User Engagement, Drives Revenue,” highlighted the numerous benefits of payment integration and why CSG Forte is the ideal partner for software companies looking to enhance their offerings.

Jessica, Nathan and Don shared their insights on how payment integration can revolutionize software platforms and why partnering with a reliable payment processor like CSG Forte is crucial for success.

 

Enhanced User Experience

One of the primary benefits of integrating payments into software platforms is the enhanced user experience. As Jessica explained, “There are a multitude of benefits for software businesses to work with a partner in integrating payments into their business, one of them being the enhanced user experience seamless transactions, where the capabilities are embedded directly into their software and allows users to make payments without leaving the platform a one stop shop improving the user experience.”

By offering multiple payment options—such as Automated Clearing House (ACH), credit card and debit card—software companies can accommodate diverse customer preferences, making it easier for users to complete transactions.

Nathan echoed this sentiment, emphasizing the importance of simplicity and ease of use. “One of the challenges we’ve had is, how do we make this technology and make it easy for someone to make a rent payment, or, better yet, schedule a rent payment online without having to learn a system or learn a payment processing system, and just make it a couple clicks—really, really easy.” By integrating payments, software companies can provide a seamless and intuitive payment experience, reducing friction and enhancing user satisfaction.

“Especially in the software space, when we talk about customer experience, there are really two layers of the customer experience—the merchant … and the end user,” Don said. “And this is pretty typical in the software space. The software provider has a double-pronged challenge: to make it easier for the merchant, who is their direct customer, and also easier for the end user, who is their indirect customer.”

 

Increased Revenue Opportunities

Integrating payments into software platforms also creates new revenue opportunities. Jessica highlighted the potential for revenue sharing models and upselling additional products or services. “Some payment partners offer revenue sharing models while others were billing the merchant directly,” she explained. “Or we can build a partner, and the partner will, in turn, build their merchants. That also comes into upselling and cross selling, whether there are different opportunities offering additional products or services.”

Don reported that Javelin research indicates that more software companies are realizing accepting payments online can be a revenue driver for their business. By working with a reliable payment partner, software companies can unlock new revenue streams and drive growth. Nathan shared how Rentec Direct has experienced significant growth by integrating payments into their platform. Companies like Rentec, which handles all aspects of property management between landlords and tenants, are able to scale rapidly by beginning to accept payments, Nathan explained. “The number one reason [property managers] come to us is to accept online payments. We have more people signing up for the Payment Capabilities than anything else.”

By offering integrated payment capabilities, Rentec Direct has not only attracted new customers but also helped their existing customers grow.

 

Improved Security and Compliance

Security and compliance are critical considerations when integrating payments into software platforms. Jessica Tate emphasized the importance of data encryption and compliance with industry standards. “We also have data encryption, and compliance ensures secure handling of sensitive payment data, and it helps maintain trust with the users as well.” By partnering with a payment processor like CSG Forte, software companies can ensure that their payment solutions adhere to all necessary security and compliance requirements, protecting both their business and their customers.

Don agreed with Jessica that businesses, such as Rentec Direct, benefit from partnering with an existing payments provider, and he says he’s seeing more and more businesses request payments capabilities be included in their software “because it’s such a critical part of the workflow.”

“There’s so much good payments capability in the market today that it very rarely if ever pays for a software company to build its own payments interface,” Don said. “It’s better to find a partner that already has the right connectivity through the right payment links and the right technology.”

Nathan Miller also highlighted the importance of fraud detection and prevention. “It’s really comforting to know that we’ve got our filters and our checks, and then forte has a whole different level of experience with the payment processing, and they’re catching everything that we might miss.” By leveraging the expertise of a trusted payment partner, software companies can enhance their fraud detection capabilities and provide a safer payment experience for their users.

 

Why CSG Forte?

Integrating payments into software platforms is a game-changer for businesses looking to enhance user engagement and drive revenue. By offering a seamless and intuitive payment experience, unlocking new revenue opportunities, and ensuring robust security and compliance, software companies can stay ahead of the competition and meet the evolving needs of their customers. CSG Forte, with its comprehensive payment solutions and industry expertise, is the ideal partner for software companies looking to integrate payments into their platforms.

To gain more valuable industry insights from Jessica, Nathan and Don, listen to the segment in its entirety on the PaymentsJournal Podcast. To learn more about how CSG Forte can help your business enhance user engagement and drive revenue through integrated payments, contact us today. Our team of experts is ready to assist you in implementing a seamless and secure payment solution tailored to your needs.

The Future of Digital Payments for Governments

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Digital payments are quickly becoming the norm for nearly all types of consumers. In fact, you would be hard-pressed in today’s world to find a retailer that does not offer at least one form of digital payment. And while government agencies haven’t always kept up with the private sector in adopting the latest technologies, more and more public entities are joining the digital payments revolution.

And it’s no wonder why. Digital payments are widely trusted and have become firmly embedded in customers’ habits. They’re going to continue gaining popularity—nearly half (43%) of all payments in the U.S. and Canada in 2025 will be cashless—and use among all industries is expected to explode in the coming years. In fact, a recent study from Juniper Research determined that the number of unique digital wallet users will exceed 4.4 billion globally in 2025. That’s a nearly 52% increase from 2.6 billion unique users in 2020.

And while digital payments primarily improve the customer experience by providing a convenient and secure way to pay, they also provide the departments and agencies that offer digital payment services the opportunity to convert in-person users to more convenient and inexpensive channels. What’s more, the right digital payments platform can help governments mitigate the risk of fraud and cyberattacks. It’s a win for everyone.

On the other hand, public entities have historically been slower on the uptake. As of 2024, just 4.9% of local governments had implemented online payments. Between concerns with personnel resources, budget, compliance and cybersecurity, governments have historically been skeptical of the value that digital payment options would bring to their constituents.

 

Government Digital Payment Solutions

Fast forward to now, as government leaders become increasingly excited to explore digital payment options. Many cities have begun exploring digital payment options, while others have already gone digital and are even looking for expansion options within their newly adopted platforms. Let’s take a closer look at the roadblocks to adoption and what’s at stake for elected officials and their constituents.

For a while, concerns about credit card fees and integrating digital platforms with existing, older processing infrastructure slowed local and regional governments’ embrace of government digital payment options. But that landscape has changed, and digital payments options will continue to become less cost prohibitive—especially as government entities tally the cost savings they can realize by automating payments and reducing in-office employee hours dedicated to check processing.

In addition to opening opportunities for more payment receipt methods, taking digital payments generates data that government agencies can analyze to help them form a holistic view of all constituent transactions. This data tracking and analytics enables departments to create a more seamless experience for paying constituents. For example, account owners can log in to one portal and see all account balances and schedule payments. They can also opt in to receiving automated text reminders about payment dates.

While governments offering digital payments might promise a seamless experience and a path to modernization, there is one obstacle government agencies need to overcome: the security of personal information.

 

Overcoming Security Issues with the Right Digital Government Payments Platform

Governments collect and store some of the country’s most sensitive data and are visible targets for cybercriminals both domestic and abroad. That’s why protecting sensitive information is easily government agencies’ top priority: ensuring this information is kept safe is a matter of national security. Concerns about cybersecurity and damaging data leaks have made many local and regional governments ultra cautious about adopting digital payment options. But despite these challenges, government agencies must find a secure solution.

Most importantly, they need to pay attention so they:

  • Ensure adherence to compliance measures. Payment Card Industry (PCI) and National Automated Clearing House Association (NACHA) standards dictate how businesses collect, store, and work with sensitive constituent information. Any digital payment solution will have to check off these boxes.
  • Uphold the public’s trust. Constituent confidence is directly related to the feeling of safety when making digital payment transactions. Attention to security will fortify defenses and help to develop and retain constituent confidence.

To navigate this concern with caution, government entities should partner with a trusted payments provider who can protect constituent data while ensuring seamless digital payment offerings. Fortunately, there are many technologies available to prevent hacks and provide secure payments. Governments should ensure the digital solutions they adopt include cybersecurity protections like end-to-end encryption, multifactor authentication and tokenization.

From there, the digital solutions provider establishes clear lines of communication with constituents to help them understand the measures in place that ensure the security of their data. Not only does this bolster constituent trust, but two-way communication can allow constituents to flag phishing schemes and scams they receive from fraudsters. Scammers that pose as government entities to gather payments are common, unfortunately. With an open line of communication and these security must-haves in mind, governments can act against fraudsters and stop them from doing more damage.

 

Resource Allocation: Digital Payments Payoff

Resource allocation is a significant concern for most government agencies, especially in volatile election years. Adopting cutting-edge technologies that prevent hacks may be an obvious expense for a large e-commerce brand, but government purchasers are under extreme scrutiny and the consideration and purchase processes necessitate a longer and more detailed approval procedure. However, there are clear benefits to adopting digital payments capabilities. In many cases, the technology pays for itself in the long term.

With more digital integrations, like a user-friendly customer portal and automated text messages to remind residents of upcoming payments, constituents are more likely to pay their bills on time. As a result, your department can limit constituent frustration around late fee charges, save resources on resolving complaints and reduce the time it takes to issue late notices.

The COVID-19 pandemic made digital and touchless experiences vital for immunocompromised residents and critical for the health of all. It’s important to note, however, that maintaining traditional payment methods is also crucial to accommodating all demographics and needs. With more tech-savvy consumers and a younger, digitally fluent population, offering the option of digital payments while still accepting more traditional forms of payment helps create a more seamless and positive experience for more people from more walks of life.

Increased digitalization also reduces the need for personnel to manage payments, allowing governments to reallocate staff to more strategic and impactful departments and missions. Government leaders can even reduce manual processes and simplify reporting activities, allowing the department employees to focus their attention and resources on activities that positively impact their communities and improve the constituent experience and bridge a closer and more fluid connection with residents.

All said, elected officials have a real motive to meet this demand from constituents, and the reasons for government entities to hesitate to adopt the latest and greatest in digital payments solutions are quickly vaporizing. The ability to implement and carefully manage these solutions will be important to maintain constituent goodwill, generate revenue, and provide greater accessibility now and into the future.

Are you ready to offer your constituents the payment experience they expect on their channel of choice? Contact one of our experts to take the first steps toward implementing CSG Forte’s multichannel payment solutions to transform your payment processing.

‘Tis the Season for Secure Payments: Protecting Your Business from Holiday Fraud

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With shoppers feeling the pinch of inflation over the last year, the holiday spending outlook is a mix of cheer and bah, humbug. Just more than one-quarter (27%) of consumers plan to spend less this year than last, but slightly more (28%) plan to spend more, according to Boston Consulting Group research.

And a large portion of those consumers will be doing their holiday shopping online. In 2023, global online retail sales reached an estimated $5.8 trillion U.S. dollars globally, and projections show an expected 39% growth rate, with the global totals to exceed $8 trillion by 2027. And despite high inflation in 2024, holiday sales are expected to increase between 2.5% to 3.5% this year, bringing the total to between $979.5 billion and $989 billion, according to National Retail Federation information. E-commerce holiday sales will reach between $289 billion and $294 billion in 2024, according to research by Deloitte, compared to $252 billion in 2023.

While that’s overall good news for businesses, it also means competition for buyers’ attention (and cash) is fiercer than ever. To make sure your business stands out among other companies vying for consumers’ holiday purchases, focus on keeping your company and your customers safe from that ever-present Grinch: holiday fraud. Here are three ways you can keep your customers’ (and therefore your own) holiday merry and bright:

 

1. Hosted Payment Pages Are Your Digital Shield

The global community continues to adopt online payments at breakneck speed—65% of adults reported using a digital wallet at least once a month. And all that money moving around means cybercriminals are eager to find ways in. That’s why safeguarding your customers’ payment data on securely hosted payment pages with a reliable payments provider should be top of your holiday to-do list. By directing your online payments through secure pages, you’re ensuring that sensitive payment data doesn’t linger in your system like a misplaced ornament.

What’s so special about securely hosted payment pages? Both your company and your customers are safe, and transactions are seamless. Customers enter their payment details on a page hosted by the payments provider, keeping the crucial data away from your servers and reducing your PCI (Payment Card Industry) Data Security Standard scope. This ensures a worry-free experience for both you and your customers that leaves would-be fraudsters out in the cold.

 

2. Digital Wallets: Secure, Convenient—and Gaining Popularity

There’s no better gift to offer your customers than secure and convenient digital payment methods. That’s why offering your customers payment options using their preferred digital wallet is guaranteed to put you on their “nice” lists. With enhanced security features, digital wallets provide a seamless, hassle-free and speedy checkout experience.

By offering popular digital wallets at your checkout, you’re not just embracing the holiday spirit—you’re also aligning with what consumers trust. Because digital wallets have such a robust safety record, consumers are trusting their services more and more. In fact, more than half (57%) of respondents to a National Retail Federation survey say they plan to use digital channels for their 2024 holiday purchases, and more than three-quarters (76%) of respondents to a Bain & Company survey said they planned to buy at least half of their holiday purchases online, creating more opportunities for bad actors’ schemes to steal valuable data. That’s because digital wallets safely store payment credentials and employ advanced encryption techniques to keep them protected. It’s a win-win—customers get a seamless payment experience, and you get the peace of mind that their data is protected.

 

3. Use Tokenization to Thwart Fraudsters

While fraudsters will always try and bring a little Grinch to the holidays, you can keep them off your payments platform (and on the “naughty” list) by replacing actual card and ACH payment data with generated randomized tokens. This “tokenization” converts your customers’ sensitive personal information into tokens that have no intrinsic value and provide no value to fraudsters—you can think of it as the equivalent of leaving fake presents under the tree for anyone attempting to snatch them. A reputable payments provider can assist you in implementing this robust layer of security, ensuring that even if a Grinch manages to sneak into your system, they leave empty-handed.

Don’t let the fear of fraud steal your joy this holiday season. By following these three tips—utilizing hosted payment pages, offering secure digital payment methods and embracing tokenization—you can ensure your online business stays secure while shoppers stuff their carts.

CSG Forte is here to protect your payments this holiday season. Contact us to get started today.

How To Choose a Payments Partner for ISVs

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Need to add a payments partner to your existing ecosystem? Or introduce the first one to your platform? There are plenty of options out there. But to keep it easy and keep costs down, you’ll have to find a reliable payments partner for easy integration.

Choosing the right payments partner is an important decision for independent software vendors (ISVs) aiming to improve the user experience and keep customers happy. A strong partnership leads to smoother transactions, fewer risks and greater trust. A weak one may breed confusion and frustration.

When selecting an integrated payments partner, there are many factors ISVs must weigh in their decision-making. We’ll focus on the most critical considerations to prioritize, and we’ll recommend four questions to ask any potential payments partner.

 

What Should ISVs Look for in a Payments Partner?

The payments partner you choose can be the difference between a streamlined integration and a protracted headache. Given the complexities involved, ISVs must carefully consider whether or not a partner aligns with their business needs. From APIs to developer support, ISVs should start by looking for these essential criteria when assessing potential payments partners.

 

Comprehensive Application Programming Interfaces (APIs)

One of the most critical aspects ISVs should evaluate is the quality and functionality of the payment partner’s APIs. A well-documented and flexible API means fewer roadblocks during implementation and a better ability to customize the user interface (UI). Presenting an intuitive UI becomes particularly useful in industries like government or healthcare, where there is a broad range of technological savvy amongst users.

ISVs should look for APIs that are fully controlled and fully developed, with the ability to capture information quickly and support the full lifecycle of the merchant journey—from onboarding to processing and refunding to disputing transactions. Having a robust API gives ISVs faster speed to market, freeing you up to focus on your core product.

Equally important is the availability and clarity of developer documentation.

Comprehensive, easy-to-understand documentation is essential for an ISV’s developers to implement and troubleshoot the new payment solution effectively. Detailed guides, code samples and FAQs can accelerate the integration process and minimize errors. When documentation is regularly updated, ISVs are always aware of new features, updates and best practices, keeping payment systems current and efficient.

 

Innovation Roadmap

Payment systems need to keep pace with changes in regulation, security and technology, That’s why you’ll want to know the development and innovation track the provider follows.

Make sure your payment partner’s product roadmap aligns with your industry-specific needs and emerging trends. A partner that demonstrates a clear understanding of your sector and is proactive in addressing future challenges will ensure long-term compatibility and success.

Look for payment providers that have consistently attained their roadmap goals, showcasing their ability to deliver on promises and keep pace with innovation. Strong customer testimonials are also key evidence of their effectiveness in real-world applications. Industry recognition and awards from respected payment research firms, too, can point to their reliability and forward-thinking approach.

 

Dedicated Technical Payment Expertise

Even with excellent APIs and documentation, having access to technical payments experts maximizes the benefits of a new payment solution for ISVs. It also ensures ISVs are adhering to industry standards and best practices, compliance regulations and niche functionality of the processing platform. A payments partner that provides personalized support can help resolve issues faster, minimize wasted time, tailor solutions to your specific needs, and inform you of new releases and their impact on your integration.

ISVs should look for a payments partner that solicits input from their clients and makes its experts accessible, helping them understand best practices for the platform. Dedicated support optimizes integration and reduces downtime, which helps ISVs and their users get the most value from the payments platform.

 

Flexible processing models

Finally, ISVs must consider the flexibility of a potential payment processing model. Can their partner support a quick, easy and hands-free referral partnership? Or equip them to support an embedded payments model that provides a great user experience and financial benefits? Your business needs will evolve over time, and your payments partner should be able to scale with you. Look for partners that offer scalable solutions, transparent pricing, robust partner-level research, and the ability to automate transaction and account management.

Flexibility in processing models ensures that as an ISV’s business grows, their payment solutions remain efficient and cost-effective, supporting expansion without unnecessary—or costly—complications.

 

4 Key Questions ISVs Should Ask When Choosing a Payments Partner

How can ISVs determine whether a payment service provider will check all the boxes?

Here are four essential questions ISVs should ask before signing on the dotted line:

 

1. What does the contractual agreement entail?

When you sign up with a new payments partner, is what you see what you get?

Understanding the complete terms of the contractual agreement is the first question to ask a provider. ISVs should inquire about the length of the contract, any automatic renewals and the flexibility to adjust terms as their business evolves.

 

2. What is the pricing structure?

Likewise, ISVs need to know a potential partner’s pricing and fee structure. What are the commission rates? Are there any additional fees or hidden costs that could impact the overall profitability of the partnership?

Compare the effective revenue share after accounting for all associated fees. This helps ISVs guarantee they are getting a fair deal and accurately predict the costs involved.

 

3. Do ISVs gain visibility into the onboarding process?

Efficient onboarding means faster speed to market and less stress for ISVs. Transparency expedites the process. How much visibility will the payment service provider offer?

ISVs should ask potential partners about the steps involved in onboarding new merchants and how long it typically takes. When an application is pending approval, will you know what’s going on behind the scenes? Or will miscommunication drag out the process, leaving money on the table and frustrating customers?

It’s important to understand how the payment service provider manages these stages to stand up new merchants with minimal delay. If an ISV can stay informed each step of the way, then can intervene when necessary to catch errors early and keep things moving.

 

4. How will ISVs realize their revenue?

ISVs need to understand the functional differences in the transaction processing offered by a payments partner. Ask to model scenarios based on how you intend to use the provider’s platform. Then you can determine how you can fully realize the revenue you expect.

 

Choose a Payments Partner You Can Trust

The payments partner you choose carries serious implications for your long-term business efficiency and growth. Transparency is the foundation of trust: Do you know if the provider will keep you informed every step of the way? When things go wrong, are you right on the front line, or the last to know? ISVs need to have confidence that the provider they choose will be a true partner.

Use an experienced payments partner that is not only easy to integrate with, but also easy to do business with. CSG Forte’s flexible processing models, comprehensive support and transparent pricing give ISVs a reliable partner that can adapt to your future needs.

Contact us to learn how we can help you achieve an easy integration and support your business growth.

Understanding 3 Types of Payment Processing Partners

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“Partners” can mean a lot of things in commerce and software. That’s certainly true of payment processing partners, and for businesses, it can get confusing exactly what a payment partnership is. What’s the difference between an ISO vs. ISV, for example?

Let’s say you want to offer ACH or credit/debit card processing to your customers, but you don’t have a payments solution of your own. You’ll likely need to enter into a partnership with a payment facilitator who does. A payment facilitator, or PayFac, is a vendor that provides the payment processing software and handles other services such as onboarding and underwriting merchants on the payment platform. The type of partnership you have with that provider, however, makes a huge difference in what you control and how it affects your revenue.

We’ll explain three main types of partnerships in payments: integrated partnerships, reseller partnerships and referral programs.

 

What Are Integrated Partnerships?

An integrated partnership is when you plug a payment processing provider’s software directly into the platform you offer merchants. This allows the merchants’ end-users to make payments within the partner’s solution without needing to leave your platform or application. This is the type of partnership we offer independent software vendors (ISVs), with CSG Forte as the embedded payment solution within their platform.

An ISV is a software company that builds a CRM (customer relationship management) platform, usually for a specific industry like property management or medical office management. When the ISV wants to enable their platform to take payments within the application, the ISV often integrates a payments platform. The ISV could select from different types of payment gateways to integrate, or it can hard-code to a payment gateway (like CSG Forte) in an exclusive partner relationship. 

Advantages of Integrated Partnerships

  • Seamless user experience: End-users enjoy a smooth, uninterrupted workflow. How they make payments feels like how they handle other tasks on your platform—they don’t have to shift to a different site, application or channel.
  • Increased revenue: Independent software vendors who offer payments through their platforms have a marked revenue advantage over those that don’t. A PYMNTs.com survey found that 83% of ISVs said they’ll see an increased revenue share from payment acceptance over the next 12 months–a sign that ISVs show a high degree of trust toward the results they can get from partnering with payment providers.
  • Strong merchant retention: When ISVs can offer integrated payments, it bolsters their platform’s value and increases its “stickiness” for vendors.

Not all integrated partnerships are created equal, and ISVs that work with them have clear ideas on what makes them successful. In a survey by the Strawhecker Group (TSG), the three payment processer attributes that ISVs most often cited as important were:

  • Competitive economic split
  • Easy merchant onboarding
  • Quality customer support

 

What Are Reseller Partnerships?

In a reseller partnership, a company (the reseller) buys payment processing services from a payments provider and resells them to its customers. The reseller usually rebrands the services as its own, providing a turnkey solution to its customer base it wouldn’t otherwise offer. The reseller is often referred to as an independent sales organization (ISO).

The ISO model is a common starting point for businesses entering the payments space. These organizations may even begin as a small group of sales reps who join to sell point-of-sale devices for brick-and-mortar stores to use (which may or may not be integrated into a checkout application). 

Advantages of Reseller Partnerships

  • Brand control: The reseller, or ISO, can market the payment services under its own brand, so it maintains direct control over the customer relationship.
  • Revenue generation: ISOs can set their own prices and margins, giving them more control over the potential profits they’d see from offering the payment services.
  • Turnkey solutions: It’s relatively quick to launch these capabilities once the business has selected the provider and then branded the solution.

With reseller partnerships, it’s important to note which aspects your business can control and which it can’t. ISOs are responsible for branding and marketing the payment services, for example. While they benefit from the payment provider’s product support, they have little to no influence over the product itself—its functionality, its user interface and other qualities of the actual payments software.

 

What Are Referral Partnership Programs?

Referral partnership programs involve referring potential customers to a payment processing provider in exchange for a commission or fee. The referring business doesn’t handle the payment processing directly. Instead, it leverages its network to bring new business to the provider.

Advantages of Referral Partnerships

  • Low overhead: Since there’s no need to manage the payment processing infrastructure, the referring partner bypasses the operational costs associated with that.
  • Commissions: Earning referral fees or commissions can be a lucrative revenue stream without the complexities of direct sales.
  • Focus on core business: Referral partners can keep focusing on their primary business while benefiting from additional income.

Entering a referral partnership program with a payments provider can be advantageous when you have a strong network of businesses that need payment solutions, but you don’t want to take on the cost and complexity of offering those solutions yourself.

 

Comparing the Payment Processing Partnerships

Another way to distinguish among partnership models is comparing how they leverage different strengths and fulfill different needs. We can look at three categories: the integration depth of the partner’s software, the revenue potential the partnership provides, and the nature of the relationship the business maintains with the end customer.

Integration Depth

  • Integrated partnerships: High degree of technical integration—embedded within the partner’s software
  • Reseller partnerships: Moderate level of integration—with rebranded services
  • Referral partnerships: Low to no integration—primarily based on lead generation

Revenue Potential

  • Integrated partnerships: High revenue potential through value-added services
  • Reseller partnerships: High revenue potential through markup on resold services
  • Referral partnerships: Moderate revenue potential through referral commissions

Customer Relationship

  • Integrated partnerships: Direct relationship with end-users, maintaining long-term engagement
  • Reseller partnerships: Direct relationship with customers, with control over branding and support
  • Referral partnerships: Indirect relationship, with the primary interaction handled by the payment provider

 

Choosing the Right Payment Processing Partner

Hopefully this clears up the (all too common) ISO vs. ISV confusion of terms. One thing to keep in mind: Businesses often start off with one type of partnership and mature into another one over time. They might begin by referring payment solutions, and then they eventually decide to offer them directly to customers in a white-label reseller model. ISVs might start off by integrating a payment provider’s software, then eventually embark on the journey toward becoming payment facilitators themselves to increase their revenue.

CSG Forte helps organizations of all kinds provide payment solutions in ways that meet their individual goals. Get a trusted vendor in your corner. Become a partner today.

Think Outside the Square: How QR Codes reshape payments

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From telemedicine to bread baking, there’s a list of things that enjoyed a surge in adoption during the pandemic. For businesses, that includes the use of contactless payments and QR codes—which turned out to be no passing trend.

More than half of U.S. consumers now use some form of contactless payment, according to a Mastercard poll. In 2022, QR code payments accounted for $2.4 trillion in global spend, and that number is projected to keep growing past $3 trillion by 2025.

Previously, QR codes were used mainly for marketing purposes. Now they have found mainstream adoption beyond the pandemic as a tool to facilitate contactless payments. With convenience being a top priority among consumers, QR codes have proven to be a seamless and secure payment method for both businesses and customers alike.

We’ll delve into the benefits of incorporating QR codes into your multichannel payment processes and offer examples on how to effectively implement them, enhancing the payment experience for your customers.

 

WHAT ARE QR CODES?

QR (short for “quick response”) codes are two-dimensional barcodes that store information in a readable pattern. Traditional barcodes can only hold limited data like product numbers. QR codes, with their added dimension, can store various types of information including URLs, contact information and payment details (e.g., an invoice).

QR codes encode data into a grid of black squares on a white background, which can then be scanned by a smartphone or QR code reader. The scanning device then instantly accesses the encoded information, letting users quickly access websites, make payments or retrieve other information automatically.

You can think of QR codes as a bridge between physical and digital commerce. They offer a quick way to interact with content and perform tasks using a smartphone camera.

 

TYPES OF QR CODES

The QR codes that businesses use can be split into two types: static and dynamic. Each type differs in content and function.

STATIC QR CODES

These QR codes contain fixed data—the data can’t be changed once the code is generated. You often see these used to contain simple, unchanging information like website URLs, business card details or product information.

DYNAMIC QR CODES

Dynamic QR codes can be modified after creation. They’re often used in conjunction with a web service or platform that lets a user update the content linked to the code. This means the QR code can be personalized to specific users—linking to different URLs or displaying different text. This is why dynamic QR codes are often used in situations that require real-time updating, like marketing campaigns, inventory management and—as concerns us here—payments.

 

HOW QR CODES WORK IN PAYMENTS

Here, we’ll focus on one of those tasks that QR codes facilitate—initiating transactions—which merchants can use to offer contactless payment at a store or settle an invoice remotely.

Take retail transactions, for example. Merchants can generate QR codes to represent a specific payment amount. At the point of sale, a customer can simply scan a displayed QR code using their smartphone. This usually directs them to a secure payment portal where they can confirm the transaction and choose their preferred payment method—credit/debit card, mobile wallet, bank transfer, etc. The process makes it easy for customers to pay on the go, and merchants don’t need to have a cash register or payment terminal to accept payment.

Beyond retail transactions, QR codes can also facilitate invoicing with reduced friction. Businesses can generate a QR code for each invoice, embedding payment details such as the invoice number and amount due. When recipients receive the invoice, they can simply scan the QR code to access the payment portal, where they can review the details and complete the transaction with a few taps on their device. This streamlines the payment process by eliminating manual entry of payment information and reduces the risk of errors.

Essentially, QR codes are digital keys that unlock seamless payment journeys, whether they involve in-store purchases, ecommerce or invoice payments. They’re versatile and easy to use, making them an appealing tool for businesses looking to simplify their payment processes and improve the payment experience.

 

EXAMPLES OF QR CODE USE CASES FOR PAYMENTS

As mentioned, QR codes are versatile, and they help customers make quick, secure payments in a variety of ways. Here are just a few examples.

STREAMLINING PAYMENT VIA MONTHLY BILLING STATEMENTS

If your company sends out monthly billing statements, chances are you encourage customers to make payment online or through your app. You can take them straight to a payment portal by printing a QR code on the bill encoded with that URL. This saves the customer time in having to navigate to that portal through several clicks or even having to enter the URL. Not only that, but you can also encode the QR code to include the account number and amount due, which pre-fills the payment information for a faster checkout. It’s a great way to combine a traditional communication channel—the paper statement—with an easy digital payment experience.

ACCEPTING IN-PERSON PAYMENT MORE EASILY

Imagine you’re a field technician installing a new internet router in a customer’s home. As you’re setting it up, the customer shows interest in upgrading to a better router on the spot. With a few taps on your tablet, you quickly generate a personalized invoice reflecting the upgrade cost. Instead of fumbling with cash or card readers, you simply present the QR code on your device screen. The customer scans the code with their smartphone, and just like that, the payment is processed. You install the upgrade then and there, leaving the customer satisfied with faster internet connection. The best part is the QR code ensured payment right away—you didn’t have to invoice them and wait for the payment via the monthly bill.

REPLACING PAPER INVOICES

Suppose you’re a home repair service worker who has just completed a job for a customer. Instead of the traditional route of handing over a paper invoice and waiting for a check, you offer a more secure and efficient payment option: a QR code. The customer scans the code with their smartphone, securely processing the payment electronically. This not only saves time and reduces the risk of errors associated with manual payments, but it also provides a better payment experience by using a modern payment solution.

 

ADD QR CODES TO YOUR PAYMENT CHANNELS

Incorporating QR codes as a payment channel offers businesses a practical and efficient way to interact with customers. With CSG Forte Engage, our intuitive payments solution, organizations can seamlessly integrate QR codes into their operations, providing customers with personalized and secure invoices for hassle-free transactions. By leveraging QR codes, businesses can streamline their payment processes and enhance customer satisfaction with a secure and convenient digital payment channel.

Take the next step in offering this convenient, secure method and contact us today.

Cut Costs and Reduce Friction With IVR Payments

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Today’s customers expect your business to accept multiple payment methods and make billing processes hassle-free. That means your business needs a streamlined solution that eliminates billing issues and complex payment options. With interactive voice response (IVR) payments, you can enhance the customer payment experience and get paid on time more often.

What Are IVR Payments?

IVR payment processing is a voice-over-internet protocol (VoIP) payment system that guides your customers through prompts to complete transactions. There are two typical kinds of IVR transactions:

  • Self-service IVR payments: This solution allows customers to pay bills without agent intervention. Self-service IVR payments minimize the costs associated with human resources and give customers the convenience of handling their bills 24/7.
  • Agent-assisted IVR payments: These transactions require your team’s assistance. The IVR system collects relevant customer information and directs calls to one of your authorized agents, who completes the transaction.

Many organizations leverage digital payment methods with IVR systems to offer customers multiple ways to pay.

How IVR Payments Work

IVR payment systems work seamlessly to complete payments in a few steps:

  • Customers call: To initiate an IVR payment, a customer calls a specific number on their bill or calls your contact center and follows the automated responses. Customers can make payments, check account balances and track any billing issues over the phone—all without human interaction.
  • Customers follow the IVR process: IVR payment processing is similar to other IVR technologies with additional security features to align with the Payment Card Industry Data Security Standard (PCI DSS) and other regulatory requirements. Automated scripts prompt users to provide payment information securely. Customers key in information or speak it into the system. The system leverages natural language processing (NLP), speech recognition, machine learning (ML) and other technologies to analyze customer responses.
  • The IVR system authorizes payment or routes customers: The IVR software uses technology to determine whether agent intervention is necessary or whether the customer can complete the transaction using self-service features. If customers are routed to pay by self-service, the system will automatically deliver payment confirmation via phone, SMS or email. If the IVR transfer requires agent assistance, the customer can hold while the system routes them. Alternatively, the customer can schedule an automated callback when it suits their schedule.

IVR transactions typically take less than five minutes to complete.

Industries Leveraging IVR Payments

Various industries and sectors leverage IVR payments to streamline bill paying:

  • Finance and banking: Financial institutions use IVR payments for installment payments, balance monitoring, settlement payouts, debt collection, and credit card and loan payments.
  • E-commerce: E-commerce and retail businesses leverage IVR payment systems to manage customer payment information, handle one-time payments, and run royalty program payouts and other transactions.
  • Healthcare: Medical service providers use IVR payments to collect bills, manage prescription billing and process insurance claims.
  • Utilities: Utility companies use the systems to manage accounts and payment information and seamlessly set up recurring or one-time payments.
  • Ticketing and reservations: With IVR technology, customers can easily book and pay for tickets over the phone. They can process cancellations or complete transactions without speaking to a representative.

The Benefits of IVR Payments

IVR payment systems deliver various benefits:

  • Convenience for customers: IVR systems boost customer satisfaction by offering hassle-free bill payments. Self-service capabilities eliminate the need to communicate with agents. IVR systems can also provide multilingual support and automate recurring payments, enabling absolute flexibility and convenience.
  • 24/7 availability: IVR payment solutions enable customers to pay bills 24/7 without an internet connection. These round-the-clock capabilities allow customers to pay when it suits their schedules, increasing the likelihood of bills being paid on time.
  • Reduction in operational costs: Leveraging IVR systems can significantly reduce your operating costs. These systems increase efficiency and decrease labor costs associated with payment-related issues that require contact center involvement. IVR-enabled ACH bank transfers also have lower transaction costs than conventional credit card transactions.
  • Enhanced security features: Trusted service providers deliver IVR solutions that minimize the risk of exposing payment information data. Customers can key in credit card details even when speaking to an agent. Reputable providers also adhere to stringent rules to comply with PCI DSS, safeguarding sensitive information in the most robust ways.

Challenges and Solutions

The right IVR systems help solve two challenges across multiple industries:

  • Addressing potential security concerns: Transactions contain sensitive data, so your organization should ensure the appropriate security measures are in place. The right IVR solutions provider will help you by offering adequate security defenses, firewalls, regular process testing, encryptions and control measures.
  • Improving user experience: You want customers to have positive experiences when paying bills. With the right IVR system, you can enhance the customer experience by offering multiple payment options. You can deliver self-service functionality in various languages, offer several ways to connect to your IVR system and provide intuitive navigation, making payment frictionless.

Partner With CSG Forte for IVR Payment Processing

CSG Forte offers complete IVR payment solutions. We help businesses worldwide to scale and meet growing consumer needs. Our platform processes over $84 billion in transactions each year. CSG Forte’s award-winning payment solutions provide:

  • Specialized features for IVR payment processing: Our flexible solutions allow customers to pay at any time, using any method and language they choose. We implement enhanced safety features, advanced automation and robust analytics for valuable insights.
  • Integration capabilities within various industries: CSG Forte delivers payment solutions for all sectors.

Streamline Your Payment Experience With CSG Forte

CSG Forte’s IVR payment processing solution will enhance your customer payment experience and help you boost your revenue. Our one-platform solution makes it easy for you to scale services as your business grows.

Learn why thousands of organizations trust us. Contact us to optimize your bill payment capabilities with a trusted service provider and award-winning IVR payment solutions.

CSG Forte Team

CSG Forte Team

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Layering Login Security: The Power of Multifactor Authentication

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It used to be that passwords were enough to protect your accounts. Those days are gone, and you can blame the ever-growing sophistication of cybercriminals. Organizations now need an extra layer of defense against unauthorized access and fraud. That’s where multifactor authentication comes in.

It’s a good idea to require multifactor authentication in many of the systems your organization uses every day—especially critical systems like payments operations. Read on to learn what it is, how it works and why it matters.

What is multifactor authentication?

Multifactor authentication (MFA) is a security measure that requires users to provide two or more pieces of evidence to verify their identity before they can access their account or perform a transaction. Single-factor authentication methods often rely on the traditional username-plus-password combination. MFA goes further and requires additional factors—often something the user knows (e.g., the answer to a security question), something they have (e.g., a smartphone) or something they are (e.g., biometric data like a fingerprint).

How does MFA work in payment solutions?

Payment solutions can apply MFA in various ways depending on the level of security and convenience they offer users. Common examples of MFA in payment solutions include:

  • One-time password (OTP): The user gets a code via text, email or an automated phone call, and they have to enter it along with their username and password to access their account or perform a transaction. The code expires after a short period of time and can be used only once.
  • Push notification: The user receives a notification on their smartphone or a similar device though a secure app that’s linked to their account. With that device, they have to either approve or decline the transaction or account access.
  • Biometric authentication: The user must have their fingerprint, face or iris scanned. This biometric data is usually stored on the user’s device or on a secure server, and it’s matched with the user’s account.

When might payment solutions require MFA? Those scenarios can include when you or other users in your organization log in to their accounts, add a new payment method or change settings. MFA can also be complemented with other security features such as encryption, tokenization or fraud detection to create a more robust risk management practice.

Why is multifactor authentication critical for payments operations security?

Payment fraud incidents are on the rise, increasing 88% since 2021, according to PYMNTS Intelligence research. It’s making organizations and consumers more wary about how payment accounts data is kept (the same study found that 30% of consumers don’t trust having their personal information stored on a connected platform).

Clearly, bolstering security to the systems that house consumers’ payment account data is a priority for any organization. Here’s how MFA in payments operations supports that:

  1. Better Protection: MFA makes it harder for hackers or fraudsters to access your customers’ data, even if they have your username and password. It adds an extra layer of security that deters or delays attackers, giving your organization more time to detect and respond to the breach.
  2. Fraud Risk Mitigation: MFA can decrease the likelihood of fraudulent transactions when the additional authentication requirements thwart bad actors.
  3. Brand Reputation Preservation: A data breach resulting in compromised payment accounts is a major blow to an organization’s reputation that erodes customer trust. Implementing MFA shows you’re committed to keeping customers’ information secure, and it helps safeguard your organization’s integrity.
  4. Satisfying Security Standards: MFA complies with the latest security standards and regulations, such as the Payment Card Industry Data Security Standard (PCI DSS) or the Payment Services Directive 2 (PSD2). MFA helps you meet the requirements and expectations of your customers, partners and regulators, not to mention help you avoid penalties or fines.

The new standard in payments operations security

MFA is no longer just a security best practice—it’s an expectation. A growing share of SaaS platform users consider MFA a must-have capability of the SaaS platforms they use, regardless of segment or industry. In payments operations, it can make a big difference in safeguarding payment accounts and protecting your organization from the potentially devastating consequences of data breaches and payment fraud.

This is part of what’s known as the Zero Trust strategy for information security programs, based on the principle of ”never trust, always verify.” It’s aligned with the latest industry standards, such as PCI DSS version 4.0. And it’s part of CSG Forte’s commitment to the rigorous safeguarding and protection of all customer data.

Want to learn more about how CSG Forte incorporates MFA into its solutions? Just ask us.

Empowering SMBs With Embedded Financing

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Small- and medium-sized businesses (SMBs) play a crucial role in driving our economy through innovation, job creation and the contributions they make to their local communities. But SMBs can face obstacles when trying to access working capital through traditional financing sources, including high rejection rates, varying annual percentage rates (APRs) and lengthy application processes.

Enter: embedded financing, which has emerged as a powerful alternative for SMBs that may apply for capital through traditional lending methods. Embedded financing offers SMBs a streamlined approach to accessing capital by allowing them to bypass banks and other traditional lenders and instead receive needed funds through their software vendors. This fast and flexible financing option offers SMBs fair pricing on quickly available financing terms that can be seamlessly integrated into their existing business solutions.

Many SMBs are taking advantage of the ease of using embedded financing, as industry growth continues to rise. Current estimates suggest a 125% year-over-year increase, reaching $500 billion in annual originations by 2030.

An AI-Driven Solution Tailored for ISV Partners and Their Merchants

Traditional small business loans can be expensive, carrying APRs as high as 99%. But businesses may find significant savings via the reduced rates embedded finance programs offer. How? Embedded finance programs leverage private datasets and AI automation when assessing risk, facilitating more accurate and faster underwriting. Among other advantages, this innovative underwriting method cuts customer acquisition costs.

By leveraging technology, embedded finance can revolutionize the underwriting process and provide fair, affordable financing options for SMBs. The lower rates not only benefit merchants, but also foster a stronger sense of loyalty within the Independent Software Vendor’s (ISV) merchant base.

The power of artificial intelligence (AI) is at the forefront of most of today’s innovative technology, including embedded financing. AI-driven credit underwriting—which is fueled by rich, embedded datasets—offers a level of sophistication that’s unmatched.

Embedded AI lending leader Lendica and has partnered with CSG Forte to introduce a unique credit solution for SMBs: the iBranch. This innovative embedded financing offering allows merchants to connect to financing offers through their software vendors, opening a new avenue for SMBs to conveniently access credit for necessary capital investments in their business. CSG Forte and Lendica are extending this solution to ISV partners and their end-merchants.

Benefits Beyond Basics

The advantages of embedded financing extend beyond just the SMBs. ISV partners stand to gain significantly from this innovative financing model. By participating in embedded financing programs, ISVs create an additional revenue stream for their business that is often operations-free (meaning they don’t need to handle the customer support or marketing internally and can leverage an embedded financing partner). Moreover, the enhanced merchant loyalty resulting from fair and affordable financing options strengthens the bond between ISVs and their end-users.

Embedded financing also has the flexibility to cater to a diverse range of ISV partners and their merchants, spanning various industries such as field services and property management. For example, property management merchants can leverage this user-friendly solution to access capital for building repairs, procure necessary supplies, or invest in professional services to promote their business. Quick access to capital empowers merchants and fosters an environment that’s conducive to future growth and prosperity.

Game-Changing Potential

Embedded financing is proving to be a game-changing solution for ISVs and their merchants, providing fast, flexible and competitive financing options. This streamlined approach addresses some of the pain points of traditional lending, offering competitive rates and an enhanced end-user experience. The growth trajectory of embedded business financing suggests a transformative future for SMBs, fostering an ecosystem where businesses can thrive and achieve their full potential.

As we move to the future, the era of embedded financing is redefining the landscape of SMB financing, unlocking new possibilities and opportunities for growth.

Thanks to the recently established strategic partnership between CSG Forte and Lendica, an embedded AI-lending company, your software organization can provide merchants with quick access to capital, removing time delays and other barriers SMBs often encounter. Contact our team to start offering your merchants a competitive, embedded financing offering in as little as two weeks.

Beat The Numbers Game: Guard Against Card Testing Fraud

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Card not present (CNP) fraud has been on the rise: it’s projected to account for nearly 75% of all payments fraud by 2024, which is up from 57% in 2019. As merchants shift their focus to protect against this growing share of CNP fraud, they find themselves tackling a specific type: card testing attacks.

Payment solutions can play a major role in protecting businesses from card testing-related losses. But does yours have the right capabilities? Read on as we explain card testing and some fundamental ways to reduce its impact on your customers and your bottom line.

What Is Card Testing?

Card testing is a payment fraud technique where cybercriminals use automation or bots to guess valid credit card numbers. It’s literally a numbers game. Fraudsters submit a barrage of small transactions of just a few cents each, testing to see if a card number is valid. Once they’ve identified a set of card information that works, they then use it either to make larger unauthorized purchases or sell the card info on the dark web.

For merchants, falling victim to card testing can disrupt operations and generate costly chargebacks. But it means more than revenue loss: there’s also reputational damage to consider. According to a PYMNTS survey, 21% of consumers said that losing money due to fraud would be the most important factor that would erode their trust in a merchant.

4 Layers of Protection Against Card Testing Attacks

In the battle against card testing fraud, your strongest line of defense is a modern payment solution. It can safeguard your transactions and customer data in multiple ways. Here’s how:

1. ADVANCED FRAUD DETECTION

As we all know, the earlier fraud is spotted, the better. Payment solutions may employ machine learning algorithms that identify suspicious transaction patterns in real time. These fraud detection features can flag and report suspicious activity before bad actors “crack the code” and make a successful unauthorized charge, or before they can go on to do significant damage with the stolen card information.

2. TOKENIZATION TECHNOLOGY

Modern payment solutions typically replace sensitive card data with unique tokens—randomly generated values that are unrelated to the original card data. This adds an extra layer of security. Even if bad actors intercept the merchant’s card data, the tokens render that data useless for making unauthorized transactions.

3. 3D SECURE AUTHENTICATION

Modern payments solutions often integrate 3D Secure protocols, or “3DS,” which stands for 3 Domain Secure. This is an authentication method for online transactions that relies on three domains:

  • Issuer Domain — The bank or financial institution that issued the card
  • Acquirer Domain — The bank or financial institution processing the payment on the merchant’s behalf
  • Interoperability Domain (Card Scheme) — The payment card network (e.g., Visa, MasterCard) that connects the issuer and acquirer domains

If you’re using 3DS, a cardholder making an online purchase undergoes an additional authentication step. This typically involves redirecting them to a page hosted by their card issuer or having them provide a one-time authentication code that is sent to their phone. And it’s this extra step that adds another strong barrier against card testing attempts.

4. REGULAR UPDATES & MONITORING

Payment fraud techniques evolve, and so should your payments solution. Your SaaS provider should provide regular updates and enable round-the-clock monitoring, making sure your payment system is always equipped with the latest security features.

Take Action Today

Safeguarding your organization against card testing is a must. Do you know if your payment system has all these protections in place for you and your customers? Talk to us at CSG Forte, and we can help you ensure your payments security is up to task—even as fraudsters put it to the test.