Almost all managed service transactions happen online, making it crucial for managed service providers to provide seamless and secure online transactions to clients. 

The payment solution you use will play an instrumental role in this process. The right payment solution can help you collect payments seamlessly and provide a top-notch payment experience. On the other hand, an inefficient payment platform can lead to payment failures, lost revenue, and high churn. 

Hence, your ability to effectively collect payments boils down to selecting the right payment platform.

Today, we’ll cover everything you need to know before selecting a payment provider for your MSP.

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The importance of effective payment collection

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The endgame for any MSP or IT partner is to collect customer payments in exchange for a service. Imagine not being able to collect payments properly. It’ll directly hit your bottom line and affect your revenue.

Therefore, having a robust payment collection system is crucial, and here’s where a payment solution comes into the picture. 

A payment processing solution allows you to collect customer payments successfully. 

However, collecting payments means dealing with money and sensitive data – customer bank details, card information, etc. 

It’s vital to opt for a payment solution that’s highly secure, easy to use, and super efficient to ensure you and your customers get a seamless payment experience. 

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MSP-specific vs. generic payment solutions – The difference

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There are dozens of payment providers out there. Most of them are generic and cater to all industries. On the other hand, you have payment solutions that cater specifically to MSPs and IT partners – like Zomentum Payments. 

Here are three reasons you should opt for MSP-specific payment solutions instead of generic ones. 

Automatic billing reconciliation

Payment reconciliation is a bookkeeping method of comparing financial records logged in your records against the bank statements to ensure the accounting is accurate. MSP payment solutions come with automatic reconciliation capabilities, saving the time and resources that would otherwise go into manual reconciliation. 

Seamless onboarding process

Generic payment tools require integration with your PSA to function, which is tedious and bloats your workflow. On the other hand, MSP payment solutions are PSA-agnostic. They don’t require integration with PSAs, resulting in faster onboarding and seamless workflows. 

Complex fee structure

Lastly, generic payment providers have a complex fee structure. They charge various types of fees, such as platform fees, monthly fees, transaction fees, etc., which increase your overall payment expenses. 

That’s not the case with MSP payment platforms, which offer a transparent fee structure and charge minimal transaction fees. 

Hence, MSPs should always opt for MSP-specific payment solutions. 

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Features to look for in an MSP payment platform

Having discussed the importance of choosing an MSP-specific payment platform, let’s now discuss the important features to look for in a payment solution. 

MSP-specific dashboard

First, look for a payment platform that provides an MSP-specific dashboard. You should be able to view and manage all your clients in one place, along with their respective packages and billing details. 

PSA-agnostic

Next, the payment platform you choose should be PSA-agnostic. This means it should work seamlessly without any dependency on our PSA platform. 

Almost all generic payment providers are PSA-prognostic – you need to integrate them with your PSA. 

On the other hand, MSP-specific payment platforms are PSA-agnostic and work without integrating with the PSA. This simplifies the workflow and makes collecting payments easier. 

Cost – Fees and other charges

The next thing to consider is the cost of the payment platform. Now, the cost can be a complex topic. Payment platforms charge various types of fees, such as platform fees, monthly charges, and transaction fees. 

Make sure to go for a payment provider that has a simple, straightforward pricing structure. 

Supported cards and payment methods

Next, look at the cards and payment methods the payment solution provides. Normally, all payment providers support bank transfers and cards like MasterCard, Visa, and American Express. 

However, see if your customers prefer paying through some other methods and find a payment solution that supports it. 

Holding time

The holding time refers to the time for which the amount is held after the customer makes the payment. This is done to handle refunds and chargebacks easily. 

Support for multiple currencies

Ensure that your payment provider can process payments in different currencies from various locations. This feature becomes especially important if you do business internationally. 

Apart from the support for multiple currencies, also check the conversion rates and fees that apply to foreign currency transactions. 

Recurring billing and payments

As an MSP, you need a payment platform that allows you to collect recurring payments. The platform should allow you to save and store customer details for future transactions and charge credit or debit cards on preset schedules. 

Additionally, there should be automatic retry options should the initial attempt fail.  

Security

Security is another crucial aspect to consider when looking for a payment processor. When you collect payments, you store sensitive customer information, including personally identifiable information (PII) and financial details. 

Ensure that your payment processor complies with PCI DSS and other compliance standards. 

Integration with other systems

Even though it’s important to choose PSA-agnostic payment solutions that don’t rely on PSA integrations, your provider should support integrations if needed. The solution should at least integrate with accounting and invoicing tools to help you manage all your payment-related tasks in one place. 

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Zomentum Payments – The complete payment solution for MSPs

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Zomentum Payments is the complete payment solution for managed service providers. Its client-centric design, cost-effectiveness, top-notch fraud management, and exceptional customer service make it the preferred payment solution for MSPs and IT partners. 

Here’s why you should choose Zomentum Payments:

• Automate billing and save significant time
• Expedite payments and improve cash flow
• Ensure data security and compliance with security standards
• Collect one-time upfront payments
• Set up and collect recurring payments
• Reconcile vendor licenses and plug revenue leakage

If you want to reimagine your invoice, address manual billing challenges, and ensure timely payments, switch to Zomentum Payments today!

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Final thoughts

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Implementing the right payment solution is instrumental to the success of all MSPs. With so many payment processors in the market, selecting the right tool that suits your MSP needs is crucial. 

The above checklist provides you with the key factors to consider when evaluating MSP payment platforms. 

If you’re looking for a robust MSP platform designed specifically for MSPs, check out Zomentum Payments.