Category: Industry

6 Essential Features for a Better IVR Payment System

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Paying bills may never be customers’ favorite activity, but reducing friction points during the bill-paying process can get your invoices paid faster. In fact, Millennials report they are more likely to prioritize paying bills that are easy to pay before taking care of those that are more inconvenient.

Unfortunately, more than half (52%) of consumers report experiencing at least one pain point when paying bills, and 29% encountered multiple issues. Top bill-paying complaints include log-in frustration, authentication issues and a lack of autopay options. By creating convenient payment options for your customers, you improve their overall experience, which can lead to collecting more on-time payments.

One way to conveniently accept payments is with a thoughtfully designed interactive voice response (IVR) payment system. IVR payment systems use Voice over Internet Protocol (VoIP) technology to guide customers through the payment process over the phone. These systems are a convenient, efficient and secure method of taking payments that benefits both customers and merchants. However, poorly designed IVR payment solutions increase customer frustrations instead of reducing them.

So what should you look for in an IVR payment system so you can improve your business and avoid any pitfalls? Read more to learn the 6 key features the best IVR systems have that improve the payment experience for customers.

Benefits of Offering IVR for Payments

Customers expect the payment experience to be quick, convenient and secure. Quality IVR services meet all three of these expectations. Customers may also expect merchants to offer an IVR payment option; according to a 2022 survey of more than 2,100 online bill payers, 26% had paid a bill via an automated phone system within the past year.

The IVR payment process is:

  • Fast: By using an automated IVR payment system, customers don’t have to wait to speak with a live agent. The average IVR payment call takes about three minutes. This can be significantly faster than other payment processing options, such as finding the merchant’s payment portal, logging in and resetting a password after multiple failed login attempts or waiting on hold to speak to an agent to complete a payment.
  • Convenient: IVR payment solutions allow customers to pay their bills 24/7—without an internet connection. Customers are also able to enter their payment reference number (e.g., invoice/account/policy number) so they don’t have to remember a password.
  • Secure: IVR payment platforms securely process transactions and reduce the risk that sensitive payment data is exposed either via unauthorized access to internal systems or through call center agents manually accepting payment details over the phone.
    • When using an IVR system, customers can enter their credit card or Automated Clearing House (ACH) information via their phone keypad instead of reading out the information to a contact center agent. This prevents someone from overhearing the conversation and jotting down the information.
    • Merchants should select an IVR system that complies with the Payment Card Industry Data Security Standard (PCI DSS).
  • Affordable: IVR payment systems benefit merchants by increasing efficiency and decreasing labor costs by reducing payment-related calls to contact center agents, which cost around $5 or more per call. While a few dollars per call may not sound like much, it adds up quickly. In contrast, IVR payment calls cost merchants about 50 cents each.

6 Must-Have IVR Payment System Features

IVR payment systems need to provide:

  1. Multiple payment options (credit card and ACH) for full or partial payments
  2. Several ways for customers to connect to the IVR system
    • Call a direct number (printed on statements or included in an email or text notification)
    • Access via the IVR menu (e.g., press 1 to pay your bill)
    • Agent transfers callers to the payment IVR
  3. A variety of menu options after the customer completes payment
    • Make another payment
    • Receive an email/text receipt
    • Speak with an agent
    • Store (or update) payment method(s) for future transactions
  4. An outbound IVR system that
    • Delivers payment reminders
    • Allows customers to schedule a convenient time to receive an automated call to make their payment
  5. The ability to easily make changes to your IVR system based on your business’ needs
  6. Integration with billing and accounting systems, allowing payments to be posted directly to your business in real time

CSG Forte offers an IVR payment system with inbound and outbound options for fast, convenient and secure payment processing. With CSG Forte’s IVR solution, live agent calls have been reduced by up to 70% for payments, on average.

Contact us to learn how CSG Forte can streamline your payment processes and reduce inbound calls to your call center. Get started today.

Power to the People: Digitized Payments Make Payments Safer and Easier

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The first electronic payment debuted way back in 1871 when Western Union used a telegraph network to “wire” money between Boston, New York City and Chicago, and we sure have come a long way since then. And while wire transfers have been commonplace for centuries, what we now call digital payments really began showing their worth with continued spectacular growth over the last several years. They present an ultra-secure, convenient way to make payments anytime, from anywhere. They’re so convenient and secure, in fact, that Forbes refers to them as “the backbone of global commerce.”

Since the COVID-19 pandemic first made contactless payments the norm, overall adoption of digital payments has skyrocketed. According to a report by Statista, the total transaction value of digital payments is expected to reach $20.37 trillion by the end of 2025, and should hit $36.75 trillion by 2029. This exponential surge in growth is driven by the increasing demand for seamless and secure payment methods, which cater to consumers’ ever-increasing preference for convenience and safety.

In addition to purely digital transactions, digital payments can also be facilitated through physical means. This includes using a card number or a physical card embedded with a secure element, such as a radio-frequency identification (RFID) chip or near-field communication (NFC) technology. These technologies allow for the digital delivery of payment data through a physical medium, blending the tangible and intangible aspects of transactions. This hybrid approach ensures that even in-person payments maintain the same level of security and convenience as their fully digital counterparts, catering to a wide range of consumer preferences and scenarios.

What Are Digital Payments?

Consumers are increasingly growing accustomed to all types of digitized experiences. With a few taps on your smartphone, a pizza can arrive within minutes—no phone call, cash or even answering the door, in some cases. This convenience offered through digital experiences also creates an added layer of safety, allowing transactions without any needed human interaction. And as digital experiences have become more ubiquitous, consumers have come to expect them to be available anytime, on any channel—especially when it comes to making payments.

The payments process plays a pivotal role in each customer’s experience. According to  CSG’s 2025 State of the Customer Experience report, personalization was the biggest driver of customer loyalty in 2024. In terms of staying competitive, digital payments are no longer a nice-to-have—they are a must.

Benefits of Digital Payments

There are several benefits for both merchants and customers when it comes to digital and contactless payments.

  1. Convenience: When asked why they wanted contactless options, 2% of respondents cited convenience as their primary reason for using contactless payments. Contactless payments remove the need for signatures.
  2. Enhanced experience: Digital payments offer a more seamless customer experience while cutting operational costs for merchants.
  3. Security: Contactless payments featuring RFID- and NFC-enhanced technologies are secure, especially when paired with an enterprise-grade point-of-sale (POS) terminal with advanced security.

Choose CSG Forte for Digital Payment Solutions

From managing employees to balancing the books to creating an exceptional customer experience, merchants have more than enough to worry about—partnering with a payments provider with the right solution helps.  At CSG Forte, we offer a full suite of solutions to make digitizing payments scalable, secure and convenient.

Our V400C Plus device makes contactless payments easy. The device was designed with merchants and their customers in mind by offering enhanced features like a color touchscreen interface, wi-fi connectivity and thermal printing. This technology allows merchants to smoothly conduct transactions, providing an exceptional customer experience. Alternately, for merchants that require flexibility or portability, the Magtek Dynaflex II Go card reader can help you accept EMV cards and digital wallets while either located at a fixed setting or on the move.

The V400C Plus can be used as a standalone device, be connected to a point-of-sale application or seamlessly integrate with CSG Forte products. Merchants can accept every major credit card, as well as mobile wallet payments, like Apple Pay and Google Pay.

Combined with our cloud-based platform Dex, merchants can gain insights into what payments customers prefer and allow them to easily manage the entire transaction lifecycle. Reach out today to learn more about how offering secure and convenient contactless payment payments powered by the right technology can get your company more satisfied customers and increase your revenue.

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.

Finding a Secure Approach to Accepting Phone Payments 

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Credit card fraud is widespread—and it’s expensive for U.S. consumers. In fact, one recent survey found that 60% of Americans have experienced credit card fraud at least once, and 45% have been victimized multiple times. It should be no surprise, then, that according to a recent McKinsey & Company report, 69% of U.S. bill payers rank security as a top feature in the digital bill payment process.

One area of heightened risk is taking credit card payments from your customers over the phone. Your organization needs to get paid, and you can leverage tools to make taking over-the-phone and call center payments more secure.

Merchants who accept credit card payments must comply with the Payment Card Industry Data Security Standard (PCI DSS). Payment card brands may fine merchants up to $500,000 per incident if they aren’t PCI compliant at the time of a data breach.

 

Taking Credit Card Payments by Phone Can Be Risky Business

When consumers think of how contact center agents take payments, they often think of being asked to read off their credit card number, expiration date and card verification value (CVV) code over the phone.

If that doesn’t make you a little nervous, it should. Why? That method of sharing card information may increase the risk of credit card fraud for several reasons:

  1. A contact center agent may write the credit card information down on a piece of paper or somewhere visible where another person could walk by and steal the information.
  2. A disgruntled employee taking the payment may steal the credit card information, using it to make unauthorized purchases or obtain funds from the account.
  3. The customer may be in a public place when reciting credit card details. Someone may overhear the conversation and jot down the credit card information.
  4. Reading out a CVV code negates the reason for having it. This code is used to prove the payer has possession of the card at the point of payment. Someone who overhears and captures that CVV can use it to make card-not-present charges.

 

Discover Better, More Secure Ways to Take Credit Card Payments Over the Phone

  • Inbound and outbound interactive voice response (IVR): Customers can pay via IVR by using automated voice prompts and keypad inputs, eliminating all four problems listed above. The contact center agent transfers the caller to the payment IVR system. The customer enters the card number, expiration date and CVV on their phone keypad when prompted. The IVR system is integrated into a payment gateway to make the transaction and provide the customer with a receipt number. To make it even more convenient for your customer, you can leverage an outbound IVR, where a customer can schedule a time to receive an automated call to make their payment.
  • Live agent assist technology: Businesses can leverage payments technology to have contact center agents quickly send customers a link to a custom online payment page for payment. By using a solution like CSG Forte’s Payer Engagement Platform, contact center agents can easily create an invoice with a few clicks of a mouse and send it to the customer via email or text message. This allows customers to pay promptly and securely—without sharing their credit card information with the agent. This method of payment greatly reduces the risk of fraud, as well as the risk of exposing customers’ personally identifiable information, or PII.

The Payer Engagement Platform is a secure digital payment solution that enables customers to make payments using their preferred channel and payment method, at any time. By incorporating IVR and live-agent assist technology, businesses can ensure secure, efficient and customer-friendly payment processes that minimize fraud risk and protect sensitive information.

Contact us to learn how the Payer Engagement Platform simplifies bill payment, improves customer experience and reduces fraud exposure.

‘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.

Securing Merchant Gateways in the Era of Effortless Experiences

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Many merchant service providers (MSPs) now offer online portals that allow merchants to manage transactions and accounts, often with integrated virtual terminal capabilities. These gateways can streamline customer experience (CX) and backend operations to drive efficiency, satisfaction and clear communication. However, they are also prime targets for fraud.

Most merchants understand this risk and have taken great strides to balance consumer data privacy with effortless, satisfying experiences. Fewer, though, realize the fraud risks associated with merchant gateways aren’t just about customers. Just as bad actors can access customer information through these attacks, they can access a merchant’s proprietary documents, banking information and other high-risk areas of a digital ecosystem.

Then, thanks to real-time processing, hackers can make changes (or withdrawals) before the merchant has time to react. Given the speed of these transactions, merchants’ growing attack surfaces and the increased adoption of real-time payment gateways, it’s not just important that merchants who opt to use the tool prioritize cyber best practices. It’s vital to their survival.

 

What’s the Big Deal?

On the macro level, the impact of these attacks on merchants and other organizations is significant and growing rapidly. According to Sifts Q1 2024 Digital Trust and Safety Index, account takeovers (ATOs) cost merchants $38B in losses last year, and that number is expected to balloon to $362B by 2028. The organization’s Q2 Index found that 78% of businesses now face artificial-intelligence-enabled fraud risks consistently.

For individual omnichannel and digital-first merchants, attacks on payment gateway portal accounts present a serious threat, and they’re far more damaging than typical attacks on online shopping accounts. When a cybercriminal hacks into a payment gateway, they can quickly access the host merchant’s account and transfer money directly into their own. Imagine the panic of discovering that your hard-earned funds have vanished without a trace.

These criminals have a variety of tactics at their disposal, which makes prevention, detection and response difficult. Upon breaching a merchant account, the hacker might turn off notifications so the merchant is unaware when fraudulent transactions occur. They may change account contact details, so alerts about unauthorized activities are deactivated.

Worse yet, hackers who successfully access an account can run ACH credit transactions to tap money from a merchant’s bank account to their own. Many will alter bank information and other sensitive details to make it even harder for merchants to regain control of their accounts. It isn’t just a minor inconvenience; it’s a potentially business-crippling event. Once an attacker has access to the merchant’s account, there’s little hope of recovering the losses.

 

You Can Never Be Too Secure

Though cybercriminals and ATO attacks can be devastating, there are plenty of steps merchants can take to protect themselves. This includes the typical recommendations, like using complicated passwords, investing in credential managers and prohibiting employees from saving login details in browsers. However, given the increasing frequency and severity of these attacks, merchants may want to go a little further in their efforts to protect themselves from fraud.

Achieving that goal starts with the merchant’s MSP choice. When choosing a partner for payment gateways, it’s not just about the surface-level touchpoint the vendor can offer end users. Merchants must also verify that the MSP they choose offers the security tools necessary in the current cyber landscape, including:

  • IP-based restrictions: These settings allow merchants to configure gateways to restrict users from logging in to their accounts based on location. This helps prevent account takeovers, even if the password is compromised.
  • Granular roles and permissions settings: The more granular a gateway’s permissions and custom rules capabilities, the more precise a merchant can be about who gets access to what. This allows merchants to limit each user’s access to only the elements of the account that are necessary to their role—which means fewer entrances to sensitive areas of the system for hackers to exploit.
  • Multifactor authentication (MFA) requirements: This security mechanism requires a user to verify their identity through two (or more) methods. The extra step(s) protects accounts with compromised login credentials with a time bound authentication code that must be verified via a secondary touchpoint like a SMS, Phone call or an email different from the primary one.
  • Authenticator app: Varied and a better form of MFA, in which the authentication code is generated locally and is not intercepted by cybercriminals or stolen because of a SIM takeover.
  • Passkey authentication: Passkeys differ from MFA in that there is no password to enter. Instead, the system creates unique public and private keys for every online application or site, device and user identifier, then matches the keys to their public counterparts to confirm identity and grant access. By removing traditional credentials from the process, this approach leaves traditional phishing nearly useless, as there is no password or username to steal. It doesn’t make accounts unhackable, but it does make executing a fraudulent login much more complex and less dependent on human error.
  • Transaction Risk Management: AI/ML-based models that instantly score an incoming transaction for fraud based on several parameters such as the transaction history, payment methods used, location, time of the transaction, the average amount of the transaction etc. These models allow merchants to customize the base model to suit their business needs.

The above represent just a few of the many possible tactics a merchant could use to firm up operations against ATOs—and a strong MSP in today’s market should offer all of them and more. This proactive approach not only mitigates financial risks but fosters trust with customers and stakeholders, leading to happier, loyal customers.

 

Securing Merchant Gateway Against Intruders

To protect merchant gateways from fraud can’t just be a priority; it must be a necessity. In today’s increasingly digital world, safeguarding sensitive data is an end-to-end imperative, and it must be a part of every decision. After all, the stakes are high! A single fraudulent incident can expose customer data, tarnish reputations and jeopardize future success.

A smart MSP will understand that and embrace its role as a supporting partner to merchants as they seek to delight and protect customers. Together, MSPs and merchants can fortify defenses against fraud and unauthorized access to maintain resilience, safeguard reputations and get back to what matters: delivering effortless and secure experiences that drive customer trust, lasting loyalty and business growth.

If you’re ready to elevate your payment security and protect your business against cyber threats, now is the time to act. Discover how CSG Forte’s advanced payment solutions can provide the robust security measures you need to stay ahead of fraud and ensure the integrity of your transactions. Contact us today to learn more about how we can help you build a secure, trusted and seamless payment experience for your customers.

Build or Partner? Embedded Payment Processing for ISVs

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“Why don’t we just build our own?”

A homegrown payment processing solution can seem appealing to independent software vendors (ISVs). Many ISVs consider building their own systems to lower costs, benefit from additional revenue share, customize the customer experience and maintain direct control over the entire transaction.

While the idea of developing an in-house solution is tempting, it can come with hidden baggage. The upfront savings aren’t always enough to offset the added risks and responsibilities assumed by ISVs that choose to process their own payments. On the other hand, partnering with a payments vendor offers ISVs plenty of advantages that might outweigh the allure of becoming a payment processor. How can you determine which option is right for you?

In this blog post, we’ll explore the factors ISVs need to assess when deciding whether to build or buy a payment processing solution.

 

What It Takes for ISVs to Process Payments

In addition to facilitating transactions, ISVs that build their own payment processing solutions are on the hook for several critical functions that aren’t readily visible. Managing risk and charge disputes, onboarding new clients, remaining legally compliant and preventing fraud all fall under the ISV’s purview. Mastery of the following roles is essential to creating a seamless and secure payment processing system:

  • Risk management: Performing due diligence is an essential first step in processing payments. Not all prospective clients have pure intent—verifying a merchant’s identity and having security checks in place helps insulate the business from risk. ISVs must be prepared to evaluate each application before accepting it.
  • Onboarding: Onboarding clients is a process in itself. Once a business is approved, providers must seamlessly integrate their system with the payment gateway before they can begin to process transactions. After the account is set up, they’ll need ongoing training and support to use the new platform effectively.
  • Dispute management: Transactions don’t always go according to plan. When customers have insufficient funds or contest a charge, payment processors must evaluate the likelihood of winning the dispute before accepting it or requesting additional documentation.
  • Fraud prevention: Cybersecurity is an ongoing job for payment processors. They must continuously monitor for unusual activity to predict and quickly detect fraud. For ISVs that process their own payments, fraud prevention is particularly important as they would be assuming full liability.
  • Compliance: Payment processing is a highly regulated industry. ISVs must understand and adhere to ereporting guidelines for card brands they acquire and banks they’re working with as sub-merchants to remain legally compliant.

 

Why ISVs Partner With a Payments Solutions Provider

Building a robust payment processing system from scratch is risky and resource-intensive, which is why many ISVs choose to outsource the entire cycle or parts of it they don’t want to handle in-house. But beyond managing the hidden headaches, there are additional benefits to trusting an experienced partner with payment processing:

  • Faster speed to market: Bringing in an external payment processor eliminates the learning curve for ISVs. They can execute efficiently and quickly integrate an ISV’s existing software with an API.
  • Reduced PCI-DSS and security exposure: If an ISV processes their own payments, they store sensitive payment data that opens them up to greater exposure. They are also subject to stringent PCI-DSS security standards. Working with a third-party absolves ISVs of this burden.
  • Better scalability: As the business grows and needs to process more transactions, an established payments partner can help ISVs adapt and scale more quickly and securely than reworking the system themselves.
  • Expertise and support: Some of the functions required to process payments—like underwriting and risk management—require expertise that many ISVs do not already have in-house. Instead of adding new talent to their teams, they can outsource these duties to an experienced partner that already has certifications and connections in place that would otherwise be time-consuming and costly to attain.

 

How to Know the Right Choice for You

Deciding whether to build or partner to integrate a payment processing solution is a complex decision that requires careful consideration. Each ISV must weigh the unique challenges and potential benefits of both options to determine the best path forward for their specific business needs.

ISVs can ask themselves the following questions to assess their preparedness for building a payment platform:

  • Readiness: What is the size and maturity of my business? Have I explored all my options related to optimizing payments and reducing processing costs?
  • Costs: Am I prepared to cover the additional costs required to build and maintain my own payment processing platform? What talent would I need to hire to have the necessary expertise in-house?
  • Time: How long will it take to become a payments processor? Can I afford to wait that long?
  • Risks: What is my risk tolerance, both for financial losses and reputational risks? Am I comfortable assuming liability as a payment processor?

Finding the answers to these questions will prepare you to take the next steps forward in building or buying a payment processing solution as an ISV.

 

Choose a Payments Partner That Can Grow With You

Ultimately, ISVs want to ensure the payments experience feels like a seamless part of their software, which might initially make building their own platform look like the best path. But the right payments partner can help ISVs achieve that—while also taking the strain of processing payments off their shoulders.

Not ready to decide if you want to build or partner? You don’t need to lock yourself into one choice today. Choose a payments partner that can meet you where you are and easily scale to meet your changing needs.

CSG Forte grows alongside your business. Whether you’re at a stage where you want to offer payment acceptance within your software or you’re ready to become a payment facilitator, CSG Forte’s flexible partner program is designed to scale to your needs. We make it easy to ramp up your offerings on an a-la-carte basis as your business grows, until you’re ready (or not) to take on the whole process.

Contact us today to discuss how our integrated payment solutions can support your goals, no matter where you are on your journey.

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.

Recurring Payment Systems: How a Great One Can Boost Your Bottom Line

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Your payments platform is supposed to be drawing revenue, right? Unfortunately, poor payment processes could be costing you—both customers and money. How can that be? Complicated, disjointed payment processes can frustrate customers, eroding trust and leading them to choose a different provider. On the other hand, providing the right payments platform makes it easy for customers to keep paying their bill and for you to keep growing your business.

Generating consistent revenue is critical for any business, and having a robust recurring payments platform is a key factor to making that happen. But not all systems are created equal. The best payments platforms have several key features that distinguish them from competitors and can have a significant positive impact on your bottom line.

 

Recurring Payment System Core Functions

A recurring payment system is designed to automate regular payments from customers, ensuring that payments are processed on a consistent schedule without the need for manually inputting payment information every billing cycle. Core functions that a payments platform should offer include:

  • Payment scheduling: Customers have enough to remember without having to mark their calendars to pay a bill every month. Automating the collection of regular payments helps ensure customers pay their bill on time and consistently (weekly, monthly, annually, etc.).
  • Payment processing: No one remembers their credit card number or account information, and digging a card out to make a payment is a pain. Automating the payment process (ACH, credit cards, etc.) ensures customers can make consistent and timely payments without the need for manual input, making customers happy and helping your business run smoothly. Additionally, using a payment solution that leverages tokenization for recurring payments ensures payment data is kept safe and out of your systems.
  • Invoicing and notification capabilities: Customers like surprises, but not on their bills. Automating your company’s invoicing and payment notification capabilities means your customers are informed about their payment amounts, including any changes, enhancing transparency, satisfaction and reducing missed payments.

 

Recurring Payment System Must-Haves

Many businesses rely on recurring revenue models to ensure steady growth and financial stability in today’s digital, often subscription-based, purchasing world. Their payment systems are the engines for those models, powering customer satisfaction, operational efficiency and revenue consistency. A payment system must offer a range of features that cater to both the business’s needs and the customer’s expectations, such as:

  • Customization and automation: The best recurring payment systems offer customization and automation options. Customers can choose different payment schedules or methods, and browse available plans, current promotions and key features, allowing them to feel in control of their options. Automated retries for failed payments help reduce customer frustration and missed payments.
  • Security and compliance: The best systems ensure Payment Card Industry Data Security Standard (PCI DSS) compliance for card payments, implement strong data encryption and have robust fraud detection measures. Leveraging tokenization can also help ensure recurring payment data is kept secure. Trust and security are crucial for building long-term relationships with customers.
  • Self-service options: A great recurring payment system has intuitive user interfaces for payment management, empowering customers to manage their payments gives them a sense of control, which increases satisfaction and loyalty. Making it simple for customers to change or cancel their recurring payments is also a key feature that helps keep them returning to your site.

 

Juniper Research Can Help You Choose the Right Payment System

Juniper Research, a leading analyst firm in the mobile and digital tech sector, predicts that recurring payments will present a $15 trillion opportunity by 2027. “This means now is the time for vendors in the space to stay agile and embrace customer choice,” said Nick Maynard, VP of fintech market research at Juniper Research. “CSG consistently surpassed our evaluation criteria for innovation, user experience, compliance and security in a highly competitive field.”

Juniper Research recently recognized CSG Forte Engage at the 2024 Future Digital Awards for Fintech & Payments, awarding CSG a Platinum win in the Omnichannel Payments Platform category and Gold in the Recurring Payment Platform Innovation category. Juniper identified Forte Engage as a standout recurring payments platform because it “offers a true omnichannel experience to help improve customer satisfaction and engagement while mitigating late, failed and abandoned payments.”

CSG Forte Engage can help your company increase its revenue and reduce customer churn while complying with evolving security requirements. Here’s how:

 

Increased revenue and predictable cash flow

  • A reliable system ensures on-time payments and reduces missed revenue opportunities.
  • Automation reduces errors and streamlines manual work for billing teams, cutting down on administrative overhead.
  • CSG Forte Engage scales easily with your business as your customer base grows.

 

Customer retention and reduced churn

  • Smooth multichannel billing experiences improve the customer experience and increase brand loyalty.
  • Easy payment management and flexible billing options lead to longer customer lifecycles.

 

By investing in the right payments system now, you can prevent facing costly migrations in the future. The best recurring payment systems, such as CSG Forte Engage, stand out for their flexibility, automation, security, integration and superior customer experience.

You can accept and manage recurring payments easily with CSG Forte. Schedule payments, verify accounts, handle returns and minimal downtime with our robust payment platform. Contact CSG for more details or sign up today.