One of the major benefits of working with a payment facilitator is their unique ability to provide you with flexible billing and payment options. Especially if you are currently working with a legacy ISO processor, these options could not only help you make more money from processing payments but get you your money quicker and easier — as well as sign new customers. How exactly? There’s a few ways…
Use Split Payments to get daily commission payouts
With a payment facilitator like Tilled, we can authorize a single transaction for a customer, but deposit their money into two separate bank accounts.
Let’s say you charge your merchants a flat 3% fee on each transaction to cover the processing costs. On a $100 transaction, the merchant would receive $97 in their bank account, while $3 would be available to you to cover the processing costs with the potential for daily commission payouts on your processing revenue share. This is a far cry from traditional ISO partners, who often don’t pay out commissions until the end of the month following the transaction, making you wait weeks or months for your money.
Charge a Platform fee
Another way to utilize split payments is through utilizing a platform fee. For instance, in addition to a 3% fee to cover credit card processing, you could also charge your customers a flat 1 percent platform fee on each transaction for the use of your software. This could be in addition to or replace entirely your SaaS or other fees, but rather than billing your customers at the end of the month and waiting patiently (or not so patiently) for them to pay it, you would receive your money on each transaction with it deposited into your bank account each day. How might that improve your company’s cash flow? In addition to the platform fee deposited each day, with Tilled you would also receive your revenue share from the payments processing at the end of each month.
Create surcharge and convenience fees
You can also use Tilled’s flexible payments options to create surcharges and convenience fees for the end customer. For instance, if you operate a donation platform for nonprofits, your merchants could pass along the 3% credit card processing fee to their donors in the form of a convenience fee. A $100 donation would ultimately be $103, with all costs covered by the customer rather than the nonprofit merchant.
Each of these options are unique to payment facilitation, but with Tilled you have even more options than you do with other PayFacs like Stripe, Square or Braintree. Unlike those processors, who take a flat fee of 2.9 percent and 30 cents per transaction daily, with Tilled you can utilize interchange plus pricing, saving your customers money, as well as monthly billing where your merchants are only charged for credit card processing at the end of each month. For merchants who struggle with accounting software that can’t understand the daily withdrawals from credit card processors like Stripe, monthly billing may be an especially attractive option.
Pricing that works for every merchant
But more than just offering unique options, Tilled also stands alone in the fact that you can offer each of these options to your merchants, and allow each merchant to design the payments system that works best for them. All of your merchants get all of these options, every time.
With Tilled, each merchant receives a specific product code that includes all of their decisions, meaning your software could easily support 100 different merchants with 100 different payment systems. This is not something you’ll ever be offered from other PayFac processors like Stripe, Square, or Braintree. And if you’re considering becoming a PayFac yourself through a PayFac-in-a-Box provider, this could not only mean more development time and headaches ahead of setting up the accounts but also more time and potential for error when working through your daily settlement reports and paying out your merchants.
Thanks to PayFac-as-a-Service with Tilled, you have the flexibility to customize your payments pricing for each merchant, giving you the advantage when selling them on your embedded payments solution. More than that, all of it is taken care of on the backend by Tilled. You simply tell us the details of the pricing model, and boom: you get the commissions with no extra work, backend development, or settlement headaches on your part.
So consider your options: Legacy ISO referral partners can not handle split payments, full stop. With PayFac-in-a-Box options, you’ll be implementing and managing all of these options yourself. And you’ll never be offered this type of flexibility from Stripe, Square, or Braintree.
Tilled is a unique, PayFac-as-a-Service partner where you get it all, without having to do any of it yourself.