Best Credit Card Processing Options for Software Companies

Software companies exist to make life easier for humans. In this article, we take a look at how we can help software companies achieve greater success by eliminating unnecessary card processing fees in a number of different situations. For more information, you can book a free consultation with a payments expert.

Software companies exist to make life easier for humans. In this article, we take a look at how we can help software companies achieve greater success by eliminating unnecessary card processing fees in a number of different situations. For more information, you can book a free consultation with a payments expert.

Software Companies

Software companies are dedicated to fixing problems you might not even recognize you have. These companies exist in virtually any industry- entertainment, advertising, and even payments- which means they have a range of ways to generate revenue, thereby using several different forms of payment processing. Common forms of generating revenue as a software company include selling software to other businesses or individuals like Salesforce, charging a downloading fee in the App Store, charging subscription fees for an application or software like Adobe Creative Suite, or charging a per transaction fee like a payfac would. 

With SwipeSum, software companies can eliminate unnecessary payment processing fees and put their extra money towards furthering their development rather than banks and credit card companies. 

Types of Software

To make the first steps in improving your payment options, you need to know what software you use to run your business, and whether the payments are attached. Let’s break this down into three categories:

  1. If you own your own point-of-sale, or business management software

Not only is this the most affordable option, but it’s also a potentially lucrative way to process payments. In this position, software companies have two options: the first option is a direct integration with a provider or gateway. As opposed to a direct integration with one provider, a gateway would allow you to work with multiple providers and is the virtual equivalent to a physical point-of-sale terminal located in most retail stores. An example of a gateway is when you check out in an ECommerce store and see options for ApplePay, PayPal, and manually entering your credit/debit card information. For more information on payment gateways, check out our article here

The second option is the most popular solution and the one we tend to suggest–payment facilitation. Payment facilitation gives your software a more square-like experience to streamline payment processing. It essentially turns your software into a home base for all payments. For example, when you want some food delivered to you, you use the Postmates application to find a nearby restaurant, then order and pay through the app. Because Postmates facilitates the payment in this scenario, it is considered a payment facilitator.

  1. If you license your software from a vendor

If this sounds like you, you need to contact your vendor and see what payment integrations are available to you. Ideally, you will get a quote from every possible integrated payments provider, and they will compete on contractual terms and rates.

  1. If you operate without payment software

This means your business needs either a virtual terminal or physical terminal. You can contact almost any provider to receive these terminals. If you’re starting from scratch, we recommend that you find a consultant who specifically sources software and payments for software companies.

A note on how software companies are becoming the payments provider in 2020

Lately companies have been moving away from the likes of Stripe, PayPal, and Braintree because SaaS platforms are partnering with other existing payment facilitator platforms that add 2-4x the revenue from payments instantly while offering all of the same functions with the ease of integration. In our recent article- found here- we discuss the best way to integrate payments in 2020: integrating with an existing payment facilitator payments provider. The benefits of payment facilitation include instant on-boarding of merchants and the most lucrative revenue sharing potential.

At SwipeSum, we consult software platforms on their best payment processing options; for more information and tips, get started with us today. 


There are thousands of payment hardware options including a wide range of point-of-sale systems and credit card machines. As the head of a software company, you decide which is best for your organization. In general, most software companies conduct their transactions virtually, but we have our own recommendations for wireless credit card readers and consultants who can help you choose, too. 


Finding the best payment rate solution ties into selecting the best provider for your software company. In the U.S. alone, there are over 5,000 credit card processing providers. As a general rule, never agree to terms or fee schedules without a professional helping you. Small fees- whether they’re in percentage or dollar form- may seem like nothing at first, but they sincerely add up. If your company is generating $50,000 in revenue each month but getting charged a 3% transaction fee on every purchase, that’s $18,000 a year in lost revenue that could have been put towards benefitting your company. Luckily, our SwipeSum consultants are available for free and at any time during the workday to help you sift through your options. 

Take a look at the process through the perspective of a software company

Let’s break this process down from the perspective of a software company. It’s likely that you’ll start with Stripe or Braintree, but hybrid models will serve you better in the long-run. With a hybrid model, you can charge the same rates as the Stripes or Braintrees of the world, but keep a percentage of the margin. When you begin turning a large enough profit, consider looking into becoming your own payment facilitator. It’s important to consider switching your payment processing options when you start generating more revenue because by staying with the same widely-used processor, you are losing out on a huge percentage of profits that ultimately go to those same processing companies. 

Here at SwipeSum, we hand you your best options for saving money and allow you to get to the real work: providing your customers with your services. For more information on how to go about switching your payment processor, check out our recent article here.

Izzy Gillman

Izzy Gillman

Izzy is a rising senior at Washington University in St. Louis studying Creative Writing and Psychology. She has been working as a Content Marketing Intern at Swipesum since June of 2020. In her free time, she enjoys journaling, running, and reading memoirs.

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