Integrated PaymentsHow Integrated Processing Benefits Both Merchants & Consumers

April 3, 2023 | 8 min read

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Integrated Payments

In a Nutshell

Want to get paid faster for credit card orders? Like to offer your customers more payment options? An integrated payment processing solution can automatically enter and reconcile your invoices as you receive them, and balance your general ledger in real-time. Particularly for online merchants, it can be a game-changer, providing a safer and easier customer experience that can help reduce chargebacks and fraud.

Curious About Integrated Payment Solutions? Here’s What to Look for.

If you’ve ever used a relational database, you can appreciate the concept of integrated payments.

Essentially, information is keyed in once, then automatically used wherever or however else it’s needed. This eliminates the possibility of re-entry mistakes. As long as the data is entered correctly from the start, the numbers are always accurate, even across multiple related databases.

The integrated payments concept lets merchants take credit card information obtained during the original payment transaction and forwards it to other accounting programs for processing and posting. It sounds great... but does it work? In this post, we look at how an integrated payments system can benefit your business.

What is an Integrated Payment System?

Integrated Payments

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An integrated payment system is an automated payment processing platform. It takes transaction data from the point of sale, sharing information directly with other connected systems without manual input.

No two integrated payments solutions are identical. However, the basic premise is the same: a business’s payments systems are seamlessly connected to the merchant’s other financial processes.

For example, the total payment amount for a given transaction is information that would be needed for accounting, invoice reconciliation, payment processing, and potentially other systems. An integrated system would capture the total calculated at the point of sale, then forward it directly to other departments or software.

This is especially relevant to eCommerce merchants who might otherwise need to manually key-in numbers. Payment information comes straight from the online checkout, and is automatically used to process and post payments to the associated transaction or invoice.

What Are the Benefits of an Integrated Payments Model?

The immediate advantage here is streamlined operations. Through integration, payments are posted and ledgers are updated at the time of sale. But, there are a few other long-term benefits to an integrated approach that you should consider, too:

Higher Customer Satisfaction

Non-integrated payments often lead to checkout friction, frustrated customers, and cart abandonment. Integration makes the process smoother, faster, and more secure, helping reduce churn while enhancing the shopping experience.

More Efficient Accounting

Manual data entry, review, and reconciling are both tedious and time-consuming. By eliminating these tasks, integrated payment processing allows the merchant to better allocate staff and resources to grow the business.

More Accurate Recordkeeping

Integrated systems remove the manual entry — and re-entry — of data from the process. This effectively eliminates accounting discrepancies, reconciliation mistakes, and revenue-reporting errors. The same information is automatically available to all systems at the same time.

Faster Payouts

With credit cards, there’s a time lag between making the sale and receiving the funds. Integrated payments systems deliver immediate posting, helping merchants get paid as quickly as possible.

More Customer Payment Options

Most integrated payments solutions work with multiple payment channels (credit or debit cards, mobile payments, gift cards, etc.), allowing merchants to offer customers more payment options. Also, services such as PayPal can be used without requiring the buyer to exit to the PayPal site.

Recurring Payment Processing

Subscription billing is easier using integrated payments, especially if the system is also connected to the merchant’s customer relationship management (CRM) software. Customers only have to provide payment information once. After that, it can be stored and used to automate future invoicing and process ongoing payments.

In-Depth Analytics

A sophisticated payments system that is integrated across processes can provide deeper metrics for business performance. The merchant should be able to analyze historical revenue data and judge the business’ performance by channel, time frame, location, and more.

Fraud & Chargeback Oversight

Integrated payment solutions record all sales, potentially allowing merchants to spot trends or patterns indicating possible fraud. Shared data can also simplify data retrieval in the event of a customer dispute.

Increased Data Security

Manual accounting can often compromise data security. Instead of storing information on-site, integrated payment processing allows merchants to leverage cloud-based accounting, which runs on off-site servers. An accounting program compliant with the Payment Card Industry Data Security Standard (PCI DSS) helps protect credit card information in the event of a data breach.

Increased security for transactions is important, but it won’t protect you from all types of payment fraud.REQUEST A DEMO

A Closer Look at Integrated Payments & Security

We talked a bit about data security above, as well as fraud and chargeback management. But, given that these are some of the most important benefits of an integrated approach, they deserve some extra attention.

This chart looks at some of the security vulnerabilities of non-integrated systems, and how integration can help mitigate those risks. 

Multiple Programs & Systems: Standalone systems don’t connect to your POS, meaning you’ll need at least two (and usually more) processing systems.Everything Together: Integrated payment systems connect directly with your POS and transfer data without needing a third-party processor.
Multiple Entry Points: Manually keying in the same information in multiple locations is not only tedious, it increases the odds of a mistyped entry.One Entry Point: Data received directly from the POS and used consistently by the entire system dramatically lowers the odds of entry mistakes.
On-Site Data Storage: There is always the risk of data theft or fraud. If you’re storing personal customer information, you’re responsible for going through all the necessary steps to keep it safe.Integrated Storage: Integrated payment systems are required to comply with PCI DSS regulations, which are global standards for data security and loss protection.

Mistyping one character when entering transaction information, or incorrectly routing just one piece of data at any point in the transaction process, could result in a chargeback. Simple merchant errors like this are believed to cause between 20-40% of all disputes.

Integrated payments eliminate this possibility, thereby making you much less susceptible to disputes.

Finding the Right Integrated Payment Processing Partner

An integrated payment platform obviously has a lot to offer. So, how do you get started?

Not every payment processing provider can help you integrate your operation. Your first step is to locate the best processing partner for your business. Here are a few things to consider as part of your search:

Think Like a Customer

Beyond what you’ll require from a processing partner, it’s good to also think about your customer’s needs. A range of payment options, for example, along with a secure, frictionless, and uniform purchasing process across all channels, can be very desirable.

Remember What You Came For

When shopping for a processor to help you integrate, don’t just look at features or cost. You’re not after a product; you’re looking for a solution. Have a clear idea of your requirements before you approach potential partners.

Make Security a Priority

Digital payment security is critical for eCommerce businesses. Be sure your integrated processing partner follows “best practices” for data storage and maintains PCI compliance to safeguard sensitive customers information.

Will They Grow with You?

If you’re hoping to see your business grow, you’ll want your integrated payments system to be able to scale with your company as it expands. Look for providers that have the resources and stability to process an increasing volume of payments.

Be Sure They’ve Got Your Back

What kind of customer support will you need? Check reviews and, if possible, talk to existing clients. Providers who have a reputation for quality customer service and support aren’t likely to disappear once the contract is signed.

Does your business need integrated payments? The short answer is “yes.”

Think about the kind of shopping experience you want to offer your customers: fast, easy, and secure. Now, think about the sales experience you want for your operations: streamlined, accurate, and as easy as possible.

Integrated payments can help you accomplish both of these things.

That said, the exact structure of an integrated system is unique to every business. To reap the full advantages of integration, you’ll need to look at all your requirements, from payment options to security and fraud protection. At Chargebacks911, we’re familiar with all the components needed for secure processing. If you’d like help finding your best solution, contact us today.


What are integrated payments?

An integrated payment system is an automated payment processing platform. It takes transaction data from the point of sale, sharing information directly with other connected systems without manual input.

What are the benefits of integrated payments?

Integrated payment solutions save time normally needed for entering and reconciling payments, which reduces your costs and streamlines cash flow. They also lower the potential for errors by eliminating manual data entry. Most importantly, they greatly increase the security of data storage and transmission.

How do you integrate payment services?

Talk to your gateway provider or processor. If they handle integrated payments, they can help you set it up.

What is the difference between integrated and non-integrated payment processing?

Integrated processing is built into the point-of-sale or customer relationship management (CRM) software being used. It does not typically require re-entry of the transaction amount, but rather pulls the amount from the software itself.

Non-integrated processing typically requires a human to manually input the amounts, often in more than one location. This takes time and opens the possibility of errors in recordkeeping and data transmission.

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