Blog: Integrated? What your firm and clients need to know

Presented by Merchant Advocate

Software integrations have become the new norm for businesses, revolutionizing how day-to-day operations are handled by streamlining client data, financial transactions, and other critical information. They can improve efficiency, reduce human error, and provide valuable insights into overall performance, especially for those managing multiple offices and/or client accounts. 

However, it’s essential to understand how they integrate with other systems and software, including tax preparation, payroll, and payment systems. When software isn’t regularly updated, problems are bound to arise. Businesses of all sizes should regularly evaluate their integrations, either on their own or to with the help on an independent third-party consultant.

Keeping software up-to-date is vital for several reasons. First, updates often come with important security patches to protect against new and evolving cyber threats, critical when handling sensitive financial data. They can also include new features and improvements to streamline workflows, like invoicing, financial reporting, or compliance measures for payments, including surcharging programs. Staying current with software allows businesses to provide better client service, remain compliant with tax and regulatory changes, and optimize their operational efficiency.

If software isn’t regularly updated, merchants face security risks, compatibility problems, and may miss out on new features that could save time and money. Outdated software can also cause compliance issues as regulations evolve. If a client isn’t using the most recent version, data required when making payment transactions may not be passed along correctly, leading to costly penalties.

Has your client or firm recently made an update to their software and noticed changes in processing fees?  If so, it’s a good idea to review vendor contracts and merchant statements to ensure you’re being charged fairly and getting the most out of your system.

“Oftentimes, software companies incorporating merchant services will slip in costly integration fees,” warns FICPA’s dedicated Merchant Advocate representative, Michael Dringus. “These fees can grow rapidly over time without oversight and are compounded by the frequent rate and fee increases imposed by processors.” His advice: “It is important to have your account monitored regularly to keep these fees and rate increases in check.”

The software provider may not always be aware of issues relating to the processor or how to address them effectively. This is why working with an outside consultant can be a big help. Merchant Advocate has extensive experience with software integrations and can ensure payment processing systems are optimized and correctly configured. 

“Interchange, or the card-brand issuing costs, change twice a year, along with coding and data flow parameters,” Dringus explains. “If your system is not updated to pass the appropriate data to meet the required fields, you could be overpaying before transactions ever reach the processor!”

Advising your clients to keep their software up-to-date (as well as your firm’s) is an important part of optimizing processing costs. In addition, a careful review of any integrated systems to ensure they are both worth the investment and running properly will  ensure security, compliance, and efficiency. This is crucial to avoid unnecessary costs or disruptions to operations.

Merchant Advocate is a proud partner of FICPA and has helped clients save more than $300 million in excess processing fees. Find out what they can do for you and your clients with a free consultation. Sign up today at merchantadvocate.com/ficpa.