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What is an ERP payment integration?

An ERP payment integration solution uses an API integration or other software connector to link your ERP with a payment processing platform—like Versapay. This allows you to conveniently manage the payment process from within your ERP, eliminating the need for redundant data entry or process management across two—or more!—systems.ERP payment integration solutions are popular technologies for adding efficiencies to payment processing processes, and consolidating business operations.‏‏‎ ‎

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The difference between an ERP payment integration and an integrated payment system (IPS)

On the surface, ERP payment integrations and integrated payment systems are similar. They both connect payment processing with other systems in your business. But there are some significant differences.

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Integrated payment systems:

An IPS is designed for business-to-consumer (B2C) businesses that want to accept payments from their customers quickly and easily.

These could be businesses trading online or in person who would otherwise have had to manually process each transaction. They will often integrate with common accounting tools like QuickBooks or Xero but not larger ERP systems.

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ERP payment integrations:

An ERP payment integration solution, on the other hand, is for mid-to-enterprise businesses that use an ERP to run several of their business processes. It will give you the same ability to accept payments from your customers quickly and easily. But it's aimed at larger business-to-business (B2B) and B2C companies that need a more robust accounting function.

This ERP payment processing integration makes it possible for payment data to flow seamlessly from one system to the other. For an ERP like Microsoft Dynamics 365 or NetSuite, your payment data is immediately linked to all the other customer data you’ve saved.

This adds secure payment processing to your existing ERP without requiring any additional manual processes in the middle.

We'll go into the full benefits of this in the next section. But essentially, if you're looking to simply accept payments from individual customers each day, an IPS will do the trick. But if you want those payments to be automatically linked to the rest of your business, an ERP payment integration will do this for you.

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Why businesses with ERPs need an ERP payment integration solution

We've already touched on a couple of the benefits, but let's dig a bit deeper, including into some of the risks of not using an integrated payments solution with your ERP.

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Benefits of ERP payment integration

• 1) Streamlined payment processing—By using an ERP payment integration solution, you effectively create a single platform for receiving payments across your whole business. You can send invoices and get paid, all within the same workflow. That means your entire process can be managed, viewed, and analysed from one place
• 2) Improved cash flow—By bringing payments into your existing ERP payment system, you can speed up the collections process. You can see exactly what has and hasn't been paid and address late or missed payments faster. This immediately improves your company’s cash flow situation because you get paid faster.
• 3) Increased security—Integrated payment processing solutions specialize in taking payments securely. This reduces your risk of data breaches and digital payment fraud without giving up control over your processes. And by removing most manual actions from payment processing, it also reduces the risk of insider threats.
• 4) Customer experience—As well as improving your working lives by streamlining ERP payment processing, ERP payment integrations make things easier for your customers. The easier it is for them to make payments, the happier they will be. And there's nothing easier than paying directly from an invoice or customer portal.
• 5) Save time & money—Automating your payment processes removes the need for human participation. And by removing manual data entry, you immediately save time (and reduce drudgery) for your employees, and can re-orient them towards more strategic, impactful activities. That’s better for their morale (and retention) but also saves the company money by requiring less workforce to manage the payment acceptance process.

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Challenges of not integrating a payment solution

• 1) Manual data entry—Without an integrated payment solution, employees must manually enter credit card and payment information into their ERP. This is a tedious and tiring process for your team, creating enormous amounts of friction between your systems
• 2) Time-consuming processes—This friction ultimately costs your company time. Inefficient manual payment processes not only waste your staff’s time but also have a knock-on effect on the rest of the company. That’s because every delay in your process also delays everything that comes after, since anything after payment must wait until this manual process has been carried out. That can result in delays in paying suppliers, meeting operating expenses, or having enough working capital on hand to support strategic or day-to-day operations.
• 3) Risk of errors—We've already touched on this several times, but it's worth mentioning again. People make mistakes, especially when doing tedious data entry tasks. So, by automating your ERP payment system, you reduce the risk of these errors. These errors can not only take time to fix but could have financial and compliance ramifications if not found soon enough. As you can see in the chart below, human error during payment processing is the prime source of disputes (which is why more companies are embracing AR/AP digitization).

• 4) Lack of visibility—One of the biggest benefits of an ERP is that everything is in one place. You can see the data you need when you need it. But if your payments aren't integrated, you lose that 360-degree vision. This makes it much harder to get a clear picture of how things are going and can have a big impact on decision-making.

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What are the top ERPs that have payment integrations?

We can't speak for all payment processing integrations, but Versapay integrates with the top ERPs on the market. We also integrate with ERPs we don't officially integrate with, but we’ll get into that later.

This means that with Versapay’s ERP Payments solution, you can accept payments across all sales channels directly in your ERP—with optimized costs and fewer manual processes—regardless of what that enterprise resource planning system is. Here’s are the top, best-in-class ERPs we integrate with:

1. Microsoft Dynamics 365
2. Sage Intacct
3. Oracle NetSuite
4. Any ERP you can think of

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1. Custom-built ERP integration for Microsoft Dynamics 365

Since its launch in 2016, Microsoft's ERP solution has grown bigger and bigger over the last several years. With nearly a third of the market, Microsoft Dynamics 365 is by far the most popular ERP solution. But that's not very surprising when you consider all that it offers inside one cloud-based platform:

• Finance
• Sales CRM
• Customer Service
• Supply chain management
• HR
• Marketing

With Versapay’s integrated payments platform, users can accept payment across their ecommerce, point-of-sale, and accounts receivable channels directly in Microsoft Dynamics 365 Business Central. That centralizes and streamlines their ERP payment system.

Moreover, since Versapay’s ERP payment integration solution is custom-built for this ERP, users can start accepting payments from customers immediately.

"Versapay creates a smaller margin for error because everything is available in one, centralized location. It minimizes time and processing and became extremely helpful for all our users. Credit card payments and refunds are handled with ease directly inside Microsoft Dynamics." — Riyad Deen, Versapay & Dynamics 365 customer

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2. Secure from cart-to-cash for Sage Intacct

Also offering a huge suite of ERP products, Sage is another excellent choice for businesses. Going strong for over two decades, they offer an impressive range of tools targeting different parts of your business. Where payment processing is most important is when integrating with Sage Intacct, their cloud finance software. This best-in-class solution boasts some impressive functionality:

• Accounts payable and receivable
• Invoicing
• General ledger
• Order management
• Purchasing

Thanks to Versapay's Sage Intacct ERP payment integration software, users can accept payments across ecommerce, point-of-sale, and accounts receivable channels directly in Sage Intacct. They’re able to securely process online orders from cart to cash using our flexible payment gateway, integrations with popular shopping carts, and first-rate merchant services. 

With Versapay’s payment API integration, users can safely transport sensitive card data from external systems right into Sage Intacct.

"Once you've been onboarded onto Versapay's ERP Payments for Sage Intacct, it's a set-it-and-forget-it solution. It simply works and requires no intervention by collecting payments and posting them to invoices. The Customer Care Team is wonderful as well." — Lisa deLeon, Versapay & Sage Intacct customer 

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3. Streamlining payment acceptance for Oracle NetSuite

Another cloud-based ERP solution, NetSuite supplies real-time, unified business management tools. It's targeted at small to medium-sized companies, but doesn't pull its punches with its functionality:

• Accounting and financial management
• CRM
• Payroll
• Procurement
• Project management
• E-commerce

By using Versapay’s Built for NetSuite SuitePayments ERP payment processing solution, users can accept payments across ecommerce, point-of-sale, and accounts receivable channels directly in NetSuite. By putting all payments operations in one place, they’re able to avoid fragmented systems and stale data.

Beyond reducing manual processes, users of Versapay who streamline and combine their ERP payment process can save up to 40% of their total cost of acceptance. That’s also because Versapay provides interchange optimization and Level III data processing to help obtain the best possible rates.

🤫 PS—our integration with NetSuite is so popular that we were named Partner of the Year in 2021.

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4. Any ERP you can think of

If we've mentioned the ERP you use above, you can skip straight to the 'How to select the right integration' section below. But if we haven't mentioned your ERP, that doesn't mean we don't support it. In fact, with the Versapay API you can integrate Versapay with any ERP you like.

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How does an API integration for ERP payments work?

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What is an API, and how does it help to connect to an ERP?

An API (application programming interface) is a digital bridge that allows different software applications to talk to each other. Imagine two people from different countries speaking different languages. The API in this metaphor acts like an interpreter, enabling clear communication between the two individuals.

In the context of ERPs and payment integrations, the Versapay API plays the interpreter role, connecting your ERP to our payment processing system.

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The benefits of using the Versapay API

1. Seamless integration

Connect your ERP or accounting system to Versapay effortlessly. Our integration will not only streamline your payment processes but also reduce the time spent inputting data manually. Plus, transactions made through Versapay are tokenized ensuring security for both you and your customers. You can also receive proactive updates through webhooks such as a customer’s payment method expiring.

2. Real-time data access

Access up-to-date transaction data whenever needed. Our API ensures your ERP stays synchronised with Versapay, eliminating any chances of data mismatches or those human errors we discussed earlier.

3. Robust security

Security isn’t an afterthought; it’s the priority for us. Our API minimizes exposure to potential vulnerabilities by ensuring payment and transaction data is securely transmitted between Versapay and your ERP. Combine this with our rigorous authentication process and unauthorized access is no longer a concern.

4. Scalable integration

As your business grows or evolves, so does the data being passed back and forth from your payment processing system and ERP. With Versapay, you can adapt and change your API calls based on changing needs. The best part? As we introduce new features to Versapay, integration with them becomes instant.

5. Customization freedom

Every business is unique, and so are its requirements. At Versapay, our API grants you the liberty to decide which data you wish to send, receive, or modify. It’s like having a tailor-made suit, but better!

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The Versapay API

You'll find more technical details in our development docs, but here's a quick summary of some of the things you can interact with via the API:

• Fund sources—Track bank accounts, credit cards, and balances linked to customer accounts
• Transactions—View, add, or edit customer transactions seamlessly
• Agreements—Manage pre-authorized debit agreements; this is crucial for recurring billing cycles
• Hosted checkout—A URL-based method enabling you to accept payments through your ERP or other platforms

The Versapay AI is more than just a tool; it’s the key to crafting a custom-tailored integration experience. While it might not be the stuff of dreams, it’s pretty darn close to a picture-perfect payment processing experience!

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How to choose the right payment integration for your business

Every company is different, so just like how you needed to find the right ERP or financial management system, you also need to find the right payment processing integration.

To accurately assess which ERP payment integration solution will meet the need, it’s vital that you thoroughly analyse your current ERP payment system and assess its effectiveness. Furthermore, it’s essential for you to communicate with multiple stakeholders within the organization to guarantee you’re satisfying everyone’s business requirements.

Different enterprises will have different demands, and different stakeholders within the same organization will have varying priorities, too.

With that said, there are some key things that every company will need and should look out for:

1. Compatibility with your ERP system
2. Security and compliance
3. Functionality and features
4. Cost-effectiveness
5. Customer support and service
6. Reputation and reviews

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1. Compatibility with your ERP system

You need to ensure that the payment integration you choose will actually work with your ERP. Fully integrating allows for a smooth data flow between the two systems, removing the reliance on manual data entry or synchronising. Be wary, though. What one vendor or solution calls compatible might not be the same as another.

And as we've already covered: Just because a vendor doesn't have an official integration doesn't mean they're not a great choice. If they provide an API like we do, you can integrate it however you want.

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2. Security and compliance

It's also important to prioritize a payment processing integration that's compliant with industry-standard security protocols. Depending on where you're based, you will need to comply with different laws and regulations, such as PCI-DSS (Payment Card Industry Data Security Standard).

In using a payment integration that meets these standards, you’re not only covered from a legal standpoint, but you're also protecting your customers’ sensitive payment and transaction data by reducing the risk of a data breach.

Here are some things to consider from a security perspective when evaluating potential ERP payment integration solutions:

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💡 If you want to read more about PCI compliance, you can read our detailed guide: What is PCI Compliance? How to Secure Your Payment Environment

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3. Functionality and features

We've already covered compatibility, but you need to ensure the ERP payments integration solution you use does everything you need—from a features and functionality perspective—with your ERP. Again, often when a solution calls itself compatible, it only covers a subset of the features you need. So, you need to ensure it ticks all the boxes, and maybe more!

This includes different payment methods, or whether it allows for recurring payments—and it’s the same for the providers’ API. You need to check the docs and ensure you have the flexibility you need. But if the vendor offers a good range of features, then you can build the solution you want with the features you need.

Here are some things to consider from a payments functionality perspective when evaluating potential ERP payment integration solutions:

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4. Cost-effectiveness

It’s pretty important that your ERP payment integration solution be affordable and cost-effective, naturally. So, you need to assess the pricing structure of competing ERP payment integration solutions.

Some will have a flat monthly fee, but others will include transaction fees, hidden setup costs, and ongoing maintenance fees. It's important to get a clear idea of each solution’s pricing first so you can do a side-by-side comparison.

If you're going the API route, you also need to consider the time- and money-costs of setting up the integration in the first place. And speaking of cost, it’s important the solution you ultimately choose delivers a substantial return on investment across the board. Here’s some evaluation criteria to consider:

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💡 Here’s everything B2B merchants need to know about credit card processing fees.

💡 Confused about the many players in the payment processing ecosystem? Here’s your guide to understanding the differences between payment gateways, payment processors, and payment facilitators

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5. Customer support and service

It's not just the ERP payment integration solution itself that matters; you also need to know you'll get the support and service you need from the vendor. In an ideal world, everything just works, but sometimes things go wrong, and we need help. So, it's vital that the ERP payment processing integration vendor you choose provides prompt and reliable support whenever you need it.

From help pages to telephone support, you should compare the service offered by different companies to make sure you feel confident in their offering.

Here are some things to consider from an ongoing support perspective when evaluating potential ERP payment integration solutions:

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6. Reputation and reviews

If you asked every company, they'd say they're the best option until they're blue in the face.

(Insert cheeky plug, here 😉).

This is why it's important to research what other people think of the solutions. Gartner and G2 are great sites for viewing reviews and comparing ratings with competitors. And you'll get a good idea of what works well, and where there's room for improvement.

This not only tells you the overall sentiment but also helps you to compare the things we mentioned above, without the heavy corporate biases we see on websites.

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Versapay's integrated payments solution

You should now have a good idea of what an integrated payments solution is, how it helps your company, and what to look for. Let’s quickly go through how Versapay helps your business solve the issues we’ve mentioned before—human error, payment delays, lack of visibility and more—that result from using fragmented payment systems and manual processing.

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Accept payments across multiple channels.

Versapay’s integrated payments solutions makes it easy to accept payments across several different accounts receivable channels including point of sale, and e-commerce.

And because of our pre-built integrations and API, you can do this inside whatever ERP you already use. This seamless integration saves your company time and, ultimately, money.

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Accept multiple payment methods

As we mentioned, it's essential to streamline your payment processes to give your customers the best service possible. But to give your customers the best possible service, you also need to offer them a choice of B2B payment methods.

Versapay's integrated payments support a variety of payment methods including:

• Credit card
• Debit card
• ACH
• Virtual cards
• Bank payments

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Implement automated accounts receivable workflows

We've already discussed how integrated payments make life easier for your staff by bringing everything together. But Versapay goes a step further by bolstering your payment acceptance abilities with automated accounts receivable workflows.

With Versapay, you can automate pretty much any accounts receivable task, saving you even more time, accelerating your cash flow, and boosting your customers’ payment and collections experiences. For example, you can automate issuing, tracking, and customer electronic invoice and statement delivery; and once those invoices are paid, payments can automatically be matched and posted back to your ERP.

This is a game-changer and essentially supercharges your existing ERP solution.

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Accelerate payment collections

Earlier, we said integrating payments into your ERP can boost your cash flow, and we weren't kidding. With Versapay, you can accelerate payment collections by 25%.

This is because you’ll be able to not only consolidate and automate the payments process, but you’ll give customers the latitude to pay using their preferred methods. By providing a better, more personalized customer experience by making it easier for them to pay (and easier for you to manage those payments), Versapay removes any friction from the process, benefitting everyone.

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Provide secure payment processing

The security of your customers is paramount, which is why we take it so seriously.

With Versapay, all payments are tokenized, and we encrypt sensitive card data. This ensures secure payment processing, so you get peace of mind for compliance, and your customers don't need to worry about their data.

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Employ pre-built integrations

The simplest and quickest way to integrate with your ERP is using a pre-built ERP payment integration. These are specially for the top ERPs, as we discussed earlier. Versapay specifically has pre-built integrations for different ERPs (and a couple non-ERPs), including:

• Oracle NetSuite
• Microsoft Dynamics 365
• Sage Intacct
• MRI

If you use these ERPs, you can get started with integrated payments today with Versapay. And—you already know what we’re going to say next—if we don't already integrate with your ERP, you can (of course!) use our Versapay API. 

💡 Learn how you can streamline accounts receivable workflows by integrating your payment processing with various best-in-class ERPs:

• How NetSuite Integrated Payments Can Bolster Your Accounts Receivable Processes
• How Automation Can Make Microsoft Dynamics 365 Finance Work Harder for AR Teams
• Payment Processing in Sage Intacct: Manual vs. Integrated Payments

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These are just a few of the ways Versapay’s integrated payments solutions could benefit your business. As we’ve touched on above, they deliver benefits that include:

• Helping you save on processing costs (up to 40%!)
• Defending your business from fraudulent activity like chargebacks
• Improving customers’ billing and payment experience
• And more!

If you want to reduce manual accounts receivable work, speed up collections, and minimize processing fees, we encourage you to check out Versapay’s integrated payments.

Better yet, talk to our sales team so they can understand your challenges and goals and match you with the best possible payments solution.

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