Posted by Matt Rushing

The emergence of cloud computing has been hard to ignore over the past several years.  More and more organizations are turning to the cloud for software needs, and PaySimple is no exception.  We have used cloud technology as a base for our on-demand solution since we started in 2005, and including the most recent update to our platform in May of this year.  From our CRM, to email services, to this blog, PaySimplers are cloud-surfing every day.

So what does cloud-based mean?  The reality is, technology has been using “cloud” for some time, but every few years, a new term comes out to describe it.  You may recognize “ASP,” “Saas,” or “on-demand.”  These are all terms describing the same thing—Internet-based technology.   Cloud computing is based around the idea that once users pass certain information (say, customers’ payment information), they no longer require the expertise/security to control it, but rather are supported by their cloud service and/or technology (like PaySimple) to manage it from that point forward.  And because cloud computing is Internet-based, information is accessible with any Internet connection, there is typically no software to download, and data all securely stored.

Benefits to a business of using cloud-computing are obvious: low infrastructure costs, fewer staffing and training requirements, and ease of implementation to name a few.  Often overlooked, but perhaps one of the most important benefits, is security.

By using cloud services, companies are able to avoid the pains and costs associated with local database security, an obvious necessity in payment processing.  For example, PaySimple is independently scanned multiple times a year for various security standards and fully audited for PCI DSS certification annually.  Because of cloud technology, PaySimple can “pass on” its security standards to its clients via the cloud.  The majority of our clients can be compliant by following a few simple standards, rather than enduring the cost of maintaining secure systems and having an annual audit.  Customers rely on merchants to protect their information, and merchants, in turn, can rely on their cloud.

Posted by Matt Rushing

In the 262 days since our last post, PaySimple has released over a dozen software updates, announced exciting new partnerships, and added key leadership personnel.  Lost during these developments was (unfortunately) time for blog posting.  But we’re here to make it up with a quick overview of what’s been happening at PaySimple.

Back in December, PaySimple announced its partnership with American Express OPEN(R) and the launch of AcceptPay^SM, an online payment acceptance and invoicing solution for small businesses.  Since then, a variety of organizations, from law firms to dance schools to doctor’s offices, are finding that AcceptPay improves cash flow by accelerating the rate at which payments are collected.  AcceptPay merchants give their customers the ability to pay via credit card or ACH (eCheck) through click-to-pay invoices, web payment forms, and recurring schedules.  Check out this commercial for AcceptPay that will be airing this summer:

Also at the end of ‘09, PaySimple welcomed Matt Feierstein as Chief Operating Officer.  Matt is in charge of our operations, marketing, and product management teams.   He brings over thirteen years of experience in the online space, including nearly four years at Pronto.com, where he oversaw the company’s marketing, sales, and sales operations functions, and was responsible for the company’s revenue and acquisition goals.  Matt moved to Denver from New York in November, but is an avid Boston sports fan. 

More recently, we announced the release of PaySimple 3.0, our latest software update.  Here’s a snapshot of some of its enhancements:

• New interface with intuitive navigation
• Enhanced reporting, plus a Dashboard for a quick view of key information (deposits, incoming payments, outstanding invoices, etc.)
• Significantly enhanced and expanded click-to-pay electronic invoicing
• New customer portal for customers to manage their own payments, invoices, and recurring schedules

Be it through personnel, partnerships, or technology, we’re constantly working to grow our company and our product offering. 

Now that we’re caught up on the blog, stay tuned for future posts about PaySimple, the billing and payments space, and all things small business.

Posted by Elissa Beckman

For the second year in a row, PaySimple is proud to participate in Blog Action Day, an annual event that invites bloggers on all topics, from around the world, to unite by writing a post about one important global topic.  The topic for Blog Action Day 2009 is Climate Change, the changing of long-term weather patterns.

Although scientists are still unsure of the exact causes and implications of climate change, it is nonetheless an extremely important issue that we should all be aware of.  We cannot deny that climate change is occurring and simultaneously posing significant threats to our world’s ecosystem and the overall health of humans.

When contemplating what to focus this particular blog on, my thoughts drifted toward small businesses and the role entrepreneurs play in fighting climate change.  (What can I say…I work for a small business that provides a product for small businesses.  It’s a natural topic for me.)   I once read that 90% of the renewable energy sector is comprised of entrepreneurs creating progressive technologies to combat potential problems like climate change and global warming.  This makes perfect sense, as entrepreneurs are constantly looking for the next big inefficiency or problem to alleviate.  They confront these problems and drive innovation that will lead to the discovery of solutions to these problems.  In doing this, entrepreneurs are not only living up to their “risk taking” nature, but are also stepping up to create a better, and in this case, greener world.  And not to mention, the creation of these platforms brings jobs, which fuels the economy, which fuels more entrepreneurship, which fuels more platforms and more solutions…you get the idea.

It is safe to say that entrepreneurs are doing their part to fight climate change…are you?  To see what you can do to help and make a difference, visit http://www.epa.gov/climatechange/wycd/index.html.

Posted by Connie Howard, SVP of Sales for PaySimple

Recently, after wanting to learn more about how our Customer Care Associates spend their time, I decided the best way to do this was to experience the job first-hand. And so I assumed the role of a Customer Care rep, answering the phones and problem solving customer questions.

My first reaction was “this job is hard!” It is more complicated and has more moving parts than one might expect. It requires a problem-solving train of thought, good listening skills, the ability to smoothly multi-task, and the temperament to remain upbeat and personable—no matter what is coming at you. Since one component of PaySimple’s service is to help our merchants maneuver between multiple vendors and payment processors, our Care reps must also be able to research questions across several different platforms and CRM tools. It is not a job for the faint of heart.

Next, I realized that the degree to which the decisions made and processes created in the company come home to roost in our Care department-–in mostly good, but sometimes unexpected ways.

Want to know if your sales team is positioning your product accurately? Listen to the questions that come in to Customer Care to understand if you are under or overselling certain functions or features.

Want to know on which features your development team should focus? Talk through the intricacies of your product with a customer who has had no exposure to your company. You’ll quickly learn valuable feedback on where you can make your product more user-friendly.

As the SVP of Sales, and managing many of our daily internal processes, I had to learn quickly to clear jargon and internal language out of customer communications. Our customers don’t care about or understand some of the terms that we use internally, but it came to light how often they can inadvertently creep into our emails and other communications. Some of the training manuals that I wrote myself (and felt pretty good about!) were not as helpful as I had anticipated.

My experience in Customer Care taught me a lot about the department, and I walked away feeling a tremendous sense of pride in our team and product. Our Care reps are dedicated, talented and caring. Over and over, our customers cited their delight with our product and service. I was satisfied that we are doing a lot right. And taking the time to understand some of Customer Care’s challenges has helped PaySimple create efficiencies and new practices for the future.

So, I encourage you to have an executive from your company spend some time in Customer Care. I’m confident the executive will not only come back with a newfound respect for the job your care team undertakes every day, but will also be able to provide valuable insight on ways to improve your company overall.

Posted by Elissa Beckman

At PaySimple we are always looking for ways to get involved in the community, so earlier this month, we got a group together to volunteer at the Ronald McDonald House in Denver.

If you're not already familiar with the organization, the Ronald McDonald House is a wonderful charity that provides housing for families with children in the hospital. It allows families, who might not otherwise be able to afford it, to be close to their children - so they can provide support and love during the healing process. No family is ever turned away. The Ronald McDonald House serves as a home for 3.7 million families around the world each year. And during their stay, families are offered a number of amenities including home-cooked meals.

As such, we decided the best way for us to help out was to cook for the families at the Denver RMH. On the menu was: Sloppy Joes, chips, coleslaw, Rice Krispies Treats, and drinks. And while some of us don't have the best cooking skills, all of the families seemed to enjoy our home-cooked meal.

It was a wonderful experience being able to put a smile on the faces of families that are going through a tough time. We encourage all small businesses and individuals to do what you can to volunteer and give back to the community. If you're interested in volunteer opportunities at the Ronald McDonald House visit their site at: www.rmhc.com.

Posted by Sarah Jordan

Despite the doom and gloom in the economy lately, a recent press release from NACHA states that ACH payments actually experienced growth in the 4th quarter, with an amazing 4.5% increase in Q4 2008 over Q4 2007. That means that more than 3.8 billion ACH transactions were processed last quarter. The growth shows that more and more people and businesses are using ACH as a payment method, which is a promising sign that businesses (especially small businesses) are moving toward utilizing new cost-cutting, green technologies.

The overall 4.5% increase was spurred from some remarkable double-digit growth in specific segments of ACH processing. One segment was Internet ACH payments (known as 'WEB' entries), which had a 16.5% increase, reaching 552 million transactions, and accounting for $220 billion. Another segment with double-digit growth was business-to-business ACH payments (known as 'CTX' entries), which had a 15% growth, with 14.4 million transactions, and accounting for $691 billion. One of the most impressive areas of growth, though, came from back-office conversion (known as 'BOC' entries) which grew to more than 39 million payments - up from 3 million payments in 2007.

Growth is the buzz word in the ACH payments industry and we should expect that word to stick around. NACHA President and CEO states that opportunities exist for great adoption of all native ACH payment types as the safe, secure, and green attributes of ACH are embraced by businesses and consumers.

The most exciting part about this growth (other than the fact that something grew last quarter) is that business owners are consistently moving toward making their lives easier! Internet payments, check conversion, and B2B direct payments all cut costs for businesses and free business owners from the paper rut of legacy invoicing and collection processes. Read the full article from NACHA Learn more about ACH payments

Posted by David Sharp

With more and more small businesses obtaining merchant accounts to accept credit cards, it is essential to review some common scenarios that business owners and their consumers may run into. The merchant account agreement contains a complete explanation of key procedures, but here are some highlights. Within the merchant agreement, there are card acceptance procedures, also known as Operating Rules. Most of these rules are generally set in place to protect all parties in the process and keep commerce flowing. If you are a business owner, at first glance, some of these conditions may not seem advantageous to your business. But it is important to keep in mind that aside from running a business, you are a consumer protected by these rules just the same. The following is a list of common merchant violations (most you have probably even witnessed):

1. Honor All Cards Policy: Merchants are required to honor all cards presented by their customers if they have a merchant account set up to do so. They cannot turn away Corporate Cards, Purchasing Cards, Rewards Cards or the like to prevent paying additional fees and potential surcharges for accepting them. Although those card types may carry an additional expense, businesses are actually likely to experience a net benefit by taking these cards because the Corporate & Rewards card transactions are generally higher than normal Consumer cards. In other words, the higher transaction amount offsets the additional card acceptance expense.
2. Transaction Surcharges: A fee or surcharge may not be added to the advertised price of goods or services in an attempt to offset the cost of card acceptance. For example, a merchant cannot charge an extra percentage or flat fee on the payment if the customer pays with a credit card instead of cash. However, discounts may be offered off the advertised price for cash, check or other payment methods. There are minor exceptions to this rule, so be sure to check your merchant agreement to see if your business may qualify for this sort of payment.
3. Floor Limits: Merchants may not set an artificial 'floor limit' under which they would not agree to accept a payment card. If a business signs up to take credit cards, they must take the card presented regardless of the dollar amount. You will sometimes see merchants with a sign at the register that reads (“Credit Cards NOT Accepted for Sales Less Than $15.00). This is a violation of the Operating Rules. If the cardholder complains to its issuing bank, the compliant would be sent from the issuing bank down the ladder, where fines or termination of the merchant account could result.

Instead of attempting to avoid the cost of accepting cards under these scenarios, embrace card acceptance for all transactions to yield higher net sales and improve your customers experience while doing business with you. While merchant processing agreements are sometimes worded differently, most of the information is typically the same across the board. When situations like the aforementioned arise, it is always best to consult your agreement for specifics. If you need additional assistance with the terms of your agreement, please contact a representative to help understand the guidelines and benefits of the Operating Rules.

By Chad Gardner

With the rapid expansion of technology seeming to be coming at us from all angles, small businesses have the opportunity to test the early adopter waters to see if they can harness these advances. If all turns out as desired, this could help mitigate business expenses, while increasing business productivity - switching what would be high operational costs into increased value for consumers. We have spoken countless times in the past about how our electronic payment processing solution gives small businesses the opportunity to collect payments like large corporations. This value can largely be attributed to the PaySimple Solution being a Software as a Service (SaaS). The value that SaaS can bring is clearly seen by the maturation and migration of companies of all shapes and sizes, shown in this survey by Gartner.

What are the small business benefits of using SaaS?

As shown above:

• Reduced or eliminated costs - There isn't the need to invest in expensive hardware or software, which means low maintenance costs and no licensing fees. The rental of a web-based application means the allocation of expenses to operational, not capital focuses.
• Easy integration and functionality - Most systems are designed to be simple enough for the average Internet user. This means, for implementation and day-to-day operations, expensive IT usually isn't required.
• Easy to use = Limited IT Expenses - Take away the need for a highly technical employee, and do it yourself - most SaaS models have a low monthly cost and can be managed and navigated by the average computer user. Not only is managing of resources made simpler, but costs for the SaaS are more predictable month-to-month.

Other benefits that may not stand out in this chart:

• Added feature sets - Having an all-in-one solution means there are probably features included a small business would have the availability to (or have to pay extra for) without a quality SaaS.
• Scalability - Small businesses don't have to worry about system capacities, technical specifications, etc. - one size fits all. Letting the provider of SaaS use their knowledge and experience results in having time-tested answers to create maximum results.

In 2009, SaaS usage will continue to grow amongst small businesses because the cost-effectiveness of the value is hard to match, given limited resources. In times of change, the businesses that seek out alternatives, cut expenses, and show their agility will continue to survive - SaaS is becoming more and more an integrated part of this approach.

Posted by Chad Gardner 

With over 25 million small businesses , all in a wide range of industries, all needing a variety of products and services - and most willing to invest to improve right now - it's important to take a look at how advances in technology have brought down the cost of implementing services like recurring billing and electronic invoicing for your customers, and how this can help your niche.

Recently, we've had an influx of customers from membership and contract-based businesses, like health clubs and gyms. So I wanted to share information we have learned from our day-to-day operations about how online payment processing helps this niche. The payment solutions that have advanced over the years are allowing small businesses to use the same payment collection technology as larger corporations - but it doesn't stop there - the functionality of the solutions allow additional benefits, such as setting up recurring billing through credit card payments or ACH-echeck processing.

If you own a business that requires a membership or contract, it makes sense to automate your collection process. This is not only going to improve your cash-flow, but reduce invoicing costs, eliminate late payments and collections calls, and prevent manual data entry so you can focus on what matters most - your business. By automating the transaction side of your interaction with clients, customer loyalty and service will improve because the focus can be on the service provided, not on billing and payments.

As seen on this CrossFit Message Board, an online community for CrossFit affiliates and customers, payment is something they inevitably have to chase. But as our own customers will attest, online payments and recurring billing add convenience for customers to pay membership and tuition fees, increasing your on-time payments.

When you customers hit your gym, they are not there to work up a sweat over their next month's bill payment - so keep it simple and take care of that for them. Find out more about Recurring Billing or learn what an all-in-one electronic payments solution can do for your business with our Easy Demo.

Posted by Chad Gardner

Regardless of the economic climate, finding and retaining great employees is essential for a small business, even more so than for large companies. Most small businesses have limited resources and thus talent becomes one of the most important assets they have. So the good news for 2009, according to a press release by TriNet, is that two-thirds of small businesses will be looking to hire. With the recent splash in the unemployment pool this year, there are undoubtedly top prospects available to help your company's productivity and profitability moving into the New Year. Looking at the projections going into 2009 might leave some skeptical, but small business hiring is up 3.3% in 2008, and 80% of respondents in the TriNet survey said they tried to hire this year. This is just point-in-hand that small businesses are able to run leaner than companies we see in the news on a daily basis.

So if you are a small business, here are a few benefits of recruiting in 2009:

1. With so many people in the job market, there are plenty of highly-motivated and qualified candidates available. This is a great opportunity to stock up on talent. And even if your business can't afford to hire right now, when the markets are back up you will. It doesn't hurt to have your foot in the door with exceptional candidates.
2. With the advent of social media and other free technologies, you won't have to put much money into finding new talent. There are so many free, web-based systems (such as Craigslist) that will help you keep candidates on your radar even if you don't have an open position. This could work especially well if you are an internet-based or tech company - fish where the fish are.
3. If your competitors have laid employees off or aren't hiring with the future in mind, they will get off to a slower start when things turn around. Having talent that can move the needle on staff will save you time and money from recruiting costs later on.
4. With having so many people willing to talk about employment, this is a perfect opportunity to network.
5. In the search for candidates, you may run across people who are willing to work for little or nothing in efforts to gain experience (this especially applies to college students and recent graduates).
6. Put a good spin on the economic situation, and give your business a positive image. Clearly, if hiring isn't in line with your business plan, then don't. But after seeing so many public layoffs recently, bringing on new talent portrays a healthy brand.

I'll leave you with one more interesting survey by Entrex: 72 percent of CEOs in this survey have intentions to add employees in 2009, while none plan to decrease employment size. I realize there is a new survey every week and that everything can turn at the drop of a hat, but this is still a very positive barometer of small to mid-size businesses to bring with us into the New Year. As many of us feel around here, small businesses are going to be essential in getting our world back on track.