By Marco Conte
In our previous post, we looked at the jungle of providers, payment methods and data that merchants have to navigate just to accept payments today.
Adding a new provider or new payment method is a difficult task that requires patience and strategy. Even more complex, however, is managing all of the data that comes from payment service providers (PSPs) and payment methods.
For starters, “payment data” can mean a couple of different things.
Payment data can refer to:
Ideally, the payment service provider’s ETL process for extracting, transforming and loading that data would output clean, understandable payment data.
However, our experience in the industry shows this is not the case.
Most merchants will have several PSPs they work with. A typical payment setup might include PayPal, Stripe, Adyen, Klarna and payment methods native to the markets in which the merchant operates. And each PSP has its own way of making sense of payment data.
This creates the following problems:
On top of this, merchants must reconcile payments at the transaction level to understand the true cost of payments. Settlement data are not easy to parse, so merchants often don’t understand the fees they are paying.
And, of course, the rise in fraud looms large over all of these conversations. It is common now for PSPs to have fraud prevention solutions and solutions for managing chargebacks that are integrated into their services. In the event of a fraudulent transaction or a chargeback, the acquirer must inform the merchant and send over the necessary data.
Here again data discrepancies emerge. Fraud data sent from TC40/SAFE reports and chargeback data, with dispute reason codes and the statuses that providers send over can vary from one PSP to the next.
Let’s add another wrinkle to this problem.
Merchants typically do not receive all of this messy payment data in one clean, easy-to-access place. Instead, those data arrive from a variety of sources, including:
This means merchants have to spend time and energy in ETL processes for extracting, transforming and loading data before they can begin the work of unifying the data, reconciling payment information and deriving actual business insights from it.
Of course, this work can all be done internally. Plenty of struggles and expenses — e.g. buying dedicated software, hiring data engineers and business analysts — come with that approach. But we think we have a better way to organize and make sense of provider data.
We designed Congrify to be an easy-to-use solution for managing payment data.
We know from two-plus decades in the industry that any such solution needs to:
If you are looking for a way to harmonize your payment data, contact us today to learn more about Congrify.