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Author: Mallory Halley

  • What is Aurora Payments? A Better Way to Process Payments and Keep More Revenue

    What is Aurora Payments? A Better Way to Process Payments and Keep More Revenue

    Reading Time: 2 minutes

    Aurora Payments is a modern payments company that does two things really well: giving businesses a full‑featured payment platform, and helping them keep more of what they earn. If you’re a small or midsize business (or a software platform that supports them) and you’re frustrated by rigid processing fees, legacy infrastructure or poor visibility into your payments workflow, Aurora is built for you.

    What Aurora is all about

    Aurora brings together the tools today’s businesses need: embedded commerce (which means payments baked into your product or service rather than a bolt‑on), in‑person payments (so you can accept on‑site, mobile or countertop), real‑time reporting, and a strong focus on reducing processing costs. What sets Aurora apart is the combination of flexibility (you can pick your mix of hardware, mobile, online, invoicing) and control (you see your data, you manage your margins). For many businesses that combination isn’t available from traditional processors.

    How Aurora fits into the payments industry

    In the broader payments ecosystem you have banks, card networks, processors, gateways, in‑person terminals, and software platforms, Aurora positions itself as a company that sits across those pieces and simplifies them for the merchant or the platform provider. Rather than forcing you to adopt a one‑size‑fits‑all product, Aurora offers modular infrastructure and transparency of pricing and operations. It supports the physical store, the mobile business, the software‑as‑a‑service (SaaS) company embedding payments for its customers, and the online seller all in one. And because of this breadth it can serve multiple verticals that include retail, wellness & fitness, healthcare, jewelers, death care and more.

    What Aurora is good at

    One of Aurora’s standout features is what they call “zero cost processing”, meaning you can run programs like dual pricing, surcharging or cash discounting to offset or eliminate card‑processing fees. That’s huge for businesses with tight margins or high ticket items (think luxury retail or funeral services). Aurora gives you the tools like ARISE and compliance framework so you don’t have to guess how to do it legally or responsibly. Moreover, because we support a full stack (online, mobile, in‑person) and give you real‑time visibility into transactions and reporting, you’re not stuck in a black box. For example, funeral homes can use the platform’s invoicing, text‑to‑pay, ACH, split payers and zero cost processing to protect their margin and provide flexibility to families.

    Why this matters for your business

    If you’re a small business owner you know that processing fees, hardware lock‑in, lack of visibility and slow settlement can eat into your operations. Aurora addresses all of those: you can accept payments through mobile readers, traditional terminals or online checkout. You can invoice customers, send payment links, and track transactions in real time. You can deploy cost‑reduction programs without having to be a payments expert. And you get U.S.‑based support that knows small business workflows, not a generic call‑center reading from a script.

    Bottom line

    Aurora Payments is not simply another processor. We are a modern payments platform built for the real world of small and midsize businesses and the software platforms that serve them. We bring flexibility, control, visibility and, very importantly, the ability to keep more of your revenue through smarter pricing and cost structures. If you’re looking for a partner that understands your business model, moves as fast as you do, and helps you reduce one of your largest hidden costs (processing fees), Aurora is worth a serious look.

  • Smarter Payments for Growing Businesses: What You Should Know

    Smarter Payments for Growing Businesses: What You Should Know

    Reading Time: 3 minutes

    When your business is growing, every dollar and every minute counts. The payments platform you use can make a huge difference in how smoothly things run, how your customers feel, and how much of your revenue ends up in your pocket. At Aurora Payments, we build solutions with that mindset.

    Here’s how choosing the right payments partner helps you spend less time on billing and more time on what matters—serving your clients and growing your business.

    More than just processing: payments that work like a tool

    Accepting credit cards is basic. What’s not basic is a system that handles credit cards, ACH/eCheck, digital wallets, mobile payments, in‑person payments, and recurring billing all from one place. Aurora’s ARISE platform gives you those capabilities.

    For example, if you run a med spa, you may have monthly membership plans or bundled services. Instead of manually invoicing each month, the right platform lets you automate billing and reduce overhead. That means fewer late notices, fewer missed payments, and better cash flow.

    Price matters: keeping more of what you earn

    One of the biggest shocks for fast‑growing businesses is how much fees can eat into margin. At Aurora, we offer options that help you keep more of your revenue. Our zero‑cost processing model lets you reduce or even eliminate the cost of accepting cards by using compliant options like surcharging or cash discounting.

    We also offer competitive rates and a support team that understands the needs of small and midsize businesses. In short, you don’t just get a payment provider, you get a partner focused on helping you retain more profit.

    Support you can actually reach and trust

    Something that often gets overlooked is how hard it is when payments go wrong. A terminal that won’t connect, an ACH payment that bounces, a reporting error — these things cost time, stress, and sometimes money. Aurora’s support team is based in the U.S., trained on merchant payment issues, and ready to talk through real business situations.

    When you run your business in transportation, automotive, jewelry, funeral homes, or another service vertical, you don’t want a one‑size‑fits‑all processor. You want someone who understands your flow, your billing cycles, and your customer experience. That’s where we focus.

    Tools to make operations easier

    Today’s customers expect more than “swipe and pay.” They expect mobile payments, tap‑to‑pay, digital wallets, text‑to-pay links, recurring memberships, and online invoices. Aurora’s platform supports all of that.

    Consider a gym: you have memberships, drop‑in visits, recurring billing, maybe merchandise. You want one system that handles in‑person check‑in payments, online store payments, and subscription billing. A payments platform that can handle all of that helps you run leaner.

    And because you’re not cobbling together five different systems, you reduce reconciliation headaches, you minimize training time, and you reduce the chance that something falls through the cracks.

    Why Aurora Payments?

    • We’ve been helping small and midsize businesses since 2005.
    • We serve more than 27,000 merchants and process over $12 billion annually.
    • We focus on vertical businesses with real‑world recurring needs — from beauty and health to automotive and funeral services. That means we understand your pain points.
    • We combine strong technology with hands‑on customer support so you’re never left chasing ticket responses.

    Next step: see it in action

    If you’re ready to explore how smarter payments can support your business growth, we’d love to show you more. Please take a look at one of our customers transformed their business by saving $20,000 in their first year using our ARISE platform.

    No matter your industry, the right payment platform does more than accept money—it helps run your business better.

    Ready for fewer fees, smoother operations, and happier customers?

    Let’s talk about how Aurora Payments can help you do just that. Contact us today.

  • What Are Integrated Payments? A Simple Guide for Software Platforms & ISVs 

    What Are Integrated Payments? A Simple Guide for Software Platforms & ISVs 

    Reading Time: 6 minutes

    Integrated payments allow you to process transactions right inside your software — no switching between systems, no clunky external payment pages. If you run a software platform or are an ISV (Independent Software Vendor), this approach can save time, reduce errors, and simplify how your business runs. When you embed payment processing directly into your platform, you also keep users engaged and unlock new revenue opportunities. 

    This guide explains how integrated payments work, why they’re a game‑changer for U.S. businesses, and how to get started. Whether you’re dealing with invoices, subscriptions, or mobile payments, integrated systems can bring everything under one secure roof. Ready to see how this could apply to your business? Let’s dive in. 

    How Integrated Payments Work 

    Technical Foundation 

    Integrated payments operate through three core technologies that enable payment processing within your software platform: 

    • APIs (Application Programming Interfaces): These provide the connection between your platform and payment processors. They enable real‑time data exchange, so functions like payment authorization and transaction updates can happen without forcing users to leave your interface. 
    • SDKs (Software Development Kits): These libraries give developers pre‑built code to implement payment features — such as tokenization of card data, recurring billing, and custom payment forms. They speed up development and help you align with security standards. 
    • Payment Gateways: Gateways act as secure intermediaries, routing transactions between your system, banks, and card networks. They handle much of the complexity behind the scenes and ensure transactions meet rigorous security and compliance requirements. 

    When combined, these technologies create a smooth payment experience embedded inside your platform. 

    Payment Workflow 

    Here’s how the flow typically works: 

    • A customer initiates a payment within your platform. You collect their payment information through embedded forms. 
    • Sensitive data (such as card numbers) is tokenized — replaced with a secure token that can be stored or reused safely. 
    • The payment gateway processes the authorization request in real time. Your platform can display progress, confirmation messages, or errors — without redirecting the customer. 
    • Transaction data flows directly into your system: customer records are updated, invoices are generated, and dashboards are refreshed. All of this automation makes follow‑on actions (emails, access changes, recurring billing) possible without manual work. 

    With this architecture in place, you enable a consistent, efficient workflow that keeps users inside your software experience. 

    U.S. Payment Methods 

    Integrated payment systems support the full range of payment preferences shared in the U.S.: 

    • Credit and Debit Cards: Major networks (Visa, Mastercard, American Express, Discover) for both in‑person and online transactions (EMV chip, magnetic stripe). 
    • ACH (Automated Clearing House): Ideal for recurring billing or larger B2B transactions — lower fees compared to cards. 
    • Contactless/Digital Wallets: Apple Pay, Google Pay, Samsung Pay, and the like use tokenisation and support mobile‑optimized flows. 

    The real benefit of supporting multiple methods through an integrated system is the unified reporting it enables. Whether someone pays by card, ACH, or wallet, you see it all in one dashboard — simplifying reconciliation and financial management. 

    Benefits for Software Platforms and ISVs 

    Better User Experience 

    One of the most significant advantages: users stay on your platform during payments rather than being redirected elsewhere. No context switching means less friction and greater chances of completed transactions. 

    Real‑time notifications (successful payment, failure, etc.) build trust and reduce confusion. 

    If you offer subscriptions, integrated systems let customers update payment methods, view billing history, and self‑serve — all in one place. That boosts satisfaction and cuts support volume. 

    Mobile‑first design really matters: users on phones expect seamless flows and support for wallet payments, which integrated payments can deliver. 

    Improved Efficiency 

    Automation is a huge win. If payments sync directly into your accounting or CRM systems, you avoid manual entry and reduce errors. 

    Support teams benefit too: having payment data inside the platform means quick access to transaction history, refunds, or billing issues — fewer context switches for them, faster resolution for users. 

    If a payment fails, integrated systems can trigger retries, send alerts, or pause service — proactive moves that help recover revenue and reduce churn. 

    For platforms with recurring billing, features such as proration, plan changes, and dunning (handling failed payments) work best when baked into a single system. 

    New Revenue Streams 

    Embedded payments aren’t just cost‑savers — they can also become profit centers. 

    You can take a share of each processed transaction. As your volume grows, so does your revenue from payments. 

    You can offer premium services — advanced fraud protection, international payments, and enhanced checkout flows—these have higher margins. 

    Cash‑flow improvements matter too. When you control the payment flow, you may optimize settlement timing or earn interest on float balances (especially if volumes are high). 

    And there’s data. Transaction‑level insights reveal customer behavior, purchase trends, and market dynamics. With proper privacy safeguards, you can use that data to refine your offering — or, in some cases, monetize insights to partners. 

    For subscription‑based platforms, integrated payments also support revenue‑sharing models: not just a license fee but taking a slice of recurring income — aligning your success with your users. 

    When you combine improved experience, operational efficiency, and new revenue streams, integrated payments become a strategic advantage for software platforms and ISVs. 

    How to Implement Integrated Payments 

    Assess Your Business Needs 

    Start by evaluating how you currently handle payments. Map your customer journey and identify friction points. 

    Consider scale: a platform processing under 1,000 transactions per month has very different requirements than one processing 50,000+. High‑volume systems demand robust error‑handling and scalable infrastructure. 

    Look at your industry and customer types: 

    • B2B platforms may prioritize ACH and invoicing tools. 
    • Consumer‑facing platforms need dynamically varied payment methods. 
    • Healthcare or regulated sectors may require specialized payment types (e.g., HSAs, FSAs) and strict compliance. 
    • Define your reporting and analytics needs up front — make sure your payment and BI systems align. 
    • Once you’ve clarified your needs, move on to selecting the right technology partner. 

    Choose a Payment Technology Partner 

    Your partner determines how smoothly integration goes — and how well your system scales. Look for APIs designed for seamless integration and modular features so you can implement only what you need. 

    Key evaluation criteria: 

    • High‑quality APIs with clear documentation and sandbox environments. 
    • SDKs, webhook support, backward compatibility, so updates don’t break you. 
    • Certifications: PCI, SOC 2, state‑level data privacy laws. 
    • Reliable infrastructure: minimal downtime is essential when handling payments at scale. 
    • Strong support: dedicated integration assistance, good documentation, responsive technical help. 

    Choosing well means fewer surprises during rollout and fewer delays messing with your go‑to‑market. 

    Testing and Deployment 

    Testing is your safety net. Use a sandbox environment that mirrors production. Cover standard flows and edge cases — declined cards, ACH failures, network outages. 

    Perform load testing: simulate peak volumes (3‑5× expected) to uncover bottlenecks, such as slow API calls or rate limits. 

    Set up monitoring and alerts: failed transactions, error spikes, and performance drops all need to trigger action. 

    Deploy in phases, not all at once. Start with a limited customer group, a subset of transactions. Gradually expand as you gain confidence. This contains risk and gives you a chance to fine‑tune with real usage. 

    Document everything: API configs, error‑handling workflows, support procedures. Good documentation pays off in the long term when you maintain or scale. 

    Industry Use Cases 

    Here are three verticals where integrated payments make a real difference: 

    Healthcare 

    In healthcare, payment systems must support HSA/FSA plans, integrate with EHRs (electronic health records), and meet strict security requirements. Patients expect to pay through their portal without bouncing to another site. Integrated systems handle all that. 

    For example: a treatment bill flows from the practice management system, the portal presents payment options (card, ACH), the payment is tokenized and processed, and the patient’s account and records are updated in real‑time. The practice can focus on care rather than chasing billing. 

    Automotive 

    Auto‑repair shops and dealerships face complex workflows: additional parts approved mid‑service, onsite payments, and inventory updates. A mobile payment terminal integrated with the service‑management software adds significant value. 

    When a repair estimate is approved, the technician triggers payment on-site or via a link; inventory and work‑order updates are instantly applied, and customer history logs unfold. No manual re‑entry, no reconciliation chaos. 

    Death‑Care / Funeral Homes 

    Funeral homes have unique payment needs: families often split bills, accept payments via secure links, offer recurring pre‑need billing, and require transparent pricing. Integrated payments support text‑to‑pay, split invoices, recurring pre‑need plans, and next‑day funding. 

    These features let funeral homes reduce friction at a sensitive time, while keeping their back‑office running smoothly and respecting customer care. 

    Final Word

    Integrated payments are reshaping how software platforms and ISVs handle transactions — bringing smoother user experiences, fewer manual tasks, and new revenue opportunities. By embedding payments into your platform, you unify workflows, bolster efficiency, and build a stronger foundation for your business. 

    To get started: review your current flow, identify pain points (e.g., system switching or manual entry), evaluate potential partners with strong APIs and a commitment to compliance, and design an incremental rollout plan. The payoff? Satisfied customers, cleaner workflows, and a platform that’s built for today — and ready for tomorrow. 

    As the payments world evolves—with new methods and shifting customer expectations—embedding payments now gives your platform a head‑start. Treat your payment solution as part of the product, not as a bolt‑on. Do it right, and it becomes a growth driver. 

    FAQs 

    What are the main advantages of integrated payments for software platforms and ISVs? 

    • A smoother user experience: Payment processing happens inside your platform, no redirecting your users or juggling external pages. 
    • Simplified operations: Automation around collections, reconciliation, and billing reduces manual work and errors, improving cash flow and reporting. 
    • Additional revenue streams: ISVs can earn through transaction share, premium payment features, or value‑added services. 
    • By embedding payments, your platform becomes more attractive, more efficient, and more defensible in a crowded market. 

    How can businesses choose the best payment technology partner for integrated payments? 

    Look for a partner that offers: 

    • Flexible integration (APIs, SDKs). 
    • Support for multiple payment methods (cards, ACH, digital wallets). 
    • Strong security and fraud prevention (tokenisation, encryption). 
    • Multi‑currency / global payment support if you serve beyond the U.S. 
    • Choosing wisely means fewer headaches, smoother integration, and a better user experience. 

    How can integrated payments improve efficiency in specific industries? 

    Because each industry has unique needs, integrated payments help by: 

    • Automating workflows (e.g., connecting payment, inventory, and customer data in retail). 
    • Reducing administrative complexity (e.g., billing & EHR integration in healthcare). 
    • Streamlining checkout and customer interaction (e.g., service shops, hospitality). 
    • By tailoring payment flows to the industry, platforms save time, cut costs, and improve customer satisfaction. 
  • Case Study: How an Autopsy Doctor Saved $20K with Aurora’s ARISE Platform

    Case Study: How an Autopsy Doctor Saved $20K with Aurora’s ARISE Platform

    Reading Time: 2 minutes


    When The Autopsy Doctor, a provider of private autopsy services, faced mounting credit card processing fees, they turned to Aurora Payments and the ARISE platform for a more cost-effective and flexible solution. By offering clients a choice between ACH and credit card payments, they not only saved $20,000 in fees in the first year but also improved customer satisfaction and streamlined back-office operations.

    The Client

    The Autopsy Doctor provides independent autopsy services for families, legal professionals, and healthcare organizations. With an average transaction size of $6,000, payment processing costs were a significant concern for the business. 

    The Challenge

    High credit card fees were threatening The Autopsy Doctor’s bottom line. With every transaction costing over $240 in fees, the company faced pressure to increase service rates or find a more efficient way to manage payments. The administrative burden of following up with clients on payment options further strained their resources. 

    The Solution

    Aurora Payments introduced The Autopsy Doctor to the ARISE platform, which enabled dual-charging functionality, allowing clients to pay via ACH or credit card using a single payment link. Clients could instantly see how much they would save by selecting ACH, encouraging more cost-effective payment choices and faster payment. 

    The Results

    • $20,000 saved in credit card processing fees in the first year 
    • Majority of clients now choose ACH, saving approximately $240 or more per transaction 
    • Maintained competitive pricing without raising rates 
    • Reduced administrative work, leading to time and cost savings 

    Client Quote

    “Our clients appreciate the ability to choose how they pay and really like seeing how much they save with ACH. We saved over $20,000 last year alone, which helped us avoid raising our rates. It’s a win-win. And we save time, too, because there’s less back-and-forth.” – 
    Marcie Schultz, Administrator, The Autopsy Doctor 

    Conclusion

    For The Autopsy Doctor, switching to Aurora’s ARISE platform has delivered measurable financial and operational results. By empowering clients with flexible payment options and reducing overhead, the company has strengthened its business and client relationships — all without raising prices. 

  • Is Dual Pricing Legal? Compliance Checklist for SMBs 

    Is Dual Pricing Legal? Compliance Checklist for SMBs 

    Reading Time: 5 minutes

    If you own a small business, you’ve likely felt the pressure of rising credit card processing fees. Dual pricing—offering one price for cash and a slightly higher price for card payments—can help offset that burden. But is dual pricing legal? The short answer: Yes, in all 50 U.S. states. That said, compliance means following federal laws, state regulations, and card‑network rules to ensure transparency and fairness for customers. 

    This guide covers what you need to know about dual pricing: how it works, how it differs from surcharges, what the federal and state rules require, and how to implement it in your business. 

    Federal and State Compliance Rules for Dual Pricing 

    Federal Compliance Guidelines 

    At the federal level, pricing variation based on payment method must always be clearly disclosed to customers. They must understand the price difference up‑front so their payment choice is truly voluntary.  

    State‑Specific Regulations 

    States often layer additional requirements. Some states mandate that advertised pricing must reflect the total amount a customer pays, regardless of payment method; others require that any price difference based on payment method be clearly communicated in signage, menus, or online materials. For example, in some jurisdictions, you cannot advertise one price and then add a card fee at checkout unless you are properly registered. 

    Disclosure & Customer Notification 

    Successful dual‑pricing programs depend on clear upfront disclosure. That means signage, online listings, and point‑of‑sale displays must show both payment options or clearly state the cash discount. Receipts should capture the complete breakdown of payment method, price, and discount. Any ambiguity or last‑minute surprise increases the risk of regulatory or card‑network issues. 

    Card Network and Payment Processor Rules 

    Card Brand Requirements 

    Major networks such as Visa and Mastercard require merchants to clearly communicate any price differences by payment method in a way that is easy for customers to understand. Dual pricing must be presented as a discount for cash, not a penalty for using a card. 

    Point‑of‑Sale Display Rules 

    Point‑of‑sale systems, menus, digital interfaces, and in‑store signage must display both prices (cash and card) or, at a minimum, the standard (card) price plus a clearly stated discount for cash. The customer must know before paying how their payment choice affects the final price. Payment systems must also correctly record the transaction type and amount to support this structure. 

    Data Security and PCI Compliance 

    Even with dual pricing, you still handle card transactions and must comply with PCI DSS (Payment Card Industry Data Security Standard) requirements. That means securing transmission of card data, encrypting storage, maintaining up‑to‑date systems, and monitoring risks. Offering transparent pricing doesn’t relieve you of security obligations.  

    Dual Pricing Compliance Checklist for Small Businesses 

    Use this checklist to implement dual pricing while staying compliant and protecting your business. 

    • Display clear pricing information. The posted price should equal the card payment price, with a clearly shown discount for cash. If you display both prices, the card price must be the predominant one. 
    • Communicate pricing differences to customers. Train staff to explain the cash vs card pricing options at checkout. Use consistent phrasing, e.g., “Your total is $100 if you pay with a card; if you pay in cash, it’s $96.” Provide written materials (menus, estimates) that show both options. 
    • Ensure point‑of‑sale systems support dual pricing. Your POS must reliably differentiate cash vs. card payments, apply the correct price, record receipt information, and produce clear totals. 
    • Update all signage and digital displays. On your site, in menus, and at your physical location: show payment‑method pricing clearly and avoid confusing language like “card fee” which may trigger surcharge rules. 
    • Review state laws regularly. Some states change rules on surcharges and cash discounts; dual pricing may be lawful, but display/disclosure requirements can evolve.  
    • Ensure staff training and documentation. Employees must understand how to explain payment‑option pricing, apply the correct charges, and avoid mis‑statements. Provide scripts or role‑play as needed. 
    • Partner with a payment processor knowledgeable in dual pricing. Ensure your processor supports compliant dual‑pricing programs, offers signage templates, and ensures your setup won’t trigger card‑network violations. 

    Practical Considerations for Small Businesses 

    • Dual pricing works best when your business processes significant card transaction volume and margins are thin. By showing a cash discount instead of a card surcharge, you preserve customer choice and reduce cost pressure.  
    • Be careful not to confuse “discount for cash” with “card fee” (surcharge). Some states ban surcharges but allow discounts. Proper framing is essential.  
    • Monitor customer reaction. Dual pricing may cause card‑preferring customers to feel penalized or choose a competitor. Presentation, transparency, and staff explanation matter. 
    • Document your dual pricing program—including how you calculated the discount, signage, and training materials—to demonstrate compliance if asked. 
    • Keep up with your paperwork, signage, and system checks monthly: verify pricing displays are correct, receipts show dual pricing correctly, staff know procedures, and POS systems are configured correctly. 

    How to Implement Dual Pricing the Right Way 

    Dual pricing is a legal and viable option for small businesses looking to reduce the burden of credit‑card fees while offering customers a choice. It’s particularly relevant for merchants with tight margins and significant card volume. However, it delivers value only when done transparently, with clear communication, system correctness, and full compliance with federal, state, and card‑network rules. 

    By clearly displaying pricing, offering a genuine cash discount rather than a hidden card surcharge, training your staff, and using compliant systems, you position your business to benefit from this approach while maintaining customer trust. 

    Dual Pricing Compliance FAQs

    Q: Is dual pricing the same as adding a surcharge for credit card payments? 

    No. Dual pricing is structured as a cash discount, not a card surcharge. The posted price is the card price, and customers receive a discount when paying with cash. Surcharging adds a fee on top of the advertised price for card payments, which is regulated differently and banned in some states. 

    Q: What information must be shown at the point of sale to stay compliant with dual pricing rules? 

    The card price must be clearly displayed as the standard price. If a cash discount is offered, it must also be shown clearly, either as a percentage or dollar amount. Pricing differences should be visible on signage, menus, digital displays, and receipts—before the customer makes a payment decision. 

    Q: Can I use dual pricing if I operate in multiple states with different rules? 

    Yes, but you must align your pricing displays and disclosures with the consumer protection laws in each state where you operate. Some states require that all advertised prices match what the customer pays, while others allow more flexibility. Check your signage, POS settings, and website to ensure compliance in each location. 

    Q: How do I train employees to explain dual pricing without confusing customers? 

    Give staff a simple script such as: “Your total is $50 if you pay with a card, or $48.50 with cash.” Emphasize that this is a cash discount—not a penalty for using cards. Consistent, clear communication prevents misunderstandings and supports a positive customer experience. 

    Q: Do I need a specific payment processor or system to implement dual pricing? 

    Yes. Not all processors support dual pricing in a compliant way. You’ll need a system that can display dual prices at checkout, apply the correct total based on payment type, and capture accurate receipt data. A processor familiar with card‑brand rules and state compliance—like Aurora Payments—can help you implement dual pricing correctly. 

  • ACH Payment Processing for Small Businesses: Why It’s Growing & What You Should Know 

    ACH Payment Processing for Small Businesses: Why It’s Growing & What You Should Know 

    Reading Time: 5 minutes

    ACH payments are increasingly used by small businesses that want to reduce costs and simplify operations. With lower fees than many credit card transactions and faster turnaround than paper checks, ACH can help improve cash flow while providing a secure way to move funds. Whether you’re running payroll, collecting subscription payments, or paying vendors, ACH offers a reliable approach for routine transactions that doesn’t overcomplicate things. 

    If you’re ready to streamline your money movement, understanding the fundamentals of ACH is helpful. From setup to compliance, this article walks you through what you need to know to decide whether ACH is a fit for your business. 

    Why ACH Payments Are Growing for Small Businesses 

    Small businesses are increasingly turning to ACH payments to manage rising costs and operational challenges. This payment method offers real financial benefits, including cost savings, faster settlement, and enhanced transaction security. 

    Lower transaction costs

    One of the most significant advantages of ACH payments is the lower transaction fees compared to many credit‑card options. Whereas credit‑card fees often include a percentage of the transaction amount, as well as fixed per‑transaction charges, ACH payments typically have a more predictable, fixed rate regardless of transaction size. For businesses with subscription or recurring payment models, simpler, predictable transaction fees help maintain margins and ease budgeting. 

    Faster processing times

    ACH payments are known for relatively quick settlement. The network managed by Nacha (and others) supports next‑business‑day or even same‑day settlement in many cases. Qualifying payments submitted before cut‑off times can settle the same business day, giving businesses more control over cash flow and improving access to funds when timing matters. 

    Improved security and cash‑flow management

    Electronic ACH transactions provide a digital audit trail, which supports tracking, reconciliation, and dispute resolution. Because ACH moves funds through networked financial institution systems rather than relying on manual, paper-based processes, the risk of lost checks or manual-entry errors is reduced. In addition, recurring payments—such as memberships or subscriptions—are handled well by ACH, enabling consistent cash‑flow since businesses don’t need to chase late payments or switch methods frequently. 

    How ACH Payments Work 

    To use ACH effectively for small‑business payment processing, it helps to understand the components and transaction flow. 

    The ACH process involves multiple parties: the business (originator), its bank (Originating Depository Financial Institution – ODFI), the ACH operator (such as The Clearing House or the Federal Reserve FedACH system), and the receiving bank (Receiving Depository Financial Institution – RDFI). 

    Here is a simplified flow: 

    1. Your business instructs your bank (ODFI) to initiate ACH transactions (credits or debits). 
    1. The ODFI batches and forwards those transactions to the ACH operator. 
    1. The operator sorts and forwards entries to the appropriate RDFIs. 
    1. The RDFIs post the funds to consumer or business accounts. 
    1. Settlement times vary: many standard ACH transactions settle within 1 to 2 business days, while qualifying payments may settle the same day. 

    Types of ACH transactions

    ACH credits: Payments pushed from your account to another (vendor payments, payroll deposits). 

    ACH debits: Pull funds from a customer’s account (with proper authorization) for membership dues or subscription billing. Debits typically require stronger authorizations and are subject to return‑rights rules. Credits often settle faster because the originator controls when the payment is initiated. 

    Setting Up ACH Payments 

    Once you decide ACH is relevant, there are compliance and technical steps to follow. 

    First, your business will need a commercial bank account and an ACH‑enabled payment processor or bank. You must obtain proper authorizations from customers before initiating ACH debits. That authorization should include the customer’s name, bank account, and routing numbers (or other acceptable verification), the payment amount or a variable amount indicator, frequency, your business name, and contact details. For recurring payments, you should notify customers in advance of changes. 

    Compliance with Nacha’s operating rules is vital: you must maintain records, manage returns (such as NSF or closed‑account returns), and monitor return rates. Excessive return rates may trigger penalties or loss of ACH privileges.

    On the technical side, integration may involve your processor’s API or portal. Once underwriting is complete and your account is approved, you can begin ACH processing—with benefits like cost savings and operational simplicity that make the effort worthwhile. 

    ACH Payment Processing: Pros and Cons 

    It’s important to weigh both the benefits and challenges of ACH payment processing to decide how it fits your business model. 

    Benefits: 

    • Cost efficiency: ACH transaction fees are typically much lower than credit‑card fees. 
    • Predictability: Recurring ACH payments provide steady, scheduled cash flow. 
    • Reduced manual tasks: Automated debits or credits can reduce errors and administrative burden. 
    • Security: Digital trail and network controls help reduce the risk of fraud. For example, the ACH Network is expanding Same‑Day ACH and has a robust processing infrastructure. 

    Drawbacks: 

    • Settlement time: Standard ACH may take one to two business days (or more) to settle, unlike real‑time payment networks. Late‑day or holiday initiations can add delay. 
    • Return or failure risk: Errors (wrong account number, closed account, insufficient funds) cause returns or failed transactions, which may incur fees or delays. 
    • Domestic limitation: ACH is primarily for U.S. bank‑to‑bank transfers; international payments often require wire transfer or other higher‑cost alternatives. 
    • Setup and compliance: Proper authorization, record‑keeping, and monitoring are needed; failing to comply with operating rules may pose a risk. 

    Impact on Cash Flow 

    For a small business, the ability to predict cash flow and manage transaction costs matters significantly. Using ACH can strengthen cash‑flow management by reducing variable fees and enabling regular, automated payments. For companies with subscription or membership models, ACH debits can turn unpredictable customer behavior into predictable revenue streams. 

    For example, suppose a business currently pays 3% per transaction on credit‑card payments and switches to ACH at a lower fixed transaction fee. In that case, the cost savings add up—and the reduced cost may help support growth or free up resources for other investments. At the same time, you should plan for settlement gaps: if standard ACH settlements take a day or two, you may need to manage working capital or short‑term cash needs accordingly. 

    Getting Started with an ACH Solution 

    Choosing the right ACH payment processor is a critical decision. When evaluating providers, focus on features such as transparent transaction fees, reliable settlement times, strong security, recurring billing support, and integration with your existing systems. 

    For example, if you partner with a provider that offers robust ACH credits and debits, supports recurring payments, and aligns with your small‑business needs, then you can streamline payments, reduce fees, and enhance your operational workflows. 

    Why ACH Belongs in Your Small Business Payment Strategy 

    ACH payment processing offers small businesses a compelling alternative to traditional payment methods. With lower transaction fees, predictable recurring payment workflows, and the ability to manage cash flow more effectively, ACH can be a key tool in your payment‑processing strategy. 

    That said, success with ACH requires choosing the right provider, understanding the settlement timelines, and securing proper customer authorizations. By evaluating transaction fees, integration, security, and workflow impact, you can determine whether ACH deserves a prominent place in your payments portfolio. 

    ACH Payment Processing for SMBs FAQs

    Q: How can small businesses ensure compliance with Nacha rules when using ACH payments? 

    Small businesses should implement secure processes for managing bank‑account information, enforce proper customer authorizations (especially for ACH debits), verify routing numbers, monitor return rates, and maintain documentation as required by the Nacha Operating Rules. 

    Q: What should I do if an ACH transaction is delayed or fails because of insufficient funds? 

    If a transaction is rejected or returned for insufficient funds, contact your customer to identify when funds will be available and consider re‑processing or offering an alternative payment method. Review the payment processor’s policies on returns and any associated fees. 

    Q: How fast will I get paid after a transaction?

    Most solutions offer next-day or same-day payouts on card transactions. Faster access to funds helps pet care businesses manage cash flow, cover supplies, and reduce financial stress.

    Q: How does ACH payment processing help businesses with recurring billing manage their cash flow more effectively? 

    ACH allows businesses to automate recurring payments, generating predictable revenue and reducing time spent chasing late payments. With fewer manual invoice cycles and more consistent payments, companies can forecast cash flow more reliably and devote resources to core operations rather than collection efforts. 

  • Top 5 Must‑Have Features in ACH Payment Processing for Small Businesses

    Top 5 Must‑Have Features in ACH Payment Processing for Small Businesses

    Reading Time: 6 minutes

    ACH payment processing is increasingly a preferred choice for small businesses seeking to reduce costs and simplify transactions. The right ACH solution can help you manage subscriptions, process large invoices, or provide a more reliable payment method. But choosing the wrong one could mean higher fees, awkward integrations, or even unnecessary security exposure. 

    Here are five critical features to evaluate: security and compliance, transparent and fair pricing, smooth business‑system integration, fast and dependable processing, and an easy‑to‑use interface supported by responsive customer service. These elements form the foundation of a payment system that supports your business—rather than working against it. 

    Top 5 ACH Payment Processing Features

    Below, we’ll explain why each feature matters and how to identify the right solution for your needs. 

    1. Security & Compliance Protection 

    When you collect customers’ bank account details, protecting that data is non‑negotiable. A data breach can erode trust overnight—and dealing with the aftermath can be expensive, time‑consuming, and damaging to your reputation. That’s why a credible ACH solution must bring multiple layers of protection. 

    At the technical level, look for strong encryption: ideally AES (Advanced Encryption Standard) for data at rest, and TLS (Transport Layer Security) for data in motion.

    But encryption is only one part of the story. To protect bank‑account information after a transaction is complete, your provider should support measures such as tokenization (replacing real account numbers with random tokens), truncation (showing only the last four digits), or deletion of sensitive information once processing is done. 

    Secure communication channels between your systems and the provider’s infrastructure also matter. Technologies such as VPNs and SSL certificates provide additional protection by making data interception much more difficult. 

    Authentication protocols are also critical. Multi‑factor authentication (MFA) for access, device‑fingerprinting, and IP‑address monitoring can all help flag unusual login attempts and prevent unauthorized access. 

    Finally, ensure your provider maintains compliance with the rules of the National Automated Clearing House Association (Nacha) and relevant regulations. The ACH network processes vast volumes of transactions, and adherence to its operating rules ensures the payment method is reliable and regulated.  

    2. Clear and Affordable Pricing 

    Small‑business budgets are tight. Unexpected fees or opaque cost structures can disrupt cash flow and erode margins. That’s why transparency in pricing is essential. 

    Choose a provider that clearly lists all per‑transaction fees, setup costs, monthly service charges, and any additional fees for support or reporting. With ACH transactions generally costing less than credit‑card processing, the potential savings can be significant.

    Be alert for hidden charges—some providers may advertise low transaction rates but apply extra fees for services you assume are included. Make sure you understand recurring and setup fees before moving forward. 

    Also, investigate cost‑reduction options. Some processors (including Aurora Payments) may offer features such as dual‑pricing, surcharging, or cash‑discount programs to help offset processing costs and protect your margins. 

    Think beyond just the transaction fee: also evaluate your fixed costs and variable costs based on your expected volume. Will the pricing model scale as your business grows? Some providers offer volume‑based pricing that lowers costs as your payment volume increases. 

    3. Integration with Business Systems 

    A payment system isn’t isolated—it needs to support your existing workflows. The right ACH solution will integrate smoothly with your accounting software, CRM, invoicing platforms, e‑commerce system, or subscription‑billing system. That integration can reduce manual data entry, improve accuracy, and give you clearer visibility of your financials. 

    Look for strong APIs and pre‑built connectors for tools like QuickBooks, Xero, or Sage. DEBIT or credit entries should automatically reconcile with your accounting system when payments go through. 

    If you sell online via platforms such as WooCommerce or Shopify, the ACH solution should embed directly into your checkout or invoicing flow. That reduces friction for your customers and avoids workarounds. 

    If your business uses subscription billing, ensure your ACH processor integrates with your subscription‑management software—so if a customer’s status changes, their payment schedule adjusts automatically. 

    Before signing up, verify that real‑time synchronization is supported, and test how well the processor interacts with your existing systems. Good integration should simplify your workflow—not complicate it. 

    4. Fast Processing and System Reliability 

    Cash flow is the lifeblood of a small business. The faster and more reliably payments clear and settle, the better you can plan and operate. Traditional ACH payments often took 1–3 business days; recent improvements have enabled next‑day or same‑day settlement.  

    When evaluating providers, investigate their processing speeds, uptime guarantees, and fail‑safe systems. Ask about backup processors, disaster‑recovery protocols, and how the provider handles failed or returned transactions (for example, retry logic). 

    Reliability isn’t just about uptime—it’s about consistency. If recurring payments fail or settle too slowly, it may lead to service interruptions, customer complaints, or increased administrative overhead. In subscription or service‑business models, reliability is critical. 

    5. Simple Interface and Customer Support 

    Even the most advanced ACH solution won’t help if it’s challenging to use or if you’re on hold for hours when a problem occurs. For many small businesses, the payment processor needs to be intuitive, efficient, and backed by responsive support. 

    Look for a dashboard that allows you to set up ACH batches, e‑checks, or direct deposits with minimal clicks. Key tasks—such as entering routing/account numbers or setting up NACHA‑compliant debit authorizations—should be straightforward. 

    A platform that works well on desktop, mobile, and tablet gives you flexibility—especially if you operate remotely or on the go. 

    Automation is another feature to prioritize: recurring payments should be configurable so you don’t have to re-enter the same customer data every month. That not only saves time but also reduces human error. 

    The dashboard should surface actionable information: your account balance, outstanding transactions, decline reports, and detailed transaction histories—all without requiring you to dig through menus or generate custom reports. 

    Customer support is the other side of the coin. Prefer providers that offer multiple support channels (phone, email, live chat) and that are staffed by personnel who understand ACH‑specific issues (returns, NSF, bank rejections, etc.). Fast response times matter when payment systems are down or a batch fails. 

    Finally, make sure your customers (the payors) can authorize ACH debits easily—via secure links or payment pages. A strong front‑end experience helps reduce friction and encourages timely payments. 

    Feature Comparison

    When evaluating ACH payment processing providers, consider how each feature impacts your day-to-day operations and long-term growth.  

    • Strong security and compliance measures reduce the risk of data breaches and regulatory issues, though more advanced protection may involve a steeper learning curve or longer setup times. Many providers offer basic security features at no additional cost, but it’s important to verify exactly what’s included. 
    • Transparent pricing helps with budgeting and prevents unexpected fees. While ACH is generally more affordable than credit card processing, flat-rate fees may not be ideal for very small transactions. Be sure to weigh both fixed and variable costs based on your transaction volume.  
    • System integration is another key area: solutions that connect easily with your existing accounting or CRM tools can automate workflows and reduce manual work, although more complex setups might require technical resources or setup fees.  
    • Fast processing speeds and system reliability also directly impact your cash flow—some providers offer expedited services, but they may come at a premium.  
    • An intuitive interface and responsive customer support can make a big difference in daily usability. While advanced dashboards offer more control, they may take time to learn, and support services may or may not be included in your processing fees. 

    Note: ACH settlement times vary. Although same‑day ACH is available, standard transactions may still take one or more business days, and the fee structure varies by provider.  

    System integration also varies in complexity: a simple plugin may suffice for some platforms, while connecting to an ERP or back‑office system may require more time but deliver greater long‑term efficiency. 

    Choosing the Right ACH Solution for Long-Term Success 

    Selecting the right ACH payment processing solution can significantly improve how your small business handles payments, cash flow, and customer relationships. The five features discussed—security and compliance, transparent pricing, system integration, processing speed and reliability, and a user‑friendly interface with solid support—are essential both for your daily operations and long‑term growth. 

    Robust security shields your business from data risk; transparent pricing gives you control over costs; integration streamlines workflows; faster, more dependable processing supports smoother cash flow; and ease of use and responsive support help you avoid unnecessary operational roadblocks. 

    The feature comparison shows that each feature has trade‑offs; the goal isn’t perfection in a single area but a strong balance across all five. Evaluate your business from multiple angles—current volume, growth trajectory, systems in use, customer payment behavior—and weigh potential providers accordingly. 

    As you assess your options, keep these criteria front of mind. A strong ACH solution won’t just meet your current needs—it will support your business as it grows, letting you focus on serving your customers and achieving your goals rather than managing payment headaches. 

    ACH Payment Processing Feature FAQs

    Q: What should I look for to ensure an ACH payment‑processing solution works smoothly with my current business systems? 

    Prioritize compatibility with the platforms you already use—for example, accounting software (QuickBooks, Xero), invoicing platforms, and CRM systems. Features like pre‑built connectors or plugins significantly reduce implementation time. Also, confirm the provider offers an API so you can tailor workflows and avoid manual data entry. 

    Q: How can I verify that an ACH payment processor has strong security measures to protect customer data? 

    Check that the provider uses encryption for account‑routing details (both in transit and at rest), supports multi‑factor authentication (MFA), and offers monitoring of unusual activity (such as device‑ or IP‑based alerts). Also, review whether the provider adheres to NACHA rules and applicable compliance standards. 

    Q: How can transparent pricing in ACH payment processing help small businesses manage their budgets? 

    Transparent pricing lets you predict payment‑processing costs upfront and avoid surprise fees. Because ACH fees are typically lower than credit‑card fees, many small businesses use ACH to reduce operating expenses and channel savings into growth or customer service. 

  • How Jewelers Can Lower Credit Card Processing Fees Before the Holiday Rush

    How Jewelers Can Lower Credit Card Processing Fees Before the Holiday Rush

    Reading Time: 3 minutes

    Peak season brings big sales—and bigger processing costs. In our 30-minute webinar, How to Save Money on Credit Card Processing Fees During Peak Buying Season, payments expert Jim Luff and Aurora’s head of integrated partners John Badovinac shared practical ways jewelers can reduce fees, avoid costly errors, and keep more of every holiday sale.

    Watch the full webinar replay: View the recording

    Here’s a recap of what Jim and John covered during the webinar, that includes five takeaways you can apply now to start saving today.

    Why fees spike during the holiday

    The November–January surge means more transactions, more online orders, and more premium rewards cards—all of which push costs up. Even a small increase in your effective rate can quietly shave thousands off holiday profits.

    Quick definition: your effective rate = total fees ÷ total card sales. If it’s creeping higher month to month, you’re leaking margin.

    5 biggest takeaways for jewelers

    1. Know what you can (and can’t) negotiate

    Every transaction includes:

    • Interchange (set by card networks; not negotiable)
    • Assessments (small card-brand fees; not negotiable)
    • Processor markups (your negotiable area)

    Your leverage lives in the markup and in eliminating the errors that cause downgrades.

    2. Stop “cost creep” at the source

    Cost creep = gradual fee increases or add-ons that go unnoticed.

    • Read the fine print on monthly statements for new or raised fees.
    • Calculate your effective rate monthly and track it.
    • Watch for miscellaneous or non-qualified line items.

    Pro tip: If effective rate > ~3% without clear justification, it’s time for a review.

    3. Avoid downgrades (they’re silent profit killers)

    Transactions cost more when required data or timing criteria aren’t met.

    • Settle batches within 24 hours
    • Always use AVS (address verification) for online/CNP sales
    • Prefer EMV/tap-to-pay over manual keying
    • Ensure your POS sends the right data every time (integration helps)

    4. Choose—and encourage—the right payment mix

    Not all tenders cost the same.

    • PIN debit is typically cheaper (Durbin-capped)
    • Consider your Amex strategy (today it’s often more competitive)
    • Offer ACH for high-ticket purchases where appropriate
    • Enable digital wallets for faster, secure, lower-risk acceptance

    5. Cash discounting vs. dual pricing

    Both are legal for jewelers when implemented correctly and transparently.

    • Cash discounting: display a price that includes up to ~4% for card; discount at POS for cash/PIN debit/ACH
    • Dual pricing: show cash and credit prices side by side
    • Requirements: clear signage at entry and POS; compliant receipts; never create a “profit center” via surcharging

    If you’re unsure, get help configuring signage, receipts, and POS settings so you remain in compliance and customer-friendly.

    What to check on your merchant statement (fast audit)

    • Markup structure: Are you on cost-plus with a visible processor markup?
    • Negotiables: monthly statement/service fees, batch fees, chargeback fees, early termination, gateway (sometimes waived if owned by provider)
    • Non-negotiables: interchange + assessments (but you can qualify for better categories by fixing workflow issues)

    Want a second set of eyes? Request a no-cost rate review: Contact Jim Luff

    Pre-holiday payments checklist

    • Rate review completed before Thanksgiving
    • Hardware ready: EMV + tap-to-pay + digital wallets + ACH enabled
    • Staff trained: refunds/voids (void same-day to avoid double fees), ID checks, fraud red flags
    • PCI compliant: if you see a “non-compliance” fee, recertify to stop the ~$30/mo penalty
    • Clear signage: if using cash discounting/dual pricing
    • Batch timing: settle daily, same day

    Why integrations matter

    As John explained, integrated POS + payments reduce manual entry, errors, and reconciliation headaches—all frequent causes of downgrades. Integrations also enable:

    • Level II/III data where applicable (extra savings on certain cards)
    • Text-to-pay and online invoices with tokenization
    • Inventory + CRM sync for personalized outreach (birthdays, anniversaries)
    • Next-day funding on card; low-cost ACH options with verification tools

    Start now

    Small, smart changes now can protect thousands in holiday profit. Start with an honest look at your effective rate, fix downgrade triggers, and get your systems ready before the rush.

    Watch the full webinar: How to Save Money on Credit Card Processing Fees During Peak Buying Season
    Get a complimentary rate review (no pitch, just clarity): Contact Jim Luff

  • Aurora Payments and LimoGrid Launch Integrated Payments for Transportation Operators

    Aurora Payments and LimoGrid Launch Integrated Payments for Transportation Operators

    Reading Time: 2 minutes
    limogrid

    TEMPE, AZ, UNITED STATES, October 23, 2025 — Aurora Payments, a full-service payments provider, today announced a strategic partnership with LimoGrid, a reservation and dispatch system designed specifically for the chauffeured transportation industry.

    The integration gives operators a single platform to manage everything from bookings to billing, all with secure, built-in payments.

    “LimoGrid understands what transportation companies need to run efficiently,” said John Badovinac, SVP of Embedded Commerce at Aurora Payments. “This integration is about making it easier for operators to handle payments from the same system they use to manage their fleet, schedule trips, and communicate with clients.”

    With ARISE embedded, LimoGrid users can now accept payments directly within the platform while managing reservations, dispatch, fleet tracking, and invoicing, all without switching systems or relying on third-party hardware.

    “By integrating Aurora’s payment technology, our platform gives operators a powerful set of tools in one place,” said Conrad Karl, Director of Business Development at LimoGrid. “From managing a few airport transfers to running a large charter service, transportation businesses can stay organized, get paid faster, and serve clients better.”

    As more transportation companies shift to digital-first solutions, this partnership gives LimoGrid a competitive edge with fully integrated payments. It also helps generate new recurring revenue streams from every transaction processed through the platform.

    For more information about Aurora’s ARISE platform for software providers, visit https://risewithaurora.com/saas-software-isv/

    About Aurora Payments

    Aurora Payments is a full-service payments provider delivering the financial infrastructure that powers embedded commerce for small and medium-sized businesses and the software platforms that serve them. Aurora’s platform combines payments, instant settlement, capital access, and risk management tools into a single, ready-to-use solution. Supporting more than 30,000 merchants, Aurora is headquartered in Tempe, Ariz., and backed by Corsair, a leading private equity firm focused on payments, software, and financial services.

    About LimoGrid

    LimoGrid is a cloud-based reservation and dispatch platform created specifically for the chauffeured transportation industry. It brings together booking, fleet management, invoicing, payments, and customer communication into one modern system accessible from any device. Learn more at https://www.limogrid.com/.

  • How to Monetize Payments Within Your Software Platform

    How to Monetize Payments Within Your Software Platform

    Reading Time: 4 minutes

    Most software companies rely heavily on subscription revenue. It’s predictable and straightforward, but it has limitations – there’s only so much you can charge before customers push back. There’s another revenue model worth considering: payment monetization. Done well, this becomes a genuine revenue stream that scales naturally with your customers’ success. 

    What Payment Monetization Actually Means

    Simply put, payment monetization means earning revenue from the payments that customers are processing through your platform. There are several ways to structure this.

    Interchange sharing

    Card networks charge an interchange fee on every transaction. When your platform facilitates payments, you can negotiate to share in this interchange revenue with your payment processor. Instead of passing payment processing through to your users at cost, you earn a small percentage of every transaction.

    Value-added services

    Beyond basic processing, you can monetize by offering premium payment features like faster payouts, advanced fraud protection, international payments, or financing options. Customers are willing to pay extra because these features solve real problems, like improving cash flow or reducing chargebacks, that basic processing doesn’t address.

    White-label and embedded billing

    Rather than sending users to a third-party processor, embedding payments directly into your software creates a seamless experience. White-labeled payment solutions let you own the customer relationship and earn more revenue from each transaction.

    Revenue Models for Monetized Payments

    The right model for monetized payments depends on your customer base, transaction patterns, and competitive positioning. Here are some options.

    Flat-rate vs. interchange-plus

    Flat-rate pricing charges customers a single percentage on all transactions, like 2.9% + $0.30. This is simple and transparent, ideal for small businesses or platforms just starting with payment monetization.

    Interchange-plus pricing charges customers the actual interchange cost plus your markup. High-volume customers prefer interchange-plus pricing because they can audit the pricing and negotiate better terms. 

    Subscription pricing

    Some platforms charge a monthly fee for access to embedded payment features. This works when payments are packaged as part of a premium tier or when you’re offering significant value beyond basic processing. For example, a childcare management platform might charge $75/month for payment features that include automated weekly tuition billing or split payments between parents.

    Usage-based fees

    Usage-based monetization charges customers based on transaction volume or specific features accessed. This model aligns costs directly with value received and is easier to justify since customers only pay when they use the service.

    Key Technical Considerations

    Monetizing payments requires solid technical infrastructure. Below are some considerations for building your payment solution.

    API access and documentation

    Your payment API needs to be developer-friendly, well-documented, and reliable. Invest in comprehensive documentation, sandbox environments, and example code to make integration easier. The smoother your integration experience, the faster platforms will adopt your payment solution – and the more revenue you’ll generate.

    Reporting and analytics

    Customers expect detailed reporting on transaction volumes, processing fees, settlement timelines, and revenue breakdowns. Without it, they can’t reconcile their books, understand their true costs, identify trends or problems, or trust that you’re charging them correctly. Having robust reporting tools in place helps build customer trust and drive retention.

    Settlement and payout timelines

    How quickly can your customers access their funds? Settlement timing impacts cash flow and customer satisfaction. Work with your payment partner to offer competitive payout schedules and be transparent about when funds will be available.

    Risk and Compliance Responsibilities

    When you monetize payments, you take on responsibilities around risk management and regulatory compliance. There are really two main areas you need to address.

    KYC & onboarding

    Know Your Customer (KYC) requirements mean you need to verify merchant identities on your platform. This includes collecting business information and screening for fraud. Choose a payment partner that handles much of this while keeping the experience smooth for your customers.

    PCI compliance and tokenization

    Payment Card Industry (PCI) compliance is non-negotiable when handling card data. By using tokenization and working with a PCI-compliant payment processor, you can reduce your compliance burden while keeping customer data secure.

    Real-World Examples of ISV Monetization

    Consider a property management software provider. A platform for landlords automates rent collection, late fees, and security deposits. They charge 2% of every rent payment processed. A landlord with 50 units collecting $100,000/month generates $2,000 in monthly payment revenue for the platform.

    Or look at appointment booking software for nail salons. A salon management platform processes payments for services and product sales. They earn $0.50 per transaction plus 0.3% of volume. With hundreds of salons processing thousands of appointments weekly, this adds up to significant recurring revenue.

    How to Get Started

    Start by analyzing your current payment flows. Where are your customers processing payments today? What friction points exist? How much volume flows through your platform? Then, build a business case. Model out potential revenue based on transaction volume, pricing structure, and take rates.

    Finally, choose a payment partner that aligns with your vision. Here are a few important questions to ask when evaluating payment processors.

    • Do you offer revenue sharing or interchange-plus pricing?
    • What APIs and developer tools do you provide?
    • How do you handle merchant onboarding, KYC, and compliance?
    • What reporting tools are available?
    • What is your settlement timeline?
    • Do you provide sandbox environments for testing?

    With the right strategy and payment partner, your platform can turn payments into a fundamental part of your business model. Ready to explore payment monetization for your platform? Aurora Payments specializes in helping ISVs and SaaS companies embed payments and build new revenue streams. Contact us today.