NetSuite Payment Processing | Methods, Benefits & FAQs

The heart of every single business is making and receiving money. Without the ability to receive funds into an account, a business is rendered useless. As such, payment processing is a very important part of an ERP. Oracle NetSuite is one of the top ERPs on the market, and it offers many different payment processing options, which we will go through in this blog. 

What is Payment Processing?

Payment processing facilitates the transfer of funds from payer to payee. It typically involves the authorisation, verification, and settlement of transactions through electronic payment systems.

The Importance of Efficient Payment Processing

Efficient payment processing is essential for:

1. Improved Cash Flow: Efficient payment processing ensures that payments are received and processed quickly, reducing the time between billing and receipt of funds. This improved cash flow helps businesses manage their operational expenses more effectively and invest in growth opportunities.
2. Reduced Errors and Fraud: Automation and streamlined processes reduce the likelihood of human error and help detect fraudulent transactions. This protection not only safeguards the business’s financial health but also maintains its reputation among customers.
3. Enhanced Customer Experience: Customers expect quick, easy, and secure payment options. Efficient systems provide these features, leading to higher customer satisfaction and loyalty. Delays or complications in payment processing can lead to frustration and potentially drive customers to competitors.
4. Operational Efficiency: By reducing manual tasks and automating payment processes, businesses can allocate resources to more critical areas, such as product development or customer service. This operational efficiency can lead to cost savings and better use of human resources.
5. Scalability: As businesses grow, the volume of transactions typically increases. Efficient payment processing systems can scale to handle higher volumes without a corresponding increase in errors or processing times. This scalability is crucial for supporting business growth without compromising service quality or financial stability.

Payment Processing Options in NetSuite

NetSuite’s payment processing solution, SuitePayments, integrates payment processing services with the NetSuite platform, providing a single source for managing the entire order-to-cash cycle.

Credit Card Processing

SuitePayments supports extensive credit card processing capabilities, including secure authorisation and settlement. These features enable businesses to handle a high volume of transactions efficiently and securely.

ACH Payments

For businesses looking to reduce processing fees and increase convenience, ACH payments are an excellent option. NetSuite's ACH payment processing is streamlined and integrated, making it easy for companies to manage direct bank transfers.

Alternative Payment Methods

Recognising the growing diversity in consumer payment preferences, NetSuite also supports alternative payment methods such as digital wallets and cryptocurrency. This inclusivity ensures that businesses can cater to all customer segments.

Setting Up Payment Processing in NetSuite

Payment Processing Profiles

Setting up payment processing in NetSuite involves creating and managing payment processing profiles. These profiles define how transactions are handled and processed, ensuring that payment acceptance is aligned with business needs and compliance requirements.

Gateway Integrations

NetSuite allows for integration with multiple payment gateways, providing businesses with the flexibility to choose the best provider based on transaction fees, geographic reach, and security features.

NetSuite offers a number of certified payment processors who have been vetted and confirmed as a safe, and can easily integrate with the NetSuite solution. A few of these options are:

• Freedom Pay: This extensive payment platform facilitates the acceptance of a variety of payment methods such as credit cards and mobile wallets. Integration with NetSuite by Freedom Pay provides a fluid experience in payment processing.
• Cybersource: As a prominent provider of safe electronic payment services, Cybersource offers integration with NetSuite that enhances security and efficiency in payment processing. It includes capabilities for fraud management and supports diverse payment types.
• Solupay: Focused on B2B payment solutions, Solupay provides a NetSuite integration that optimizes payment workflows and improves management of cash flows.

You can also integrate non certified payment processors, which are providers that haven't been vetted by NetSuite. This will have to be via a custom integration completed by your implementation partner. When choosing a provider, make sure that they are secure and reliable, and that it won't be too challenging to integrate into NetSuite.  

Tokenization and Security

To further enhance security, NetSuite utilises tokenization technology. This method replaces sensitive payment data with unique identification symbols, retaining all essential information without compromising security.

Benefits of NetSuite's Payment Processing Capabilities

NetSuite's payment processing system offers several key benefits designed to enhance business operations and financial management:

1. Integrated Financial Management: NetSuite payment processing is fully integrated with its ERP system, allowing businesses to manage financial transactions seamlessly within the same platform used for other business operations. This integration provides real-time visibility into cash flow and financial metrics.

2. Enhanced Security: NetSuite adheres to PCI compliance standards, ensuring that all payment processing is secure. This helps protect sensitive data, reduce fraud risks, and build customer trust through secure transaction processes.

3. Multi-Currency and Global Support: For businesses operating internationally, NetSuite's OneWorld supports multiple currencies and complies with local payment processing regulations. This global functionality enables businesses to expand into new markets without needing separate payment systems.

4. Diverse Payment Options: NetSuite supports a wide range of payment methods, including credit cards, ACH transfers, and newer alternatives like digital wallets and cryptocurrencies. This flexibility allows businesses to cater to the preferred payment methods of different customer segments.

5. Automated Reconciliation: NetSuite's payment processing automates the reconciliation of payments, reducing manual effort, minimizing errors, and ensuring that financial records are accurate and up-to-date.

6. Efficient Transaction Management: From invoicing to settlement, NetSuite streamlines all aspects of transaction management. This efficiency speeds up the transaction cycle, improves customer satisfaction, and frees up resources for other tasks.

7. Customizable Payment Processing: Businesses can customize payment gateways and processing rules to fit their specific needs. This customization includes setting up fraud prevention filters and tailoring payment approval workflows.

8. Improved Reporting and Analytics: NetSuite offers robust reporting and analytics tools that provide deep insights into payment processing activities. Businesses can monitor transaction volumes, track payment statuses, and analyze trends to make informed decisions.

9. Audit Tracking: NetSuite maintains a complete record of the full transaction lifecycle, giving you a 360-degree view of your customer transaction history and detailed audit tracking while maintaining the security of payment card data.

10. Reduced Processing Costs: By consolidating payment processing within its ERP system, NetSuite can help reduce transaction fees and other costs associated with managing multiple payment systems.

If you'd like to find out more on payment processing, come and speak to our experts at Threadgold Consulting. We can show you the extensive functionality that NetSuite can offer your business, and we can help you build a solution that is right for you. As always, price is important, so check out our pricing guide for more information on licensing and implementation. 

FAQs

Q: What Payment Processing Methods are Supported by NetSuite?

A: NetSuite supports a broad range of payment methods to cater to the diverse needs of businesses and their customers. These include credit cards, electronic funds transfer (EFT), digital wallets/mobile payments such as Apply Pay and PayPal, and Cryptocurrencies. 

Q: Does NetSuite Integrate with Banks?

A: Yes, NetSuite offers robust bank integration capabilities. These integrations allow for automated bank reconciliations, direct deposits, and other banking functions directly through the NetSuite platform. It can connect with multiple banks worldwide, facilitating better cash management and financial reporting by syncing transaction data and bank statements automatically with the NetSuite account.

Q: What is the P2P Process in NetSuite?

The Procure to Pay (P2P) process in NetSuite is an integrated workflow designed to manage the entire lifecycle of a vendor transaction from procurement to payment. The P2P process typically includes the following steps:

1. Requisition: The process starts when a need for goods or services triggers a purchase requisition.
2. Purchase Order: Once approved, a purchase order (PO) is created and sent to the vendor.
3. Receiving: Upon delivery, the goods or services are received, and a receipt is created in NetSuite to record what has been received.
4. Invoicing: The vendor sends an invoice to the company, which must match the purchase order and the receipt.
5. Payment: After verifying that the goods or services were received and match the PO and invoice, payment is processed.

Q: How does Netsuite Match Payments to Invoices?

A: In NetSuite, matching payments to invoices involves a few key steps. When a payment is received, it can be manually entered or automatically captured via integrated payment solutions. Payments are then matched to invoices using NetSuite's "Receive Payments" interface, where users can manually apply payments to specific invoices or allow the system to automatically suggest the best matches based on pre-defined rules, such as prioritizing older invoices. If payments don't match invoice amounts or lack clear references, they may be held in an on-account status for manual resolution. Finally, all transactions are reconciled against bank statements to ensure accuracy in financial records. This process helps maintain financial integrity and streamlines accounts receivable operations.