the value of a payment gateway
TRANSCRIPT
The Value of a Payment Gateway
Rapid Change in the Payment Industry
Keeping up with the ever evolving payment landscape is a constant concern.
Just when you think you know all the rules, a new security technology emerges that must be considered and reviewed.
Confusion
Simply understanding the language in the payment industry can be challenging.
cardholder data
PCI-DSS scope
interchange rate
acquiring bank
network configuration
encryption keys hardware security module
batch settlement
PIN entry downgrade fee
$$$
Multiple Players
For every transaction type (card swipe, online purchase, phone reservation) multiple institutions are involved in the process.
Acquiring Bank
Issuing Bank
Card Association
Processor
Merchant Establishment
A Payment Gateway Helps Manage It All
All these new technologies can be confusing for any merchant, who at the end of the day wants to ensure that all payment transactions are processed and arrive at the bank in a secure and timely fashion.
A Payment Gateway Helps Manage It All
The right payment gateway can better manage communication with the banks, associations and processors.
What is a Payment Gateway?
Formally, a network gateway provider is:
a protocol translation or mapping gateway that interconnects networks by performing a required message conversion
What is a Payment Gateway?
A payment gateway facilitates the transfer of information between a point of payment... • point-of-sale terminal • property management system • online shopping cart • telephone order
...and the front-end processor or bank.
Secure, Direct Translation
A payment gateway acts as a translator, traffic cop and bodyguard – interpreting and directing data streams through a secure route to the appropriate destination, quickly and accurately.
The Transaction Life Cycle: Where the Payment Gateway Sits
Here’s the Whole Round Trip • Each time a customer
purchases a product or service from a merchant, the gateway executes numerous, critically important steps to route the transaction in a transparent process behind the scenes.
Here’s the Whole Round Trip • Each time a customer purchases a
product or service from a merchant, the gateway executes numerous, critically important steps to route the transaction in a transparent process behind the scenes.
• There are several “hand-offs” during a financial transaction. It is important to understand these connections and the role a payment gateway plays in managing this process.
Here’s the Whole Round Trip • Each time a customer purchases a
product or service from a merchant, the gateway executes numerous, critically important steps to route the transaction in a transparent process behind the scenes.
• There are several “hand-offs” during a financial transaction. It is important to understand these connections and the role a payment gateway plays in managing this process.
• The round trip typically takes about 3-5 seconds. The power of a payment gateway is in managing the entire trip.
But You May Be Wondering...
Why is a gateway solution right for
my business? What are the real differentiators
when selecting a gateway solution?
Key Considerations and Benefits of a Gateway
Security is Paramount
Securing cardholder information is critical to any gateway solution
Security is Paramount
The payment gateway should be listed as certified on the PCI Council website of approved providers:
http://usa.visa.com/download/merchants/cisp-list-of-pcidss-compliant-service-providers.pdf
Cloud-Based Payment Gateways
A centrally hosted or cloud-based solution can:
remove sensitive cardholder data
completely from the IT infrastructure
minimize the cardholder data environment (CDE)
and enhance security while reducing PCI
burden and cost
remove the need for additional third party hardware or
software
Flexibility and Control A gateway should offer
flexibility to switch amongst processors and
payment providers quickly and efficiently
Flexibility and Control A gateway should offer
flexibility to switch amongst processors and
payment providers quickly and efficiently
A gateway must interface to multiple
POS systems while providing the same
level of reliability and reporting across the
entire enterprise
Flexibility and Control A gateway should offer
flexibility to switch amongst processors and
payment providers quickly and efficiently
A gateway must interface to multiple
POS systems while providing the same
level of reliability and reporting across the
entire enterprise
Direct routing to non-association card types (ex. AMEX) can
provide significant per transaction savings and
return on investment
High-Touch Service and Support
• Data security has become critical to any business that takes multiple forms of payment.
• Hosted solutions provide off-site data storage and innovative products such as tokenization and point-to-point encryption.
• All these components further distance the merchant from sensitive credit card numbers.
which means…
Ability to Pinpoint Problems
Gateway providers should be able to track down and immediately resolve problems no matter where an issue occurs within the life cycle of a transaction.
Support Services Should Include:
• Live support 24x7x365
• Network monitoring
• Email alerts
• End to end transaction support
• Funds recovery services
• Account reconciliation
Real-Time, Comprehensive Reporting
Because all business owners know you cannot manage what you cannot measure.
Real-Time, Comprehensive Reporting
Reporting should offer a complete and secure view of all transaction information.
• Exception reporting
• Drill down capabilities
• User level access settings
• Electronic distribution
• Enterprise level reporting
Easy Implementation and Maintenance
Whether a single restaurant or multi-branded franchisee, costs for implementing and maintaining a fully PCI-compliant credit card solution can represent a significant investment.
Easy Implementation and Maintenance
Consideration should be given to the initial investment and ongoing costs of remaining compliant or changing processors.
A cloud-based gateway solution does not require additional hardware to maintain or software to keep upgraded.
Easy Implementation and Maintenance
The Value of a Payment Gateway
The Value of a Gateway
The more complex the merchant environment, the more a gateway is needed.
multiple outlets
franchisees
remote locations
third party application
interfaces
multiple point-of-sale
systems
The Value of a Gateway
A gateway allows for processor choice and provides assurance that the solution is supported end to end.
The Value of a Gateway
A gateway manages the entire payment process quickly and securely.
Questions Merchants Should Ask
Consider the following when evaluating different payment gateway solutions: • What is the provider’s network
uptime?
• What POS/PMS systems and processors does the provider interface with and connect to?
• How easily can I switch processors?
Questions Merchants Should Ask • What kind of support can I
expect when my batches fail or when I need to resolve a payments-related problem? Will the provider take responsibility for helping with the resolution?
• How can I get real-time visibility into my transactions?
• How complex is the set-up and installation across all sites?
In Conclusion...
Rapid change in the payment industry is inevitable but it does not have to consume all of a merchant’s time, especially when they’ve got a business to run.
Finding a gateway provider with a strong track record in reliability, security and cost effective solutions provides the peace of mind merchant desire and the ease of use customers demand.
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