Processing Credit Cards On The Internet


Published on

Northwest Card Association Annual Meeting, September 2009

Published in: Economy & Finance, Business
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Add another bullet “Clear Path to Profitability”
  • Add another bullet “Clear Path to Profitability”
  • Add another bullet “Clear Path to Profitability”
  • Processing Credit Cards On The Internet

    1. 1. Processing Credit Cards on the Internet September 2009
    2. 2. Agenda <ul><li>What is Internet Processing? </li></ul><ul><li>Card Present Solutions </li></ul><ul><li>Card Not Present Solutions </li></ul><ul><ul><li>Mail / Phone Order (MOTO) </li></ul></ul><ul><ul><li>E-Commerce </li></ul></ul>
    3. 3. What is Internet Processing? <ul><li>Processing over the Internet is simply the way a transaction is delivered to it’s end destination. </li></ul><ul><ul><li>Processing on the Internet is like flying in a jet plane, dial up is like taking a car. It is generally faster and more efficient. </li></ul></ul><ul><li>Many Processors offer Internet Processing for both Card Present and Card Not Present merchants. </li></ul>
    4. 4. Why Process Via the Internet? <ul><li>Faster and more efficient </li></ul><ul><li>Resolves issues with today’s digital and Voice over IP phone systems </li></ul><ul><li>Integrates processing with systems already connected to the Internet like a website </li></ul>
    5. 5. Card Present Solutions <ul><li>IP Terminals </li></ul><ul><ul><li>Examples are the Hypercom T4220 and VeriFone Vx570 </li></ul></ul><ul><li>Mobile Phones with Internet Browsers </li></ul><ul><li>Virtual Terminal Applications </li></ul>
    6. 6. IP Terminal Solutions Examples Product Industries Supported Key Features Hypercom T4220 <ul><li>Retail </li></ul><ul><li>Restaurant </li></ul><ul><li>Mail-Order </li></ul><ul><li>Multi-merchant capability. </li></ul><ul><li>Separate keys for each function. </li></ul><ul><li>Supports multiple applications. </li></ul><ul><li>24 megabytes of memory. </li></ul><ul><li>Very fast processor. </li></ul>Verifone Vx570 <ul><li>Retail </li></ul><ul><li>Restaurant </li></ul><ul><li>Mail-Order </li></ul><ul><li>Multi-merchant capability. </li></ul><ul><li>Multi-application support. </li></ul><ul><li>Easy IP diagnosis. </li></ul><ul><li>6 megabytes of memory. </li></ul>
    7. 7. Virtual Terminal Products Product Industries Supported Key Features Mobile Device Processing <ul><li>Card Present-Key Entered </li></ul><ul><li>Mail-Order </li></ul><ul><li>Phone Order </li></ul><ul><li>No software needed, just an Internet connection and a smart phone </li></ul><ul><li>Many offer a Virtual Terminal for reporting, reconciliation, etc. </li></ul><ul><li>Great for plumbers, carpet cleaners, etc. </li></ul>Virtual Terminal Products <ul><li>Card Present </li></ul><ul><li>Mail-Order </li></ul><ul><li>Phone Order </li></ul><ul><li>No software needed, just an Internet connection and a web browser. </li></ul><ul><li>MeS Virtual Terminal uses browser-based technology to provide an easy-to-use payment solution. </li></ul><ul><li>Many have card swipe and PINNED Debit capability </li></ul>
    8. 8. MeS MOTO / e-Commerce Payment Solutions <ul><li>Finding the Right Card Not Present Product </li></ul><ul><ul><li>Virtual Terminal Products </li></ul></ul><ul><ul><li>Processor/Gateway Hosted Check Out Page </li></ul></ul><ul><ul><li>Shopping Carts </li></ul></ul><ul><ul><li>Payment Gateway Direct Connection </li></ul></ul>Proven Management Team
    9. 9. Question Tree – finding the right product <ul><li>How are your customers placing orders today? </li></ul><ul><li>Mail/Phone Order </li></ul><ul><li>Suggest they use a Virtual Terminal product to process the transactions and/or </li></ul><ul><li>Provide them the list of shopping carts certified with your processor and recommend they consider adding this functionality to their website if they have one. </li></ul><ul><li>  </li></ul>
    10. 10. Typical Virtual Terminal Features <ul><li>Authorization and settlement of credit card transactions through a web interface. </li></ul><ul><ul><li>Similar in function to PC/software-based products. </li></ul></ul><ul><ul><li>All a merchant needs is a computer, a web browser like Internet Explorer, and access to the Internet. </li></ul></ul><ul><li>Supports single and batched transactions, recurring payments. </li></ul><ul><li>File Import/Export as well as and API allow for a variety of integration and processing methods </li></ul><ul><li>Have a customer database for recurring billing merchants. </li></ul><ul><li>Changes and enhancements handled at the host level, so users never have to do any software updates. </li></ul><ul><li>Compliant with Payment Card Industry (PCI), card numbers are stored securely on the host servers. </li></ul>
    11. 11. What You Need to Sell Online <ul><li>The basic components needed to sell products online are: </li></ul><ul><li>Domain Name: This is the unique name (URL) for the merchant’s website, for example: . </li></ul><ul><li>Web Hosting: This is the location of the merchant’s website, it may be hosted on the merchant’s system or the merchant may use a third party to host their site. </li></ul><ul><li>Shopping Cart: A shopping cart is the place where the consumer reviews the products they have selected for purchase and where they input their method of payment. The merchant may or may not have a shopping cart when they sign up for credit card processing. Some carts are hosted, while others are installed on the merchant’s system. In many cases the web hosting company also provides the merchant with a shopping cart. </li></ul><ul><li>Payment Gateway: In order to process transactions, the shopping cart must be connected to a Payment Gateway in order to authorize and settle credit card sales. Examples of some common Gateways are PayPal,, and Cybersource. In addition, many processors host their own Payment Gateways as well. </li></ul>
    12. 12. Question Tree – finding the right product <ul><li>Website </li></ul><ul><li>Do you have a shopping cart? </li></ul><ul><li>NO </li></ul><ul><li>Do you sell more than 1 or 2 products? </li></ul><ul><li>NO </li></ul><ul><ul><li>Recommend a processor supported checkout page </li></ul></ul><ul><li> YES </li></ul><ul><ul><li>Recommend a processor supported shopping cart </li></ul></ul><ul><li>YES </li></ul><ul><li>What is the name of your shopping cart? </li></ul><ul><ul><li>Option 1: check to see if it is supported by your processor, if so set up accordingly. </li></ul></ul><ul><ul><li>Option 2: If the merchant is technical, tells you the cart is their own, or inquires about a direct interface recommend they review your processors Integration documentation if that is an available option. </li></ul></ul>
    13. 13. Simple Hosted Checkout Page <ul><li>Most secure checkout pages use only general HTML to implement, it is the easiest way to add Credit Card Processing to a new or existing e-Commerce website. </li></ul><ul><li>A secure hosted payment page will typically handle the following: </li></ul><ul><ul><li>Collection of Credit Card information via a secure form </li></ul></ul><ul><ul><li>Authorization and settlement once approved </li></ul></ul><ul><ul><li>Redirection of the cardholder back to the merchant's web page of choice </li></ul></ul><ul><li>Examples of a Secure Checkout Page are PayFlow Link and SIM. </li></ul>
    14. 14. Certified Shopping Carts <ul><li>Typically posted on either the gateway or processors website. </li></ul><ul><li>Remember that most shopping carts are connected to either a 3 rd </li></ul><ul><li>party Payment Gateway or directly to a processors Payment </li></ul><ul><li>Gateway. </li></ul><ul><li>A few common and popular shopping carts: </li></ul><ul><ul><ul><li>Zen Cart </li></ul></ul></ul><ul><ul><ul><li>X-Cart </li></ul></ul></ul><ul><ul><ul><li>xAuthorize </li></ul></ul></ul><ul><ul><ul><li>Magento </li></ul></ul></ul>
    15. 15. Payment Gateway -Transaction Flow Proven Management Team Settlement HTTPS Payment Gateway Auth & Capture System Card Issuers Authorization Processor Database Merchant System (using checkout page, shopping cart, or API)
    16. 16. Payment Gateway Advantages <ul><li>Provides more control over the payment process than off-the-shelf products. </li></ul><ul><ul><li>Enables users to integrate the payment process into an existing order-entry product, shopping cart, ECRs, etc. </li></ul></ul><ul><li>For merchants who want a high-volume or integrated solution. </li></ul><ul><li>Includes a simplified message format and certification process that are easy on a merchant’s IT resources. </li></ul><ul><li>Cardholder data stored on Gateway servers—reducing PCI impact on merchants. </li></ul>Proven Management Team
    17. 17. Questions ?