Solving For Commerce Complexity

ISV Innovation Presents: Solving For Commerce Complexity Solving For Commerce Complexity Tyler Hannan Platform Evangelist, IP Commerce 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Who is Tyler Hannan? Agenda Platform Evangelist for IP Commerce Agenda one 11+ years experience in the software sector Agenda two Network Administrator, DBA, Part-time Agenda three Developer, 5 years focused on Enterprise Agenda four Retail and Payments Industry Agenda five My Facebook friends, but one, are real people. Agenda six “One of these things is not like the others.” © Microsoft Corporation 2007 2 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Agenda or, what are we doing? Agenda Agenda Agenda one • A brief industry trend overview Agenda two • Payment application categories Agenda three • Solving for Payment Complexity Agenda four • Security and Compliance Agenda five • Case Studies Agenda six © Microsoft Corporation 2007 3 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Objectives or, why am I here? • Build upon prior learning to ensure full comprehension of the challenge of payments integration. • Learn how to leverage Microsoft .NET technology to address payment complexity. • Identify how to address your customer’s needs quickly, simply, and securely. • Above all, acquire more customers...more quickly. © Microsoft Corporation 2007 4 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Why do I care about payments? © Microsoft Corporation 2007 5 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity 2003 2006 Checks Checks 1% 1% 11% (paid) (paid) 16% Debit Card Debit Card 33% 46% Credit Card Credit Card 23% 23% ACH ACH 19% 27% EBT EBT Electronic payments now exceed two-thirds of all noncash payments. Source: The 2007 Federal Reserve Payments Study © Microsoft Corporation 2007 6 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity More than 50% of US SMBs are willing to change their bank for better payment services. Source: BAI Research, Small Business Payments in 2006 © Microsoft Corporation 2007 7 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity 4% 35% Partners report 4% decrease in hardware integrations, 35% increase in software. Source: IP Commerce Partner Interaction © Microsoft Corporation 2007 8 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Interesting, but who cares? 45% of SMBs rely on their ISV to give them advice about payment acceptance.* Payment service providers need you, and will pay for your services. *Source: PayPal © Microsoft Corporation 2007 9 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Commerce Applications? © Microsoft Corporation 2007 10 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Point of Sale (POS) Applications ● An application that is designed for use in a retail location – May include inventory management – Are often customized for a specific vertical – Frequently require installation and configuration assistance ● What payment types are appropriate? – Credit Card Processing – Stored Value Accounts – Electronic Check Workflows – ACH ● Microsoft RMS © Microsoft Corporation 2007 11 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Business Financial Applications (Back Office) ● Payments integration directly in an accounting application. – Usually include both face-to-face and remote acceptance workflows ● What payment types are appropriate? – Credit Card Processing – ACH – Remote Deposit Capture ● Microsoft Dynamics © Microsoft Corporation 2007 12 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity eCommerce Applications ● A generic, “catch all”, term for payments acceptance on a web-site – Can be as feature rich as possible or extremely simple – A combination of custom implemented applications and hosted shopping carts sold to a variety of merchants ● What payment types are appropriate? – Credit Card Processing – ACH – “Web” payments • PayPal, Google Checkout, Amazon FPS, etc ● Microsoft Commerce Server © Microsoft Corporation 2007 13 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Line of Business Applications ● A combination of any of the above that addresses a specific need for a customer vertical – Bill payment – kiosk solutions – CRM applications ● What payment types are appropriate? – All. . .sometimes © Microsoft Corporation 2007 14 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity What’s The Problem? © Microsoft Corporation 2007 15 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Payment Integrations: The Challenge ● The problems that face the ISV depend on many factors: – Type of application – # of services required – # of providers required in each service ● NOTE: The following is a general overview of the complexities the ISV faces. It does not cover all the integration and certification scenarios and should not be considered holistic. © Microsoft Corporation 2007 16 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Credit Card Processing Service ISO Software 8583 Provider Application Average time: 9 months Average cost: $250,000 for development and certification © Microsoft Corporation 2007 17 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Credit Card Processing, again. ISO Service 8583 Provider Software Application Service SOAP Provider The addition of another service provider typically does not decrease time, or cost. Less UI work, same amount of integration pain. © Microsoft Corporation 2007 18 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Another service? You’re Kidding! Service ISO Provider 8583 Service Software SOAP Provider Application Service XML Provider API In many ways, a new service can represent “starting over.” New API set, new certification queue, same challenges as before. © Microsoft Corporation 2007 19 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Payment Integrations: The Challenge ● Each additional service provider requires a new integration, and certification. Each additional service requires familiarity with a new workflow component (UI) and integration/certification. ● Multiple Interfaces ● Lengthy integration queues ● On going maintenance of one-to-one connections – Specification updates are no fun © Microsoft Corporation 2007 20 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Ugh. Any Recommendations? © Microsoft Corporation 2007 21 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Solving For Commerce Complexity ● Leverage tools that speed up your development process ● You already know .NET Use that knowledge by adopting toolsets that build upon a familiar development language and environment. ● Don’t try to do it all alone. – Partner so that you can focus on your unique workflow and not on the intricacies of payment integration – Don’t just payment enable your application...commerce enable your application © Microsoft Corporation 2007 22 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity The Commerce Toolkit For Applications ● Free .NET 2.0 toolkit that drastically simplifies the process of building a commerce-enabled application ● Provides access to multiple payment services, and multiple service providers, with one integration – Credit Card Processing – Stored Value Accounts – ACH, RDC, Electronic Check ● Write once, reach many and do it quickly © Microsoft Corporation 2007 23 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity The Commerce Toolkit For Applications © Microsoft Corporation 2007 24 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity What does it look like? Service Providers .NET BCP Service Providers UI Software CTA Application WF BI SVA Service Providers Other © Microsoft Corporation 2007 25 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Tutorial Application  Sample Credit Card Processing Module  Sample Stored Value Module  Sample ACH Module  Persistence Handler Code Sample  Data Rotation Code Sample  User Management Code Samples © Microsoft Corporation 2007 26 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity © Microsoft Corporation 2007 27 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity © Microsoft Corporation 2007 28 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity User Management Code Sample © Microsoft Corporation 2007 29 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity How Does It Work? ● Powered by the IP Commerce Platform – Based on principles of service orientation – publish, discover, consume as managed by business rules ● Everything speaks the same language – Payment Transaction Layer Switching (PTLS) – XML interface that normalizes messaging through the network – The toolkit allows for rapid application development by leveraging PTLS – The platform handles service provisioning, qualification, and routing of all transactions (both payment and administrative) ● Sandbox for simplified testing in advance of certification © Microsoft Corporation 2007 30 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Remember Commerce Security Fundamentals? What about that? © Microsoft Corporation 2007 31 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity That’s A Great Question! ● The tools are already PABP certified – IP Commerce Platform – Commerce Toolkit for Applications ● NOTE: Although the tools are certified as “ready” The application still has to meet the strict criteria discussed in the webinar “Commerce Security Fundamentals” ● The beauty of a .NET toolkit is that the majority of the heavy lifting is already done. © Microsoft Corporation 2007 32 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity PABP-Ready Components ● User Authentication – User auth security can be difficult. – A few method calls are all that are necessary for providing secure user authentication capability inside of an application – Complex password requirements, encryption of user credentials ● Key Management – Quite possibly the most important protection mechanism – A few methods give access to non-proprietary encryption algorithms for symmetric and asymmetric encryption as well as hashing procedures. © Microsoft Corporation 2007 33 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity PABP-Ready Components ● Pre-Persistence Data Processing – The toolkit knows how to handle cardholder data – Masking of all account numbers when displayed – Encryption of all sensitive data wherever stored ● Secure Transport Protocols – Provides the underlying framework for leveraging secure transport – HTTPS, SSL, SSL Mutual Authentication – Implemented through methods that use current standards for encryption, certificates, WS-Security and SSL/TLS © Microsoft Corporation 2007 34 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity PABP Rapid Compliance ● Not only does the toolkit simplify the process of building secure applications, it is “accepted” by QSAs as a known quantity during the validation process. ● Limiting the scope of PABP certification to simply ensuring the toolkit is properly implemented drastically reduces both time and cost to achieve certification © Microsoft Corporation 2007 35 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Micro-ISV ● BIG Software – http://www.bigsoftwareinc.com – Founded in 1998 to help accountants get better system support. BIG Software is an ISV that both understands accounting and software ● What did they do? – Built “Rapid Receipts” an add-in for both MOA and QB that provides BCP and RDC – Card processing integration took only 3 weeks “I wouldn’t want to do a payment-enabling implementation without the Commerce Toolkit for Applications” – Ernest Cook, CEO © Microsoft Corporation 2007 37 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Large ISV ● POSitive Technology – http://www.positivetechnology.com – Leading partner for sales, implementation and support of Microsoft RMS. More than 2000 implementations in the last 2 years ● What did they do? – Added direct card processing integration into RMS – End-to-end was less than 2 months “The Commerce Toolkit for Applications enabled us to add payments processing to our applications without losing our focus on sales and service.” – Mike Nicholson, President © Microsoft Corporation 2007 38 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Hardware Companies ● Pertech Resources, Inc. – http://www.pertechresources.com – A hardware provider that specializes in transaction and kiosk printing solutions ● What did they do? – Created code samples and documentation that can be used with the CTA – Enabled developers to simply build a payment application that integrates with the 6100 Financial Imager – Sample code can be used “as is” or modified for workflow requirements © Microsoft Corporation 2007 39 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity A Summary: ● Building solutions quickly, simply, and securely will allow you to acquire customers more quickly and retain your existing customers. ● Partnering in an industry as complex as commerce is necessary. ● Service providers and your customers both need you. Open new revenue streams ●Write once, use many. © Microsoft Corporation 2007 40 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Additional Resources: ● Payment Processing Made Easy – Shari Gould – http://www.devx.com/MicrosoftISV/Article/38025 ● Commerce Toolkit download, Support (developer, sales, marketing), Blogs, Tutorial Application, Sample Code, Case Studies, etc. – http://commercelab.ipcommerce.com ● Brief listing of other solutions built using CTA – http://www.mybusinesspayments.com © Microsoft Corporation 2007 41 6/12/2008

ISV Innovation Presents: Solving For Commerce Complexity Thank You, For More Information: Agenda thannan <at> ipcommerce <dot> com Agenda one http://tylerhannan.blogspot.com Agenda two Agenda three Agenda four Agenda five Agenda six © Microsoft Corporation 2007 43 6/12/2008

Solving For Commerce Complexity

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