The Value of a Payment Gateway

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When your credit card gets swiped at your favorite restaurant, hotel or retail store, ever wonder where that data goes? For merchants, a payment gateway facilitates the safe and speedy transfer of data between the point of payment and the front-end processor or bank.

Gateways provide significant advantages over premised-based or direct connect systems. This presentation describes the role of a payment gateway in the life of a transaction. It highlights key benefits and what merchants should consider when evaluating gateway solutions.

The Value of a Payment Gateway

  1. 1. The Value of a Payment Gateway
  2. 2. 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.
  3. 3. 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 entrydowngrade fee $$$
  4. 4. 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
  5. 5. 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.
  6. 6. A Payment Gateway Helps Manage It All The right payment gateway can better manage communication with the banks, associations and processors.
  7. 7. 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
  8. 8. 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.
  9. 9. 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.
  10. 10. The Transaction Life Cycle: Where the Payment Gateway Sits
  11. 11. 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.
  12. 12. 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.
  13. 13. 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.
  14. 14. But You May Be Wondering... Why is a gateway solution right for my business? What are the real differentiators when selecting a gateway solution?
  15. 15. Key Considerations and Benefits of a Gateway
  16. 16. Security is Paramount Securing cardholder information is critical to any gateway solution
  17. 17. 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
  18. 18. 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
  19. 19. Flexibility and Control A gateway should offer flexibility to switch amongst processors and payment providers quickly and efficiently
  20. 20. 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
  21. 21. 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
  22. 22. 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…
  23. 23. 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.
  24. 24. Support Services Should Include: • Live support 24x7x365 • Network monitoring • Email alerts • End to end transaction support • Funds recovery services • Account reconciliation
  25. 25. Real-Time, Comprehensive Reporting Because all business owners know you cannot manage what you cannot measure.
  26. 26. 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
  27. 27. 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.
  28. 28. Easy Implementation and Maintenance Consideration should be given to the initial investment and ongoing costs of remaining compliant or changing processors.
  29. 29. A cloud-based gateway solution does not require additional hardware to maintain or software to keep upgraded. Easy Implementation and Maintenance
  30. 30. The Value of a Payment Gateway
  31. 31. 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
  32. 32. The Value of a Gateway A gateway allows for processor choice and provides assurance that the solution is supported end to end.
  33. 33. The Value of a Gateway A gateway manages the entire payment process quickly and securely.
  34. 34. 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?
  35. 35. 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?
  36. 36. In Conclusion...
  37. 37. 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.
  38. 38. 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.
  39. 39. Thank you for viewing this presentation! For more information: Call 1.866.853.3845 Email sales@merchantlink.com Visit www.merchantlink.com Engage www.merchantlink.com/blog thank you!

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