This article is for those of you who wish to create your own omni-channel payment gateway solution. It contains all of the necessary recommendations for implementing a payment gateway solution. Unfortunately, most people need to pay more attention to the greater difficulty of establishing their own payment gateway solutions. By using these suggestions, we will attempt to make the gateway implementation process easier for organizations.
PCI Compliance
As a business taking credit card payments, you must secure the security of sensitive cardholder data in accordance with PCI DSS compliant regulations.
The following are the essential criteria from the most recent version of the PCI compliant standard.
- Use of PCI DSS compliant data centers and encryption of transmitted cardholder data (CHD).
- The authentication of access and identification of users is strict.
- Protecting sensitive cardholder information from physical access.
- Security systems and processes are tested regularly.
- The implementation of appropriate security policies and programs.
Partnership Acquisition
Many upcoming merchants believe that a payment gateway is all they need to accept electronic payments. In reality, the most crucial partnership is not a gateway collaboration but an acquiring bank partnership.
An acquiring bank serves as your entry point into the international financial system. It also guarantees your merchant status and bears accountability for your activities.
Your integration procedure will differ based on which acquiring bank you collaborate with, as well as the parameters provided by the acquiring bank. All of your target MCC codes, regions, currencies, payment methods, and other aspects should be supported by the acquiring bank. Your acquirer will heavily influence your choice of payment gateway and interactions with it.
Certifications
Your intended characteristics will determine the certification steps you must follow. These are often focused on the payment methods that your solution should enable.
You should be mindful that certifications are often subject to hazy due dates and may take a substantial amount of time to finish. Aside from that, each new integration, feature, or relationship comes at a cost. As a result, it is prudent to do a preliminary legal analysis of all legal issues related to the certification procedure. Consequently, you will be able to specify your budget and adequately predict the deployment duration.
Payment gateway features that are important for omni-channel payments
There are several gateway options on the market. Your organization should be able to select the gateway solution that best meets its demands at a fair cost. You wouldn’t want to pay more for unnecessary features, would you? We can describe the important gateway characteristics you may require based on the business you represent.
Card-not-present (CNP) payments
If you have an e-commerce website, a simple online payment feature may suffice. In some circumstances, a credit card data storing feature may be required.
The primary significant characteristics include:
- An API for processing payments
- It may be necessary to install plugins for shopping cart platforms or services you are using
- Tokenization service for credit cards (or appliances)
- Hosted payment pages
- 3D Secure support
- Tools for monitoring online payment fraud
- Refunds and chargebacks management
Card-present payments
Card-present payment capability is nearly always required when working with retail organizations or similar circumstances. To work with these sorts of merchants, you must include the relevant critical elements. EMV payment terminal solutions must be implemented.
Batch file processing
This method is particularly important for utility firms, insurance companies, and health and fitness clubs. These organizations accept both bill payments and recurring payments. Subscription-based businesses require batch file processing logic in addition to the CNP functionalities outlined.
Hosted recurring billing
This feature is vital for recurring billing systems. However, in this part we discuss firms whose system of record should contain a billing component. As a result of said component, they must outsource billing and subscription administration to a third party.
Sub-merchant management
This capability is especially important for large SaaS or PayFac systems and PSPs. Is your company of similar nature? If so, then your gateway solution should handle the essential functions associated with the merchant lifecycle.
Omni-channel payment gateway implementation: models and strategies
You may outsource each of these things to a third party or do it yourself. This option significantly limits the number of resources, efforts, control, and obligations connected with each model.
A custom payment gateway solution that is built from scratch.
Custom solutions designed from the ground up are appropriate for significant corporations that wish to refrain from delegating any of their activities. When you choose this option, you have total control over development and all procedures. Furthermore, there are no gateway fees to pay.
A licensable open-source payment gateway solution
A licensed payment gateway solution needs far less work to deploy than a bespoke solution. It is also less expensive, and you shift responsibility for hosting and compliance with standards to the licensed supplier. You can use an off-the-shelf payment gateway software solution and configure it to meet your individual requirements.
A white-label payment gateway solution
Among all accessible solutions, a white-label payment gateway solution has the lowest cost. It is also connected with the lowest degrees of responsibility and control. When you select a white-label payment gateway, you outsource gateway infrastructure and development to a third party.
Payment Facilitator (PayFac) model
A PayFac is simply a company that serves a portfolio of sub-merchants for an acquiring bank. As a result, a critical feature is the ability of a white-label PayFac gateway to handle the sub-merchant lifecycle automatically. Its fundamental stages are merchant underwriting and onboarding, sub-merchant financing, and payment reconciliation.
Payment-as-service (PaaS)
Some businesses that wish to generate money through payment services need help to adopt the PayFac concept. These businesses frequently use the payment-as-a-service (PaaS) concept. PaaS firms outsource infrastructure, development, and operations, whereas PayFacs companies maintain their proceedings in-house. PaaS providers and so-called white-label PayFacs typically work under a bigger PayFac or PSP umbrella.
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