Processing Credit Cards on the Internet

September 2009

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AgendaAgenda

What is Internet Processing?

Card Present Solutions

Card Not Present Solutions– Mail / Phone Order (MOTO)– E-Commerce

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What is Internet Processing?What is Internet Processing?

Processing over the Internet is simply the way a transaction is delivered to it’s end destination.– 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.

Many Processors offer Internet Processing for both Card Present and Card Not Present merchants.

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Why Process Via the Internet?Why Process Via the Internet?

Faster and more efficient

Resolves issues with today’s digital and Voice over IP phone systems

Integrates processing with systems already connected to the Internet like a website

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Card Present SolutionsCard Present Solutions

IP Terminals– Examples are the Hypercom T4220 and

VeriFone Vx570

Mobile Phones with Internet Browsers

Virtual Terminal Applications

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IP Terminal Solutions ExamplesIP Terminal Solutions Examples

Product Industries Supported Key Features

Hypercom T4220 •Retail•Restaurant•Mail-Order

•Multi-merchant capability.•Separate keys for each function.•Supports multiple applications.•24 megabytes of memory.•Very fast processor.

Verifone Vx570•Retail•Restaurant•Mail-Order

•Multi-merchant capability.•Multi-application support.•Easy IP diagnosis.•6 megabytes of memory.

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Virtual Terminal ProductsVirtual Terminal Products

Product Industries Supported Key Features

Mobile Device Processing

•Card Present-Key Entered•Mail-Order •Phone Order

•No software needed, just an Internet connection and a smart phone•Many offer a Virtual Terminal for reporting, reconciliation, etc.•Great for plumbers, carpet cleaners, etc.

Virtual Terminal Products •Card Present•Mail-Order •Phone Order

•No software needed, just an Internet connection and a web browser.•MeS Virtual Terminal uses browser-based technology to provide an easy-to-use payment solution.•Many have card swipe and PINNED Debit capability

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MeS MOTO / e-Commerce Payment SolutionsMeS MOTO / e-Commerce Payment Solutions

Proven Management Team

Finding the Right Card Not Present Product– Virtual Terminal Products– Processor/Gateway Hosted Check Out Page– Shopping Carts– Payment Gateway Direct Connection

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Question Tree – finding the right productQuestion Tree – finding the right product

How are your customers placing orders today?

Mail/Phone Order

Suggest they use a Virtual Terminal product to process the transactions and/or

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.

 

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Typical Virtual Terminal FeaturesTypical Virtual Terminal Features

Authorization and settlement of credit card transactions through a web interface.

– Similar in function to PC/software-based products.– All a merchant needs is a computer, a web browser like Internet Explorer, and

access to the Internet.

Supports single and batched transactions, recurring payments. File Import/Export as well as and API allow for a variety of integration

and processing methods Have a customer database for recurring billing merchants. Changes and enhancements handled at the host level, so users

never have to do any software updates. Compliant with Payment Card Industry (PCI), card numbers are

stored securely on the host servers.

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What You Need to Sell OnlineWhat You Need to Sell Online

The basic components needed to sell products online are: Domain Name: This is the unique name (URL) for the merchant’s website, for

example: www.amazingcandy.com.

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.

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.

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, Authorize.net, and Cybersource. In addition, many processors host their own Payment Gateways as well.

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Question Tree – finding the right productQuestion Tree – finding the right product

WebsiteDo you have a shopping cart?

NO

Do you sell more than 1 or 2 products?

NO– Recommend a processor supported checkout page

YES– Recommend a processor supported shopping cart

YES

What is the name of your shopping cart?– Option 1: check to see if it is supported by your processor, if so set up accordingly.– 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.

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Simple Hosted Checkout PageSimple Hosted Checkout Page

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.

A secure hosted payment page will typically handle the following:– Collection of Credit Card information via a secure form – Authorization and settlement once approved – Redirection of the cardholder back to the merchant's web page of choice

Examples of a Secure Checkout Page are PayFlow Link and Auth.net SIM.

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Certified Shopping CartsCertified Shopping Carts

• Typically posted on either the gateway or processors website.

• Remember that most shopping carts are connected to either a 3rd party Payment Gateway or directly to a processors Payment Gateway.

• A few common and popular shopping carts:•Zen Cart•X-Cart•xAuthorize•Magento

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Payment Gateway-Transaction FlowPayment Gateway-Transaction Flow

Proven Management TeamSettlement

HTTPS

PaymentGateway

Auth & CaptureSystem

Card Issuers

Authorization

ProcessorDatabase

Merchant System(using checkout page, shopping cart, or API)

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Payment Gateway AdvantagesPayment Gateway Advantages

Proven Management Team

Provides more control over the payment process than off-the-shelf products.

– Enables users to integrate the payment process into an existing order-entry product, shopping cart, ECRs, etc.

For merchants who want a high-volume or integrated solution. Includes a simplified message format and certification process that

are easy on a merchant’s IT resources. Cardholder data stored on Gateway servers—reducing PCI impact on

merchants.

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Questions ?Questions ?