This is for you if you want to add your solution for omni-channel payment gateways. This guide has all the essentials you need for implementing payment gateway solutions.
PCI Compliance
As a business that accepts credit card payments, you must have security for sensitive information about the cardholder according to the PCI DSS compliance requirements.
The main requirements for the latest edition of PCI compliance standards are:
- Implementation of adequate policies and security programs
- Testing of security processes and systems
- Restriction to any physical access for sensitive cardholder data
- Strict access to user identification and authentication
- Cryptographic protection of CHD and usage of data centers that are PCI DSS compliant
- Partnership Acquisition
It is a common misconception among prospective merchants that a payment gateway is all they need to accept electronic payments. Rather than establishing a gateway, the most valuable partnership is with an acquiring bank.
It would be best if you had an acquiring bank to gain access to the international banking system. As a merchant, it also assumes responsibility for your operations and underwrites you as a risk.
Certifications
Depending on your target features, you may have to undergo certification procedures. Usually, these focus on the payment methods your solution should support.
It is important to remember that certifications often have unclear deadlines and take many months to complete.
Essential Features of Omni-Channel Payment Gateways
Many payment gateway offerings are on the market right now. Your company should be able to pick the correct type of payment gateway that will cover all of the business needs at a decent cost. You do not want to have to pay for any unnecessary features.
CNP (card-not-present) payments
In the case of an e-commerce website, only basic online payment functionality might be needed. It may be necessary to store credit card data in some cases.
Card-present payments
It is almost always necessary to have card-present payment functionality when dealing with retail businesses. The relevant vital features will need to be added if you work with such merchant types. To accept EMV payments, you will need to install EMV payment terminals. Additionally, you may need to support Mobile Payment Processing and SoftPOS.
Processing of batch files
A utility company, an insurance company, and a health club might find this group of features particularly useful. Payments can be made to these entities either on a one-time basis or on a recurring basis. A subscription-based company needs batch file processing logic in addition to the CNP features listed here.
Hosted recurring billing
For recurring billing systems, this group of features is relevant. However, in this subsection, we address companies whose systems of record should include billing functions. To handle billing and subscriptions, they must hire a third party.
Managing sub-merchants
SaaS or PayFac platforms and PSPs may find this feature particularly useful. Does your business fall into the same category? You should then ensure that your gateway solution supports the critical lifecycle functions related to merchants.
Models and strategies for the Implementation of Omni-channel Payment Gateways
Depending on your needs, you can delegate these aspects to a third party or handle them yourself. Essentially, this choice determines how much effort is spent on each model, how much control is exercised, and how much responsibility is borne.
A custom-built payment gateway solution
To avoid delegating any of your operations, custom solutions are best suited for large companies. The developer has complete control over the development process and all associated processes if you choose this option. Additionally, there are no gateway fees to pay.
Choosing this model means you’ll have to handle all three critical components – infrastructure, development, and operations – in-house. It is, therefore, time-consuming and labor-intensive to build a gateway solution from scratch. Additionally, it involves significant development and maintenance costs. The savings should offset these development, implementation, and maintenance costs by eliminating gateway fees.
When you outsource a development process to a third party, you are delegating control to them. Consequently, the project becomes more costly and risky.
Payment gateways that are open-source and licensable
Implementing a licensed payment gateway solution takes much less effort than a custom solution. Moreover, it is less expensive and allows you to delegate hosting and compliance responsibilities to the license provider. A ready-made payment gateway software product is customized based on your specific requirements.
Solution for white-labeling payment gateways
Among all the options available, white-label payment gateways offer the lowest cost. In addition, low responsibility and control levels are associated with it. In the case of a white-label payment gateway, you outsource the infrastructure and development of the gateway to a third party.
The Payment Facilitator model (PayFac)
A PayFac works on behalf of acquiring banks to manage a portfolio of sub-merchants. PayFac white-label gateway’s ability to support sub-merchant lifecycles automatically is a key feature. The process has three primary phases: merchant onboarding and underwriting, funding of the sub-merchant, and payment reconciliations.
PaaS (Payment as a Service)
PayFac is too challenging for some companies to implement if they want to make money from payments. Often, these companies use a payment-as-service or PaaS model. Regarding PaaS businesses, infrastructure, development, and operations are outsourced, whereas PayFacs keep the operations in-house. A PayFac or PSP, such as a PaaS company or a white-label PayFac, usually operates under an umbrella of a larger PayFac.
For more information about White Label Payment Gateways, Please do not hesitate to reach out to us at any time.
