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Payment Gateway Solutions for Omni-channel Payments: Present and Future

This post is here to help businesses to implement a dedicated solution of an omni-channel payment gateway. There are detailed instructions provided on how a business can implement this payment gateway solution.

Photo by CardMapr.nl on Unsplash

Photo by CardMapr.nl on Unsplash

PCI Compliance

All payment card companies will be required to comply with the PCI DSS compliance requirements, which are there to protect all sensitive information from the cardholder. 

Based on the PCI compliance standard editions, which are updated yearly, the following requirements must be met for all omni-channel payment solutions:

  • PCI DSS-compliant transmitted cardholder data and data centers encryption.
  • User identification and authentication are strictly enforced.
  • Data on sensitive cardholders are restricted from being physically accessed.
  • Process and system testing for security.
  • Developing and implementing adequate security programs and policies.

Acquiring Partnerships

A large misconception that has been found among prospective merchants is that a payment gateway is needed to be able to accept electronic payments. There is also the misconception that gateway partnerships are not as crucial as getting a partnership from a bank. However, that is false. 

In order for any business to access an international banking system, then there must be an acquiring bank. A merchant needs this as it underwrites all operations and assumes the liability of the business.

Certifications

Depending on your target features, you will have to undergo certification procedures. Most often, these are focused on the types of payments your solution needs to accept.

It is essential to remember that certifications often have unclear timelines and take a long time to complete. 

Payment gateway features that are important for omni-channel payments

In the market, there are several gateways available. Choosing the right gateway solution that suits your business needs should be possible at a reasonable price. If you don’t need unnecessary features, why would you pay extra?

Sub-Merchant Management

This feature will be handy for PSPs and large SaaS platforms with PayFac capabilities. Does your business fall into the same category? In addition, your gateway solution should support the key aspects of merchant lifecycle management. 

Paying with a credit card

It is almost always necessary to have card-present payment capabilities for retail businesses. Adding the appropriate vital features will be necessary if you work with such merchants. It will be necessary for you to implement EMV payment terminals. 

Payments made with a card, not present (CNP)

You might be able to get by with just the basic online payment functionality if you are an e-commerce website. Data storage for credit cards might be necessary in some cases.

Recurring Billing that is Hosted

Recurring billing systems need this set of features. Nonetheless, the billing component of a company’s system of record should be addressed in this subsection. Consequently, they must hire a third party to manage billing and subscription. 

Batch File Processing

Utilities, insurance companies, health clubs, and gyms may be interested in this set of features. Payments can be made both on a one-time basis and a recurring basis. Subscription-based companies also need batch file processing logic and the CNP features listed above.

Payment gateway implementation strategies and models for omni-channel payments

A third party can handle these aspects, or you can do it yourself. These choices define the degree to which each model requires resources, effort, control, and liability.

White-label payment gateways

Undoubtedly, white-label payment gateway solutions are the cheapest of all available options. Additionally, it has the lowest level of responsibility and control. You outsource the infrastructure and development of a white-label payment gateway to a third party.

Licensable open-source payment gateway

Unlike a custom solution, licensed payment gateways do not require as much to be implemented. It is cheaper, and the license provider takes care of hosting and compliance for you. The business will implement a licensed payment gateway product and customize it to meet your specific requirements.

Custom-built payment gateways

Companies with large operations who do not want any part of their operations delegated should consider custom solutions built from scratch. With this option, you can control all the processes and development. In addition, you won’t have to pay any gateway fees.

A payment-as-a-service (PaaS) model

Some companies find PayFac’s model too challenging to implement when they want to make money from payment services. Many of these companies use payment-as-a-service (PaaS) models. A PaaS company outsources infrastructure, development, and operations, while PayFacs keeps the operations in-house. PaaS companies and white-label PayFac usually operate under a larger PayFac.

Model of Payment Facilitator (PayFac)

An acquiring bank uses PayFac to service a portfolio of sub-merchants. An essential feature of a white-label PayFac gateway is that it automatically supports sub-merchant life cycles. Payment reconciliation, sub-merchant funding, and merchant underwriting are their primary phases.

For more information about White Label Payment Gateway, don’t hesitate to get in touch with us.

 

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