This guide will help you build an omnichannel payment gateway of your own. It gives all of the most important tips for setting up a payment gateway solution. Most customers need to appreciate how challenging it may be to install payment gateway solutions on their own. We hope that these guidelines will make it easier for businesses to adopt gateways.
Table of Contents
PCI Compliance
According to PCI DSS compliance rules, you, as a business taking credit card payments, must maintain the security of sensitive cardholder data.
The following are the main requirements of the most recent PCI compliance standard editions:
- Cardholder data (CHD) transmissions are encrypted, and PCI DSS-compliant data centers are used.
- User identity and strict access authentication.
- Physical access restrictions on information about vulnerable cardholders.
- System and procedure testing for security.
- The implementation of suitable security policies and programs.
Acquiring partnerships
Many would-be merchants think that a payment gateway is all they need to accept electronic payments. In fact, an acquiring bank partnership is the most important one to make, not a gateway bank partnership.
Acquiring banks serve as the first point of contact for customers entering the international banking system. Additionally, it guarantees your business and underwrites your activities.
Certifications
Depending on your goal characteristics, you may have to go through a certification process. They are concentrated on the payment types and procedures your solution should enable.
You should keep in mind that certificates frequently have ambiguous completion dates and require a lot of effort.
Key omni-channel payment gateway characteristics
The industry offers a wide variety of gateway products. Your organization ought to be able to select the gateway solution that meets its needs at an affordable price. Let’s go over the essential payment gateway features that, depending on the kind of business you represent, you might require.
Card-not-present (CNP) payments
The most basic type of online payment processing may be all you need if you own an e-commerce website. It could be useful to have the capacity to save credit card data sometimes.
Card-present payments
The simplest kind of online payment processing can be all you need if you run an e-commerce website. It may occasionally be required to have access to stored credit card data.
Batch file processing
This particular set of characteristics is crucial for utility providers, insurance providers, and health and fitness facilities. These organizations accept one-time donations as well as recurring ones for bills. Subscription-based businesses require the logic for batch file processing in addition to the CNP characteristics mentioned above.
Hosted recurring billing
These attributes are important for recurring billing systems. However, in this subsection, we focus on the businesses whose system of records needs to have a billing component.
Sub-merchant management
This capability is very important for PSPs and large SaaS or PayFac platforms. Does your company fall under a similar umbrella? Your gateway solution should then handle the crucial merchant lifecycle functions.
Implementing omnichannel payment gateways: models and tactics
You can either take on each of these responsibilities yourself or assign them to a third party. This decision largely determines the resources, efforts, control, and liabilities connected with any model.
An innovative, one-of-a-kind gateway payment system
Large corporations that do not wish to outsource any of their activities benefit from custom solutions developed in-house. If you choose this route, you will have a complete say over the development and implementation of all features.
An open-source payment gateway that is licensable
Implementing a licensed payment gateway solution is far easier than doing it with a custom solution. It’s also cheaper, and you can let the license provider take care of hosting and making sure everything is legal. You implement pre-made, commercially available payment gateway software and alter it to meet your unique requirements.
A white-label payment gateway system
The most cost-effective choice is a white-label payment gateway system. It’s also linked to having minimal say or control over what goes on. By contracting with a third party for a white-label payment gateway solution, you may free up internal resources to focus on other aspects of the business.
Payment Facilitator (PayFac) model
PayFac is a third party that provides support for an acquiring bank’s portfolio of sub-merchants. The capability of a white-label PayFac gateway to mechanically support a sub-merchant lifecycle is a critical feature. Basic steps include underwriting and onboarding merchants, funding secondary merchants, and settling up payments.
Payment-as-service (PaaS)
The PayFac approach may be too complicated for certain businesses, even though they would like to make money through payment services. These businesses frequently use the platform as a service (PaaS) payment model. PaaS providers rely on third parties for infrastructure, development, and operations, while PayFacs does everything internally. Businesses that provide payment as a service (PaaS) and white-label PayFacs are subsidiaries of larger PayFacs or PSPs.
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