The primary role of a payment gateway is to authorize payments for your business. The gateway passes sensitive information from one place to another securely and tells you if a charge has been approved so you can complete a sale. A payment gateway handles a number of obvious and not-so-obvious processes, and it’s important to choose one that’s up to the challenge. So which payment gateway is right for your company? Here are 10 things to consider when making your choice:

We do our best to avoid jargon, acronyms and complicated words when we’re talking about the merchant services industry with our clients. But there are certain terms that anyone having a discussion about payment processing needs to understand.
Communication is based on a meeting of the minds, and it’s easier to communicate with our clients about meeting their needs when they understand the basic terms of our industry. Could you use a primer?

Point-to-point encryption or P2PE is a useful evolution in payment processing technology that can remove merchants from the PCI-compliance scope, meaning your company might not have to be very involved with payment card security. This way of transmitting the card number in an encrypted format through every step of the process reduces risk, liability and costs associated with credit card acceptance.

As a merchant, you have a right to expect a full array of terminal solution features from your payment gateway. But is the product you’re using or considering really the right solution for you?

Of course, you should expect that your terminal solution supports all the payment types you need to be able to accept. This includes ACH, swipe and manual magnetic strip card transactions, PIN debit, contact and contactless EMV payments, RFID cards, mobile payment systems like Apple Pay and Google Wallet and gift cards. The system should also be able to handle transactions offline when there’s a connectivity issue.

If you’re having trouble understanding the differences between a non-embedded or local footprint terminal solution and a modern embedded terminal solution, it may help to learn a bit more about each type and its advantages and disadvantages.

The Local Footprint Solution

A local footprint or non-embedded terminal solution is also called a DLL-based solution and involves the terminal being a slave to a master program that controls it. This controller is usually a Dynamic Link Library or DLL mini-program and is installed at a workstation. This old approach evolved when terminal didn’t have their own Ethernet connections and were controlled via serial port.
Advantages to this terminal solution include:

As a new business owner, it’s often the little things that are the most frustrating. For startup merchants, it can be hard to get a merchant account, and you may be forced to accept higher processing fees when you start out. That’s a fact.

There are, however, specific reasons many merchants are rejected. Here are some specific issues inherent to the payment processing industry that explain why getting that vital merchant account can sometimes be so difficult.

Not too many years ago, migrating from one processor to another was as simple as recoding the integration used for real-time transaction processing. Today, however, payment facilitators changing processors must consider things like onboarding integration, chargeback handling and much more that are now part what processors offer.

Gateway processing relationships deserve to be reevaluated from time to time, but it’s important to understand the particulars involved in the modern migration process so you can provide the best possible service to your merchants.

It may seem at first like becoming a payment facilitator or payment services provider is a monumental task, but it’s absolutely possible and doable if you take the process step by step and get the right assistance along the way. Many companies have made this leap before you, and there’s every reason to believe your company has what it takes as well.

Sometimes, the simplest solution isn’t the most prudent. If your company uses easy-to-understand blended rate payment processing, you may be able to save money on many transactions with more complex and more precise cost plus billing. Also called interchange plus billing, cost plus billing takes into account the kind of transaction being processed and often reduces your cost. And with optimized interchange plus, automation saves you even more.

To get moving quickly or transition from your old payment system with the greatest ease, a commercial open source payment gateway is a sensible choice. Commercial open source software can provide the solution you need quickly, at a low startup cost and with full support. Plus, you get the most freedom and flexibility possible without starting from scratch.

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