Payment Processing

Cons

• PCI Compliance needed

Pros

• Easy for customer
• Quick check out
• Control of experience
• Customers never leave your site

Payment Processing

marriage of tech and $$$

Stuff you WILL face

Potential Provider CheckList

Technology

• Fraud
• Chargebacks
• Refunds
• Need for customer service from providers
• Settlement and deposit schedules
• Bookkeeper's reconciliation process

Minimum Needs

• Customer payment page

• Account with provider

Always find out

• If you switch to another provider, will they provide a plain text file to that new provider with all cardholder data
• What is quality and nature of customer support (e.g. phone support included?)
• Is assistance available to help with fraud issues
• Do they provide tools within your account to help protect from fraud
• Protection from refund fraud
• Type of PCI compliance you need
• Statements available in electronic format that is compatible with accounting software for reconciliation (e.g. QuickBooks)
• Are any of the above going to cost extra?

Extras (not always needed)

• ACH/eCheck (fees should be much lower)
• Support for tokenized customer card on file
• How are automated recurring payments/subscriptions handled (what holds the schedule)
• Can you authorize the card first, then capture payment later.
• Any extra features/services specific to your industry?
• Mobile card swipe payments
• ApplePay
• Multiple currencies
• Integrations with POS systems and other applications
• Alternative payment options for customer

(PayPal balance, GoogleWallet, Amazon, etc)

• Swiping cards (Card present- fees should be lower)
• Phone orders (Card Not Present, Virtual Terminal)

Recommended

Customer Experience

• Provider APIs (ie a gateway)

• Drupal module for provider

Extras

Entirely On-site

Partially Offsite

Account Types

• Industry specific tools
• Mobile payments
• Customer card on file - tokenized !!!
• Swiping cards (card present transaction, Point of Sale/POS terminal)
• Phone orders (virtual terminal)
• Integration with other applications
• API/gateway emulation

Drive your own car

Cons

• Customer confusion
• Abandoned carts
• Provider upselling

to your customers

• Lack of control
• Customer offsite

Pros

• Easier PCI Compliance

ride public transportation

For example:

Some providers provide their own gateway APIs

AND emulate Authorize.net APIs

Additional Resources

https://drupalcommerce.org/extensions/module/payment

http://drupalpcicompliance.org

http://www.portabilitystandard.org

http://www.beanstream.com/abc-payments/

http://www.beanstream.com/e-commerce

Third-party processor account

Pros:

• Easy sign up
• Instant account approval
• No monthly fees
• Bad credit or no credit history? NO PROBLEM
• Simple fee structures
• Best for low or sporadic volume organizations

Cons:

• Fraud/chargebacks can lead to account cancellation
• Little/no assistance in reducing fraud/chargebacks
• Transaction fees are higher
• No laws/banking rules protecting you
• Can be delays in transferring money to you
• Can arbitrarily put freezes on your money
• Limits on amount transfers per day/week
• Your customer sees processor's name on their bank statement

Gateway Account + Merchant Account

Real World Examples

• PayPalExpress
• Stripe

Cons:

• Longer sign up process
• Underwriters approval needed
• Credit score checked
• Monthly account fee is common
• Fee structures might be more complex

Pros:

• Tools and assistance in reducing fraud and chargebacks
• Transaction fees are lower
• You are protected by laws/banking rules
• Quick and automatic transfer of money to you
• Your customer sees your name on their bank statement

Real World Examples

• Authorize.net + almost any bank
• First.Data + almost any bank
• PayPal PayFlow Pro + many banks
• Recurly Gateway + many banks
• Chase Paymentech + many banks
• iATS
• Vanco
• Braintree by PayPal
• PayPal Pro
• Beanstream