Tag: payment channels

Working with a Payment Gateway

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A payment gateway is a system that merchants use to accept credit and debit payments. The gateway creates a juncture between two important channels where money travels—one end of the gateway is the merchant, while the consumer’s bank awaits on the other side. The various elements that comprise a gateway are there to ensure the transaction’s security.

At CSG Forte, we develop payment processing platforms that operate as a robust gateway. Our custom payment processing solutions protect businesses across multiple industries while facilitating efficient transactions.

Payment Processors vs. Payment Gateways

A payment gateway exists in front of a payment processor, which is a financial institution or system that accepts the payments customers submit to your business. Your business’s payment processor may be a part of its merchant account, or you can outsource payment processing.

Financial information travels through the payment gateway before it reaches the payment processor. The gateway verifies and encrypts the information before it travels to your merchant account. It will deny fraudulent or invalid payment information. Payment gateways are especially important when processing e-commerce transactions because they offer powerful identification and verification capabilities.

Key Components of a Payment Gateway

A payment gateway should include these functionalities:

  • Payment data authentication: The gateway analyzes incoming data to verify its legitimacy.
  • Encryption: The gateway encrypts the customer’s payment information for processing.
  • Payment processor integration: The gateway allows the seamless transfer of encrypted financial data to the payment processor.
  • Financial settlement: The gateway also delivers encrypted data to the business’s bank for settlement.

Developing a payment gateway is a complex process. It must integrate numerous capabilities and security measures, including the following.

Infrastructure Development

The gateway’s infrastructure lays the groundwork for its immediate functionality and its longevity. The infrastructure begins with a server, which must be capable of withstanding your business’s traffic. Choosing a third-party gateway server can help you meet current needs and scale as traffic changes.

Data Security Measures

Your gateway must contain robust security measures, beginning with encryption protocols. Encryption is the process of converting financial data into a unique code that only devices on your server are authorized to decipher.

Tokenization is another form of data security. Under tokenization, the security system replaces each piece of financial data—such as a credit card number—with a discrete, secure token. Your gateway’s security system will be able to convert each token back into its original format.

Payment gateways also include fraud detection measures to protect your customers and reduce the risk of your business losing money to chargebacks. Your gateway will analyze data and user behavior to detect fraudulent purchases.

All gateway data security measures must meet Payment Card Industry Data Security Standards (PCI DSS) standards.

Integration With a Payment Processor

Your gateway must integrate with your current payment processor—or you must choose a processor compatible with your gateway. After selecting a processor, you can integrate it with your gateway by obtaining the processor’s Application Programming Interface (API) key. Your gateway will also need a separate API key that catalyzes the transfer of customer data.

Compliance and Regulatory Considerations

As you integrate payment gateways, it’s important to remain aware of certain regulatory considerations. Follow global, national and regional laws along with PCI DSS standards.

PCI DSS establishes 12 security standards for merchants to follow when collecting credit card or debit card information. Compliance requires diligence and constant effort, as it is ongoing and varies with your business’s size. PCI DSS compliance is key when reducing risks derived from cyber threats that can impact your company’s financials and reputation.

The following steps are part of PCI DSS requirements:

  1. Use and maintain a firewall
  2. Protect stored cardholder data
  3. Update default passwords and security measures
  4. Use and update antivirus software
  5. Encrypt cardholder data when transmitting it
  6. Keep data on a need-to-use basis
  7. Develop and implement security processes and systems
  8. Routinely check security systems
  9. Create and maintain an information security policy
  10. Implement user IDs for everyone with computer access
  11. Monitor and restrict access to cardholder data
  12. Track who accesses cardholder data and networks

References to PCI DSS are included as a general guide. Complying with PCI DSS would require due diligence and analysis about your scope and specific requirements. Find additional information here.

The Benefits of Using a Payment Gateway

A payment gateway can offer numerous advantages for your business, especially when you partner with an experienced developer. Core advantages include:

  • Improved user experience: Payment gateways provide security alongside seamless payments. Consumers will appreciate the ease of using your online store and peace of mind knowing their data is safe.
  • Bolstered security: A payment gateway offers the strong security that comes with fraud detection and data encryption or tokenization. Your customers’ data will remain secure, and your business will mitigate chargebacks.
  • Expedited payment processing: Payment gateways automate processes for peak efficiency. Customers will enjoy faster checkouts while your business receives its revenue sooner.
  • Enhanced scalability: Implementing a payment gateway will back your business with the security infrastructure it needs to expand into new territories domestically and abroad.

CSG Forte’s Payment Gateway Solution

At CSG Forte, we offer a versatile payment system that facilitates the efficient, secure transfer of financial data from your customer to your merchant account. Our system features a payment gateway with the full range of features your business needs to maximize data security. It offers:

  • Robust security protocols
  • Seamless integration with leading payment processors
  • Compliance assurance
  • User-friendly dashboard and reporting

Why Choose CSG Forte Over Building Your Own Payment Gateway?

Our experience and diligence set us apart as a reliable source of payment gateway solutions. We distinguish ourselves through our:

  • Time and resource efficiency
  • Proven track record and expertise
  • Ongoing support and maintenance
  • Competitive pricing models

At CSG Forte, we have a broad range of experience tailoring payment gateways to businesses’ unique needs. We can develop a gateway that integrates with your processes and facilitates a smooth customer experience. Feel free to contact us online for more on our payment gateway solutions.

Understanding Multichannel Payments

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Today, customers use multiple channels to engage, transact, and pay bills. A McKinsey study found that 82% of Americans use digital payments. These digital payments encompass browser-based or in-app payments, in-store checkouts using mobile devices or QR codes, and person-to-person payments (P2Ps).

Customers appreciate the convenience and ability to make payments in multiple ways when transacting. They also expect seamless, personalized experiences from your business. Providing multichannel payment options is one way you can meet their needs.

What Are Multichannel Payments?

Multichannel payment processing refers to the ability to accept customer payments across various channels. It offers your customers the freedom and flexibility to make payments using their preferred methods and platforms, whether that means paying in-store, on a mobile app, over the phone, or online. Multichannel payments provide your customers with a consistent, streamlined experience while making things easy for you to manage with one synergized vendor and solution.

Efficient multichannel payment processing also makes it easy to track customer behavior, preferences, and purchase history across various channels. With that info, you can deliver better customer service, marketing, and overall experiences.

How Do Multichannel Payments Work?

Multichannel payments offer a convenient experience no matter the path your customers choose. A customer may use your services or purchase your products and want to transact in a unique way. With a multichannel payment solution, you can make the switch between channels seamless.

Your customers can pay on their preferred channel—email, text, interactive voice response (IVR) or via a live agent—and switch at any point. You can simplify the payment process for your customers and merchants while keeping interactions personalized.

Multichannel payments link all your touchpoints through an integrated platform, making payments highly personalized and focused on your customer’s preferences.

What Are Multichannel Payment Processing Channels?

Typical multichannel payment processing channels include phone, in-person, email, and text.

1. Phone Payments

Pay-by-phone IVR solutions enable you to accept payments 24/7. Leverage innovative speech-recognition and touch-tone technology to empower customers to make rapid payments using self-service capabilities.

Your customers can connect to your system at any time from any phone, following prompts to complete transactions. IVR payment methods provide frictionless payments and shorten your collection time. The self-service functionality will free your staff to focus on more urgent matters.

2. In-Person Payments

Speed up in-person payment processing with advanced contactless payment technology that makes point-of-sale (POS) purchases a breeze. Digital bill payment methods will continue to grow, but in-person transactions are still the preferred pay point for many consumers.

A contactless system enhances the offline payment experience, helping customers pay bills securely and efficiently while on the go. You can opt to integrate award-winning POS solutions with your current system or use the enterprise-grade POS terminals as standalone devices.

3. Email Payments

Leverage email payment link technology to streamline billing for your customers. To accept payments through this channel, you need a trusted payment services provider (PSP) to set up a secure system that enables you to send customers a safe email link. This email link will take customers to an encrypted hosted page or NanoSite where they can make payments online. The link will also work when sent via text or through social media.

You can accept email payments even if your business doesn’t have a website. Email payment processing is versatile and quick. It removes barriers to sale and reduces late payments by supporting them via multiple methods, including:

  • E-wallets
  • Credit cards
  • Debit cards

4. Text Payments

Pay-by-text capabilities enable customers to make payments via SMS and MMS. When a customer initiates a bill payment, they’ll receive a message with a secure link. This encrypted link will take the customer to a secure gateway or NanoSite to complete the transaction, offering a seamless payment solution.

Text payments are opt-in services that help customers conveniently pay when you message them, reducing your past-due payments.

What Is a Multichannel Payment Platform?

A multichannel payment platform helps you manage multiple types of payments in one place. CSG Forte Engage provides secure, frictionless payment methods, allowing your customers to pay using their preferred channel anytime. This integrated platform offers:

  • Multichannel payments: Give your customers the power to pay at multiple touchpoints and via email, text, IVR, or live agents—with the option to switch throughout the payment process seamlessly. Enable customers to select payment options like autopay for recurring fees or installment payments.
  • Secure payment options: The live agent assist feature allows your contact center staff to create online invoices and send them directly to customers. With cutting-edge NanoSite technology, clients can securely complete transactions without sharing banking details or credit card information across multiple channels. This approach reduces the risk of sensitive information leaking.
  • Customized payment journeys: Rapidly deploy personalized payment journeys for your customers. Branded payment journeys can be activated for one-time, recurring, or future-date payments. You can send invoices with payment prompts, confirmations, or late payment notifications to a customer’s channel of choice.

The Benefits of Our Multichannel Payment Platform

Innovative multichannel payments offer your business several advantages. When you leverage our platform for multichannel payments, you can benefit from:

  • Fast implementation: Advanced solutions enable low-to-no coding, meaning integration takes days, not months.
  • Convenient automation: Multichannel payments reduce repetitive tasks through automation while still providing highly personalized customer experiences.
  • Secure transactions: Custom payment pages or NanoSites allow customers to transact with your business quickly and securely, reducing late payments.
  • High adoption rates: Multichannel payments increase self-service capabilities and encourage the adoption of digital payments, minimizing the costs associated with some offline payments.
  • Seamless testing: Your business can leverage multichannel payment capabilities to split-test elements of the payment journey. See what best works for your customers and use it to enhance their experience.

Partner With CSG Forte for Secure Multichannel Payments

At CSG Forte, we leverage decades of experience to help your business scale payments and grow with smart, unified payment solutions. Our payment platform is designed to meet your ever-changing needs and customer preferences.

Want to learn more about how we can help you simplify and scale your multichannel payment capabilities? Get started by connecting with our team online.

ACH Myths Busted: Clearing Up the Confusion on Clearing Houses

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What’s the most valuable non-cash payment channel in the United States?

Most people would say credit cards—and most people would be wrong.

Continue reading “ACH Myths Busted: Clearing Up the Confusion on Clearing Houses”

5 Payment Trends to Watch in 2022

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Human beings have an innate need to make predictions. For whatever reason, we like to make forecasts on just about everything, from Oscar winners to World Series champions, from election results to the likelihood of weather events, and everything in between.

The most effective prognosticators tend to take a 360-degree view. That is, they try to eliminate blind spots and take multiple factors into account. The recent past can give us a good idea of where things are heading moving forward.

In the payments world, the COVID-19 pandemic sent shockwaves throughout the industry that continue to reverberate. Today, we are seeing innovative breakthroughs in new digital payments technology, with rapid adoption across a wide range of industries. On the flip side, there are more opportunities for hackers and bad actors to try and take advantage.

Where is the payments industry headed? While I don’t claim to be Nostradamus, there are a few major trends I believe will dominate the payments headlines in 2022.

 

1) Digital Payment Methods Transform (and Explode)

The past few years have shown consumers that there are more ways to pay than just checks, cards and cash. As a result of the pandemic, contactless payments adoption has surged. Today, more than half of all Americans use at least one form of contactless payments (mobile apps, contactless cards, etc.). And consumers are letting merchants know that they expect more digital payment options—57 percent say they are more likely to do business with a merchant that offers a contactless payment option.

New payment methods will continue to attract first-time users in 2022, such as virtual credit cards, which provide consumers with alternative credit card numbers to disguise their sensitive information when making online transactions. There are a number of reasons virtual credit cards are an alluring prospect: they are environmentally friendly, incredibly secure and easy to monitor. They also empower the customer by allowing them to set spending limits and expiration dates. Just like with contactless, once buyers use a virtual credit card, they’ll demand the option moving forward.

 

2) Tighter Payment Security

An unfortunate byproduct of the rise of digital payments is the increase in digital payment fraud. eCommerce fraud grew to more than $20 billion in 2021. As security threats loom over merchants and consumers alike, more advanced fraud prevention will become a necessity.

In the next year, multifactor authentication (MFA) will become more commonplace. MFA has three types of authentication factors—biometric identification, device in-use and traditional password. Just as consumers are used to opening their smartphones with a quick press of the thumb, consumers will get used to using MFA for purchases.

In 2022, consumers will have the ability to set up multiple layers of security while making purchases in real-time. When a consumer is using a credit card at their local market, they can instantly receive a message to confirm their purchase. In the time it takes to glance at a screen, the transaction is confirmed to be safe. These additional levels of security can drastically reduce the risk of fraud, a tremendous benefit to both consumers and merchants.

 

3) Better Bill Pay

Bill payment is the one guaranteed touchpoint your customer will have with your business every month or quarter, and since these interactions are guaranteed, there’s a great opportunity to make them stand out.

In 2022, we predict that businesses and merchants will level up their bill payment processes, from offering customers payment methods like PayPal to establishing recurring payments so customers can set it and forget it. In fact, almost 40 percent of consumers prefer to pay their bills through automatic checking account deductions or credit/debit charges. By offering more convenience and choice, companies can make ordinary bill payment experiences extraordinary.

 

4) Companies Will Offer More Financial Flexibility

The last few years have highlighted the importance of flexibility—in how we work, interact and communicate. Now, consumers have come to expect flexibility in their payment terms. With the rise of apps like Klarna and Affirm, companies are embracing the “buy now, pay later” option, letting consumers pay off purchases in installments rather than one single payment. On the flip side, consumers can also customize when they get paid, with some prepaid debit cards and even financial institutions developing early payday options. In some cases, early direct deposit allows consumers to receive their paychecks into their accounts up to two days early.

Large financial institutions are beginning to adopt these new technologies to create a pipeline of young consumers who place a premium on flexibility, convenience and financial freedom. I anticipate the increased implementation of financial flexibility in the next year as a tech-savvy generation continues to push institutions to reinvent their business to keep pace with digital transformation.

 

5) Recurring Payments Will Keep Going (And Going, And Going…)

Nobody likes to waste money—especially on something as avoidable as late fees. For that reason, many consumers have embraced recurring payments for regular charges, including cable, utility and rent bills. The notion of having to pull out a checkbook and pay bills monthly is outdated—and this trend will spread to the B2B space.

Unfortunately, payment failures can stand in the way of a successful recurring payments strategy. Payment failures can lead to customer churn, bad debt and a diminishing bottom line. Businesses are increasingly embracing automation when it comes to their payments, including recurring payments. B2B companies that embrace payment modernization can avoid failure and effectively set and forget their recurring payments.

 

Want to learn more about how payment security can make 2022 your best (and safest) year yet? Download our 3 Steps to Ensure Payments Security here.

What’s a payment channel?

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Since all of our recent chatter about omni-channel is centered on multiple channels, here’s a quick breakdown on payment channels and what we offer.

What is a Payment Channel?

A payment channel is basically any way that a customer might make a payment or anywhere that you (as a merchant) might accept a payment. This is slightly different from retail channels, which might include bricks-and-mortar, catalogs, and online shopping/eCommerce sites. Payment channels are generally related to these retail channels, but are more specifically how the payment might be made: physical POS systems, phone/IVR payments, online checkout solutions, and mobile payment options, for example.

So these correlate to retail channels, but leave some room for overlap. For example, at a bricks-and-mortar retail channel, you might process payments on a physical POS system (ie the cash register), as well as on smartphones or tablets within the store. Your catalog might accept payments by phone, but also integrate nicely into the omni-channel concept so that customers could walk into your bricks-and-mortar store to pay at the POS, or they could shop the catalog online and pay via online checkout. There is a relationship between payment channels and retail channels, and since you definitely want to start creating a cohesive experience via omni-channel, it’s important to consider what payment channels you might implement.

 

Payment Channels CSG Forte Supports

CSG Forte offers full payment processing support for the following channels:

Physical POS

We can supply card readers, help build a solution with our Virtual Terminal that turns existing computers into instant workstations, and more.

Phone/IVR

Comes with your own toll-free number and script-building assistance.

Mobile Payments

Use the iDynamo and our mobile app to instantly take payments on smartphones and tablets.

Online Payments

Our new Checkout is smart, speedy, and stocked with options.

You can accept both credit cards and electronic checks on any of these channels, and each channel comes with our cloud-based Virtual Terminal for transaction management and our powerful payment gateway services. All of the reports funnel into the Virtual Terminal, so you don’t have to worry about piecing things together on your own.

 

Payment Channel Solutions For Your Business

These payment channels don’t necessarily have to correlate only to retail, as well. Government agencies could implement online payments to accept taxes on the web and build a smart physical POS system for in-office payments. Veterinary clinics, dance studios, and other businesses can all benefit from considering an omni-channel approach.

And what’s easier than setting up all of your channels with one company? Get started with CSG Forte today. Give us a call at 866.290.5400 to see what we can do for you.