PayLeap Guide
One Stop
PayLeap does it all. Take payments in person? Check. Payments over the phone or by mail? Check. Payments from mobile devices? Of course. Online payments? No problem. In addition to credit cards, PayLeap handles debit cards, checks, cash, ACH transactions, gift cards, you name it. And only PayLeap lets consumers use their debit card and PIN to pay online.
Introduction
PayLeap is a leading payment gateway platform with over 4000 clients and
$237 million in annual transaction volume.
• PayLeap provides merchants with a single source payment solution inclusive of both a payment
gateway and merchant processing account. Our gateway is loaded with feature functionality including client data storage, recurring subscription billing, tokenized cardholder data vault. Enhanced fraud tools, electronic invoicing and more.
• PayLeap recently joined forces with Acculynk, a industry leader specializing in Internet PIN Debit (IPD) technology.
PayLeap delivers merchants and developers a unique ability to provide a
one-stop Gateway + Merchant Account Solution with personal, one-on-one
customer support and a variety of different payment solutions.
Agenda
•
Electronic Payments 101
• Who are the players? • Authorization flow
• PCI – what you need to know • What is Interchange?
•
What is a merchant account?
• What does a merchant services account and why do I need one? • How are they different?
• How do I choose the right merchant account?
•
What is a Payment gateway?
• How it works
• Why it’s important
• How to compare payment gateways
•
About PayLeap
• Features and Functionality • Pricing
Electronic Payments 101
Who Are the Players?
•
Associations
•
Payment Card Industry (PCI)
•
Card Issuer
•
Merchant / Business
•
Cardholder / Consumer
Personally selected by
merchant
•
Shopping cart
•
Payment gateway
•
Merchant provider
Payment Authorization Flow
Approve
Decline
Consumer
Processor
Merchant
Card Associations
Issuing Bank
The Card Associations
Associations are worldwide payment service organizations composed of
member institutions.
They Do:
• Manage their respective brands
• Develop new products and create advertising and promotion programs to support their brand • Conduct clearing and settlement processing of transactions (known as “interchange”)
• Set and enforce rules and regulations governing their bankcards, such as operational procedures, interchange procedures, and graphic design approval of their cards
• Allow licensed, participating banks to issue cards to their members
They DO NOT:
• Issue credit cards
• Create policies for solicitation of new cardholders or merchants • Establish criteria for evaluating applicants
• Set credit limits offered to cardholders
PCI - What You Need to Know
•
Payment Card Industry (PCI) is an independent body that was created by the
major payment card brands (Visa, MasterCard, American Express, Discover and
JCB)
•
Payment Card Industry Data Security Standards (PCI-DSS) is a set of
requirements designed to ensure that all companies that process, store or
transmit credit card information maintain a secure environment.
•
These standards focus on improving payment account security throughout the
transaction process
Sample violations of PCI-DSS
– Storing credit card data in an unsecured environment – Emailing invoices via unsecured payments page
– Failure to truncate credit card receipts
– Processing e-commerce transactions with a non-PCI certified shopping cart or gateway
The Card Issuer
The card Issuer is responsible for the
cardholder account program, which
encompasses nearly all aspects of cardholder
account activities, ranging from acquiring
new customers to billing current ones.
The Issuer’s responsibilities include:
• Acquisition and marketing of new accounts
• Processing application; establishing credit limits and policies
• Overseeing design, manufacturing, and embossing of inventory cards
• Handling of issuing and reissuing of cards • Overseeing PIN Numbers
• Maintaining authorization file • Providing customer service
Merchant
Merchants are the businesses that accept payments. Different merchant types have
different needs in how they accept those payments: e-commerce, face to face, over
the phone or mail, recurring, invoicing via email, mobile
Memberships
Mail / phone
Retail
mobile
B2B invoicing
Consumer
Consumers are the cardholders that make purchases and payments. They demand
flexibility in how they can make those payments.
What are Interchange Fees?
• MasterCard and Visa are at the center of the transaction process, maintaining the flow of funds between issuers and acquirers.
• Interchange makes it possible for the issuing banks and acquiring banks to exchange
information, transactions, and money on a standardized basis.
• During Interchange, fees are deducted by the issuer from the transaction amount and the net amount is paid by the issuer to the acquirer. These are called Interchange Fees.
• Interchange has hundreds of rate categories based on risks and rewards. • SIC Code or industry description
• Different rates for Card Present (CP) and Card Not present (CNP)
A FEW EXAMPLES: Card Types Description Interchange
Rates
Visa Retail Face-to-face swiped transaction 1.51% + $.10 Visa Rewards Rewards card purchase 1.95% + $.10 Visa Commercial Business card purchase 2.95% + $.20 Visa eCommerce Online transaction 1.80% + $.10
Breakdown of Transactions Costs
$100 Visa / MasterCard Purchase
$97 – Net Amount to Merchant
$ 3 – Fee Charged by Processor
•
$2.38 – Interchange fee
•
$0.40 – Process or fee
•
$0.22 – Assessment fee to Visa /
MasterCard
Interchange
fee to
Issuing Bank
$2.38 (80%)
Process
or fee
$0.40
Additional Fees to Be Aware of
•
Authorization Fee
•
Address Verification Fee (A.V.S.)
•
Chargeback & Retrieval Fee
•
T & E (AMEX) Auth & Proc Fee
•
Ancillary Comm & Network Fee
•
Hardware & Software Fee
•
IRS Fee
•
Reporting Fee
•
Gateway Fee
•
ACH Reject Fee
•
Batch Fee
•
Annual Membership Fee
•
Intl / Cross Border Fee
•
Minimum Monthly Fee
•
Statement Fee
•
Voice/VRU Auth Fee
•
PCI Fee
•
Reporting Fee
Merchant processors have many ways to compensate for their “lowest”
advertised pricing:
85% Credit card online
10% Check mailed
2% Credit card via phone
1% Credit card via mail
What is a Merchant Account and Why Do I Need One?
• A full merchant account allows a business to accept credit/debit cards in a variety of environments (ie; online, retail, B2B mobile).
• Agreement established with a registered ISO or merchant acquirer affiliate with a sponsoring bank. • The average American cardholder has roughly four bank cards. Credit card purchase volume has been
expanding about 15% annually for the last five years
Plastic dominates the world of internet shopping. This breakdown
demonstrates how people pay for online purchases.
What is an Aggregator?
Merchant Aggregators / Payment Aggregators
• Share one large account with many different merchants.
• Service providers through which merchants can process their payment transactions typically on a website or mobile device.
• Allow merchants to accept credit card and bank transfers without having to setup a merchant account with a bank or card association.
• Provides the means for facilitating payments from the consumer via credit cards, stored value accounts or bank transfer to the merchant.
Aggregator Pros and Cons
PROS
• Usually easy to set up
• Easy to understand flat pricing (i.e. 2.95% + $.30 cents) • Low or no monthly fee
CONS
• Funding delays (up to 6 mos frozen account) • Monthly transaction volume limits
• Consumers directed away from website to third party payments page increasing risk of site abandonment
• Consumer doesn’t see the merchant name on bank statement, resulting in increased heartburn with chargeback disputes
• Lack of customer service support • Google “PayPal account frozen”
How do I choose the right merchant account?
What to be aware of:
•
Startup fees
•
Teaser rates with no disclosed fees
•
Term contacts and early termination fees
•
Non-PCI compliant solutions
•
Inflated interchange downgrades
•
Obsolete software and hardware
•
Equipment leasing
•
Many processors claim they “eliminate the
middle man” but still use third party providers
What is a Payment Gateway?
•
A secure application service provider that encrypts sensitive online data for the
purpose of enabling internet payments
•
A gate that “swings” between the shopping cart software and the merchant
account provider
•
An online portal to process mail order/telephone order (MO/TO)
How a Payment Gateway Works
Consumer
Merchant
Payment
Gateway
Vault
Card
Networks
Issuing
Bank
Why a Payment Gateway is Important
•
Encrypts and transmits sensitive cardholder data allowing it to pass safely
from the merchant to the associations and acquiring banks for an approval
or decline.
•
Reliability / compatibility / connection / uptime
•
Security features and settings to minimize fraud
•
Provides reporting data
•
Manage customer transactions
How to Compare Payment Gateways
Start by asking questions:
• Is it integrated into your shopping cart or payment application? • Is the merchant account included?
• What fraud tools are included?
• Are there setup fees or additional costs for add-on features/functionality?
• Is the user interface intuitive and easy to use?
• What payment types are accepted? (credit, debit, check/ACH, gift cards)
• Can I use it for both ecommerce and retail transactions? Is a virtual terminal included?
PayLeap – The Next Gen Payment Gateway
•
Launched in 2010
•
The only payment gateway to offer
Internet Pin Debit
•
Easy to use interface
•
Advanced fraud tools
•
Customer management (wallet)
•
Electronic invoicing and collection
•
Recurring billing and tokenization
•
LeapLock Secure Checkout
Enhanced Fraud Tools / Risk Management
Risk Management
•
Transaction Key
•
Velocity Settings
•
Daily, Weekly, Monthly
Fraud Controls
•
IP Address Blocker
•
Country Blocker
•
Duplicate Detection
•
CVV Check
•
AVS Settings
•
Check Verify
24Electronic Invoicing
Paper invoicing is time consuming, labor heavy and proneto errors.
Electronic Invoicing benefits:
• Reduces pain points – no more paper, stamps, or snail mail
• Makes process efficient, safe, secure
• Eliminates multiple data entry errors while expediting the approval process
• Ability to send invoices based on schedules payment plans.
The Invoicing section
• Allows storage and management of customers’ info —including payment and contract
information
• Allows easy submission of new payments or recall billing details
• Enables the ability to create and send email invoices to customers for payment of goods or services
Recurring Billing and Tokenization (SCM)
PayLeap provides tools to store and
manage customers’ personal and
payment information in an easy and
secure way:
Just enter the customer’s unique ID
(token) in the PayLeap Merchant
Interface, and the merchant can quickly
recall information and initiate payment
transactions without having to collect the
same data from the customer over and
over.
Our process is easier for both the
merchant and their customers
LeapLock™ Secure Checkout
LeapLock is an innovative hosted payment acceptance method using a
patent-pending secure technology, which creates a branded “on-demand’” secure payment
form in the payer’s browser.
Benefits of LeapLock:
• User remains on the host site for payment submission for an optimal user experience.
• Sensitive card information section is handled behind the scenes by PayLeap for transport and storage. • 100% control over user experience is retained by merchant.
• Reduces the risk to a company brand which could be associated with a credit card breach. • No disruptive URL redirect for online payments.
• Website analytics stats are still in control by the merchant. • No change to alternative payments pages is necessary. • Reduces merchant requirements for PA-DSS certification.
Bank branded.
No enrollment.
No redirection.
No downloads.
No new password.
No hardware.
3600+ Active Websites
using IPD.
As the consumer clicks each individual number of their PIN , the graphical PIN pad scrambles. The actual PIN is not sent or recorded by the merchant. Instead, PaySecure captures the
coordinates of the PIN for encryption.
PaySecure Internet PIN Debit (IPD) Technology
Compare Our Features
Questions? Don’t hesitate to call us.
PayLeap for e-commerce merchants includes:
e-Commerce Account
Recurring Billing
Secure Vault Storage
Custom Payments Form
Custom Branding
Online Dashboard
Virtual Terminal
PayLeap for e-Commerce
31
PayLeap’s included growth advantage tools:
Gift Card Issuing & Processing
Live Training & Support
Traditional Merchant Account
PayLeap for face to face merchants includes:
Recurring Billing
Gift Card Issuing & Processing
Secure Vault Storage
Live Training & Support
Traditional Merchant Account
Custom Payments Form
Custom Branding
PayLeap for face to face merchants
32
PayLeap’s included growth advantage tools:
e-Commerce Account
Online Dashboard
ACH / Check Processing
