A good payment gateway is able, from the outset, to illustrate how they can seamlessly fit into existing operator systems, structures and business processes, thereby enabling operators to focus on their core business and particularly their valuable players, while the gateway focuses on the business of payments.
If an operator is looking for additional payment processing capacity, or have been tasked for the first-time to find a reliable provider, consider the following points, many of which may seem obvious, but are not always on offer.
Payment Card Industry (PCI) Certified Payment Gateways
Ensure the payment gateway is PCI Certified. The PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures. It requires merchants and service providers that store, process or transmit customer payment card data to adhere to information security controls and processes that ensure data integrity.
In particular, all data should be encrypted, and intrusion detection, responses, and systems monitoring should go hand-in-hand with formalized security policies.
Pricing and Settlement
Most payment providers offer pricing and settlement in all the major currencies, but confirm settlement currencies as some do not offer like-for-like processing; instead they facilitate settlement to say, three main base currencies, normally USD, Euros and GBP. Be sure to confirm the exact currencies available and make sure these coincide with the business objectives for geographic expansion so players are offered with the ability to pay in the currency of their own country. Also, consider long-term goals and adaptability - how easy will it be to add new currencies as these can be needed with this provider?
A big issue for consideration is processing settlement times, which are dependent on the acquirer bank relationships forge via payment providers. Some payment providers only have the ability to settle weekly, which may create cash-flow issues. Again, ensure the services on offer support the business objectives. If not, look elsewhere. There are payment providers that can arrange to settle funds daily (usually 3 days in arrears).
Fraud Management Solutions
A payment gateway provider should help protect operators from fraudulent transactions, chargebacks and unauthorized payments via a host of available fraud management solutions. At minimum, Address Verification Services (AVS) and Card Verification match checks (CVV2/CVC2), Amex CID match checks, 3-D Secure solutions (Verified by Visa and MasterCard SecureCode), and IP Geolocation services should be on offer from payment providers.
Merchants should automatically be able to screen and process transactions through their payment gateway platform in real-time. This allows them to react immediately, if need be, against potential card-not-present fraud.
AVS helps to screen fraudulent transactions by comparing the billing address provided by the purchaser to the billing address on the cardholder's credit card statement. Card Verification validates the security code found on the back of the credit card, which can be used as a confirmation that the purchaser has the physical plastic in hand.
3-D Secure provides verification to the merchant that the buyer is the authorized owner of a card account, thereby reducing the number of unauthorized payments, resulting in fewer chargebacks. Also, both Visa and MasterCard offer chargeback liability shift for certain fraud related chargebacks, when transactions are authenticated through Verified by Visa or MasterCard SecureCode.
IP Geolocation is another screening layer of fraud control that allows merchants to evaluate the risk of an online transaction based on the geography of the customer (country, state or province, and city), and it can be used to automatically block customers from certain restricted countries, based on a merchant's risk profile, with screening carried out before a deposit is taken.
Alternative Payment Options
Consistent research has shown that consumers want choice, and particularly in the gaming space, they want a range of options they can use to pay and play. Apart from multi-currency credit and debit card payment processing, operators need to ensure that their provider can offer alternative payment options as part of a single integration.
This might seem obvious in as much as it takes away the time and hassle of having to integrate directly with a variety of payment options. But the fact remains, time-to-market is critical and a single integration is less costly across a range of business considerations. In essence, a single integration, and one reporting interface, can (and should) mean several payment choices for customers.
Alternative payment solutions are not only convenient for consumers but can be far more flexible and inexpensive for operators. PayPal is a popular choice of payment for players and provides online merchants secure access to over 350 million worldwide PayPal consumer accounts - in local currencies.
This is an important consideration when targeting South American markets, for example. Implementing PayPal to be able to receive Reals transactions is far simpler than trying to set up an acquiring solution in Brazil.
Ukash is another alternative payment type that offers a unique combination of benefits to consumers. Players can get Ukash free from over 275,000 physical locations and it is easy to use at any site that accepts Ukash.
Customer Service
Customer Service is defined by Business Dictionary.com as "All interactions between a customer and a product provider at the time of sale, and thereafter. Customer service adds value to a product and builds enduring relationships."
However, it is crucial to find a payment provider that truly believes in excellent customer service. Establish core requirements, and create a 'desirable' list outlining where a payment provider could make a real difference to the business.
It has been found that a lot of online merchants are not getting the "aftersale" care they require from their current gateway. Once they are signed up, they are often just pushed through an established and rigid system. But this is arguably the most important time in the provider/merchant relationship. This is the moment when those who truly believe in the value of strong business relationships will reach out, anticipate, provide direction, solve processing challenges - in essence, prove they have what it takes to be intrinsically involved in the success of the businesses.
Customization is often a mission critical requirement for operators, and over time, their reporting needs change. All companies are different, and one size does not fit all. A payment gateway should be able to easily and quickly customize reconciliation reports, for example, or provide detailed reports and data mining to operators. Timely reports are key as the operator is relying on their payment provider to provide them with the data they need to solve their customer's problems.
There are lots of payment gateways around the world collectively spending millions of dollars on advertising, marketing and conference attendance to win new businesses. As an operator the challenge is to find a provider (or providers) who can work in tandem with business teams towards a shared vision. Reliable, scalable, secure multi-currency processing solutions are needed, and what else? The answer, put simply, is a blend of all of the above with a large dose of trust, integrity and innovation.
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