Payment Gateways

Payment gateways are online systems or interfaces that provide real-time authorization of credit cards when a customer places a card not present sales order or transaction. The gateway usually has two components: (A.) A Virtual Terminal turns your existing computer into a functioning payment terminal that secures multiple payment types. Virtual terminals allow a merchant to securely login and key in credit card numbers. (B.) Merchants have the website's shopping-cart connect to the gateway via an API to allow for real time processing from the merchant's website.

How It Works

The payment gateway facilitates the transfer of information between a payment portal – such as a website, mobile phone or IVR service – and the front end processor or acquiring bank, such as NDMS. When a customer orders a product from a merchant, the payment gateway performs a variety of tasks to process the transaction:

  • A customer places a sales order on website by pressing the 'submit order' or equivalent button. They may also perhaps enter their payment card details using an automatic phone answering service.
  • If the sales order is made via a website, the customer's web browser encrypts the information to be sent between the browser and the merchant's web server. This is done via SSL or Secure Socket Layer encryption.
  • The merchant then forwards the transaction details to their payment gateway. This is another SSL-encrypted connection to the payment server hosted by the payment gateway.
  • The payment gateway forwards the transaction information to the payment processor used by the merchant's acquiring bank, such as NDMS.
  • The payment processor, such as NDMS, forwards the transaction information to the payment card association for such cards as Visa, MasterCard, Discover who routes the transaction to the correct card issuing bank.
  • If an American Express Card is used, the gateway and processor redirect the authorization request directly to AMEX.
  • The credit card issuing bank receives the authorization request and sends a response back to the processor and gateway via the same process as the request for authorization with a response code. In addition to determining the fate of the payment, whether it is approved or declined, a response code is used to define the reason why the transaction failed, such as insufficient funds, or bank link not available.
  • The payment gateway receives the response, and forwards it on to the website or whatever interface was used to process the payment, where it is interpreted as a relevant response, then relayed back to the cardholder and the merchant.
  • The entire process typically takes 2–3 seconds
  • The merchant submits all of their approved authorizations, in a "batch," to their acquiring bank, such as NDMS, for settlement.
  • The acquiring bank deposits the total of the approved funds into the merchant's requested bank account.
  • The entire process, from authorization to settlement to funding, typically takes 1-2 days.
  • The merchant submits all their approved authorizations, in a "batch", to their acquiring bank ( NDMS) for settlement.
  • The acquiring bank deposits the total of the approved funds in to the merchant's nominated account. This could be an account with the acquiring bank if the merchant does their banking with the same bank, or an account with another bank.
  • The entire process from authorization to settlement to funding typically takes 3 days.

 

All NDMS payment gateway options also provide automatic screening of sales orders for fraud in real time prior to the authorization request being sent to the NDMS platform. Also available are tools to detect fraud that include geo-location, velocity pattern analysis, delivery address verification, computer finger printing technology, identity morphing detection and basic AVS checks.

Security

Since a merchant’s customer is usually required to enter personal details, the entire communication is carried out through strict HTTPS protocol. NDMS and its gateway partners offer Virtual Payer Authentication (VPA), implemented as 3-D secure protocol. VPAs are branded as Verified by VISA, MasterCard SecureCode and J/Secure by JCB, which adds an additional layer of security for online payments. 3-D Secure promises to alleviate some of the problems facing online merchants, like the inherent distance between the seller and the buyer, and the inability of the seller to easily confirm the identity of the buyer.

Standard Features

  • Merchant Interface. Manage and review transactions, configure account settings, view account statements, download reports and more via a password-protected website.
  • Virtual Terminal. Turn your existing PC into a functioning payment terminal that secures multiple payment types with our payment software products. The virtual terminal and batch upload features of the merchant interface allow you to enter and upload individual and batch transactions manually.
  • Customer Support. Our account teams provide exceptional technical support and customer service to all merchants.
  • Security and Compliance. We are committed to providing merchants with the most secure tools and best practices to prevent fraud.
  • Verified merchant seal. When displayed on your eCommerce website, a verified secure seal increases customer confidence that their transactions are secure
  • Certified Shopping Carts. Choose a shopping cart that you can trust. NDMS is a certified partner to hundreds of shopping carts.
  • Connection Methods. Choose a method that's right for your business. Basic HTML, XML API and web-services, and various advanced interfaces.

Additional services:

  • Prepaid and paperless payroll solutions. Generate new revenue with gift cards for customers and reduce costs with payroll cards for employees.
  • Mobile commerce solutions. Enable fast, secure and convenient transactions over a wireless communications network with a mobile device.

NDMS Offers:

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