WHY YOU SHOULD GO FOR YOUR OWN PAYMENT GATEWAY?

Source: http://www.chetu.com/blogs/finance-2/why-you-should-create-your-own-payment-gateway.php

A payment gateway should allow you to accept payments quickly and easily. The key component of any payment gateway is to process transactions securely and keep your customer’s money and data secure. A secured payment gateway helps you gain the trust of your customers so they are willing to hand over their money. A payment gateway costs money but also helps you grow your business.

There are a vast array of payment gateways to choose from, each with their own benefits and problems that could affect the services you can offer through that payment gateway. Determining whether the pros outweigh the cons can make finding the right payment gateway for your business a time consuming process.

There are several factors that you need to consider before choosing the right payment gateway. The most important of them is the cost factor. The sign-up cost and transaction fees associated with a payment gateway should suit your budget and should not be eating up a large portion of your profits.

Adding to this, you may find a good, reasonably priced payment gateway that offers low transaction fees but then find yourself restricted by the limitations of that gateway. For example, a payment gateway owned by someone else may not support recurring payments and multi-currency transactions, which would limit your ability to process such transactions.

There are many good reasons to create your own payment gateway that suits your business needs and requirements.

Here we discuss the pros and cons of creating your own payment gateway, the key components of a payment gateway portal, common pitfalls, differentiating factors for your payment gateway in an already overcrowded market and what are the merchants looking for.

Pros & Cons of Creating Your Own Payment Gateway

Pros

• Save on Payment Gateway Fees – Outside payment gateways have a sign-up cost and a fee associated with every transaction that you make thereby eating up a portion of your profit. With your own payment gateway you save on these fees and cost.
• Custom Features – With outside payment gateways you are restricted by their limitations such as not accepting recurring payments and/or multi-currency transactions. Some payment gateways charge additional fees for such add-on features. With your own payment gateway you can customize and add new features depending on your business needs and requirements.
• Offer Payment Gateway Product to Other Merchants – You can offer and sell your payment gateway as a product to other merchants, ISOs and Agents.

Cons

• Payment Gateway Development & Maintenance Cost – There are development and maintenance cost associated with building your own payment gateway. The initial cost of creating your own payment gateway is much higher than paying the associated fee to go through an external payment gateway.
• Payment Processor Integration & Certification Cost – Integration to payment processors is a time consuming process and requires going through their certification process. Using an external payment gateway is simpler and faster in this respect, as you pay for the convenience of using an existing gateway.
• Handle Settlement Reports From Processors – Payment processors send settlement reports in raw format which you need to parse and present in a readable format.

Key Components of Payment Gateway Portals

• Integration to Multiple Processors – Integration to different payment processors provides multiple options for your merchants to choose from when selecting the acquiring bank they want to use to create a settlement account. This also helps you provide competitive transaction fee rates to your merchants, as different processors have different interchange fee  rates depending on factors such as merchant’s business and transaction volume.
• Security – PCI Compliance & Fraud Management – Every merchant looks for a secured payment gateway that will help them to gain the customer’s confidence. The merchant also looks for fraud detection mechanisms built into the gateway to avoid chargebacks and other issues that result from fraudulent purchases.
• Scalability to Add New Features – The payment gateway should be able to adapt to the ever changing world of online payment processing to add and accept new payment types. We are already seeing an upcoming surge and world-wide acceptance of new Bit Coin currency.
• Disputes/Chargeback & Arbitration – The payment gateway should have a merchant interface to report and handle disputes coming from issuing banks.

Common Pitfalls of Payment Gateway Portals

• Stuck With a Single Processor – A payment gateway integrated to a single processor will not be able to offer competitive fee rates to merchants. The payment gateway will also not be able to offer multiple options for creating settlement accounts between banks and merchants.
• Manual Processing of Settlement Reports From Processor – The settlement reports coming from processor needs to parsed and presented in a readable format. Manual processing of these settlement reports can be a very time consuming and cumbersome job.
• Not Supporting Recurring Payments – Most of the merchants would not want to store customer’s credit card information on their side and look for a tokenized approach for accepting recurring payments from their customers.
• Not Providing an Off-Site Payment Interface – Merchants tend to look for a “Paypage” from a payment gateway to redirect their customers for processing payments.

Differentiating Factors in an Over-Crowded Market

• APIs For The Outside World – Building an easy and simple to use API to be used by merchant application.
• Enhanced Security (3D Secure Transactions) – Merchants always look for security measures added in the payment gateway that will reduce chargebacks.
• Ability to Handle Disputes, Chargeback & Arbitration – Merchants need a good interface and reporting mechanism to view and manage their chargebacks.
• Providing Off-Site Payment Interface – Merchants look for a “Paypage” from Payment Gateway to submit and process adhoc payments.
• Supporting Recurring Payments – Merchants do not want to store customer’s credit card details on their side and look for a tokenized approach for accepting recurring payments.
• Customer Support – Merchants look for round the clock customer support to make sure that their business is not negatively affected by glitches on the payment gateway side.

Conclusion – What Are Merchants Looking For in Payment Gateways?

Owning a payment gateway that is designed to your specifications can be a valuable tool for your business. It allows you to provide a single, integrated solution for point of sale and payment processing which you can then offer to merchants as a replacement of the current payment gateway they may be using. However, to ensure that merchants are willing to part with their current provider, your payment gateway must be secure to reduce the risk of charge backs and have a wider range of options for choosing an acquiring bank for creating settlement accounts.  It should also offer competitive fees, faster settlement, excellent customer support and high quality reporting.

CHOOSING BETWEEN PAYMENT GATEWAY & PAYMENT PROCESSOR

Source: http://www.chetu.com/blogs/finance-2/choosing-between-payment-gateway-and-payment-processor-2.php

Quite interestingly I have seen “Payment Gateway” and “Payment Processor” being used as interchangeable terms.

It would be worth noting that the “Payment Gateway” and “Payment Processor” are two completely different entities in the card payment industry world.

What is Payment Gateway?

Payment Gateway is an application service provider that authorizes payments for businesses, online retailers or traditional brick and mortar.

In simple terms a Payment Gateway can be thought of as an interface between merchants and payment processors. The Payment Gateway accepts payment request from merchants and forwards this to payment processor for further processing.

List of some popular Payment Gateways:

• Authorize.net
• Cybersource
• Chase Paymentech Orbital (only works with Chase Paymentech processing network).
• First Data Global Gateway (only works on First Data’s various processing networks. Used to be called Linkpoint, EFSNet and Yourpay, at various points in time).
• Plug N Pay
• Paypal Payflow
• ViaKlix / Virtual Merchant (only works with Nova/Elavon)
• SecurePay
• USAePay
• TrustCommerce
• EPX
• Skipjack
• CenPOS

What is Payment Processor?

Payment Processor is an entity that has a direct interface to card associations or networks such as VISA and MasterCard. The Payment processor receives payment requests from merchants or payment gateways and sends it to the card association or networks such as VISA and MasterCard which in turn routes the transaction to the card issuing bank for authorization.

Payment processors are also referred as “Acquirers”. The Payment processor on a whole is a complete payment processing engine that processes real time transactions and end of day settlement requests and are also responsible for handling chargebacks from the Issuing bank.

List of some popular Payment Processors:

• First Data
  • North (Cardnet)
  • South (Nabanco)
  • Nashville (Envoy)
  • Omaha
  • BuyPass (Concord/Atlanta)
• Vantiv
• Elavon
• Heartland
• Global
• WorldPay
• TSYS
• Chase Paymentech

 Below diagram shows a clear distinction between payment gateway and payment processor in a typical card processing system. As seen below the Payment Gateway is a layer that sits between the merchant and the payment processor.

Choosing Between Payment Gateway VS Payment Processor

While the payment gateway offers an easy integration to merchant application it comes as an additional cost to the merchant. The Merchant can save this additional cost if it integrates directly to the payment processor. While this is true there are several other factors that should be considered while choosing between payment gateway and payment processor.

Below are some tips in choosing between payment gateway and processor:

Total Transaction Volume – The Payment processors have different transaction fee rates that depends on the volume of transactions. Most of the Payment processors offer lower rates for high volume of transactions. It would be more feasible for small businesses to go to payment gateway that have small volume of transactions.

Integration Cost & Time – The development cost and time for integrating with payment processor is higher as compared to payment gateway integration. The Payment processor requires integration to their ISO 8583 platform and undergoing their certification process.

Compliances – Integration to payment processor requires a PCI certified infrastructure and adherence to all compliances set by the card association network (VISA and MasterCard). The payment gateway on the other hand deals with all the intricacies related to ISO 8583 integration and the payment processor certification process. The time and cost associated with payment gateway integration is much lower as they offer a simple API layer for accepting and processing payment requests from merchants.

Settlement – The payment gateway handles the settlement on behalf of merchant while the payment processor expects the merchant to send the end-of-day settlement request and handle the settlement file to be imported back into the system.

Working on different projects related to payment gateway and processors we have seen an emerging convergence between the POS and Payment Gateway industry.

The POS industries are leaning towards implementing their own payment gateway to get a cut of all the transactions that is processed via the POS. Conversely the payment gateway industry is looking to build their own POS systems to process all the transactions originating from the POS system.

WEB-BASED ELEARNING PLATFORMS – A CASE STUDY

Source: http://www.chetu.com/blogs/e-learn/web-based-e-learning-platforms-a-case-study.php

Overview

The client is a leading US university established in the 19th century focused on Medical programs and research.

The university has thousands of on campus and online students enrolled in its numerous academic, clinical and advanced research programs.

Business Objective

The client had an existing Computer Learning Program (CLP) developed several years ago as a database-forms solution. Soon with its ever growing number of students enrolling and courses being offered, the university found that solution to be non-scalable, as it had very limited features and no customization options.

The Chetu team's objective was to develop this application as a new web-based solution, incorporating all missing features. The application would include a full business life cycle designed to cover both course and training needs. The application would provide student access to course related materials and support student enrollment and evaluations. For university administrators, the application would give them access to modules where they could manage the courses offered, enrollment details, course material, student information, test results and other administrative information.

Solution From Chetu

Armed with its vast experience developing e-Learning solutions, Chetu worked hand in hand with the client to design a web based application using the latest technologies.

Special attention was given to make sure that the platform not only addressed the current needs of the client, but was scalable and had the necessary flexibility to support future enhancements.

The application featured a separate module for easy management of course details, and provided course administrators the ability of publishing this information online. The reporting module also allowed course administrators to generate various reports according to their needs.

Students could access this online platform to complete their course registration, online tests, retrieve scores and credit details, enrollment and even make payments.

Results Delivered

Chetu delivered a complete configurable and scalable e-Learning portal solution within 3 months, and with total operational cost savings of up to 70% . With their new web-based e-Learning platform, the client was able to easily manage all the institution's courses and generate student and course related reports in real time. This solution led to the removal of most of the old manual processes, saving the university time and money. The Chetu team has continued to support this platform with any new changes and enhancements. The client was so satisfied with the delivered results it has already enlisted Chetu for all new features to be added.

FUNDAMENTALS FOR CONSTRUCTING QUALITY WEB-BASED TRAINING AND E-LEARNING PLATFORMS

Source: http://www.chetu.com/blogs/e-learn/fundamentals-for-constructing-quality-web-based-training-and-e-learning-platforms.php

Presently, Web-Based Training (WBT) and e-learning software are in high demand. These contemporary enlightenment tools are a cost effective and manageable way to overcome issues with accessibility to educational materials. They convey knowledge and resources in an interactive, media rich environment that facilitates information retention. As a result, educators and corporate trainers alike are demanding adaptive and engaging software that meet their specific needs. A report by Docebo titled E-Learning Market Trends & Forecast 2014 – 2016 predicts that the global e-learning market will gross $51.5 billion by 2016. As institutions and companies invest in web-based educational tools, software providers must capitalize on the growing market and develop quality e-learning software systems.

When engineering an e-learning or WBT system the essential goals are to create a functional, easy-to-use learning management system with a robust authoring tool. Attributes of a quality WBT and e-learning software lend a hand to usability, interoperability, and portability of information. To achieve this, it is best to avoid bad performance, poor navigability, restricted customization, limited cross-browser functionality, and narrow access to mobile devices. Correctly implementing the fundamentals allows you to provide software with a flexible, captivating, and interactive educational experience.

The backbone of any e-learning and WBT software is the design and functionality of the LMS platform. The LMS is the software application and framework to deliver, administer, document, track, and report e-learning and training modules. Specifically, it hosts the components for registration, class rosters, curriculum management, content repository, and assessment features. The LMS also incorporates user and management portals to facilitate real-time communication and feedback. Customized plug-ins for e-mailing, instant messaging, direct communication, video conferencing, and message boards foster a “connected” environment.

There are a wide range of software platforms available for building a custom LMS system. These platforms vary in terms of total cost of ownership and usability. Open source options including Moodle, .LRN, Sakai, and Dokeos have lower total cost of ownership but may not meet regulatory standards for security and usability. Proprietary virtual learning environments such as Litmos, Topyx, Saba, and Blackboard can require licensing fees, as well as additional costs for software upgrades and maintenance. These platforms may come with constraints that limit what an institution can do with the software once the licenses are purchased. A third option for developing a LMS platform is to use cloud-based software that pulls tools from a variety of sources to create a functional, low-cost platform. However, this option lacks many key features that institutions look for including security, authentication, and freedom from unnecessary distractions such as advertising and external interference. A developer looking to create a cloud-based alternative to open-source or proprietary LMS software will need to address these concerns to create a viable virtual learning platform.

Online learning and training platforms have the ability to host a plethora of interactive media. Developing or integrating a proficient authoring system with an LMS allows for the creation of multimedia content by non-programmers, or people with little technical knowledge, to sync text, videos, images, and sounds. One can further the development of an authoring tool and create a module for customized gamification templates to promote software interactivity.

There are some open source options available for those who wish to adapt a cost-effective authoring tool. These are free licensing programs including eXe, H5P, and Authorpoint. If you wish to interface with a more professional application for content creation you can integrate with some of the more prominent examples including Storyline, Articulate, Lectora, Blackboard, and Captivate to develop custom content creation platforms that meet your needs.

The final feature of an effective e-learning or WBT platform is cross-platform and cross-browser functionality. Modern students have endless options for how they can access a learning platform, which means that institutions and businesses will be more likely to want a platform that works well without limitations on the browser or device needed to obtain optimal functionality.

Whether you choose to buy a proprietary platform or have one built from scratch using open-source software, you will still need to be sure that your platform conforms to Sharable Content Object Reference Model (SCORM) and Aviation Industry Computer-based-training Committee (AICC) objectives. SCORM and AICC are concerned with the interoperability of content across multiple learning management systems.

When it comes to LMS platform development, there are countless options that can be incorporated into the platform but the most important features are not the extra tools and capabilities of the platform. Your platform can have every bell and whistle available, but if it is not user friendly, reliable, and secure it is unlikely it will succeed in the highly competitive e-learning software market.

PUBLIC TRANSPORTATION FLEET MANAGEMENT SOFTWARE SOLUTIONS

Source: http://www.chetu.com/blogs/transportation/public-transportation-fleet-management-software-solutions.php

Public transportation is an essential function for increasing the quality of life for individuals living in areas where traveling by private conveyance is cost or time prohibitive. The various means of public transportation available, such as trains, buses, and taxis, grant people the freedom and mobility to travel when private transportation is not an option. This transportation option is essential to a healthy economy because it connects companies with a wider employee base. Municipalities and townships recognize the importance of public transportation, and to better serve the community they employ end-to-end efficiency and optimization software in the form of public transportation fleet management software solutions that integrate software, hardware, and communication platforms to form a robust, easy-to-use system for monitoring the efficacy of the public transportation system. A Report generated by Sandler Research titled Global Fleet Management Systems Market 2014- 2019 suggests the public transportation software market has a potential compound annual growth rate of 26.23 percent over the next five years. In order to serve the public transportation sector better, software providers should develop Automatic Vehicle Location (AVL) and Automatic Passenger Counting (APC) modules for efficient routing and scheduling systems, plus create related application modules to offer entities a better user experience for their users.

AVL software determines and transmits locations in real-time using GPS satellites to triangulate the position of the vehicle. AVL data should be interfaced with onboard vehicle computers to aggregate vehicle metrics such as speed and fuel usage. Using a telematics platform allows the vehicle metrics and coordinates to be monitored remotely by using telecommunications to send data. All the information must be able to be viewed on real-time dashboard or stored in a database to be used for business intelligence and report generation modules. With the analytics information given from robust AVL and analytics software fleet managers can use the statistics to refine operations.

Integrating Automatic Passenger Counters (APC) increases the scope of the software. APC uses sensor hardware and aggregation software to get a count of passengers boarding and disembarking the bus. Getting access to APC data juxtaposed to overarching information pulled from the AVL system provides a more complete ridership analysis. Operators can use this data to gain insights into the viability of certain bus stops and plan routes in a way that maximizes available budgets.

Not only does AVL software help optimize scheduling and routing, but it can also be used to improve the user experience for patrons. One of the drawbacks to taking public transportation is the wait time. In an article published by CityLab, they report that users of public transportation feel like they are waiting up to 50 percent longer than they actually are. Psychologically, when the time of arrival is known the wait time feels shorter. To combat the discontent users feel when waiting for buses, software providers should include solutions for digital signage and mobile apps within the overall AVL platform.

The primary directive of these applications is to share real time transit data to the public. Locational information can be integrated with any digital signage and mobile application using a variety of web interfaces and content curation software. Through specific programing the application must determine the GPS geocoordinates of multiple buses and display the actual location plus ETA through a defined User Interface (UI) integrated with a mapping API like Google Maps. Developing a platform for viewing on mobile phones through optimized programing of websites or a native application is imperative. These apps and mobile websites should be enabled for viewing for multiple browsers and operating systems including the most popular iOS and Android. Integrating a one way communication platform increases the scope of the software. SMS messaging and push notification modules can be implemented to let users set custom advisory notices.

Municipalities and townships are always looking for new ways to save money from the budget and increase revenue. Developing comprehensive public transportation software that helps entities save resources on overhead and increase passenger count is seen as a viable expense. Software proprietors need to develop or add services to fleet management systems that guarantee a return on an investment. Offering intelligent public transportation software solutions can earn a software provider significant profits within this sector. Choosing a software developer with extensive experience within the public transportation space can help software providers identify potential pitfalls to create a platform that will be widely adopted within the public transportation space.

DEVELOPING ROBUST SUPPLY CHAIN SOFTWARE TO HELP BUSINESSES REDUCE REVERSE LOGISTICS EXPENSES

Source: http://www.chetu.com/blogs/travel/developing-powerful-spms-cruise-line-operators.php

As cruise ships increase in size to accommodate more passengers and amenities, cruise operators are employing the use of powerful Ship Property Management Systems (SPMS) to propel operations. Similar in function to hotel PMSs the SPMS is a central database and information aggregate from the latitudinous range of software that is leveraged to manage and streamline on-board and onshore operations. Software proprietors have a prime opportunity to offer SPMS software by tailoring existing PMS software or developing unique modules to be integrated in that specifically target the needs of cruise line operators. A complete and powerful SPMS platform encompasses a central reservation system, crew and fleet management software, material management, plus food and beverage management.

Central Reservation SystemsA primary concern for cruise ship operators is attracting new guests. Operators deploy Central Reservation Systems (CRS) to manage and distribute vacancies and rates to reservation agents. It is of high importance to integrate the CRS with the SPMS because this allows cruise lines provide the most accurate data regarding availability through internet sales channels. The SPMS provides the complete image of the ships inventory and reduces the labor involved in publishing rates to their own websites, Global Distribution Systems (GDS), and online portals. These integrations streamline the reservation process by providing real-time cabin availability across multiple sales channels.

Crew ManagementCrew management systems are a crucial tool for supervising on-board and land-based operations. Human Capital Management (HCM) modules such as those for time and attendance, leave management, scheduling, and workflow management helps cruise operators monitor and manage crew members remotely. In addition to managing existing crew members, the platform can also incorporate modules that monitors existing crew levels and automatically publishes job listings on applicable websites when crew levels fall below a preset acceptable threshold. These modules can also include features that prescreen applicants to ensure the best possible match for the available position. By including a robust crew management system into the SMPS, cruise line operators can help promote high customer satisfaction and retention by ensuring each ship has a quality crew ready to attend to guest needs.

Fleet ManagementFleet Management Systems (FMS) are an effective instrument used for land-based managers to view essential operational data. A solid fleet management software is interfaced with the onboard marine electronics and Global Positioning Systems (GPS), which uses satellites to triangulate the location of the ship. GPS and other marine data should be integrated with the fleet management platform to view crucial metrics including course, speed, and the status of ship mechanics. Using a telematics system allows the ships location and situational data to be monitored remotely by multiple agencies including the cruise line operator and the U.S. Coast Guard. All the information should be able to be viewed on real-time dashboards or stored in a database to be used for business intelligence and report generation modules. With the analytics information given from FMS, fleet managers can use the insights to gain and compare insights from multiple vessels to plan safe, efficient routes and save money on fuel.

Materials and F&B ManagementMaterials management systems are an important module for cruise line operators to gain insights into a fleet wide inventory down to individual vessels. Inventory management systems for each ship should be integrated into the SPMS to offer real-time insights into stock counts and offer procuring strategy efficiencies. For the highest efficiency, the inventory management systems must include forecasting modules that rely on data from existing stock monitoring platforms and point of sale systems. This data can be used to automate inventory replenishment by generating restocking numbers from real-time and historical data to give accurate numbers for restocking at docking. The program automatically generates Economic Order Quantities (EOQ) of units a vessel should add to stock for the next voyage. To further ensure that meal orders and prepared stock do not fall victim to shortages and depletions, F&B specific modules such as recipe management, weight calculations, menu scheduling and waste tracking should be integrated into the inventory management system.

Cruise line operations have many moving parts that require continuous monitoring to ensure the passengers are treated to the luxury they expect when embarking on a short term voyage on an ocean liner. A robust, all inclusive SPMS can provide operators with easy access to important ship data that can allow the operator to increase efficiencies, reduce overhead, and improve customer satisfaction.