The modern way to pay

The increased use of the Internet as a data transport layer in business applications has meant signficant changes in business processes like ordering, payment, collections, delivery and accounting.

There is a wide range of technologies which can be integrated into everyday business systems, such as real time online credit card clearance, 3D Secure authentication, scheduled recurring payments, web catalogues and shopping carts, and card payments through mobile devices. New technologies spread further every month, and financial institutions compliance requirements become more rigorous.

The result is an increase in speed, reliability and security of payment transactions - and it is also a minefield of competing promises, requirements and technology. Whether we like it or not, some of these will affect our business in some way, often when our business partners such as suppliers or financial institutions mandate new security or interface requirements.

Despite this, the new ways of doing payments are often less expensive, more secure, and faster than the old. The trick is to know what choices to make.

 

Case study - Balancing risk in payment transactions

‘Transport company’ uses mobile payment terminals to process several thousand credit card transactions each day using the Internet over the mobile phone network. These transactions are conducted 24 hours a day and are normally completed in minute or two. A problem arise when ‘transport company’ realised that 100% availablility is not guaranteed in the payment system beyond Multibase, due to the number of data interchanges in the whole payment card industry. The problem was that there is only ever one chance to process the payment, otherwise the customer must pay with cash – not always possible – or a dispute may arise. In addition, ‘Transport company’ loses revenue for every transaction which cannot be processed.

Multibase developed a new solution with the customer. Accepting that the payment system, whilst generally reliable, is not 100% available, Multibase developed an optionally asynchronous solution. If a complete payment transaction is possible, a real-time transaction will be processed and the result reported. If a transaction is attempted but the payment clearing system is unavailable somewhere, the transaction will be stored securely, and an acceptance communicated to the terminal. Both payment terminal operator and the payer can complete the transaction. The actual payment is processed later by a backend system, sometimes within minutes, with the result reported to ‘transport company’s online reporting system.

Calculations determined that the ROI on the system was sufficient to outweigh the risk that a credit card might ultimately be refused, even given that the total value of such a transaction would be lost. The system already sets the upper value of each transaction, so ‘transport company’s potential loss for individual payments is already limited. The potential total loss for failed transactions in a banking outage of even an hour was greater than might be lost if ‘transport company’s’ system did not accept the transactions during the outage. At the same time, Multibase was able to advise ‘transport company’ how it could negotiate with its bank for a more favourable processing fee for all transactions, further offsetting the new investment.

How can we help you?

Reduce the cost of collecting recurring revenue from customers by automatically charging customers’ credit card using rePay.

Integrate new payment technologies into your web site or your internal applications to reduce the ongoing cost of collecting customer payments and paying your suppliers.

Develop an automated interface between your accounting system and your web sales system.

A backup payment channel

Many merchants process a small number of payment transactions per day, and are not affected by occasional unavailability in the banking system that clears transactions. However, a merchant processing many transactions each day may wish to maintain a backup system through a different payment channel which operates only if there is a significant disruption in the primary provider.

Multibase is now able to integrate payment processing through alternate payment suppliers to provide almost continuous processing availability. Contact us for details.

Interested?
Ask for a free consultation

Multibase WebAustralis Pty Ltd
Macquarie Park NSW 2113
T: +61 (0)2 9805 1911
E: info@mbase.com.au

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Multibase WebAustralis Pty Ltd  ABN 54 063 962 916  Level 1, 11-17 Khartoum Rd, Macquarie Park NSW 2113 AUSTRALIA
T: +61 (02) 9805 1911  F: +61 (02) 9805 1931  E: info@mbase.com.au  W: www.mbase.com.au
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