Dynamics AX Online Payment Services Expiring – Replacement

Dynamics users will need to make a major update soon. Effective January 1, 2018, Payments Services for Microsoft Dynamics ERP Payment Services, including any versions of Microsoft Dynamics AX, will be discontinued and users will be unable to process credit or debit transactions after December 31, 2017. CenPOS, an enterprise payment engine, offers an integrated alternative that works seamlessly with both AX and third party applications like Magento ecommerce.

Vendor selection for replacing Payments Services will directly impact profits, efficiency and customer experience. For example, how customers receive, retrieve, and pay invoices are all part of the payment processing ecosystem. Businesses will need an Integrated Service Vendor (ISV) with a PCI Compliant integrated payment gateway. Solution functions, and how they interact with Dynamics AX, varies widely by integration.

Payment processing is a specialized niche that ERP, ecommerce, and business consultants rarely have the in-depth knowledge to advise businesses of best options. In fact, significant new changes have been announced; for example, new requirements for recurring billing to include a unique reference to the initial authorization.

“The Payment processing knowledge gap has been exacerbated by an onslaught of new financial, card brand, and compliance rule changes that show no sign of letting up.” Christine Speedy, CenPOS

CenPOS, an enterprise payment gateway and merchant centric cloud processing platform, is an industry leader in payment processing globally. One of the first to market with both US EMV chip and pin, the CenPOS omnichannel solution maximizes cash flow and profits across all sales channels while improving the customer experience.

CenPOS Dynamics AX Fast Facts:

  • Payment types: Accept Check, ACH, credit card, wire, cash, Paypal (Varies by sales channel)
  • Sales Channels; Retail (US & Canada EMV), Electronic Bill Presentment & Payment (includes hosted customer invoice portal and automated collections), Ecommerce, Online Payments, other
  • Compatibility: Agnostic- works with most processors, including First Data, Chase Paymentech, Moneris, WorldPay and others.
  • B2B: Certified for level III processing all channels, including retail, a critical element in managing interchange rate qualification, the biggest cost of credit card processing.
  • Availability: Global

See CenPOS Dynamics AX integration in action here: video overview

CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS’ secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant’s banking relationships.

CenPOS SALES CONTACT: Christine Speedy, cspeedy AT cenposreseller.com 954-942-0483. Dynamics consultants encouraged to contact us to learn more.

Link: Microsoft Official Notice

Dynamics AX Customer Payment File Import

To apply payments received from customers to matching invoices is easy with our Microsoft Dynamics AX 2012 payment processing module, no customization required. Automating payment processing, including journal entries, is essential to maximizing efficiency and accuracy. Other solutions usually only address part of the payment acceptance cycle; now with one module, revenue from all sales channels are processed and matched to your invoices.

PAYMENT TYPES: Accept cash, credit card, wire, Paypal, ACH, Remote Deposit Capture.

SALES CHANNELS: Ecommerce, Retail (US and Canada EMV), Electronic Bill Presentment and Payment (EBPP or EIPP), Lockbox and others.

While using a lockbox service is an option, is it necessary? With integrated EBPP, your clients can view and pay multiple invoices electronically with your preferred payment methods. A key to EBPP adoption is reducing friction, and with the capability for recurring customers to pay via text or email in just 2 clicks is powerful enough to drive high adoption and fast payments almost immediately. If you do receive payments in the mail, Remote Deposit Capture and batch upload capability are available.

Collections are automated on your schedule; many solutions are limited in this respect, increasing DSO due to “first of month” statement delivery or other limitations. For those customers that run into credit issues, users can set up an automated collections schedule- any amount, any dates.

Looking for Dynamics AX solutions to improve your accounts receivable and overall treasury management? Contact us today.

 

 

Increasing B2B Loyalty With Improved Customer Experience

b2b einvoiceThe last mile in any business to business transaction, collecting payment, can be a point of friction or a seamless part of a great buying experience. Too often, its the former due to a multiple roadblocks including paper invoicing, and accounts receivable staff availability for time zone differences.

Established family businesses often have the same customers for generations and they’re fiercely loyal. Or are they? In a Bain & Company survey of 290 executives in B2B industries throughout 11 countries, 68% of respondents said customers are less loyal than they used to be. Technology can be a game changer for increasing loyalty.

Common business to business billing scenarios for distributors without ecommerce capabilities:

  • Distributor A sends invoices via text or email and lets their customer choose their experience and how they want to pay. Pay from the email/text or login to a portal? Store and tokenize ACH or credit card or manually enter each time? Send check in the mail?
  • Distributor B sends invoices via email and requires customer to login to a portal to make payments.
  • Distributor C has an online pay page customers can use to pay any amount.
  • Distributor D send invoices via email, and customers send checks in the mail.
  • Distributor E sends invoice and credit card authorization form via email, then gets a fax back, key enters into a virtual terminal.

Which billing strategy delivers the optimal customer experience? Customers want to interact with you in multiple ways, so if you’re still doing business the same way you have for decades, customers have likely shifted some of their business, or maybe all of it, to another vendor. Price is not the likely culprit. In a retail study about millennials, just 15% always purchase from the lowest price retailer, while 38% cited convenience as a reason to not purchase. 58% said they’d take advantage of self-checkout on their own mobile device.

What does this mean for B2B distribution companies? Think like your customers. Are you making it easy to do business? Are you increasing their efficiency? What’s the opportunity cost of not updating? I once sought a new distributor for a product an existing supplier discontinued. I found one, but didn’t place the first order. Why not? They required calling in with my credit card information citing it would be more secure. We were in different time zones and the phone was busy, or the person at lunch, and it was just plain inconvenient to keep trying.

A distributor recently advised me they don’t store anything – they require a credit card authorization form for every single purchase. Talk about driving customers away! Even a simple hosted pay page can alleviate the need for paper forms, immensely increase customer convenience, and increase cash flow to boot. While increasing a credit line is a possibility, some customers use them as a tool to self-manage credit, increasing purchasing without having to interact with anyone.

Invoicing and payment technology updates are critical to garnering customer loyalty, regardless of the payment type. The more flexible the solution, the more likely each customer can interact with your business via their preferred method. Today’s technology supports a myriad of payment types, including ACH, credit card, wire and others, and multiple ways to interact for making payments from email to text and beyond. Delighted customers are more loyal and more likely to refer new business.

Christine Speedy is an authorized reseller for CenPOS, a cloud-based, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. The secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant’s banking relationships. 954-942-0483

ERP and Payments: PCI Compliance Nightmare

A PCI Compliant ERP solution doesn’t make a merchant PCI Compliant. The features of the payment integration drive customer decisions to use or not use the an ERP payment module. When payment vendor choices are restricted artificially by using technology to control merchant services options, merchants often enter ERP relationships with a level of dissatisfaction right from the start.

Severely restricted payment gateway options, especially for business to business, results in either the merchant using an alternative non-integrated payment solution, thus sacrificing efficiency, or using the integrated solution, and failing to meet PCI 3.0 requirements or other payment needs. How can I make this statement? B2B companies that accept credit cards  typically have a portion of their sales via the telephone. To mitigate risk of fraud, they use paper credit card authorization forms. However, the forms are inherently risky in many ways.

  • Sensitive authentication data, which includes the security code (CVV/CID), can never be stored.
  • Forms offer option to send via email. Unprotected data cannot be sent via messaging technologies such as e-mail, instant messaging, chat, etc. (PCI section 4.2). Even if the form doesn’t offer it, customers sometimes ignore instructions and send via email.

In the absence of a best practice, employees will revert to whatever is necessary to get their job done and reduce the risk of looking bad (fraud losses). If the ERP payment module doesn’t help merchants eliminate credit card authorization forms, the entire operation may be at risk of a potential data breach.

For retail, data breaches have become commonplace. Few ERP Point of Sale (POS) solutions are using Point to Point (P2P) encryption and other best practices to reduce data breach risk. They raced to bring mobile to market, and many now have neither EMV chip terminals nor P2P, both increasing financial risk to merchants.

Why does an ERP restrict options for merchant services? Because it’s part of their revenue stream. When competition is eliminated, there’s almost no chance of having the best solution in the marketplace. The proof is a long string of failures to meet business needs. Failure to offer electronic bill presentment and payment, which would increase cash flow and efficiency. Failure to offer US EMV chip card acceptance solution prior to liability shift. Failure to offer level 3 processing for all sales channels. Failures reduce cash flow, profits, and security as companies attempt to work with the ERP limitations, or find ways to work around them.

The argument that it’s to protect merchants from data breaches is only partially true. For any modern payment gateway integration, the payment activity is usually outside the ERP to reduce PCI scope. That won’t change from one gateway to another, so the risk doesn’t change, provided the third party gateway is level 1 PCI Compliant.

Examples of ERP’s that restrict payment gateway and merchant services choices are Netsuite and Sage. Additionally, consultants are often compensated for payment gateway recommendations. Consulting with an independent payment specialist, like blog author Christine Speedy, can expose pros and cons of different options.

ERP’s holding onto merchant services and gateway revenue streams are short sighted, as these business practices that anger customers. Can you imagine if an ERP wouldn’t communicate with any other software, for example, Magento? ERP’s focused on delivering the best business software for all facets of a business, and enabling the merchant to follow best practices for PCI Compliance must give users the flexibility needed to run their business with their own financial partners.

If an ERP relies so much on their revenue stream from merchant services revenue share that they won’t let you choose your own financial partners, I’d think seriously about whether it’s the best ERP for your business.

Dynamics AX Retail EMV certified terminals

What EMV chip card terminals can be used with Microsoft Dynamics AX Retail POS? We support Verifone MX 915, Ingenico ISC250 multilane terminals and the Ingenico ICMP mobile terminal and have a variety of certifications so that you can process EMV chip transactions today with all the major US processors, including First Data, Chase Paymentech, Tsys, Vantiv, Moneris and others.

verifone MX915 EMV terminal

Verifone MX915 EMV chip card accepted terminal.

Microsoft Dynamics AX EMV for Retail key purchasing questions related to EMV certifications:

Does POS solution support EMV chip with pin debit?
Does POS solution support EMV chip with pin credit?
Can customers bypass chip and just use mag swipe?
Can customers bypass entering pin?
Does EMV certification include partial authorization? If not, what happens when account doesn’t have enough for transaction?
Are terminals injected with P2P encryption?
Do you have mobile EMV with chip and pin?
If business to business, does the EMV certification include level 3 processing?

Are all of the above working right now in a live environment, or are there still bugs to be worked out? If any answers are no, merchants need to understand the impact before choosing a solution.

How will the gateway help with my other sales channels?
How will the solution reduce PCI Compliance burden?

“My clients have been processing EMV chip transactions with multilane terminals successfully since January 2015. It’s dizzying even for me to keep up with what which terminals are certified for which solutions. Since that information changes constantly, it’s best to call for a consultation to assess short and long term needs to achieve the best outcome while minimizing business disruption,” Christine Speedy.

Is it integrated to Retail Hero? No, that’s a separate integration that Retail Realm would need to do since the product is exclusive to them.

How much do terminals cost? It depends on the terminal. They’re reasonably priced. Please be aware, merchants must acquire terminals only through us or our approved distributor to ensure security and reliability of EMV and payment ecosystem. You cannot bring your own device.

How much does it cost? The Dynamics AX ERP and POS payment module is included free with purchase of our payment gateway services, which are very reasonably priced.

Where can I buy the Dynamics Ax POS EMV payments module? Contact us.

Can I use with my merchant account? Yes.