Token billing with variable payments creates efficiencies and improves PCI compliance. In a traditional retail checkout scenario, a customer swipes their card each visit. But what about customers that are given special payment terms or the owner of the card is not the one with the daily interaction with the supplier?
Automotive dealer commercial accounts and distributors are two key business to business markets that benefit from an Enterprise Payment Solution with token billing support in the retail environment. In this scenario, the merchant swipes the first transaction, creates the token or key which replaces card data, and subsequent transactions are made by retrieving the token in the virtual terminal.
As the illustration shows, just because a payment gateway is in the cloud is not a guarantee that the technology will return maximum benefit to merchants or their customers. At a minimum, merchants need these two features to directly impact credit card processing fees:
- Automate interchange optimization (reduce fees for both card present & card not present)
- Level III processing for business to business via all payment channels
The token concept can be applied to checks as well. However, merchants cannot automatically ACH a commercial checking account. Customers must self-initiate payments by echeck / ACH. Since merchants may not know which type of checking account a customer has, management needs to weigh all the options and choose the best solution for their customer base.