B2B Magento payment gateway extension -CenPOS

The perfect global B2B Magento payment gateway extension must support level 3 processing, since it significantly impacts profit margins. Connecting to Dynamics AX, Infor, SAP and other ERP’s can also help reduce PCI Compliance burden, with one gateway for all revenue channels.

magento logo

For international sales needs, a global gateway can be more than a secure payment module. For example, with CenPOS treasury management, route transactions to the local bank partner based on the card issuer.

  • Eliminate expensive cross-border interchange fees
  • Route processing to countries with lower interchange rates
  • Eliminate currency exchange fees when repatriating funds back to country where sale originated
  • Qualify for level III interchange rates on eligible corporate, purchasing, business cards; more than just supporting level III, there are many rules to comply with to get the reduced rates

The CenPOS Magento module is not available in any marketplace. To get it FREE, contact Christine Speedy today, 954-942-0483.

 

First Data e4 gateway vs CenPOS payment gateway review for business to business

This article scope is focused on business to business (B2B) payment needs, primarily for industrial manufacturers and distributors, a vertical market I interact with. The three key areas examined in brief are PCI compliance, interchange management, and efficiencies. Rather than review all the good parts of each solution, the focus is on ‘what’s different’.

VERTICAL MARKET OVERVIEW: While there are exceptions, the small to mid size  businesses typically share these common financial traits:

  • No retail storefront or mostly phone orders vs walk-in
  • No ecommerce store or if there is a store, payment is not processed
  • Credit card data taken over the phone- salespersons and A/R accepting payment information
  • Credit card data stored for recurring billing (usually paper)
  • Very few disputes and resulting chargebacks
  • Very low fraud
  • Customers exceed 30 days to pay
  • Majority of customers pay via check or EDI
  • Settlement amount is often for a different amount than initial authorization
  • Settlement may be weeks after the initial authorization

PROBLEMS & CONCERNS:

Interchange management: These merchants pay higher than average fees not just because of the types of cards their customers use, but also because of poor interchange rate qualification.

PCI Compliance: it’s virtually impossible to maintain PCI compliance when card data is stored on paper.

Inefficiency: Customers frequently for past payment records, manually key entering card numbers wastes time, cards expired when they’re needed to process, customer can only pay during business hours if card is not on file, but this is often inconvenient for customers

e4 vs CenPOS solutions:

Payment Gateway Features As Listed on First Data 4/1/2014
Payment Gateway First Data e4 ® CenPOS
Differentiators Online Retail MOTO Mobile Online Retail MOTO Mobile
Interchange optimization to improve interchange qualification * checkmark yes checkmark yes checkmark yes checkmark yes
7 years data storage and retrieval, including signature capture authorize.net no icon authorize.net no icon authorize.net no icon authorize.net no icon checkmark yes checkmark yes checkmark yes checkmark yes
Level 3 data for business, purchasing & corporate cards ** authorize.net no icon authorize.net no icon checkmark yes authorize.net no icon checkmark yes checkmark yes checkmark yes checkmark yesintegrated only
Token billing *** checkmark yes authorize.net no icon checkmark yes authorize.net no icon checkmark yes checkmark yes checkmark yes checkmark yes
Payment Gateway Features DIFFERENTIATORS
* Note 1 CenPOS’s payment optimization is patented. There are many nuances to increasing ‘qualified’ transactions, which lowers fees. While e4 does have some tools to help merchants, employee actions are still largely in control of resulting merchant fees, a significant differentiator.
** Note 2 While e4 supports level 3, it’s up to the user to enter the data after the sale is complete; CenPOS does not leave decisions up to employees and makes easy to comply.
**** Note 3 CenPOS empowers merchants to swipe the first transaction, and securely store payment data, encrypted and tokenized for future billing. A receipt with signature line for authorizing future charges is automatically generated regardless of where the token is created. This increases security and mitigates risk of lost disputes and resulting chargebacks.

Disclaimer: readers should do their own fact checking. While believed to be accurate at the time researched, both entities will continually evolve their technologies.

B2B Credit card processing solution- virtual terminal

One of the biggest problems facing businesses that are primarily B2B is paying high rates for card not present transactions. But why? The chart below shows an interchange comparison between card swiped and card not present for business credit cards, the mostly costly of Visa cards you are likely to encounter. The difference is 20 basis points or .20%. However most companies pay 50-100 basis points difference for non-swiped transactions.

April 2008 Visa interchange excerpt

The difference between what you pay and what the cost is, is all profit to the processor. There are several factors that will affect your actual rate, almost all of them relating back to ‘qualified transactions’. What’s a qualified transaction? While the term is identified in the interchange rate tables, for any business that does not have ‘pass through interchange’, what it means varies company to company. Please see past articles for more details about that.

What can you do to reduce your B2B credit card processing costs?
One of the simplest and most effective solutions is to have an account with a VIRTUAL TERMINAL. With a virtual terminal, the business will login to a secure web site and enter the credit card transaction information. You will also be able to access reporting and transaction history, if you are authorized to do so. For example, you can create limited access to the virtual terminal for sales staff, and then allow more robust access for the bookkeeping staff. You’re in control.

Are all virtual terminals alike? NO!
For example, we frequently recommend a robust solution for certain retailers that is completely inappropriate for B2B companies. Why? Because the data that is passed through varies from one virtual terminal solution to the other. It is essential that in a B2B environment to not only set up the account correctly with the proper coding (determined by your processor when your account is opened and extremely critical!!), but to also collect specific data and pass that through the processing system.

For example, an ecommerce store collects all the business contact information including name, address, phone, Credit card number, CVV, exp date etc. But the processor is not equipped to accept all that information. It only takes a few of the fields. WHAM! Instant downgrade to a costlier interchange rate, because Visa has specific rules about what data it wants to allow the ‘best rate’ for that type of credit card. On the surface, it looks as if you’ve done everything correctly. But in the back-end, the merchant is unaware that all their data is not being passed through. All they see is high credit card processing costs.

The same scenario occurs with virtual terminals. Make sure your salesperson has a thorough understanding of how interchange works and the special needs of business to business companies like yours.