Level 3 Gateway

Level 3 payment processing requires a level 3 gateway, but most merchants don’t realize how big an impact gateway selection has on merchant fees paid.

Merchants selling to other businesses or the government benefit from Level 3 processing and the savings this provides on commercial, purchasing and government transactions by processing level 3 Data. What gateway companies won’t tell you, is that not only do you need to send special data, but there are a bunch of rules to qualify for Data Rate III interchange rates as shown in the image below. Don’t follow the rules, and you’ll pay Data Rate I or Standard.

level 3 interchange ratesWhat are the rules? For starters, there are additional fields that must be submitted with the transaction. All the level 3 gateways support submitting the data, though they may do it in different ways. There are other rules such as the authorization and settlement amount must match. It’s unrealistic to expect any user to know all the rules for any transaction to qualify at the lowest interchange rate, so a payment gateway that automates that process is critical. This is where most payment gateways fail. They can submit data, but have no intelligence to help merchants comply with qualification rules.

What gateway supports level 3 for retail, kiosk, mobile or any swiped transaction? CenPOS.

Gateways must certify level 3 to each acquirer, also known as payment processor, or credit card processor. The certifications can include for retail, retail EMV, MOTO (Mail Order Telephone Order), and ecommerce. Very few gateways certify level 3 for all sales channels. The only one I’m aware of that’s certified retail and retail EMV is CenPOS.

Gateways supporting level 3 for MOTO:

What level 3 gateway is compatible with First Data? CenPOS, First Data Global Gateway e4 – now called Payeezy. While CenPOS automates level III processing, First Data has multiple optional steps after the sale, leaving compliance up to the individual user; additionally, their method does not guarantee that all rules will be met to qualify for level III interchange rates. Authorize.net and Payflow Pro offer level III with certain API’s only.

What level 3 gateway is compatible with Vantiv or NPC? CenPOS

What level 3 gateway is compatible with Chase Paymentech? CenPOS, Paymentech Orbital, PayTrace. Paymentech and Paytrace have optional extra steps, leaving compliance up to the individual user; additionally, their methods do not guarantee that all rules will be met to qualify for level III interchange rates. Authorize.net and Payflow Pro offer level III with certain API’s only.

What level 3 gateway is compatible with Tsys? CenPOS, eProcessing Network, Authorize.net and Payflow Pro offer level III with certain API’s only

What level 3 gateway is compatible with Moneris? CenPOS

What about Revolution Payments, Vantage Card Services and other gateways not listed here? In most cases, the company is a reseller of a gateway listed above, not a gateway manufacturer. Network Merchants, LLC (NMI) distributes a white label solution that supports level 3 data, but there’s no public information about acquirer certification; BluePay and 3DSI also offer level 3, but it’s unclear what acquirers. Please add your suggestions in comments.

As of September 15, 2015, of the brands listed in this post, only CenPOS has both certified EMV terminals to accept chip cards with their gateway, and has also certified level 3 processing for all sales channels via any method, including API, virtual terminal, and online payments.



CenPOS certifies with Chase Paymentech, including Level III Processing

CenPOS, a fast-growing, end-to-end payments engine, is now certified with Chase Paymentech. The certification supports a wide array of transaction types to meet the omni-channel needs of manufacturer, retail, automotive, ecommerce, professional service and technology companies.

Existing CenPOS merchants using Chase Paymentech as their processor can now process level III commercial, business, and corporate purchasing cards at the lowest cost with level III processing, in addition to all the other transaction types already in use. Without level III enhanced data sent with the clearing record, interchange costs associated with business cards can be quite high, often .75% or more extra per transaction. Level III processing is supported for retail, ecommerce, electronic bill presentment & payment (EBPP),  key entered (MOTO), and online payments. Very few, if any, payment gateways support level III for all these channels.

CenPOS Powered By logoThe CenPOS certification also includes authorization, partial authorization, partial approvals, partial authorization reversals and full authorization reversals, among others. While not unique by itself, the dynamic interaction that CenPOS intelligent technology employs with these transaction types can significantly mitigate risk and card acceptance costs. For example, manufacturers and distributors especially benefit from CenPOS dynamic intelligence due to sales cycles that commonly include more than 72 hours between authorization and settlement, and variances in authorization and final settlement amount, two keys than can significantly impact fees paid.

“I’m excited to help our clients continually drive down the cost of card acceptance. The Chase Paymentech Certification allows them to do just that,” said Christine Speedy, CenPOS authorized reseller. “Existing CenPOS merchants on the Paymentech platform should contact their CenPOS Sales and Relationship manager to add level III processing.”

CenPOS Level III certification to other processing platforms also includes First Data Nashville, Vantiv, TSYS, and Moneris.

About CenPOS

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.

About 3D Merchant Services

3D Merchant Services is the marketing entity of Christine Speedy, whom specializes in CenPOS global sales for technology and manufacturing/distributor, merchants. Christine offers only CenPOS direct agreements to merchants and partners- there are no middlemen.

For additional information please call (954) 942-0483.

4 Orbital Virtual Terminal pitfalls for business to business

The Chase Paymentech Orbital Virtual Terminal and Gateway is a mature credit card processing solution for card not present merchants. In this article we expose the  shortcomings for B2B merchants using the VT as of June 2012.

1. The virtual terminal supports card-not-present transactions only.  The limitation reduces merchant flexibility.

  • Mobile payments has created a  new opportunity for B2B merchants to accept payments in person, mitigating risk,  potentially reducing cost of accepting credit cards, and providing benefits of electronically stored signed receipts.
  • B2B merchants also accept checks, but the Orbital Electronic Check function is available only to Paymentech merchants, and only to those merchants processing on the Salem platform. This severely restricts who can use the service and eliminates portability.
  • Paymentech does have the iTerminal for retail transactions, but it this is a separate program from the virtual terminal. Transactions key entered on the iTerminal are considered retail transactions requiring face to face and signed receipt.

2. The Orbital Virtual Terminal does not require additional data for Purchasing Cards.

  • Statistics prove over and over that virtual terminal users will consistently do what’s required and nothing more, putting merchant profit margins in the hands of their employees. Users simply bypass any fields that are not required. How does this impact profits? For example, the interchange rates for MasterCard commercial, Business Enhanced, Business World and Business World Elite cards issued in the U.S high end is 3.17% and $.10/transaction and the low end is Commercial Data Rate 3 at 1.92% + USD 0.10. Large tickets are as low as 0.70% + USD 0.00. One of the key factors to qualify for the lower rates is sending the right data with the transaction.

3. The Orbital Virtual Terminal stores transaction records for 6 months.

I think that’s a misprint, but that’s what their web site says. http://www.chasepaymentech.com/faq_orbital_virtual_terminal.html

4. There is no transaction search by customer name.

So simple, yet so annoying. Ask any merchant who does transaction research for troubleshooting issues and this is sure to be a top pet peeve.

How we fix these problems with the CenPOS virtual terminal and gateway:

  • CenPOS supports transactions from all inputs including mobile, virtual terminal, online payments, EBPP, retail, ecommerce. Equally important, CenPOS recognizes card present vs card not present, and delivers the appropriate transaction indicator code for processing. This will mitigate fraud risk, mitigate losses from disputes, and reduce the cost of accepting credit cards.
  • Does your gateway help you qualify for the lowest interchange rates possible? CenPOS prompts for exactly the information needed for every card type- including level III data. The user has no decision making power. At the other extreme, some gateways require all the extra fields get completed- what a collossal waste of time.  CenPOS prompts for just the right information for that card type- nothing more, nothing less.
  • Merchants can access real time reports for 7 years.
  • Merchants can search by many fields, including customer name, and custom fields that you create on the fly.

DISCLAIMER: This review uses publicly available information posted on the Chase Paymentech web site as of 6/5/2012. The review does not include the processor, just the virtual terminal. It is not a comprehensive review of all the positive nor negative points. Merchants should identify and talk to a sales consultant to determine the best solution for their situation. Contact 3D Merchant Services for both the Orbital and CenPOS solutions. Each has a place in the market and we’ll help guide you to the right solution for your business.


Chase Paymentech and Kount Join Forces to Combat Fraud for ECommerce Merchants

DALLAS and BOISE, Idaho (March 15, 2010) — Chase Paymentech, a leading merchant acquirer and payment processor, and Kount, a Boise, Idaho-based company that specializes in card-not-present (CNP) fraud prevention, today announced an agreement to offer a comprehensive suite of fraud detection, management and prevention tools for merchants.

Chase Paymentech processes a significant share of global CNP payments, in a wide variety of payment methods, and authorizes transactions in more than 130 currencies. Its expertise and fault tolerant infrastructure, paired with Kount’s advanced fraud prevention technology, will introduce a new class of fraud management tools that will significantly improve the reliability and security of card-not-present transactions.

The ability to provide merchants with a real-time fraud score at the time of bank authorization will deliver unparalleled value. This benefit coupled with dynamic order linking, device fingerprinting, proxy piercing and other Kount capabilities will allow merchants to accurately detect and reject a significantly higher percentage of fraudulent orders, saving merchants costly chargeback fees and fines associated with fraud.

“This alliance underscores our commitment to provide merchants with the tools they need to significantly improve and sustain financial performance. Our partnership with Kount offers merchants the first truly integrated fraud-monitoring tool at the point of transaction authorization. This is a significant step toward a global effort to reduce CNP fraud,” said Chase Paymentech president Mike Duffy.

“The result of our partnership with Chase Paymentech will be a new class of tools and utilities for controlling card-not-present fraud,” said Kount CEO Brad Wiskirchen. “The comprehensive suite of products will give merchants a new level of certainty that current and future forms of fraud can be controlled.”

About Chase Paymentech
Chase Paymentech, a subsidiary of JPMorgan Chase (JPMC), is a global leader in payment processing and merchant acquiring, capable of authorizing transactions in more than 130 currencies. The company’s proprietary platforms provide access to a wide variety of payment methods, such as credit cards, debit cards, prepaid stored value cards and electronic check processing. In 2009, Chase Paymentech processed more than 18 billion transactions with a value exceeding $409.7 billion, including an estimated half of all global Internet transactions. The company also provides a full set of solutions aimed at accelerating cash flow and managing transaction data. On the Internet or at the point of sale, Chase Paymentech’s unique combination of outstanding service, innovative solutions and financial strength offers solid benefits to companies both large and small. More information can be found at http://www.chasepaymentech.com.

Contact: Mia Shernoff

About Kount

Kount® is the most advanced fraud-fighting technology available today. Developed with online and catalog merchant needs in mind, Kount defends against both traditional and emerging fraud threats. Kount defeats botnets and other organized crime using a formidable array of tools including two patented technologies — device fingerprinting, and Proxy Piercer® — along with Dynamic Scoring™, Geolocation techniques, and real-time data streams from websites all across the globe.
Kount provides merchants with maximum risk management control and flexibility, while automating costly manual review processes to improve the bottom line. For more information about Kount, please visit www.kount.com.

Contact: Kristen Meador, Clickbank
1 303.807.8073

Ingenico Announces Class A Certification from Chase Paymentech Solutions

Atlanta, GA (PRWEB) August 15, 2008 — Ingenico, the world’s leader in secure transactions and payment solutions, announced today that they have received Class A certification for their payment transaction terminals running the new EuroPay MasterCard Visa (EMV) application created for Chase Paymentech Solutions. The Ingenico i3070, i5310 and i7780 terminals, running the EMV application, will allow Chase Paymentech merchants to accept chip-enabled credit cards. These credit cards contain a small microchip that securely stores encrypted data using sophisticated security programs. Cardholders must enter a PIN at the time of purchase to complete a transaction. This “chip and pin” combination provides a much higher level of protection against unauthorized or fraudulent use of a credit card.

“Chase Paymentech’s certification of the Ingenico terminals is another example of Chase Paymentech’s ongoing commitment to provide advanced technological solutions to its merchants and partners in Canada,” said Paul Browne, VP, Operations for Chase Paymentech Solutions. “As the Canadian payment card industry moves towards chip technology, the EMV standard will provide an even more secure payment environment; assist in reducing card fraud and increase security of card transactions.”

“The requirement for PIN entry on credit card purchases is changing the way restaurants manage card acceptance,” said Lisa Shipley, Sr. VP, Sales & Marketing, Ingenico North America. “Restaurants are now beginning to use Ingenico’s portable and secure payment terminals, allowing the server to bring the transaction directly to the customer. Our product offerings provide a number of solutions that fit many needs, and the software and certification from Chase Paymentech ensure that each transaction is not only convenient, but safe and secure.”

Ingenico’s i5310, i3070 and i7780 are chip-enabled products using the new EMV application. The terminals prompt users of chip-enabled cards for a PIN number on credit card transactions. The i7780, featuring Ingenico’s Pay@Table solution, is a portable and secure payment terminal that allows the server to bring the payment terminal to the table. The i5310 adds the convenience of a built-in, secure PIN pad. The i3070 allows the merchant to locate the terminal out of reach of the consumer for aesthetic or environmental reasons while providing an easy-to-use key pad that can be handed directly to the customer.

About Ingenico

Throughout the world businesses rely on Ingenico for secure and expedient electronic transaction acceptance. Ingenico products leverage proven technology, established standards and unparalleled ergonomics to provide optimal reliability, versatility and usability. This comprehensive range of products is complemented by a global array of services and partnerships, enabling businesses in a number of vertical sectors to accept transactions anywhere their business takes them. For more information about Ingenico, a leading supplier of electronic acceptance technology, please visit www.ingenico-us.com.

About Chase Paymentech

In Canada, Chase Paymentech Solutions is headquartered in Toronto, Ontario and is an affiliate of Chase Paymentech Solutions, LLC. As a leading payment processor and a single source for debit and all major credit cards, the company offers a full suite of advanced payment solutions, including point-of-sale and wireless terminals, electronic gift card programs and secure e-commerce capabilities. Chase Paymentech Solutions, LLC, headquartered in Dallas, Texas, is the world’s largest merchant acquirer for businesses accepting payments via point-of-sale, hospitality, Internet, catalogue and recurring billing. The privately-held company is an end-to-end processor for merchants of all sizes and industries. In 2007, the privately held company processed approximately 19.7 billion payment transactions, with more than $719 billion in annual bankcard and debit volume.

Chase Paymentech’s customer base reflects the most respected global brands, including 70 percent of leading ecommerce business and almost 600,000 merchants in over 1 million locations worldwide.