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 Announces Gift Card Study Results

DALLAS – November 6, 2008 – Chase Paymentech, a leader in the merchant acquiring and payment processing industry, recently announced the results of a two-week survey the company commissioned to provide insight into consumers’ attitudes towards gift cards. The study, which polled 850 American adults, found that gift card awareness and usage remains very high, with nine in ten respondents having ever received or purchased a gift card. Additionally, two-thirds of respondents have bought at least one gift card within the past 12 months.


Just as impressive, the data also shows that most adults (55 percent) plan to buy the same number of cards as they did last year, and 21 percent plan to buy more. Similar estimates show shoppers plan to load either the same amount (55 percent) or more (21 percent) money on those cards. All things considered, the study suggests retailers with gift cards to be well positioned during what is anticipated to be a slow holiday season.


“Gift cards are an interesting opportunity for retailers,” said George Wilcox, General Manager, Gift Card Group, Chase Paymentech. “What our research indicates is that gift cards may prove to be a bright point in a retail season that’s going to face its own share of challenges.”


Additional results provided by this study include:



  • Typically, consumers spent more than the amount of the gift card when they are redeemed, with 85 percent adding an average of $17.70 out of their own wallets.

  • Gift card buyers who purchased a gift card within the past 12 months bought 4.7 cards for others, in addition to two cards for themselves. This may indicate that gift cards are being used as potential budgeting tools.

  • 82 percent of users said that a discount for the purchaser’s use when buying the gift card would make them somewhat or much more likely to purchase gift cards. Free specialized gift packaging for cards is a strong purchase motivator as well (61 percent).

“One of the more compelling aspects of this study,” said Wilcox, “is that gift card buyers plan well ahead of time to purchase a gift card.”


Retailers need to answer this enthusiasm with visible and accommodating gift card displays.


More than one-third of past year gift card purchasers (37 percent) have entered a store intending to buy a gift card and left without buying it because:



  • They couldn’t find the gift card display (21 percent)

  • They didn’t care for any of the designs (21 percent)

  • They changed their mind and decided on another item (20 percent)

  • The cards were locked behind the counter (15 percent)

Retailers who are aware of gift card popularity, and make gift card purchases easy for consumers, are more likely to capture those sales.


“During a down holiday season, where each sale is increasingly important, gift card purchases will be crucial,” said Wilcox.


About Chase Paymentech
Chase Paymentech, a business unit of JPMorgan Chase, is a global leader in payment processing and merchant acquiring, capable of authorizing transactions in over 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. With a legacy of innovation and vision in electronic payments, Chase Paymentech promoted the growth of e-commerce worldwide. The company continues to fuel the success of the Internet’s largest brands, currently processing more than 50 percent of all Internet transactions. Offering secure payment solutions, improving cash-flow management, mitigating risk and accelerating funding – Chase Paymentech’s consultative approach helps today’s small and emerging businesses become tomorrow’s industry leaders. 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 www.chasepaymentech.com.

JPMorgan Chase, First Data Agree To End Chase Paymentech Joint Venture

NEW YORK – May 27, 2008 – JPMorgan Chase [NYSE: JPM] and First Data announced today they have agreed to end their joint venture, Chase Paymentech Solutions™, a global payments and merchant acquiring entity, by the end of 2008. In the interim, the two companies will continue to operate their joint venture (JV) and provide outstanding service to their customers.

In reviewing the Chase Paymentech joint venture, both JPMorgan Chase and First Data concluded that the payments and merchant-acquiring businesses were core to their strategies and each owner’s share of the venture should be operated independently by their respective companies.

After the transition, JPMorgan Chase and First Data will operate separate payment businesses. JPMorgan Chase will provide global payment solutions for allocated merchants by retaining 51 percent of the JV’s assets, including most of its employees and the JV’s Canadian and European operations. The bank will name its payments and merchant acquiring business Chase Paymentech and retain the JV’s Dallas headquarters.

First Data will continue to provide transaction processing and data commerce solutions for allocated merchants through its current technology platforms. First Data will assume management of the full-service ISO and Agent Bank unit of the JV and will integrate 49 percent of the JV’s assets and a portion of the JV employees into its existing merchant acquiring business.

“With emerging opportunities in the global payments business, it makes good sense to bring our stake in Chase Paymentech business fully in-house. Merchants are moving beyond traditional payment vehicles and we expect to be at the forefront of the industry, developing and investing in new forms of payments and related transactions that bring value to merchants”, said Gordon Smith, chief executive of JPMorgan Chase’s Card Services group. He added, “We appreciate our successful partnership with First Data Corp. and look forward to working with the company on other areas of joint interest in the future.”

“Throughout this transition, we are committed to ensuring that there is no disruption to our allocated merchant partners. First Data will continue to focus on our core business of providing data-driven solutions and insight for our customers while delivering market-leading services and technologies that advance global commerce,” said Brian Mooney, president of First Data’s Merchant Services group. “In addition, we remain committed to the bank alliance model and value the successful relationships we have with our financial institution partners. We look forward to working with JPMorgan Chase in other areas of business.”

Mike Duffy, president and CEO of Chase Paymentech, added, “During this transition, we will ensure that our customers continue to receive the high-quality support they expect from us. Our focus will continue to be on the delivery of the most secure and reliable global payments via our state-of-the-art, multi-channel proprietary payment platform.”

Chase Paymentech Solutions, LLC is a leading global payments firm and the world’s largest merchant acquirer – transacting all types of payments in 140 currencies. In 2007, the company processed approximately 19.7 billion payment transactions, with more than $719 billion in annual bank card and debit volume. Chase Paymentech’s customer base includes the most respected companies and brands in the world, including 70 percent of leading e-commerce businesses and more than 600,000 merchants in nearly one million locations worldwide. Learn more at www.chasepaymentech.com.

First Data is a global technology leader in information commerce. The company processes transaction data of all kinds, harnesses the power of that data and delivers innovations in secure infrastructure, intelligence and insight for its customers. With operations in 37 countries, First Data serves over 5.4 million merchant locations, 2,000 card issuers and their customers. It powers the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company’s portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company’s STAR Network offers PIN-secured debit acceptance at 2.1 million ATM and retail locations. Through First Data’s centers of excellence, such as security, analytics, customer loyalty and mobile payments, it offers data-driven commerce solutions for customers around the globe. For more information, visit www.firstdata.com.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.6 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the worlds most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. JPMorgan Chase is committed to investing in education, economic opportunity, development and environmental programs that enable people and communities to thrive. Information about the firm is available at www.jpmorganchase.com.

JPMorgan Chase, First Data Agree To End Chase Paymentech Joint Venture

NEW YORK – May 27, 2008 – JPMorgan Chase [NYSE: JPM] and First Data announced today they have agreed to end their joint venture, Chase Paymentech Solutions™, a global payments and merchant acquiring entity, by the end of 2008. In the interim, the two companies will continue to operate their joint venture (JV) and provide outstanding service to their customers.


In reviewing the Chase Paymentech joint venture, both JPMorgan Chase and First Data concluded that the payments and merchant-acquiring businesses were core to their strategies and each owner’s share of the venture should be operated independently by their respective companies.


After the transition, JPMorgan Chase and First Data will operate separate payment businesses. JPMorgan Chase will provide global payment solutions for allocated merchants by retaining 51 percent of the JV’s assets, including most of its employees and the JV’s Canadian and European operations. The bank will name its payments and merchant acquiring business Chase Paymentech and retain the JV’s Dallas headquarters.


First Data will continue to provide transaction processing and data commerce solutions for allocated merchants through its current technology platforms. First Data will assume management of the full-service ISO and Agent Bank unit of the JV and will integrate 49 percent of the JV’s assets and a portion of the JV employees into its existing merchant acquiring business.


“With emerging opportunities in the global payments business, it makes good sense to bring our stake in Chase Paymentech business fully in-house. Merchants are moving beyond traditional payment vehicles and we expect to be at the forefront of the industry, developing and investing in new forms of payments and related transactions that bring value to merchants”, said Gordon Smith, chief executive of JPMorgan Chase’s Card Services group. He added, “We appreciate our successful partnership with First Data Corp. and look forward to working with the company on other areas of joint interest in the future.”


“Throughout this transition, we are committed to ensuring that there is no disruption to our allocated merchant partners. First Data will continue to focus on our core business of providing data-driven solutions and insight for our customers while delivering market-leading services and technologies that advance global commerce,” said Brian Mooney, president of First Data’s Merchant Services group. “In addition, we remain committed to the bank alliance model and value the successful relationships we have with our financial institution partners. We look forward to working with JPMorgan Chase in other areas of business.”


Mike Duffy, president and CEO of Chase Paymentech, added, “During this transition, we will ensure that our customers continue to receive the high-quality support they expect from us. Our focus will continue to be on the delivery of the most secure and reliable global payments via our state-of-the-art, multi-channel proprietary payment platform.”


Chase Paymentech Solutions, LLC is a leading global payments firm and the world’s largest merchant acquirer – transacting all types of payments in 140 currencies. In 2007, the company processed approximately 19.7 billion payment transactions, with more than $719 billion in annual bank card and debit volume. Chase Paymentech’s customer base includes the most respected companies and brands in the world, including 70 percent of leading e-commerce businesses and more than 600,000 merchants in nearly one million locations worldwide. Learn more at www.chasepaymentech.com.


First Data is a global technology leader in information commerce. The company processes transaction data of all kinds, harnesses the power of that data and delivers innovations in secure infrastructure, intelligence and insight for its customers. With operations in 37 countries, First Data serves over 5.4 million merchant locations, 2,000 card issuers and their customers. It powers the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company’s portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company’s STAR Network offers PIN-secured debit acceptance at 2.1 million ATM and retail locations. Through First Data’s centers of excellence, such as security, analytics, customer loyalty and mobile payments, it offers data-driven commerce solutions for customers around the globe. For more information, visit www.firstdata.com.


JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.6 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the worlds most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. JPMorgan Chase is committed to investing in education, economic opportunity, development and environmental programs that enable people and communities to thrive. Information about the firm is available at www.jpmorganchase.com.