Switching payment processors

Face-to-Face

How you physically communicate with your payment processor depends on your business type. Switching payment processors will sometimes require physical changes in the way that you communicate with your processor. Fortunately, switching to more modern technology offers merchants a great way to improve their payment operations.

Face-to-face businesses like restaurants and retail shops use credit card terminals. In most cases these are free-standing devices that “dial-out” using a phone line or the Internet. Many large merchants, however, use terminals that are integrated into their cash register systems. Because there are a limited number of terminal manufacturers, many payment processors support multiple models from the most popular brands. This makes switching processors relatively easy. If your new processor does not support your terminal type, you will need to swap out your terminal(s) prior to working with that processor. Regardless of terminal type, switching processors will require you to reprogram your terminal – most providers offer this as a free service. So, ease of switching for a face-to-face merchant is more or less based on the number of terminals in use. Merchants should consider the cost and effort required to replace and/or reprogram a large number of terminals prior to deciding on a vendor.

Card-Not-Present

Non face-to-face or “card-not-present” merchants such as Web stores and catalogs are generally required to connect to their processor using a proprietary software interface and one of several communications methods. Commercial off-the-shelf order management systems (OMS) and shopping carts often provide merchants with a list of pre-programmed payment processing options. Switching can be as easy as changing several configuration options within the software. In some cases, the merchant will be required or compelled to switch communications methods. Oftentimes, this conversion will involve newer technology that offers improvements in both speed and data security. In particular, many merchants are now taking advantage of the benefits of transmitting data using HTTPS, SSL or a virtual private network (VPN) over the Internet, eliminating the cost of leased lines.

If your card-not-present business utilized a home grown OMS, then you will likely be required to program directly to your new processor’s software interface. You may also be required to swap communications methods. Although this may represent some effort, a more modern interface is likely to offer you enhanced features, greater flexibility and greater data security. XML based interfaces are becoming increasingly popular due to the extensible nature of the protocol.