What are integrated payments?
Some processors go above and beyond to meet every customer’s needs, offering payment gateway solutions in addition to direct-to-processor integrated payment solutions. Integrating directly with a processor allows clients to process payments with all major credit card networks while benefiting from the processor’s upstream position in the payment request route. During the transaction lifecycle, data is typically transferred between these entities:
- The gateway (optional)
- The processor
- The card network associated with the credit card that made the request
- The bank that issued the card to the cardholder
If the payment request is approved at each stop, the bank authorizes the transaction and returns a success response. In direct-to-processor integrations, there are no additional potential points of failure before the data reaches the card network. If the processor receives an error response from a card network, the issue is typically easier for the processor to troubleshoot than it is for downstream entities.
Who can integrate with a processor?
Gateways typically integrate with processors to gain access to the credit card networks and issuing banks for payment acceptance. Because gateways often aren’t processors themselves, they partner with processors to send payment requests on to the card networks and issuing banks.
ISVs developing Point of Sale systems and individual clients who need highly customized payment methods may also benefit from integrated payment systems that connect directly to a processor. Because processors have access to raw transaction data, their products often give clients a greater ability to work with this data and other raw materials. This enables clients to build the custom functionality that meets their needs.
The Custom Pay API is extremely flexible, giving clients direct access to the processor to enable complex configurations that take advantage of the benefits outlined in this article. This API can be implemented in numerous ways because calls can be made from almost any location: a backend server, POS system, website, or mobile device. To learn more about how this API can be used to process payment data, close batches, tokenize transactions, get reporting data, and more, see the Custom Pay API documentation.
Benefits of Direct-to-Processor Integrations
Fast Processing Time
Minimal Failure Points
High Transaction Volumes
Data Access
First Access to Card Network Programs
Efficient EMV Certification Process
Limitations of Direct-to-Processor Integrations
While processors often do a great job of developing low-level products that provide access to raw data and significant control over a solution’s design, they may not offer many pre-built solutions or data management tools. For example, processors may not offer pre-built dashboards for real time reporting and transaction management that reduce manual effort, such as data entry, but clients can develop these tools themselves, since they have access to much of the data. To learn more about the benefits of integrated payments with the payment processor, please contact our Sales Engineering team.