Application Programming Interfaces (APIs) that facilitate payment transactions are designed to meet the regulations set by leaders in the financial industry, as well as the business requirements of the FinTech sector. However, at a fundamental level, these software development tools operate just like any other APIs. Payment APIs can enable communication between a business’s checkout environment and a payment gateway or processor. Software companies can use payment Software Development Kits (SDKs) to develop applications and add revenue streams for a specific platform or to serve industry verticals such as automotive or insurance technology (also referred to as insurtech). The unique payment needs of each merchant or Independent Software Vendor (ISV) will determine which set of tools is best.
What is a payment API?
After successful authentication, users can easily make requests from an online application to payment resources. As long as the data that’s required for each API call is passed in the request, developers can integrate payment APIs into most web-connected payment environments, in whatever way makes the most sense for the business.
What are the benefits of embedded payments?
- Increased Sales: Online purchases can be made from any location at any time, meaning sales aren’t limited to business hours and your customer base instantly expands across the country (or beyond).
- Improved Record-Keeping: Since digital payments are automatically recorded, record-keeping is built into your online payments software making it easy to review sales reports.
- Advanced Customer Data: Embedded payments allow businesses to automatically collect transaction data that can be used to improve the customer experience and generate targeted promotions in the future, increasing repeat business.
- Automated Invoices: With products like North’s Invoicing API, businesses can set up a branded portal where customers can pay invoices. Merchants can even schedule invoices to be sent at a later date so merchants can “set it and forget it.”
- Various Payment Methods: Offering different types of payment options, such as subscriptions to products and services, is a great way to increase customer loyalty. These autopay products work by saving a secure, tokenized version of the customer's card data on file. The buyer agrees for a specified amount of money to be withdrawn from their bank account on a fixed day of each week or month for a predetermined length of time (or indefinitely until they cancel the subscription). Schedule recurring payments can increase repeat business, and your bottom line.
API Integration Overview
The application collects the raw credit card and customer data during the checkout experience, encrypts it, and sends it in an API request to the payment processor. Businesses that integrate directly with a payment API may need to make changes to their server environment and security infrastructure to properly handle this sensitive data and meet Payment Card Industry (PCI) requirements. To learn more about PCI requirements, review the latest PCI Data Security Standards (DSS) or read an overview of what PCI compliance means.
Collecting In-Person Payment Data
- EMV Data: The request data from the EMV kernel.
- Track Data: The information held on the credit or debit card’s computer chip or magnetic strip.
- Card Entry Method: The method by which the card data was read, for example, Swiped Track 1 or 2, Contactless EMV or non-EMV, Bar Code, and more.
Collecting Online Payment Data
- Account: The card number to be acted on during the request.
- CVV2: Card Verification Value.
- Customer ZIP code or complete address.
Handling the Transaction Request
Choosing a Payment API
For many businesses, the best solution is one that enables payment acceptance and embedded finance across many channels, in which case a dual integration with a payment terminal and a web form is a great fit. One example of this is North’s Custom Pay API, which can handle requests from a physical payment device or can complete the checkout process from a web-based application. The best payment partners will be able to offer businesses a variety of options that work together seamlessly in one payment ecosystem.
How To Get Started
North Developer provides thorough documentation and code samples to support developers and business decision-makers throughout the entire integration process. Contact us to learn more about how payment APIs work and how you can connect your system to the North ecosystem.