TT0507_IndustryInsider 5/2/07 9:23 AM Page 24
E-Commerce Gateway Offers Processing
Without Competition to ISOs
by Deborah Fisher
n the current business climate, substantial residuals without having to to settlement. And merchants can use
being able to provide that extra worry about competition from the recurring billing to bill their cus-
service or product to your clients gateway. Network Merchants’ pay- tomers daily, weekly or monthly.
is critical to success. “Companies ment-processing gateway services may With the company’s API integration
need to have value-add services and to not be purchased by merchants direct- solution, merchants will use the highest
stay on top of new features and ideas,” ly, notes Cucci; the services offered level of secure transaction infrastructure
says Matthew Schmidgall, chief tech- can be provided only through an available. The API uses secure sockets
nology officer of Chicago-based approved ISO or MSP affiliate. This layer digital certificate technology to
Network Merchants. “Companies can exclusive channel of distribution connect securely and directly between a
no longer just sit back and stay idle.” strengthens relationships already built merchant and the payment gateway.
More businesses than ever are ready to by the affiliate with its merchant cus- According to Schmidgall, security is
sell their products and services on the tomers, increases the value of services seeing more and stricter regulations.
Web. And they are seeking fast, easy and products offered, and provides the “There are higher regulations by card
and efficient ways to authorize and affiliate with new revenue streams. associations and additional require-
process online transactions. That’s one “We don’t compete with the ISO. In ments for PCI 1.1 standards,” he notes.
reason Network Merchants transformed fact, all of our merchant accounts must Network Merchants’ iSpyFraud
from its credit card fraud detection roots come through an ISO,” explains Cucci. Protection provides custom strategies
in 2001 to an e-commerce payment “Our mission is to provide ISOs with to distinguish between shoppers and
gateway that enables companies to the best tools available to be lucrative shoplifters. It provides strategy man-
process online transactions in real time and still benefit the merchants.” agement and customer service tools to
anywhere in the world. Network Network Merchants has a transparent help merchants save legitimate trans-
Merchants also maintains and delivers a portal that allows merchants to manage actions that appear risky, and to set
suite of payment solutions through a a suite of payment solutions from a sin- policies for accepting and rejecting
unique channel of distribution. gle location on the ISO’s or MSP’s Web transactions. That means less risk to
This channel of distribution was site, branded with the customer’s look the merchant and a better relationship
designed exclusively for financial insti- and feel. It also provides branded online with the ISO or MSP.
tutions, independent sales organiza- applications that enable merchants to “Smaller gateways aren’t going to be
tions (ISOs) or a merchant service sign up for payment processing and able to implement all the necessary
provider (MSP), payment processors, merchant accounts quickly and easily. security measures because it is too
value-added resellers and other e-com- And ISOs can offer their branded pay- expensive,” says Cucci. “We can provide
merce developers interested in retain- ment gateways to merchants. processing in a secure environment.”
ing their existing merchant customers Through the use of a virtual terminal, “Security is a major factor in being a
and acquiring new business. With an merchants can authorize, process and leader,” agrees Schmidgall.
easy-to-integrate private-label pro- manage credit card transactions manu- From the beginning, Network
gram, affiliate members maintain their ally from any computer with an Merchants focused on developing key
own look and feel while providing their Internet connection and a Web brows- relationships with companies interest-
merchant customers with efficient and er. Network Merchants Electronic ed in providing fast and secure credit
secure payment processing solutions. Check enables online and traditional card and electronic check processing
“Clients can brand the gateway as merchants to accept and process elec- services. Network Merchants built a
their own through the entire process,” tronic check payments directly from back-end payment solution that pro-
notes Ted Cucci, COO. “And, based their Web site’s storefront or through vides the tools necessary for ISO and
on rules defined by the customer, the the virtual terminal. By accepting elec- MSP affiliates to process transactions
advanced transaction routing interface tronic checks, merchants are able to for their merchant customers.
spreads the transaction volume across expand the payment options available “We like to say the company is pro-
different processors to manage the flow to their customers and increase sales. grammer rich,” says Cucci. “W hile it
of the merchants’ transactions.” With batch upload, processing mer- is internally difficult to create, we try
Network Merchants’ open architec- chants will be able to control and to make things as easy as possible for
tural design allows affiliates to earn approve transactions manually prior the end user.” TT
24 MAY 2007 | TRANSACTION TRENDS