Seven Misconceptions About IBM i Payment Processing  

When it comes to IBM i modernization (and specifically, the potential for integrated payment processing), there are quite a few misconceptions as to what can and cannot be done on the IBM i.  Many IT teams don’t even consider adding the credit card processing function to their order entry applications because they’re unsure if the end result will be able to accommodate their requirements – be it the need for real-time authorizations, automated nightly settlements, or local reporting. However, modern technologies make credit card integrations much more flexible – and impactful.

To debunk some of these misconceptions, we sat down with Alan O’Guin, Curbstone’s Product Manager. He explains how seamless integration can put merchants in full control of their payment processing operations and speed up a number of day-to-day processes.

Misconception #1: RPG programs can’t perform authorizations in real-time, while also keeping the merchant’s entire infrastructure out of PCI scope.

While there are many options for developing on the IBM i today, RPG is still the main building block for business applications that run on the i.  Having a payment application that can be called natively from existing RPG programs allows merchants to leverage their existing IT resources while meeting their need for real-time authorizations and scope reduction.

Curbstone has developed interfaces that remove card entry, storage, and processing from our merchants’ infrastructure; most of these interfaces are invoked with a simple RPG program call. This lets merchants move part – if not all – of their infrastructure out of scope for PCI compliance audits. Meanwhile, these same technologies return credit card authorizations in seconds for fast, seamless transactions.

Misconception #2: External web servers cannot easily handle payments that are later processed by RPG programs on the back end.

Curbstone’s e-commerce card entry solutions return a real-time response to the web server, while also syncing the authorization response back to the Client IBM i.  These authorizations are stored in the Curbstone transaction file on the merchant’s IBM i. From there, they can be used to referentially process subsequent sales, refunds, or authorizations, directly from existing RPG programs. This bypasses the need for redundant card entry after the initial transaction.

Misconception #3: RPG-based ERP systems can’t control the nightly settlement of batches, while also providing real-time feedback on those settlements.

Curbstone puts the merchant in charge of the settlement process. If their goal is nightly settlement (an ideal approach, as settling within a timely manner is a reliable way to reduce credit card processing fees), our technologies make it simple, providing native commands to trigger the settlement for each of their business units. The settlement is processed in real time; each settlement batch (and individual transaction) is updated with success or failure on the merchant’s IBM i. Additionally, Curbstone generates settlement emails for each batch, clearly documenting the results.

Misconception #4: RPG programs can’t securely store cards on file. 

Curbstone’s wallet file is a physical file, residing on the merchant’s IBM i. This wallet file is designed specifically for use with their existing RPG programs. It delivers everything a merchant needs to store cards on file for their returning customers, in turn creating a more seamless customer experience. (The wallet file also contains Curbstone’s secure remote tokens, which are used to referentially process authorizations and refunds with the same amount of ease.) Simple RPG program calls allow real-time processing of the stored cards; however, no card data – not even encrypted data – is stored on the merchant’s system. This more thoroughly protects customer data from security threats and again reduces the merchant’s reporting burden for PCI.

Misconception #5: Card processing requires new programming skills or uses Web Services/non-native interfaces.

With Curbstone’s solution, a merchant can begin sending test transactions from their IBM i on day one; no new programming skills are required. Curbstone also provides working demos, functioning example programs, with source code, for all interfaces, jump-starting the interface process.

Misconception #6: Retail point-of-sale RPG programs cannot drive EMV terminals directly.

Curbstone’s callable RPG program can automate EMV transaction processing in retail/card-present environments. A merchant’s order entry application simply calls this program and Curbstone’s Terminal Manager interfaces with the proper EMV terminal, returning the transaction response back to the order entry application.

These technologies also allow merchants to automate the card storage in our wallet file. This vastly simplifies EMV processing for merchants, who no longer have to take on the complicated task of communicating to and interfacing with the EMV terminal itself.

Misconception #7: Remote tokens can’t be used across all business units and payment methods; different tokens are required for orders placed over the phone, online, or in-store.

With Curbstone’s built-in tokenization solutions, any transaction processed through Curbstone is available to be used referentially, on subsequent transactions. This is made possible by the Curbstone wallet and transaction files, which reside on the merchant’s IBM i. The end result? A token created during an in-person transaction can then be re-used later for a phone order or an online purchase. As the consumer journey becomes less linear over time – and merchants adopt more sales channels to drive additional revenue – this becomes crucial for delivering a fast, friction-free checkout experience.

With more flexibility than most merchants might imagine, the right technologies can help you overcome each of these challenges – and you shouldn’t have to remove RPG from your toolbox to do so. If you’d like to learn more about what’s possible, download the whitepaper: Save Time, Increase Security, and Reduce Your Payment Processing Fees, or contact Curbstone for a more in-depth discussion about fully integrated, RPG-native payment processing.