With online sales topping $5.7 trillion worldwide in 2022, there’s no question that e-commerce is one of today’s most important sales channels. However, for many merchants, putting an online payment infrastructure in place can be easier said than done.
Smaller businesses may choose to sell on a third-party marketplace that already has payment processing built into their platform. However, this doesn’t work as well for larger brands who want more control over their online sales channel, or companies that don’t fit the strict merchant criteria for third-party platforms. Some merchants may consider an e-commerce gateway like Square or Stripe, but these out-of-the-box credit card platforms are also limited in what they can do – especially when compared to a fully integrated payment processing solution.
That’s where online payment integrations offer a more robust option.
Why integrate your online payments?
Integrated payments – whether they take place online, in person, over the phone, or by mail – offer several key benefits. Merchants receive streamlined transaction data that all flows down to their core business systems – be it an order entry application, inventory management software, or even Salesforce or a similar CRM.
Transaction records are all tied together; not separated out across multiple databases. This makes accounting (like batch reconciliation and reporting) and logistics (including fulfillment) much more straightforward. Meanwhile, from the customer’s perspective, a faster and more secure online checkout experience is more likely to encourage repeat business. (When the payments are fully integrated with the shopping cart, they don’t have to go to a separate payment page to check out; the seamless experience reduces cart abandonment rates.)
So: what does it take to put an online payment integration in place?
Developing an online payment integration
The first step in the development process is identifying the payment gateway(s) that best suit the needs of your e-commerce business. Your company’s IT, sales, finance, and leadership teams should discuss:
- Which payment methods you’ll want to support (e.g., credit cards only, or credit cards + Apple Pay + other digital payment methods)
- What other programs and applications are currently part of your tech stack, and whether they can seamlessly integrate with the new gateway you’re considering
- What security features you’ll need (e.g., whether you want to offload your PCI compliance requirements by working with an authorized Level 1 service provider)
- What your current PCI scope looks like, and whether you’re equipped to deal with potential changes when you modify your e-commerce environment
- What geographic coverage you’ll need to support your current (and future!) target market
- What you’re currently paying as far as transaction fees and whether your current processing platform is giving you the most advantageous rates
Here’s a helpful guide with the Top 5 Things to Consider When Choosing an Integrated Payments Solution.
Once you’ve selected a payment gateway for your e-commerce initiatives, your developer will need to obtain the necessary credentials, such as API keys or merchant IDs, to access the payment gateway’s services.
From there, the developer must implement the necessary server-side code to handle payment requests and responses. This often involves integrating the payment gateway’s API into your e-commerce platform’s back end. The API will provide endpoints for initiating credit card transactions, handling callbacks, and managing payment-related operations. It’s crucial to ensure that the communication with the payment gateway occurs over secure channels, utilizing encryption protocols like HTTPS to protect sensitive customer data.
On the front end, the developer needs to design and implement your payment interface, making sure it’s as user-friendly as possible throughout the entire checkout process. For instance:
- Customers should be able to enter their payment details in a secure environment that’s consistently branded with the rest of your e-commerce site. (iFrames are excellent for this. They allow merchants to process credit and debit card sales on their own website, without redirecting the customer to a separate payment page.)
- The design should be responsive, ensuring a consistent experience across various devices and screen sizes
- If it’s their first purchase, customers should be able to save a card on file for future transactions. If they’re a returning customer, they should be able to choose their preferred payment method from a digital wallet instead of manually keying in their card details for each transaction.
- Customers should receive prompt confirmation of a successful transaction.
Security and compliance considerations
Security is of the utmost importance in an online payment integration. Your developer should implement best-in-class security measures, such as tokenization and encryption, to prevent your customers’ sensitive payment data from being compromised in a cyber attack.
Regular security audits and compliance with industry standards like PCI DSS (Payment Card Industry Data Security Standard) are also essential to maintain a robust and secure payment environment. Every merchant is required to complete an annual self-assessment questionnaire; this questionnaire includes detailed questions about every aspect of your payments infrastructure. However, depending on the technologies you use, you may be able to remove certain parts of your infrastructure from this requirement. (Check out how one merchant took their web service and shopping cart out of scope for their PCI SAQ, letting their team complete their audits much more quickly.)
Build your online payment integration with Curbstone
Curbstone’s Web Services Suite (WSS) is designed for secure, real-time integration with the applications you already run on your IBM i. With clear documentation, full transaction processing capabilities, and 24 x7x365 US-based customer support, Curbstone offers a robust online payment solution with fully functioning source code that can kick start your implementation process. Meanwhile, RPG-based APIs let your developers easily complete the process.
Ready for faster, easier e-commerce payments? Contact us today to learn more about how you can save time and money integrating with Curbstone.
