IBM Payment GatewayMichael Heesen

Frankfurt, 15. September 2015

What is IBM Payment Gateway

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IBM Payment Gateway is a Smart Cloud solution designed for seamless integration into your web sites, mobile sites, smart phone apps and call center

tools to drive lower cost per transaction and higher customer satisfaction for your payment transactions

IBM Payment Gateway is a global payment gateway, wallet and payment settlement reporting and reconciliation solution

IBM’s Payment Gateway can integrate throughout the life cycle of an order.

IBM Payment Gateway

Sales Channels Order Management After Sales Services Financial Back-End

• Omni-Channel

• Payment options

• AutoPay sign-up

• Payment authorization

• One-Click payments

• Payer authentication

• Fraud screening

• Installments

• Split payments

• Payment Promotions

• Payment Discounts & Surcharges

• Bank Independence

• TCO optimization

• Intelligent Routing

• Payment Reconciliation

• Straight-Through-Processing

• Virtual Account Payments

• Fraud case managment

• Pending payments

• Assumed Approvals

• Voice Authorizations

• Order release

• Payment Capture

• Partial Shipments

• Amount deviations

• Expired authorizations

• Search & Retrieve transactions

• Full and Partial refunds

• Alternative refunds

• Forced refunds

• Chargebacks

• SOD

Typical Card Transaction

Processor

sIBM Payment Gateway

API

Merchant

Ledger

Adv.RoutingBasic Fraud Adv. Fraud

Cross-channelCommerce

Engine

Checkout

Data Feeds

Reconciliaion

Shadow A/R

SettlementOperations

Web Tool

Logistics

Partner

Treasury

A/R

Merchant’s Accounting

Fulfilment

Order Management

WalletPCI Vault

Networks Issuers

Card

Associa

tion

Netw

orks

1

2

3 4 5

678

910

11

12

13

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Solution Characteristics

• One common interface to global payments

• A single consistent format with fully harmonized codes and values across all tools, payment methods, countries, and processors

• Option to start with a basic solution, and plug-in more advanced features in step with your business.

• Flexibility to add new countries, payment methods at the “click of a button“

• Full suite of interface modules including GUI’s, web services API, Reports and Data Feeds.

• Pre-integrated with IBM Smarter Commerce

• Customers can freely mix channels on the same order

• Web, mobile commerce, smart phone app, call center, IVR, EIPP and physical stores

• Secure Batch Processing

Easy Integration Omni-Channel Capabilities

• Leverage your existing payment assets and honor you corporate banking relations and obligations

• Free access to a long list of banks and payment processors already connected to IBM’s platform

• Free access to new banks and processors on IBM’s roadmap

• Low fixed fee for enabling any other bank or processor of your choice

Bank Independence

• PCI DSS Certified solution and service

• Automatic compliance with card association rules, National Automated Clearing House rules, data privacy rules and Web Content Accessibility Guideline

PCI Compliance and Security

Delivery Models

Payment Type Selection

• Access to more than 157 payment methods, via 277 pre-connected banks & processors, in 162 countries and 115 currencies

• Connection factory for simply adding new types

• Complete set of reconcilation support reports• User friendly portal for direct transaction interrogation

Robust Reconciliation Support tools

State of the art Graphical User Interface

Accordion-based GUI design allowing users to complete payment checkout in as few pages and steps as possible.

Convenient one-click payments for returning customers.

Step-up-security – that does not harass your good customers with intrusive security checks, and which does step-up security behind the scenes, based on customer history and customer behavior

Payment Review function enabling users to review their payment before it is processed

Homogeneous and consistent checkout experience, that blends seamlessly into our client’s web sites and mobile apps.

Dual Processor, Assumed Approval and Voice Authorizationfunctions, eliminating all exceptions that would otherwise prevent good customers from completing their payments.

Full control of payment GUI and user experience

RESTFull HATEOAS interface

Ready for web 2.0 and HTML5

PCI-DSS insulation

Full suite of transactions, for all payment methods

Internet, phone and mail order sales

A/R and billing operations

Collection of overdue payments

Refund / credit management

Search and Query historical data

Browse reports

Andriod and iOS versions

Delivered as source code for easy modification

JSON API Virtual Terminal Web Tool

Android & iOS Libraries Reports & Feeds

IBM's JSON interface facilitates easy implementation of JavaScript based payment applications for PC's, tablets, mobile phones, and a range of other devices.

A web application designed for point-of-sales, call centers, and back-office payment operations

Function libraries for easy implementation of applications, based on IBM’s JSON API

Daily reports available via e-mail or web access

Data feeds, designed to help merchants achieve straight-through- processing of payments in their financial systems

PCI Vault Switch

Wallet Basic Fraud Prevention

Access to more than 157 payment methods, via 277 pre-connected banks & processors, in 162 countries and 115 currencies

IBM Payment Gateway stores all payment information in our PCI vault where the information is encrypted, protected by strict access controls, and purged when no longer needed

The PCI vault includes a tokenization mechanism, that works in all IBM Payment Gateway interface modules, tools, feeds and reports

Clients can utilize the PCI vault to centralize and outsource the storage of all their payment information to IBM.

Address Verification Service (AVS) check

Card Verification Code (CVC) check

Card issuer and country check

3D secure cardholder authentication

Dynamic security checks

A powerful service to improve customer loyalty

Store all your customers payment details in wallets

On-the-fly registration

Customer self service

One-click payments

Auto-Pay from wallets

Card and bank account details automatically kept up-to-date

Reconciliation Engine

Settlement Reconciliation Straight-Through-Processing

Automated reconciliation of funds settlements from banks and processors combined with a managed service, which handles exceptions and ensures that our clients get proper settlement into their bank account on every transaction.

A series of daily data feeds, designed to help merchants minimize their manual workload, and achieve straight-through processing of payments in their financial systems

Automated closing and (re-)opening of accounts receivable records in a merchant’s A/R system

Automated posting of bank and processor fees in a merchant’s accounting system

Automated cash application in a merchant’s treasury system

Reconciliation issues

Lost settlements

Fee and downgrade issues

Settlement timeliness

Amount deviations

Foreign exchange issues

IBM Payment Gateway – Data Centre Characteristics

Dual-site active-active configuration

Two fully independent systems, installed in two data centers, in Broendby and Ballerup, Denmark

Global traffic management between systems (sites)

Near real-time mirroring of data

Rolling maintenance process

High availability

Instant recovery, with near zero data loss, in case of a disaster

PCI-DSS Certified

Payment processing delivered as a cloud computing service

Industry grade service levels

Client system(s)

+99.95% service availability

Sub-second response times

ITIL based services

Regulatory compliance

Redundant Processor Setup

Assumed Approval solution

Referral Solution

PCI Compliance Toolset

Why IBMPayment Gateway Simple Path to future proofing

A single point of integration to core systems, Multi-processors, currencies, languages, payment methods (current or yet to come) and interface technologies can be handled with out any changes to that integration.

Simple Path to Customer Convenience

Large footprint with extensive direct connections to processors, banks and alternative payment methods allows for fast implementation and provides customers with the payment methods that are convenient to them.

Simple path to Lower administrative costs

The IBM virtual terminal is processor and bank agnostic, one terminal can be used by the CSR or back office from any delivering/support center to see and access transactions for direct intervention in customer support situations – charges, refunds, status information, transaction status etc.

Shadow A/R system and associated settlement reporting simplifies cash/treasury management with daily deposit forecasts, deposit advisory, settlement and variance reporting. The system can be set up for STP and cash posting reducing FTE requirements in the back office.

Simple Path to lower PCI burden

All CC and PCI eligible data is routed directly from the terminal to the IBM systems and returning data is tokenized thereby reducing the scope of PCI compliance for core systems.

Country Reports

Get access to our library of more than 50 country reports.

ABSTRACT OF A COUNTRY REPORT

Size and growth of the e-commerce market

List of top-20 domestic merchants

Overview of payment methods

Market share of each payment method

Payment methods accepted by the top-20 merchants

Key characteristics of each payment method

Top acquirers & payment processors

Country specific payment checkout procedures

Practical payment checkout implementations

How is the payment checkout process typically implemented

Payment checkout forms from top-20 merchants

IBM’s recommendations

Payment Method Acceptance at Top Merchants in Germany, 2013

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Giropay

Click & Buy

COO

EFT

Financing

Sofortüberw.

Invoice

CoD

ELV

PayPal

Credit Card

Top-1000

Top-20

Payment Fees in % of Revenue, Germany 2013

0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5%

Invoice - Merchant

Financing

Credit Card

PayPal

CoD

Giropay

Invoice - Factoring

Sofortüberw.

ELV

EFT

Market Share of Payment Methods in Germany 2011, 2013

0%

5%

10%

15%

20%

25%

30%

35%

Invoice Card ELV PayPal EFT Financing CoD Sofort

2013

2011

Each report contains a detailed analysis of the payment market and industry in a country

Fingertips!

Knowledge at

your

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IBM Payment Gateway