Yaskawa America, Inc. Details its Gains from the Generation 3.0 Payments System for Credit Cards

Transcription

1 Orange County Convention Center Orlando, Florida June 3-5, 2014 Yaskawa America, Inc. Details its Gains from the Generation 3.0 Payments System for Credit Cards Parvez Gani, Yaskawa America, Inc. Al Czenski, HighRadius Corporation

2 Agenda About Yaskawa Need for a Payment Solution Process Flow Solution Architecture About HighRadius How Tokenization works Benefits Key Learnings

3 Yaskawa Electric Corporation Founded: 1915 Sales: $4.0B Associates: 8,000 Headquarters: Kitakyushu, Fukuoka, Japan Yaskawa America, Inc.: Waukegan, IL, USA 78 subsidiaries and 21 affiliates operating in 24 countries worldwide Manufacturing plants in 6 countries

4 Yaskawa America, Inc. Founded: 1967 Sales: $500 Million Associates: 950 Products: AC Inverter Drives, Servo Amplifiers, Servo Motors, Machine Controllers, Motion Controllers, and Robotics Industries: Automotive, Building Automation, Semiconductor, Food & Beverage, Packaging, Oil/Gas, Machine Tool, Elevators, Plastics/Rubber, Textile/Fibers, etc.

5 Learning Points Why you should consider automating the acceptance of credit card payments in your organization Considerations you should make when deciding how to automate your payment processing Elements for the right decision regarding security in your payment processing

6 Need for a Payment Solution Our Reasons to Consider Current process too manual No integration with SAP Systems Need better time efficiency of process No automation in process Need easier PCI-DSS Compliance Need less keystroking for less errors

7 Credit Card Touch Points Sales Orders Repair Orders Invoice Payments

8 Process Flow - Before Customer provides CC number via Phone or Fax CSR obtains Authorization code from 3Delta Website Authorization Code saved in Sales Order header Inform A/R to release Order Paperwork with Card details stored Capture code ed to A/R CSR goes back to 3Delta and changes the transaction to Capture Order Ships, Invoice generated, Cash Specialist gets CC receipt and prints report from gateway Payment processed by Gateway and Processor. Funds sent over to the bank Lockbox- file from bank received Credit card funds-lump sum and unapplied Cash Specialist manually applies to customer account based on CC receipts printed earlier

9 Challenges Limiting customer payment options to traditional paper checks and cash increases Days Sales Outstanding (DSO) and collection risk While SAP provides standard means to enter payment information, the native SAP functionality does not provide the integration needed with the payments industry to complete such transactions. PCI-DSS compliance to store Credit Card Too many manual steps Fill Credit Card form Obtain Authorization code from 3Delta A/R after Order Shipment A/R prints CC receipts A/R applies cash manually matching CC receipts

10 Process Flow - After INTEGRATED AUTOMATED PAYMENT PROCESS USING PAYMENTS ON DEMAND Customer order received - card number entered in Payment tab or copies over from customer master if maintained Connects to HR portal and the tokenization/ authorization takes place. Token # in the payment tab area Order ships, Invoice generated Invoice cleared immediately (drops off the customer account) Payment card Settlement run in ECC. Data to HR portal and captures the amount for each doc. Lockbox file Auto cash applied. Credit card fundsapplied to G/L account

11 Architecture PAYMENTS ON DEMAND SOLUTION On Premise Internet / Cloud Processor Payments on Demand ECC 6.0 Tokenize Processor CRM 7.0 Web Services Authorize Banks Capture FIREWALL Payments OnDemand

12 Solution Overview

13 Solution Overview Can easily accept a credit card payment for an order or invoice very securely With data intercept method no card information is entered, transmitted, or stored in your environment This means much easier compliance for PCI-DSS requirements..and is more secure

14 Solution Overview Add new Credit Card details Real time tokenization process generates a token which is stored in SAP

15 Solution Overview Integration of Payment options to SAP Collections module

16 Solution Overview Gateway portal provides detail logs for failed transactions

17 Card Security Encryption algorithmic conversion of credit card number to alphanumeric string, can be reversed and if algorithm known, can be breached Tokenization Conversion of credit card number to a random string with no formulaic connection, considered safest form of securing card Original card number 6DDD Encrypted # (last 4 clear) H567MWK890VV Tokenized # (last 4 clear) Can store token and identify via card type (MC, VISA) and last 4 digits

18 Tokenization Architecture Trends Merchant Cloud Processor Generation 1 Merchants stores CC info Card Vault All card networks must receive card number in clear text Processor Server Card Vault Generation 2 3 rd party gateway stores CC info Gateway Server Card Vault Processor Server Card Vault Generation 3 Only Processor stores credit card info Token only Clear text Card #(SSL) Gateway Server Processor Server Card Vault

19 How Tokenization Works Key Considerations Use data intercept From all payment origination points Auto place tokens No cut and paste Use AVS and CVV No storage of CVV or card information inside your 4 walls Popup from HighRadius Gateway eliminates the need for keying card in SAP Maintain PCI-DSS compliance

20 HighRadius Overview Founded in Headquartered in Houston, Texas Trusted leader in Financial Supply Chain Management Named as a fastest growing technology company in Houston 5 years in a row SAP Partner ASUG Affiliate - PCI-SSC (PCI-DSS Compliant) Three Lines of Business: Solutions for SAP Receivables Management Cloud-based Receivables OnDemand Cloud-based Payments OnDemand

21 Best Practices Carefully consider the automation / integration / technology aspects before deciding on a payments solution Even though you use SAP configured payment flow, not all solutions are the same Get beyond the marketing stories to understand the real technology behind the proposed solution Buy based on your future need to integrate other A/R aspects with your payments system Plan, plan, plan.and then execute the plan

22 Key Learnings Realization that automation and integration of your credit card payment acceptance system can increase revenue and customer satisfaction Consider the purchase and implementation of your payments solution carefully Remember, security is key when accepting credit card payments

23 Follow Us Questions Parvez Gani Yaskawa America, Inc Al Czenski HighRadius Corporation

24 Thank You THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 1304 For ongoing education on this area of focus, visit