Electronic Transaction Market Industry Whitepaper. Systech Corporation Internet Payment Gateways

Transcription

1 Electronic Transaction Market Industry Whitepaper Systech Corporation Internet Payment Gateways John Stafford Director, Payment Systems x483 Systech IPG/7000 Series Internet Payment Gateways 1

2 The Electronic Transaction market will soon begin a robust transition from legacy dial-up payment transactions to newer IP-based transactions. An estimated 8.8 Million merchant locations in the US are candidates to make the conversion to IP. This transition will be driven by the merchant s need to reduce costs, and increase revenue and customer satisfaction through accelerated payment transaction throughput. Transaction Market in Robust Transition 8.8 Dial IP Time " 8.8 million U.S. merchant locations are currently candidates to move to IP " Systech has key intellectual property and products to deliver market requirements " Identified, clear Value Proposition is firm catalyst for transition " Aggressive/committed partnerships establish early critical mass credibility 2 Traditional suppliers of POS payment terminals will promote and deploy newer terminals with IP capability, however the merchants costs for both capital expenditures and training on these newer terminals will prove prohibitive for many. Significant opportunity exists for a low-cost, high-performance gateway which converts the merchant s dial traffic to IP traffic without changing his existing POS terminals, applications, or personnel training. 2

3 Systech Corporation has developed a family of Internet Payment Gateways that enable dial-up POS terminals and point of sale systems and ATMs to easily make this conversion. Systech products connect legacy dial-up terminals to existing payment processors using either private TCP/IP networks or the public Internet. Any processor and any card type may be used. The Systech solution offers compelling value to payment processors by reducing the cost for each payment transaction, and enabling new payment services over a broadband IP connection. ISO s benefit from the ability to revisit and resell IP based services and hardware. Merchants benefit from improved customer satisfaction, increased revenue, faster payment transactions, and lower costs. Systech Offers Compelling Value Processor ISO Merchant Lower cost per transaction Maintain/grow base in transition Respond to IP market demand Enable new transaction services Reason to revisit/upgrade Killer App for broadband services Faster transactions Lower recurring costs Enable other broadband apps Leverage existing terminal investment 3 3

4 The Systech products are small, network hardware devices with intelligent onboard routing software and protocol conversion routines. Multiple product configurations are available which support the popular mix of physical connections found at the customer premise. Systech Internet Payment Gateways IPG-7000 Series Configuration Flexibility POS IPG-7110 Single POTS RJ-11 10/100 Ethernet TCP/IP Router 32-Bit Processing Modem Emulation SSL 3DES Web Diagnostics Remote Flash Upgrade Developer SDK Optional PPP Dial Back-up POS IPG-7101 Single DCE/DTE Serial DB-25 POS IPG-7111 Serial and POTS POS 12 POS Terminals, point of sale systems, and ATMs are connected via a physical cable to either an RJ-11 POTS (plain old telephone service) or an RS-232 serial port on the front panel of the Systech Gateway. These connections emulate either the phone company or a modem respectively. Upon receipt, transactions from these ports are converted to TCP/IP and routed to one or more user-defined host payment processor addresses. If the transaction route includes the public Internet then the packets are encrypted using the Open SSL industry standard (or 3DES subset) for Internet transaction security. SSL 4

5 Dial to IP Conversion SYSTECH Industry-Standard Internet Payment Gateways No Added Transaction Fees POS Terminal Dial IP Any Payment Type Public Internet POS System Any Processor Secure IP Host Open Open SSL SSL Security Security High-Speed High-Speed IP IP Transactions Transactions ATM Terminal Web Diagnostics While processing and accelerating the payment transactions, the Systech gateway translates the phone number specified in the ATDT command into an IP address or URL and makes an Internet connection. This connection is made over a 10/100 Base-T Ethernet RJ-45 port on the Systech device. The Ethernet connection is attached to the merchant s existing or new private WAN or broadband Internet access device. (Existing store router, satellite, DSL modem, cable modem, etc.) 5

6 Once the connection is established, the interaction with the payment processor is the same as it would be over the phone line, however the speed is dramatically improved. For example, an ENQ is sent when the terminal sends a transaction, the payment processor sends a response, the terminal acknowledges the transaction and both sides close the connection. Application results vary, however a reasonable expectation is a 3X to 5X speed improvement. In addition to the faster payment transactions, merchants are also discovering significant IP benefits related to their end of day batch processes. What was once a very time consuming effort requiring multiple minutes is now possible in seconds. Systech Internet Payment Gateways How Fast is Fast?? Test Dial-Up POTS Systech SSL IP Casino Debit 28 sec 3 sec ATM App Roundtrip 27 sec 12 sec C-Store Credit Roundtrip 15 sec 3 sec TNS SSL Host Connect 325msec 13 To accept and process the SSL IP transaction, payment processors, check processors and ATM processors are required to have a host environment which supports secure authentication of SSL packet. Not all payment processors support this capability today. Getting started can involve a time-consuming development and test effort. Transaction Network Services (TNS) has formed a strategic alliance with Systech to address this need. The TNS TransXpress Secure network infrastructure service receives the Systech SSL IP transactions and seamlessly converts them, along with existing dial traffic into the processor s existing transaction flow from TNS. 6

7 Systech Internet Payment Gateway Strategic Alliance TNS TransXpress Secure TNS Customer Host Processing DSL Public Internet TNS Host Format SSL v3 Encryption 7 The Systech gateway software supports a variety of configurable options for a variety of merchant application needs. Different phone numbers can be routed to different payment processors. This can be important in applications where different payment types are being routed to different hosts, or in applications where redundant host access is desired. Some merchants with a mix of point of sale systems and wide-area access schemes may choose to support a combination of private WAN and public Internet transaction routes in the same Systech gateway to achieve IP cost savings across their existing network infrastructure. 7

8 Example QSR Announced Deal Solving Peak Period Transaction Speeds 13,000 Locations New Debit Rollout Systech Internet Gateway +485 Terminal Controller + Multi-Host Connection Private IP WAN Public SSL Internet Private Satellite PSTN QSR LAN 11 POS transactions received by Systech gateways can either be simply passed through to the host in an IP wrapper or protocol converted depending on the messaging format expectations of the TCP/IP host environment at the payment processor. This can be a simple protocol conversion - like the payment processor expects a change to 7 bits, even parity. Or it can be more challenging - like the payment processor expects the transaction data to be wrapped in an HTTPS packet with a new header. These protocol conversions may require Systech or it s OEM partners to implement specialized software routing routines and filters. The powerful and flexible 32-bit processing architecture of the Systech gateway readily supports even the most complex of requirements. 8

9 Following installation, Systech gateways can be accessed remotely by authorized support personnel for purposes of configuration, troubleshooting, diagnostics, and upgrades. Systech includes a complete set of web-based configuration software tools used for asset tracking, remote flash updates, trace capture, and more. Systech World-Class Web-Based Diagnostics Asset Tracking Revision Tracking Flash Updates Connect Status Error Logging Trace Capture 14 Systech Internet Payment gateways already enable high-speed IP-based, payment transactions for many leading US payment processors and transaction networks. If you would like additional information on a partnership with Systech, please contact John Stafford, director of payment systems x