Credit Card Interface Benefits and Compliance for ERP

Posted by Gerry Poe


credit card inteface authorizeCredit Card Interface Benefits and Compliance for ERP
Within your ERP software Credit Card Interface (CCI) is a credit card processing system linked to order entry and invoicing functions.  With Credit Card Interface, SYSPRO enables preauthorize/booking a customer purchase against a credit card during order entry and billing/charging the card at  shipping/invoicing processing. The interface accepts one-time payments, scheduled amounts on installment, and processes counter sales (retail-style sales) and sales orders. Credit Card Interface also handles Internet sales and works seamlessly with SYSPRO’s CyberStore.

Business Perspective:
Enterprise transactions from customers and to suppliers using credit cards has appeal due to immediacy and management of cash-flow and debt.  Credit cards give you a means of quickly purchasing materials, office supplies, gasoline, hotels, and rentals without carrying large sums of cash, yet is cash-based and credit worthiness limited.  If you use a Visa, MasterCard or American Express, your transactions are handled and credit-worthiness is established without difficulty.

With the ability to accept credit cards as (pre)payment gives you and your customer choices to manage their cash-flow and credit limits proactively.  For example: Purchases, will cause invoice documents, necessarily, to be matched with purchase orders and receiving, it must be processed in accounts payable (AP), the invoice and payment cycle involves personnel analyzing cash and associated processes, printing and mailing checks.  These activities cost you manpower and reduce or expand your labor force.

Using and allowing credit card purchases costs you a percentage (usually 2%-5%) of the transaction amount paid (deducted) the “processors” as your intermediaries.  If you perform a study of the costs, automation versus manually processing invoices and payments, it will answer your questions.  High volume purchases and high volume sales orders may mean credit card authorizations are cost-effective for you.  Managing credit card repayments means you can write a single check covering all sorts of vendors/purchases, instead of many checks for each vendor/invoice. Also consider accounts receivable payment processing versus credit card payments to pre-pay invoices, reducing your receivables management requirements.

Features of Credit Card Interface
  • Payment gateways/processors: Authorize.Net, IC Verify, VeriSign, or Shift4
  • Supports American Express®, Diners Club®, Discover®, JCB®, MasterCard®, and Visa® cards.
  • Allows installments and payment dates.
  • Authorized transactions display authorization codes and verification of installment terms.
  • If a transaction is declined the SYSPRO operator is made aware and can take alternative actions.
  • Fraud is minimized with multiple validation methods.  i.e.: Name, Address and security codes (CVV2, CVC2, CID, etc.).
  • Transaction information can be updated on the fly.
  • Multiple cards per customer can be stored for later use.
  • Accounts Receivable payment histories are immediately updated with transaction details.
  • Nine years transaction history for financial tracking, reconciliation, and marketing demographics.
  • Credit Card Security: manage and purge, card number masking/hiding
  • Supports Multiple Currencies

Credit Card Compliancy – PCI Compliancy
Payment Card Industry (PCI) compliancy states the following rules and regulations must be adhered to:

  • Build and Maintain a Secure Network
  • Protect Cardholder Data
  • Maintain a Vulnerability Management Program
  • Implement Strong Access Control Measures
  • Regularly Monitor and Test Networks
  • Maintain an Information Security Policy

Credit Card Integtion software conforms to the following requirements:

  • Only allowed cardholder data such as the credit card number and expiry date are stored and encrypted in SYSPRO.
  • The credit card number is masked when viewed within SYSPRO.
  • Authentication data such as CVV is only captured, if necessary, but not stored.

Cryptographic Key Management

  • The cryptographic key encrypts the credit card number before it is stored in the database.
  •  The encryption key is proprietary to SYSPRO and is never published.

Summary:
Credit card integraton is usually based on cost and time savings coupled with business demands. Allowing credit card authorizations for customer purchases in sales order entry/invoicing augments staffing crunches and helps alleviate cash-flow and document management for accounts receivables, can lower days-to-pay statistics, and saves time.

Some concerns exist for your security and privacy with electronic transactions. You may want to consider due diligence efforts before either use or allowance policies are established. Network and database security, firewall and internet proactive threat management, user password and domain security policies. There are also concerns over internet fraud, credit and identity theft, etc. These are some reasons for PCI compliancy testing and certification should not be ignored.

Using credit cards for company purchases will save you time and money while lowering the volume of transactions and keeping purchase history accurate.  For accounts payable, consider using Electronic Fund transfers (EFT) (we will discuss in a later blog).  It is an efficient cost-effective way to pay your vendor invoices electronically.

Your company may require Credit Card Processing automated wthin your ERP software daily sales transactions. With secure and relable customer bookings and charges integrated to accounts receivable and your bank accounts, Credit Card Interface saves you time and money.

Some acquiring banks or processors charge their merchants a PCI non-compliance fee.  In order to avoid PCI non-compliance fees (if applicable) we recommend that you become compliant as soon as possible.

The Credit Card Interface is an important piece in an ERP software solution. Download the Credit Card Interface fact sheet today to learn more:

syspro credit card interface

Tags: ERP, Identity Protection, Document Management, SYSPRO

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