opinion

A Primer on How to Integrate Paysite Processing

A Primer on How to Integrate Paysite Processing

As a neophyte, the task of selecting and integrating a payment processor with one’s website may appear as an insurmountable task; however, with a reliable, knowledgeable and honest payment processor as your partner, it doesn’t have to be.

Even the seasoned business owner and industry veteran can become overwhelmed at the options available in today’s marketplace when it comes to selecting a merchant service provider.

The task of establishing a merchant account may seem daunting and arduous, but with the right payment service provider by your side, it needn’t be.

First, we’ll start with the process for a new company launching a new website.

Many first-timers make the mistake of putting the cart before the horse and worry too much about hurrying to establishing a merchant account and integrating with the shopping cart and gateway before the website is ready to launch and accept business.

Many new businesses are anxious to check that box on their to-do list, but it needn’t be checked too soon for several reasons.

Before getting in bed with a merchant processor, one ought to confirm the compatibility between the shopping cart that has been selected for the website and the gateways offered by the candidates for the role of merchant service provider to ensure the shopping cart is certified to integrate with the gateways available.

Too many times I have seen a business owner jump the gun only to learn that the shopping cart isn’t compatible with the gateway, which ultimately results in additional cost and time lost to reintegrate with a compatible shopping cart.

Another common mistake is securing and integrating the merchant account too soon resulting in “on file” fees that would otherwise be avoided if the merchant account was active and processing sales — most merchant service providers don’t charge an “on file” fee if the account is processing transactions.

Don’t establish the merchant account until the site is about 30 days away from being launched. This leaves time for the mandatory Visa and MasterCard registration (for adult content), the underwriting, approval and integration of the merchant account.

This also leaves time to test the payment process to ensure everything runs smoothly and to confirm the descriptor that your customers will see on their billing statement, which is a very important piece in preventing chargebacks.

Second, we’ll discuss the process for a paysite that is already accepting credit cards and is looking to either move their merchant processing or acquire additional processing relationships to help with load balancing, approval ratios, or simply reducing cost by taking advantage of a competitive rate offered by a reliable, knowledgeable, and honest payment processor.

If a paysite is already processing credit cards, the integration aspect is already taken care of, which is a time-saver for everyone involved.

The only thing that would need to be confirmed is if the existing shopping cart is compatible and already integrated with the gateways on offer by the merchant service provider. The only document that would be required in addition to the documents listed in the next paragraph would be at least three months of processing history to accompany the application package.

Third, we’ll outline the documents that are typically required to open a merchant account in the U.S. The documents that typically accompany a completed and signed merchant application are the corporate filings, such as the articles and certificate of incorporation, a voided check for the business, a copy of the photo ID for the signer and the domain registration information, such as a screenshot or invoice from the domain registrar showing either the name of the company or the individual signing for the merchant account as the registered owner of the domain, if the whois is set to private.

If the business is currently accepting credit cards, or has accepted credit cards in the past, three months of processing history should also be included. With these documents, the approval process can begin.

The website needs to display certain items in order to be approved, and registered, if applicable. These items are: terms and conditions, privacy policy, refund policy, contact information, and if there is any nudity shown anywhere on the website, the 18 U.S.C. § 2257 compliance statement.

With the exception of the refund policy (which can be a caveat in the terms and conditions), each of the other categories really ought to be displayed on the footer of the site so the information is accessible from anywhere within the domain.

In Europe, it’s a little different, but not terribly so. For a merchant account within the E.U., the following documents are required: Articles of incorporation, certificate of incorporation, shareholder directory, most recent bank statement for the company, copy of the director’s passport, copy of the owner’s passport (if the owner and director are two different people) and a utility bill for the director and owner to prove residency.

The website requirements are similar as well with the minor caveat that most European banks require the legal name and address of the company to be listed, at the minimum, in the terms and conditions and on the payment page of the paysite.

Lastly, the integration of the merchant account with the website. A rudimentary outline of the process is something like this: the merchant account details are sent from the bank on what’s colloquially referred to as a VAR, which is payment-speak for “value added reseller.”

This sheet contains unique and crucial account details which the gateway provider uses to establish the gateway account. From there, the gateway typically issues an API key which is used, in conjunction with a few other pieces of information, such as where the request for authorization should be routed, and is inputted into the shopping cart, which is integrated to the paysite by the merchant, or the merchant’s developer.

From there, a test transaction should be conducted using a live credit card for $1, just to make sure a successful authorization is issued and to confirm both the authorization and settlement descriptors. Once the test transaction is successfully conducted and the descriptors appear satisfactorily, the website is ready to accept live sales!

The task of establishing a merchant account may seem daunting and arduous, but with the right payment service provider by your side, it needn’t be. Before you know it, you’ll be launching site after site, expanding your business, and enhancing your bottom line.

Jonathan Corona has more than a decade of experience in the electronic payments processing industry. As Mobius Payments Inc.’s vice president of compliance, Corona is primarily responsible for day-to-day operations as well as reviewing and advising merchants on a multitude of compliance standards set forth by the card associations. Mobius Payments specializes in high-risk merchant accounts in the U.S., E.U. and Asia.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

profile

WIA Profile: Holly Randall

If you’re one of the many regular listeners to Holly Randall’s celebrated podcast, you are already familiar with her charming intro spiel: “Hi, I’m Holly Randall and welcome to my podcast, ‘Holly Randall Unfiltered.’ This is the show about sex, the adult industry and the people in it.

Women In Adult ·
trends

What's Hot Now: Leading Content Players on Trending Genres, Monetization Strategies

The juggernaut creator economy hurtles along, fueled by ever-ascendant demand for personality-based authenticity and intimacy — yet any reports of the demise of the traditional paysite are greatly exaggerated.

Alejandro Freixes ·
opinion

An Ethical Approach to Global Tech Staffing

One thing my 24-year career as a technologist working to support the online adult entertainment industry has taught me about is the power of global staffing. Without a doubt, I have achieved significantly more business success as a direct result of hiring abroad.

Brad Mitchell ·
opinion

Finding the Right Payment Partner

Whenever I am talking with businesses that are just getting started, one particular question comes up a lot: “How do I get a merchant account?” It’s a simple question, but it has a complicated answer.

Jonathan Corona ·
opinion

The Taxman Cometh for Every Business

February may be the month of romance, but it is also a time when we need to think about something that inspires very little love: taxes. April is not far away, and the taxman is always waiting. This year, federal and most state income taxes are due Monday, April 15.

Cathy Beardsley ·
opinion

The Continuous Journey of Legal Compliance in Adult

The adult entertainment industry is teeming with opportunity but is also fraught with challenges, from anticipating consumer behavior to keeping up with technological innovation. The most labyrinthine of all challenges, however, is the world of legal compliance.

Corey D. Silverstein ·
profile

Alexzandra Kekesi Takes Charge as Aylo's Head of Community and Brand

While Alexzandra Kekesi was earning her bachelor’s degree in women’s studies from the Simone de Beauvoir Institute at Concordia University, feminist thinkers influenced her deeply, inspiring her passion for sex work advocacy.

Alejandro Freixes ·
opinion

New Year, New Tools for Tackling Chargebacks

Happy New Year! Looking back, 2023 saw some important developments for the industry. Visa lowered the limit on credit card surcharges to 3%, AI continued growing fast and Mastercard published an update to its Business Risk Assessment and Mitigation (BRAM) program.

Jonathan Corona ·
opinion

The Next Frontier in Computing, Storage Is Here

While I typically steer clear of diving too deeply into the technical nitty-gritty, in this month’s column I’m making an exception, because there’s a technological evolution underway that has the potential to fundamentally enhance technical outcomes and, more importantly, grow revenue.

Brad Mitchell ·
opinion

Raising Awareness and Taking Action Against Financial Discrimination

While foes of the adult entertainment industry often focus on “moral” concerns and perpetuate social stigmas, another form of attack can be equally or even more damaging: financial discrimination.

Corey D. Silverstein ·
Show More