In the payments industry, it is generally recognized that card-present or "retail" transactions, where the customer is physically present and pays with a credit card, carry less risk compared to online transactions. This is because in a card-present scenario, the merchant has the opportunity to verify the card's authenticity, validate the customer's identity, and obtain a signature or PIN for additional security.
To reflect this lower risk, some merchant processors offer lower transaction rates for card-present transactions compared to online or "card-not-present" transactions. This is because card-not-present transactions, such as those conducted in an online store, carry a higher risk of fraud or chargebacks.
Authorize.Net, a popular payment gateway provider, offers a feature called a "blended account" that allows merchants to process both retail and eCommerce transactions within a single account. This means that merchants can accept payments in-person using a card reader or terminal for card-present transactions, as well as accept payments online for card-not-present transactions, all through the same payment processing account.
By having a blended account, merchants can benefit from consolidated reporting and simplified management of their payment transactions. It eliminates the need to maintain separate accounts for different transaction types and provides a seamless experience for accepting payments across various channels.
The Payment Center now offers support for blended Authorize.Net accounts. When processing credit card payments using a swiper, it will inform Authorize.Net that these transactions are card-present, resulting in lower rates for you. However, any other payments made without a swiper will still be submitted as eCommerce transactions.
What do you need to do to implement this functionality?
To ensure you have a blended account and configure Payment Center correctly for card-present transactions with Authorize.Net, follow these steps:
- Contact Authorize.Net: Reach out to Authorize.Net to confirm that you have a blended account and discuss any specific requirements or setup steps associated with it. They can provide you with the necessary information and ensure your account is properly configured.
- Use the new payment page: Make sure you are using the new payment page in Payment Center to accept credit card payments. This updated payment page may include features specifically designed for card-present transactions.
- Set up a swiper: If you don't have one already, acquire a card swiper or card reader device compatible with Payment Center and Authorize.Net. This device will enable you to securely process card-present transactions by swiping the customer's credit card. Click here for more info. Note that the Pay Now button can also be attached to the invoice page.
- Configure Payment Center settings: In Payment Center, go to the Settings tab and locate the Payment Processors related list. Click on Authorize.Net to access its settings.
- Enable Card-Present Transactions: Check the option or field labeled "Enable Card-Present Transactions" within the Authorize.Net settings. If you don't see this field, you may need to edit your page layout and add it. Enabling this option ensures that swiped transactions are properly identified as card-present transactions.
- That should be it! Payments made from a swiper can de distinguished from the rest of the payments by a flag called Is Card Present:
Availability: Dec 2015 Release