Payments For Developers

Not for: bizdevs, marketers, C*Os, social-media consultants, lawyers, ...

1. Payments 101
2. Security & PCI Compliance
3. Cool ways to work with a gateway

This presentation is intended to be a payments primer with a developer-oriented focus. I attempt to give a broad overview of some of the payments components, and talk about a few solution to security & PCI challenges.

Full disclosure: I refer to Samurai (create by my company, FeeFighters) alongside several other competing and similar payments solutions. In the presentation (not in the slides), I talk much more about the other companies' offerings and why they are equally as compelling.

Transcript

1. PAYMENTS FOR DEVELOPERS Not for: bizdevs, marketers, C*Os, social-media consultants, lawyers, ... Joshua Krall josh@feefighters.com 12.2011
2. AGENDA 1. Payments 101 2. Security & PCI Compliance 3. Cool ways to work with a gateway 4. Q/A Please ask questions!
3. HI, I’M JOSH josh@feefighters.com https:/ /samurai.feefighters.com/chat
4. BEFORE WE TALK ABOUT THIS... ... we need to discuss these:
5. THE PAYMENTS ECOSYSTEM PCI Processor Gateway ISO Non-Qualified Interchange merchant account
6. THE PAYMENTS ECOSYSTEM PCI Processor Gateway ISO Non-Qualified Interchange merchant account
7. GATEWAY Online equivalent of one of these: Online businesses send credit card transactions by connecting to a gateway.
8. MERCHANT ACCOUNT A merchant account is a special bank account where your $s end up, before it is transferred into your business checking. To get a merchant account, you need to be underwritten. *
9. PROCESSOR There are a small number of major processing networks, such as: First Data TSYS Chase Fifth Third / Vantiv ... You don’t worry about these guys. Except when first getting set up, you have to get your gateway connected to the right one.
10. WHAT ABOUT THESE GUYS? Simple, bundled solutions that make it easier to get up-and-running quickly.
11. OPTIONS: Full-stack Bundle Merchant Account + Gateway Simple, Hosted 1000s of random salespeople who will annoy & lie to you
12. HOW DOES A CREDIT CARD WORK?
13. FLOW OF DATA Authorization Customer’s Card Transaction Approved/Declined Funds Available? Customer’s Account Issuing Bank Processing Network Gateway* Merchant FLOW OF DATA Authorization
14. FLOW OF MONEY Settlement Customer’s Account Issuing Bank Processor’s Account VISA/MC ASSESSMENTS Fixed fee for using the VISA/Mastercard networks INTERCHANGE FEE Varied by card-type, merchant-type, transaction type ISSUING BANK The bank where the cutomer’s credit card was issued Merchant’s Account Gateway *The processor’s markup varies depending on the pricing of your merchant account. -$2 $100 $96.35 -$0.05 -$0.11 -$1.50* FLOW OF MONEY Settlement
15. OK, GOT IT. LET’S START CODING.
20. PCI COMPLIANCE
21. PCI COMPLIANCE == FILLING OUT PAPERWORK REAL SECURITY => NOT HAVING CREDIT CARD #S STOLEN
22. DON’T LET CREDIT CARD DATA TOUCH YOUR SERVER
23. HOW? It depends on the gateway. 2 Common ways, using : Javascript Tokenization Transparent Redirect
24. TRANSPARENT REDIRECT
25. DEMO TRANSPARENT REDIRECT
26. JAVASCRIPT TOKENIZATION Similar to Transparent Redirect, but using AJAX to tokenize the card. 1. POST creditcard data directly to Samurai using javascript library 2. Samurai returns JSON response with credit card token 3. AJAX POST to merchant’s server with token payload 4. Merchant’s server processes payment server-side using creditcard token & private gateway credentials
27. DEMO SAMURAI.JS
28. ADDITIONAL RESOURCES • ActiveMerchant - http://bit.ly/sWgHV7 • Recurring Billing: Chargify, Spreedly, Recurly • Ebook: How to be a Credit Card Processing Ninja - http://bit.ly/hms3PB • Samurai.js - http://bit.ly/vt9ihk • For beginners: Stripe, Samurai, PayPal, Braintree
29. WE’RE HIRING. We are building the payments infrastructure that will power the next generation of exciting internet companies. We need smart, enthusiastic rails developers. Come talk to me, or email: josh@feefighters.com