Payment Gateway Overview

Get familiar with credit card processing & our platform

 What Do Merchants Need to Be Successful Online?
Understanding all of the working parts involved in your merchant customers’ success online

Domain Registrar Web/App Developer Web Hosting Shopping Cart Accepting Payments
 The Common Merchant Struggle:
Piecing together all of the working parts to get their ecommerce store up and running

To do this, he knows he will need to:

This is Joe the Merchant Register a domain for

He wants to sell blue widgets online his ecommerce website
and even after all of that, there is
still one missing piece Joe needs…

Find a good web developer Accepting Payments

Decide on a hosting company

Select a shopping cart provider

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 Great Question Joe.
What Do Merchants Need to Accept Payments?

Merchant Account Payment Gateway Account

Payment Processor
• A merchant account, also known as a MID • If a merchant wants to get paid, they need a
(short for Merchant ID), is a type of bank A merchant account and payment payment gateway account.
account that enables merchants to accept and gateway account both connect to
• A payment gateway account connects to the
process payments through debit & credit card the processor & both accounts are
processor & securely transfers information
transactions and connects the merchant with essential in order for merchants to
between the merchant’s website and their
the processor. accept payments.
merchant account.
• Merchants can obtain a merchant account • A payment gateway is what authorizes credit
through a Merchant Service Provider, like card payments and is the equivalent of a
Dharma Merchant Services. physical point-of-sale terminal located in most
• Merchant accounts are a necessity for many retail outlets.
businesses, and are essential for merchants
with ecommerce businesses.

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 Let’s Walk Through the Steps with Joe
Now that Joe knows what he needs, he is only a few steps away from accepting payments on his ecommerce store

Now Accepting Payments!

Joe’s Merchant Account Joe’s Payment Gateway Account

• Joe applies for a merchant account through
+ • Joe needs a payment gateway account so he
=
Dharma Merchant Services. can connect his MID to his website.
• Dharma Merchant Services has a list of • Joe opens a gateway account with Dharma
requirements given to them by its acquiring bank Merchant Services which allows him to input
(see slide 10 for definition). his MID.
• Joe’s application satisfies all the requirements
and he is granted a MID!

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 How Does Credit Card Processing Work?
Understanding all of the working parts involved in processing a credit card transaction

Cardholder Merchant Payment Gateway Payment Processor Issuing Bank Credit Card Network Acquiring Bank
 Key Players in Processing a Credit Card Transaction

Cardholder Merchant Issuing Bank Credit Card

A cardholder is someone A merchant is someone who (Cardholder Bank) Network
who has obtained a credit wants to accept credit and
or debit card from a card debit card payments from their The issuing bank issues credit The credit card network
issuing bank. They are the customers (cardholders) for the cards to consumers. They are helps to connect the
one who begins the credit goods or services they sell. responsible for paying the issuing and acquiring
or debit card transaction by They must obtain a merchant acquiring bank for the banks by routing the
using their card to make a account and set up a payment Suzi’s Bank purchases their cardholders appropriate transaction
payment to a merchant for gateway account before they make. information between the
their goods or services. can start accepting payments two banks.
This is Suzi Look it’s Joe! and get paid.

Payment Processor Acquiring Bank

Payment Gateway
A payment gateway authorizes
The payment processor works to actually process (Merchant Bank)
the credit card transaction from start to finish. It
credit card payments and is what does this by connecting the merchant account with The acquiring bank is also referred to as
securely transfers payment the payment gateway so it can receive the the merchant bank because they create
information between the transaction details and it also connects the and maintain merchant accounts that
Joe’s Payment merchant’s website and their Joe’s Processor Dharma/NMI Gateway to the Credit Card Network allow a merchant’s business to accept
merchant account. for authorization from the issuing bank. Joe’s Bank
Gateway Account credit and debit cards.

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 Credit Card Transaction Flow

2. Suzi’s Transaction Details are Sent to

Dharma/NMI gateway
The gateway references Joe’s MID and using a secure
connection to the payment processor, routes the
transaction details on to them.
1. Suzi the Cardholder Purchases a Blue Widget
Joe’s Payment Processor
Suzi has been searching for the perfect blue widget and
after finding Joe’s Blue Widget’s ecommerce site she
decides to buy one. So she enters in her payment info
and submits the transaction.

Joe’s Payment Gateway Account Joe’s Merchant Account

with Dharma Merchant Services

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3. Joe’s Payment Processor Receives the Transaction Details
After Joe’s payment processor receives them, they send the request on to the
Credit Card Network who identifies the issuing bank for the payment card and
sends the request on to them.

Step 3 Step 3

Step 4 Step 4
Joe’s Payment Processor
Issuing Bank (Suzi’s Bank)
Credit Card Network

4. Suzi’s Issuing Bank Approves or Declines Transaction

After the issuing bank checks Suzi’s account, they either approve or decline the
transaction and then the results back to the Credit Card Network who sends it
back to Joe’s payment processor.

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 5. Joe’s Payment Processor Relays the Results back to Dharma/NMI Gateway
After Joe’s Payment Processor receives the results, they relay them back to the Dharma/NMI
Gateway where the Dharma/NMI Gateway stores the results and then sends them back to the
website where Suzi & Joe see the approval or decline.

Joe’s Payment Processor Joe’s Payment Gateway Account

with Dharma Merchant Services

7. Joe Gets Paid

The issuing bank (Suzi’s bank) releases the
funds to the acquiring bank (Joe’s bank). 6. Suzi’s Transaction was Approved!
After the settlement period Joe’s bank Now that Suzi’s transaction has been approved,
releases to funds to his account where he Joe can now send out the blue widget to Suzi.
can access the money.

Suzi’s Bank Joe’s Bank

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 What Does The Dharma/NMI Gateway Offer?
Understanding the payment gateway’s Capabilities

Processing Environments Core Features Data Security & Payment Types & Back Office Tools
Fraud Detection Acceptance Methods
 Merchant Payment Processing Environments
Our omni-channel platform supports all types of merchant payment processing environments such as
ecommerce, retail, mobile, MOTO, restaurant & Apple Pay

Virtual Terminal SwIPe iProcess™ Mobile API Gateway APIs Batch Processing

Enables merchants to Enables merchants using Enables merchants to Provides developers with a Take advantage of our Facilitates processing large
process transactions by card readers to accept accept mobile payments toolkit that makes adding flexible Integration Library quantities of payments
submitting credit card card-present transactions through a secure card readers to a payment that enables you to support efficiently by multi-
and electronic check by installing a lightweight application for Apple & application seamless and ecommerce, mobile and threading simultaneous
payments online. Windows based point-of- Android devices. straightforward. retail payment processing transaction requests.
sale software application. environments for your
customers.

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 Payment Gateway Core Features

Product Manager
Virtual Terminal
Manage product SKUs & quickly recall
Swipe credit & key-in cards, and products when creating new Virtual
checks from your browser Terminal transactions.

Currencies Accepted Recurring Billing

USD, CAD, many international Setup payment plans & subscriptions
currencies based upon processor without having to collect payment
integration information again

Card Types Accepted

Reporting Capabilities
Visa, MasterCard, Discover,
American Express, Diners Club, JCB Search & get detailed insight into
transactions

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 Payment Gateway Core Features

Manage Multi-MIDs
Customer Support
Board multiple MIDs to a single gateway
account to consolidate reporting, manage Our customer support team has
branches, organize products, Etc. extensive gateway knowledge and is
here to answer any gateway related
questions you have.

Advanced Transaction Routing

Three-Step Redirect API
Interface (ATRI)
Reduces a merchant’s PCI footprint
Allows a merchant with multiple MIDs on a by eliminating transmission of
single gateway account to automatically
sensitive payment information.
determine which MIDs to route transactions
to based on advanced load balancing
directives

QuickClick
Gateway Emulator
Allows merchants to quickly & easily link a
website to the payment gateway by utilizing a Enables merchants to migrate from
native payment gateway shopping cart other industry gateways to the
solution. Dharma/NMI Gateway.

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 Additional Processing Features

iSpy Fraud Electronic Invoicing

Electronic Check
Real-time fraud scrubbing utility that Enables merchants to invoice customers via
helps to differentiate legitimate from Enables online and traditional merchants to email. Customers can then submit payments by
fraudulent transactions. accept and process electronic check payments following an embedded link. Invoices are
directly from an ecommerce storefront or generated with line detailed information and
through Virtual Terminal. automatically convert to PDFs that are attached
and emailed to customers.

Customer Vault Level III Processing

PCI-compliant encrypted and tokenized customer Level III Processing is used by government and enterprise-
credit card and ACH account data storage. level corporations when handling large orders through
Tokenization allows merchants to process business-to-business and business-to-government
transactions without transmitting credit card or transactions.
ACH account data.

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