Paladin vendor report | payment systems - ACI Worldwide
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paladin vendor report | payment systems
PVR | payment systems
Welcome to the 2020 the Paladin Payment Vendor Report.
The mission of the Merchant Risk Council (MRC) is to provide members with useful
tools and hard-to-find information that’s critical to managing payment infrastructure
and improving the customer purchasing experience. At the MRC, we understand how
difficult it is to navigate a complex ecommerce environment and find the right solution
for specific payment needs. As a benefit of your MRC membership, we are offering
members a discounted copy of the Paladin Vendor Report (PVR).
The PVR, gathered by the industry experts at Paladin Group, provides detailed
information about seven top Payment Switch vendors who offer a wide variety of
different tools, platforms, and services. This report is designed to give you a
comprehensive overview of the different products offered by each company—and
to present analysis to help you focus on who may ultimately best align with your
organization’s payment management goals.
We hope you find this report to be a helpful resource that will provide you and
your business with valuable insights. We are also interested in hearing your
feedback on the report and encourage you to send any comments directly to
programs@merchantriskcouncil.org.
Sincerely,
Markus Bergthaler
Director of Programs and Marketing, MRC
2 | info@paladingroup.com
Introduction PVR | payment systems
The 2020 Paladin Payment Systems Vendor Report
We focused on several key areas
Every day, we at Paladin Group are in the thick of the fast-paced world of fraud solutions. during the discovery process. (Not all
After all, ecommerce fraud is the top payments challenge according to the Merchant are applicable to every vendor, but for
Risk Council’s Global Payments Survey. Our partners and authors of this report, Retail consistency, we examined each of the
Payments Global Consulting Group, focus on helping merchants solve for the survey’s following wherever relevant.)
four challenges: cost of payments, the acceptance of alternative payments, security,
FUNCTIONAL ARCHITECTURE -
and IT constraints. The companies featured in this report help merchants increase their
What the platform’s capabilities are
authorization approval rates and lower their payments costs but do not assume financial
such as transaction types and value-
ownership of the transactions on their platforms. They are technology providers.
added services.
We chose to focus on this vendor set because no single Payment Service Provider TECHNOLOGY - The platform’s
(PSP) can fully service every market. For simplicity moving forward, any entity that physical attributes such as technologies
takes fiduciary responsibility of transaction processing such as an acquirer, a third- used, locations, and APIs.
party provider, or a payment service provider, will be referred to as a PSP. PSPs provide CUSTOMER SUPPORT - What
a vital role to the payments ecosystem, but given their economic bias within the self-service tools and account
ecosystem and their inability to consistently intermingle cooperatively, we work from the management availability augument
assumption that enterprise merchants still need a great deal of the functionality PSPs the platform.
employ today. Even highly-respected and appropriately staffed merchants experience PRICING MODEL - Usage of the
outages and partner with several payment service providers in order to maximize their platform is typically billed in either
coverage (for currencies, geographies, and payment methods). The term “layered a per transaction, subscription, or
approach” isn’t just for fraud anymore. licensee fee.
3 | info@paladingroup.com
Introduction PVR | payment systems
Figure 1: Payment-Related Challenges Ranked the best practice, regardless of whether it’s built or bought. The most
45% straightforward architectural solution is to abstract the payments
40% layer to the periphery of the core technology stack. It is where
35%
gateways and switches are ideally positioned to service merchants.
30%
25% The gateways and switches featured in this report seek to address
20%
the challenges of safely managing a global payments platform.
Each platform is reviewed for functionality, technical capabilities,
15%
10%
customer service, and pricing model. These considerations are
5%
0%
top-of-mind for any merchant deliberating the “build or buy”
Regulation Impact
Organizational Structure
Checkout Conversion
Supplier Managment
Data Access
Staff-Related Challenges
Order Growth Expansion
IT Constraints
Security (PCI/DSS, Tokenization)
Acceptance of Alternative Payments
Cost of Payments
ecommerce Fraud
question. The companies featured in this report are positioned
as the orchestration layer (see Figure 3) to simplify payment
operations, increase security, and reduce payment-related
maintenance for the rest of the technology stack.
Figure 2: A Complicated Web of Payments Interactivity
Source: MRC and CyberSource’s Payment Management Strategies
of Forward-Thinking Global Merchants Global Payments Survey.
Merchant payment operations have a greater need for a PSP-
agnostic strategy than ever before. Yet, thanks to a fragmented
token environment from providers and continuously changing
card scheme compliance requirements, the challenges of
implementation and maintenance have also increased. Operating
payments within multiple merchant systems creates a complicated
Source: The Need for Payments Orchestration. Presented
web of interactivity just to maintain a single PSP relationship and
by Rene Pelegero (RPGC Group) & Suhil Srinivas (LinkedIn).
handcuffs operations (see Figure 2). This type of environment is not
4 | info@paladingroup.com
Introduction PVR | payment systems
Except for the above assertion, the 2020 Paladin Vendor participate. Our team spent hours in discussion with each
Report is purely informational. Neither Paladin nor RPGC has of these participants—with many of these discussions taking
written any opinions, given any reviews, or displayed any place on-site. We test-drove their products and gathered
thumbs-up (or down) about the vendors contained in the report. overviews of their services, marketing, sales, technologies,
This report is not designed to rate the products and services of products, and future plans.
the vendors—its intent is to provide clarity regarding the
For vendors who chose not to participate in the report, we
products and services available.
drew upon our extensive interaction, client input, and research
Figure 3: The ideal position for payments architecture to share a summary of their services. This report documents an
effort to gain as much first-hand knowledge as possible from
payment switch vendors, compiling our findings in a way that’s
helpful and revolutionary for our industry and the merchants
who depend on us.
Source: Payments Orchestration Layer: Necessary functionality
in the payments stack.
We’ve prepared materials on 32 companies providing services in
this space. Each vendor had the option to participate in the report,
and we were compensated for our time by those who elected to
5 | info@paladingroup.comIntroduction PVR | payment systems
Connectivity to multiple endpoints – This icon will denote Network Token Requestor - Certification with at least
Core functionality icon key the Vendors capabilities connecting to many acquirers, one EMVCo member’s Token Requestor program to
PSP, banks, and other payment schemes around the world. request and share network tokens across multiple
The icon must convey the multiplicity and diversity of Clients and partners. Vendor must also be capable of
payment endpoints that could be offered by a vendor. storing and transmitting Payment Account Reference
Configurable transaction routing rules – The ability to number to Clients.
Connectivity to Customizable Transaction Dynamic Routing expose business-user friendly tools to route transactions On-Premises implementation - Solution Provide licenses
Multiple Endpoints Routing Rules
using arbitrary business logic in the Client dashboard. This service for an on-site deployment
means users can develop decline retries trees or logic Multi-Cloud Implementation - Vendor has multiple
to route transactions according to transaction attributes cloud deployments (e.g. AWS, Azure, GCP, Tencent, etc.)
without the need for additional programming.
Professional guidance - Provides outsourced support
Dynamic Routing – The ability to reroute a transaction for data analysis, rules-building, and recommended
Machine Learning Support for Multiple Support Pay-outs to
Based Routing Pay-in Payment Methods Multiple Destinations
from one acquirer to another without notifying the best practices, etc.
customer of an issuer decline
Account management - Personnel dedicated to working
Machine Learning Based Routing – The ability to directly with Clients
supply their own proprietary algorithms to route
Custom Alerts - The ability to receive notifications
transactions on a Client’s behalf without the need for
Consolidated Data and Real-Time Ledgers Network Token when business rule thresholds are exceeded
Reporting Dashboard Requestor further code development.
Split Tender Transactions - The ability to receive a
Support for multiple pay-in payment methods – The
single payment request from the merchant and split it
ability to multiple pay-in payment methods (e.g. cards, bank
into multiple transactions using different cards, payment
transfers, cash, on-line banking payments, e-wallets, etc.
methods or loyalty programs
This is not to be confused with the connectivity to multiple
On-Premises Multi-Cloud Professional Guidance end points as a Vendor can be connected to dozens of end Homegrown 3D-Secure 2 Server - Vendor has developed
implementation Implementation
points but only support cards). its own EMVCo certified 3D-Secure technology that
connects to a registered Directory Server to facilitate
Support pay-outs to multiple destinations – Vendor
authentication transactions.
has the capability of disbursing payments to bank
accounts, e-wallets, pay to card, etc. Dynamic Payment Method Presentation - Vendor
provides the merchant the ability to selectively present
Account Management Custom Alerts Split Tender Consolidated data and reporting dashboard –
Transactions specific payment methods on the checkout page to the
The ability to display transaction data across multiple
end-customer by product type or geography to maximize
providers in a single portal or report
checkout conversions.
Real-Time Ledgers - The ability to track a transaction’s
multiple financial statuses, including activities such as
Homegrown 3D-Secure Dynamic Payment
split tenders, revenue share splits, calculating the cost
2 Server Method Presentation
of a transaction, etc.
6 | info@paladingroup.comParticipating Vendor
ACI PAY.ON Payments Gateway PVR | payment systems Connectivity to
Multiple Endpoints
Cus
ACI Worldwide is a global provider of real-time electronic payment and banking
solutions to a wide range of verticals and industries. ACI Universal Payments (UP)
Connectivity
Connectivity
to to Customizable
Customizable
Transaction
Transaction Dynamic
Dynamic
Routing
Routing Machine Learning S
omnichannel vision of “Any Payment, Every Possibility” carries through the company’s
Multiple
Multiple
Endpoints
Endpoints Routing
Routing
Rules
Rules Based Routing Pay
extensive list of services, including merchant payments, instant payments, transaction
banking, online retail banking, and bill payments.
ACI’s UP eCommerce Payments Solution serves as an acquirer-agnostic bundled Machine
Machine
Based
Based
Learning
Learning
Routing
Routing At a Glance:
Support
Support
Pay-in
Pay-in
forfor
Payment
Multiple
Payment
Multiple
Methods
Methods
Support
Support
Multiple
Multiple
Multiple
Pay-outs
Pay-outs
Connectivity to to to
Destinations
Destinations
Endpoints
ConsolidatedTransaction
Customizable
Reporting
Data and
Dashboard
Routing Rules
R
payments and fraud management solution for online merchants and payments
service providers. ACI’s ability to offer payment solutions with integrated fraud
management via a single point of access in the cloud provides high performance
and scalability. It allows merchants to focus on delivering:
Consolidated
Consolidated
Data
Data
and
and Real-Time
Real-Time
Ledgers
Ledgers
Connectivity
Connectivity
to to Network
Network
Machine Token
Token
Learning
Customizable
Customizable
Transaction
Transaction Support for Multiple
Dynamic
DynamicRouting
On-PremisesRouting S
Reporting
Reporting
Dashboard
Dashboard Multiple
Multiple
Endpoints
Endpoints Requestor
Based Requestor
Routing
Routing
Routing
Rules
Rules Pay-in Payment Methods
implementation M
• Increased conversion rates, resulting in additional revenue
• Optimized payment acceptance
• Reduced fraud and chargeback rates
• Reduced operational cost On-Premises
On-Premises Machine
Machine
Learning
Learning
Multi-Cloud
Multi-Cloud Consolidated
Support forData
Support
Professional for
Professional and
Multiple
Multiple
Guidance
Guidance Real-Time
Support
Support
Account Ledgers
Pay-outs
Pay-outs
Management to to
implementation
implementation Based
Based
Routing
Routing
Implementation
Implementation Reporting
Pay-in
Pay-in Dashboard
Payment
Payment Methods
Methods Multiple
Multiple
Destinations
Destinations
ACI is committed to innovation and continuous solution enhancement, investing 17
percent of revenues each year into research and development. This ensures that
ACI’s technology, services, and advice provide the best possible benefits to their
base of over 1,500 merchants and banking customers. Account
Account
Management
Management Consolidated
Consolidated
Custom
Custom
Reporting
Reporting
Data
Data
Alerts and
Alerts
Dashboard
and
Dashboard
Real-Time
Real-Time
On-Premises
Split
Split Ledgers
Ledgers
Tender
Tender
implementation
Transactions
Transactions
Network
Network
Homegrown Token
2 Requestor
Token
3D-Secure
Multi-Cloud
Requestor
Server
Implementation
Pr
M
Homegrown
Homegrown3D-Secure
3D-Secure Dynamic
Dynamic Payment
Payment
On-Premises
On-Premises AccountMulti-Cloud
Multi-Cloud
Management Professional
Professional
Custom Guidance
Guidance
Alerts
2 Server
2 Server Method
MethodPresentation
Presentation
implementation
implementation Implementation
Implementation
7 | info@paladingroup.com
Account
Account
Management
Management Homegrown 3D-Secure
Custom
Custom
Alerts
Alerts Dynamic Payment
Split
Split
Tender
TenderParticipating Vendor
ACI PAY.ON Payments Gateway PVR | payment systems
Solutions & Functionality The ACI PAY.ON Payments Gateway allows merchants to connect
to a global payments network and access the complete set of
ACI’s UP eCommerce Payments Solution provides end- features and front-end widgets with a single, one-time integration
to-end payments and risk management services to through an open RESTful API.
ecommerce merchants across a variety of verticals, including
telecommunications providers, retail, gaming, entertainment, The ACI PAY.ON Payments Gateway is a multi-language, multi-
digital goods, travel, hospitality, and Payment Service Providers currency solution, which is connected to hundreds of local and
(PSPs). cross-border acquirers and alternative payment methods across
the globe.
Through the UP eCommerce solution, ACI helps merchants to:
The ACI payments Gateway currently supports hundreds of
• Easily implement new payment options for emerging shopping alternative payments methods and acquirers payment methods
channels, payment types, and cross-border transactions worldwide, including, among others:
• Speed up time to market with minimal integration and
onboarding efforts for delivering new payment methods, • All major international and domestic card schemes
entering new markets, and establishing connectivity to • Bank transfers (including US ACH Direct Debits, SEPA
alternative acquirers Direct Debits, SEPA Credit Transfers)
• Increase customer conversions and revenues by increasing • Invoicing solutions (Klarna and AfterPay)
card authorization approval rates through Smart Transaction • Online banking solutions (eps, iDEAL, Giropay, POLi,
Routing capabilities PayDirekt, and Sofort)
• Digital wallets (AliPay, PayPal, Skrill, Neteller, TenPay,
Functional Architecture and Yandex)
The ACI PAY.ON® Payments Gateway • Cash payments (Boleto Bancario in Brazil, Oxxo in Mexico,
The ACI PAY.ON Payments Gateway, a core component of the and Multibanco in Portugal)
UP eCommerce Payments solution, provides a suite full of • In-store payment schemes including prepaid and store cards
features for payments processing and omni-channel solutions.
8 | info@paladingroup.comParticipating Vendor ACI PAY.ON Payments Gateway PVR | payment systems The gateway is a cloud-based solution, which is offered directly The server-to-server integration requires the merchant to collect to merchants, as well as a white-label gateway extension solution the card data and pass it on to ACI. Server-to-Server integration to Payment Service Providers and acquirers to help them increase increases PCI-DSS compliance but allows the merchant to retain their global reach. full control of the checkout page. Flexibility and control Built on open payments architecture, the ACI PAY.ON Payments Gateway offers a complete set of customizable tools to meet the demands of any merchant and their diverse range of customers. The solution offers the ability to quickly and easily build new applications and services in line with changing market requirements. Merchants also retain complete control of the look and feel of the checkout without having to create the pages from scratch. ACI’s COPYandPAY tool is a JavaScript widget that sends sensitive payment data directly from the shopper’s browser to the PAY.ON ACI also provides a Mobile SDK to accept payments in mobile Gateway. Using this widget, merchants simply need to add a few apps on iOS and Android platforms as well as SDKs and libraries lines of code to get their checkout page up and running. They can for developers and third-party shopping cart plugins. PAY.ON® take advantage of ready-made forms, select whichever payment also supports webhooks so that merchants can be notified methods they want to support, and configure the page to the of state changes to payments or transactions connected to a look and feel of their website. The tool avoids redirects which payment (e.g. chargebacks). can cause cart abandonment and reduces or eliminates PCI/ DSS compliance requirements for merchants since the sensitive payment information flows directly to the gateway. 9 | info@paladingroup.com
Participating Vendor
ACI PAY.ON Payments Gateway PVR | payment systems
Secure authentication 1. Intelligent transaction dispatching technology supports
The PAY.ON Payments Gateway solution has its own token streamlined payments performance and improved conversion
vault accessible via the RESTful API. ACI will support Network rates by powering dynamic transaction routing. This allows
Tokens from 2020 or a Personal Account Reference (PAR) and card transactions to be routed to different acquirers based on
has support for customer-created tokens (i.e. customer ID attributes such as BIN, card brand, IP address, and risk profile
association with a payment token). to ensure that transactions are automatically sent to the most
appropriate acquirer.
ACI also supports Mastercard’s real-time updater globally
as a brand-agnostic service sending account updates through 2. Smart Retry supports the customer experience by allowing
Mastercard for network schemes including Visa, Discover, failed card transactions to be automatically re-sent behind the
and American Express. Visa’s Account Updater program is scenes, either to the same acquirer, or an alternative one, to
supported through a partnership with Chase. help complete the sale and increase acceptance levels.
PAY.ON Payments Gateway fully supports 3DSecure versions 3. Optimized Routing is designed to reduce latency for cross-
1.0 and 2.0. Further, ACI also operates its own Merchant Plug-In border card and alternative payments methods, optimizing
(MPI) for in-line 3DSecure support, and it supports processing to the performance of a merchant website, wherever they are
third-party providers such as Cardinal Commerce. and wherever their customers are—ensuring high conversion
rates by reducing internet connection errors and delays.
Smart Transaction Routing
ACI Smart Transaction Routing, part of the ACI UP eCommerce ACI provides a portal to manage all the different MIDs that
Solution, is a comprehensive suite of routing solutions designed must be set up to manage the different routing options.
to help domestic and cross-border merchants and PSPs improve
acceptance, conversion and payment performance in a cost-
effective way. The modular suite comprises three key services:
10 | info@paladingroup.comParticipating Vendor
ACI PAY.ON Payments Gateway PVR | payment systems
Integrated fraud services: ACI ReD Shield ReDi is available via a secure internet portal, accessible anywhere
ACI ReD Shield is a multi-layered, real-time, fraud prevention in the world with no local setup or software requirements.
solution for ecommerce merchants, payment service providers
Real-time transaction reporting and analysis offers transaction
(PSPs), acquirers, and processors. The solution utilizes machine
detail view, fraud prevention analysis, basic and advanced data
learning and a sophisticated rules engine combined with
warehouse analysis view, and chargeback analysis with detailed
consortium data, third-party callouts, and a series of real-time
reason codes.
alerts and near real-time dashboards. Fraud strategies are
modelled to the requirements of each merchant’s needs. Technology
ReD Shield provides instant automated decisions (accept/ The ACI PAY.ON Payments Gateway is a SaaS-based platform
challenge/deny) on ecommerce and m-commerce transactions, that ACI hosts in regionally diverse data centers (ACI On Demand).
detecting and managing domestic and cross-border payment The service resides on virtualized systems on redundant physical
fraud. It also supports real-time and retrospective screening hardware clusters featuring dual-core switches, dual firewalls,
on all transactions across all distribution channels, geographies, and redundant MPLS communications with diverse routing.
product types, and payment types. The data centers also operate on dual power grids and feature
environmental controls, including fire detection and suppression
ReDi Business Intelligence Portal
units. The environment fully compliant with PCI/DSS and it is
ReDi is an interactive self-service business intelligence portal
subject to an annual SSAE 18 audit.
that provides a near-real-time and historic window into
ecommerce and m-commerce transaction data that comes into Further, the data centers have multi-layered redundant firewalls
ReD Shield, allowing customers to monitor their fraud detection against intrusion, which are monitored 24x7x365. Similarly, the
and prevention activities. The portal is accessed via the internet telecommunications network control is also monitored by a
and provides high-level dashboards and charts, with intuitive 24x7x365 network operations and support team. Physical and
navigation and drill-downs that take the user through layers virtual access to these data centers is also controlled.
of information, all the way down to individual transactions.
11 | info@paladingroup.comParticipating Vendor
ACI PAY.ON Payments Gateway PVR | payment systems
Customer Support authorization (this fee also normally includes the capture/
An ACI account management team is assigned to each merchant clearing of a transaction), refund, and reversals. Generally, ACI
with a designated point of contact to help merchants manage does not charge an Ad Valorem (a percentage of the value of
day-to-day service operations. ACI’s technical support team is the transaction), but this fee could be introduced depending
called HELP24. HELP24 is a global support organization with more on the merchant’s transaction volume (i.e. if it is too low).
than 200 employees across more than 20 locations based on the
Other possible fees include File Transfer Fees, OBeP Fees (i.e.
ground in Asia Pacific, EMEA and the Americas. There is also an
routing a transaction to an online banking application such as iDEAL
online eSupport Portal (http://www.aciworldwide.com/support)
or Sofort), or an Inbound Transfer Fee (i.e. when PAY.ON® receives a
that serves as a case management tool where customers can
notification from a bank or goes out to bank to inquire on the status
open cases, check the status of their cases, exchange information,
of an inbound payment and passes this information to merchant).
and view detailed case notes through the self-service tool.
There is a Setup Fee and a Monthly Maintenance Fee, which
The Product Information area of the eSupport portal allows
gives merchants access to 10 connectors (additional connectors
direct access to product updates. Merchants can search the
can be activated for an additional monthly fee). Optional additional
eSupport Knowledge Base for solutions to common incidents.
fees include access to fraud prevention integral checks, 3D
The Knowledge Base is a resource to help resolve issues
Secure processing on ACI’s MPI, and access to ACI’s Business
without having to contact HELP24.
Intelligence Platform (BIP).
Pricing Model
ACI will also support merchants’ special requirements by
ACI’s PAY.ON® Payments Gateway pricing model is flexible
developing connectors on demand, and it also provides
to accommodate merchants’ requirements. Volume pricing
professional services and technical support for an hourly
discounts are available. As such, individual transaction price
rate. The technical support is for technical assistance beyond
decreases as overall processing volume increases. In addition,
the number of free hours each month that the merchant
pricing includes enterprise risk checking and fraud screening.
qualifies for. ACI provides final pricing upon completion of a
A transaction is defined as a business event, and they include requirements-gathering workshop.
12 | info@paladingroup.comPaladin would like to thank all of the participating vendors for their time and availability during the discovery and post-writing processes. We also would like to remind all readers of this report that they can email us at info@paladinfraud.com to let us know which vendors they would like to see participate in the report next year.
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