How to create a payment gateway and become a payment service provider

 How to create a payment gateway and become a payment service provider

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If you own an online store, you have to embed a payment gateway to process payments safely. In previous posts, we have considered how to integrate it into a website or mobile app. Today, I propose looking at the most difficult, yet, the most customizable approach. Let’s consider payment gateway development and, further, becoming a payment service provider. Indeed, it is a costly affair. However, it has certain advantages.

Here are our stopovers in case you want to overleap:

What is a payment gateway?

Why build a custom gateway?

Payment gateway vs. payment provider

Who needs a custom gateway?

The pros and cons of custom development

How to become a payment service provider

Extra tips for building a payment gateway

How much does a custom gateway cost?

Softensy viewpoint

What is a payment gateway?

A payment gateway is a complex system that enables debit/credit card payments for online and offline merchants. It sets a smooth passage of such transactions by encrypting confidential data and transferring them between a buyer, an online shop, and a bank. The shop acts as a payment portal and the bank as a payment processor. Thus, the payment gateway establishes communication between the three participants of the payment process. It ensures every transaction runs safely by applying various anti-fraud tools and acting under the PCI-compliance.

From the technical point of view, the payment gateway is a layer above the payment processor. It receives data from the user and, depending on the chosen payment method, redirects the payment to the processor in an understandable format.

Why build a custom gateway?

There are many ready-made payment methods that you can simply take and connect to your store. In the last article, we examined the best payment gateway providers and gave a credit card processing comparison chart. Nevertheless, none of these options will provide you with full control over the payment process. Besides, there will always be points that you would want to change or add.

Given this, we decided to share our vision of creating a custom gateway. We list the pros, cons, and reveal some tricky moments of such a project.

Payment gateway vs. payment provider

It is essential to understand the difference between the payment gateway and the payment provider. While the first is software, the second is the ability to use this software for its intended purpose.

So, writing a working program doesn’t mean you can embed it into your site or sell it to other merchants right away. First, you need to go through the certification process and connect with a payment processor. Note, building software is not a challenging task. In contrast, the registration procedure may take months or even years. Only after obtaining all the necessary permissions can you act as a provider.

Who needs a custom gateway?

Here are the types of companies that may benefit a lot from building a custom gateway:

Large merchants with high turnover who do not want to depend on a third-party provider

Incumbent billing companies that want to replace or update their software

Hi-growth payment providers that need a more advanced payment processing system

IT firms that intend to grow business by acting as a payment service provider

Acquiring banks that want to improve their front-end solution

The pros and cons of custom development

Pros

Lower fees. With ready-made online payment methods, you are sentenced to lifely fees for every operation. Besides, in most cases, you should pay a registration fee. The custom solution will allow you to be your own boss and reduce payment processing costs.

Custom features. Even the best global payment processor cannot meet all your expectations. If you look through the list of payment methods, you can see that some do not support multi-currency transactions, other ones do not work with recurring charges, yet others are too expensive. Opting for custom development, you can get the exact product you want.

Additional revenue. Owning a payment gateway, you yourself can become a provider. It means you can charge registration fees and transaction fees from other merchants. Thus, you can think of a new way of business development that will help grow your profit.

Cons

Development time. With custom gateway development, you will spend time on the preparatory phase, pure development, testing, and maintenance. It will take longer compared to integrating a ready-made solution. However, in the long run, you will benefit, as you will be freed from recurring charges and gain an extra source of income.

Certification costs. To run your gateway, you need to connect to the payment processor and comply with the PCI requirements. Let’s be clear; it is a long and slow way. Besides, it requires high costs. If you choose a white-labeled solution, you avoid such a headache as you connect to the gateway with all the dust settled.

Sole responsibility. Being a payment service provider, you are totally in charge of transaction security. You must guarantee the protection of cardholder data and the minimum risk of fraud.

 

pros and cons of custom payment gateway

Pros and cons of custom payment gateway

How to become a payment service provider

Now, we will list the steps to take on the path of becoming a payment provider. 

Step 1. Set up infrastructure

You can either host your gateway on the third-party server or prepare the server on your own. The latter option gives you full power, however, you will need to maintain the data center and undergo an annual PCI audit. If you decide to host outside, I recommend considering AWS. They have a developed equipment base and offer solutions for all kinds of business.

Step 2. Integrate with a payment processor

A payment processor is a company or financial institution that processes online transactions. It is either a bank or a payment system, such as Visa, Mastercard, AmEx, etc. To integrate with a processor, you need to obtain their API documentation and implement it as instructed. You will also need to develop an external API for your clients. They will use it to send payments (one-time or recurring) for processing and receive the payment statuses back.

Step 3. Develop CRM

A CRM system is a powerful tool for keeping client data, managing transactions, and controlling managers. It will allow you to do smart forecasting and avoid many mistakes. Basically, CRM is a huge customer base. For you, as a payment provider, it will provide great help for managing new and existing clients.

Step 4. Implement tokenization

Tokenization implies keeping credit card data on the gateway side rather than on the e-commerce store’s server. Tokenization aims to free merchants from storing sensitive data during recurring charges. For that, the buyer’s card number is replaced with a token, which is further used by the online shop.

You must set up tokenization in case you are planning to run the gateway on your own server. The process involves preparing the hardware that will encrypt the card data and the software that will comply with PA-DSS rules. If you choose to host elsewhere, these troubles rest on the server provider’s shoulders.

Step 5. Get 3DS certificate from EMVCo 

EMV stands for Europay + MasterCard + VISA. It is an international standard for bank card transactions with a chip. To get a certificate, you need to do the following:

Contact with EMVCo to get an EMVCo Product Provider Registration Number.

Register in the laboratory and sign a quotation to open access to the lab’s 3DS test platform.

Wait for formal approval of test results.

Receive a letter of confirmation from EMVCo

Contact the certification center and go through the certification procedure

Get the certificate and the license

Step 6. Apply for PCI

It is a mandatory step if you want to deal with online payments. PCI DSS standard aims to reduce fraud by setting twelve obligatory rules for the software that works with credit cards. Besides, it divides companies into four levels depending on the transaction volume. To get approval, you should order the PCI audit. Note, it is a costly affair which you should repeat at least once a year.

 

Steps to take to become a payment service provider

How to become a payment service provider

Extra tips for building a payment gateway

In this section, I’m going to place a few recommendations that will help you build a competitive gateway.

Integrate with many processors. The more payment processors you link with, the more opportunities you give to your merchants. Specifically, the sellers will be able to choose among different acquiring banks to open an operating account. Also, they will have a choice of transaction fee rates.

Make your gateway flexible and adaptive. An advanced payment gateway can quickly adapt to the merchant needs. So, make sure to add accessible customization opportunities. In particular, pay attention to types of payment methods. The more options the buyer has, the higher profit the seller can rise.

Implement a dispute resolution interface. Merchants often face arguable points during their commercial activities. Therefore, you will do them a favor by offering a convenient interface to contact an issuing bank.

Give merchants accessible API. Business owners look for an easy way to integrate payment gateway into their store. If you provide a smooth mechanism to do it, you will increase the chances of getting new customers.

Provide customer support. Even minor issues in payment gateway may cause severe losses to merchants. So, make sure to hire skilled managers and implement chatbots that are available 24/7. It will help you troubleshoot problems shortly if they occur.

How much does it cost to become a payment service provider?

The price of a custom gateway is variable. It mainly depends on your preferences and business strategy. Given this, it is impossible to identify an exact sum. However, there are costs that you will face for sure. Let’s take a look at them.

Development costs €25000 – €35000

Software certification (test platform subscription for 3DS Server, Formal Approval, LoA EMVCo certificate) €15000, €15000, €10000

Tokenization appliance €42000 – €85000

Annual PCI audit €22,000 per year

Integration with banks and processors €4,000 – €13,000 each

 

How much does it cost to become a payment service provider

The cost of becoming a payment service provider

Softensy viewpoint

A custom payment gateway is a right choice for stable companies that want to do business by their own rules. By developing the product from scratch, you tailor it to the specific needs and receive peak efficiency. Moreover, payment gateway development opens ample opportunities for growing your profit. If you want to sell it to other merchants, make sure it is highly secure and easily customizable. The features set should cover multiple payment processors, convenient dispute settlement interface, and easy tool for reporting.

What is sound engineering?

What is sound engineering?

Sound engineering, in simple words, is the process of capturing, recording, editing, manipulating, mixing, reproducing and delivering any type of sound using a variety of mechanical equipment and digital devices. The individual responsible for doing this is referred to as a sound engineer or audio engineer. According to Wikipedia, an audio engineer is someone who –

1.      "works on the recording,   

2.      manipulation using equalization and electronic effects,     

3.      mixing,   

4.      reproduction, and   

5.      Reinforcement of sound. Audio engineers work on the technical aspect of recording - the placing of microphones, pre-amp knobs, the setting of levels."

Role of a Sound Engineer

The primary role of a sound engineer is to use their technical skills to record or create crystal clear sound for a variety of purposes on different platforms.

Role of Sound Engineers 

1.    Assembling,

2.    Operating,

3.    Maintaining the Technical Equipment Used to Record,

4.    Amplify,

5.    Enhance,

6.    Mix or Reproduce Sound.

 

Sound Engineer Duties and Responsibilities

 

1.      Perform duties assigned by directors, producers etc

2.      Set up, maintain and regularly inspect sound equipment

3.      Collaborate with a multidisciplinary team of video editors, lighting experts, cameramen etc.

4.      Assist in synchronizing video and audio tracks

5.      Record, edit and mix audio tracks

6.      Test and improve sound quality

7.      Add sound effects to recordings

8.      Create and update sound libraries

9.      Resolve technical problems when they occur

10.  Stay up to date with latest trends and best practices

 

Essential Skills of Sound Engineer:

·         Solid foundation in subjects like Physics and Mathematics

·         Sound technical knowledge

·         Ability to grasp complex concepts quickly

·         Familiarity with new technology and digital media

·         Troubleshooting and problem-solving abilities

·         Good communication skills

·         An ear for music and high-quality audio

·         Ability to adapt to constant upgrades in technology

How Do Audio Technicians Run Sound at Conventions and Events?

Audio technician sets microphone at speaking panel at convention

Audio for conventions or large events is very complicated. There are many factors for an audio technician to consider at a large event.

Conventions and Live Audio: Convention and event audio ensures that music played throughout the event space sounds good. In addition, the audio technician also makes sure attendees hear speakers and musical guests. Additionally, the location of the event plays a role in the acoustics and equipment choices for live audio engineers.

An audio technician that works conventions and events needs to understand how to run large and small soundboards. On top of this, they must also know how to solve problems that occur, and how to wire everything.

Audio and Acoustic Considerations for Events: Convention and event sound requires an understanding of what every room in the space sounds like. A big auditorium sounds a lot different from a small recital hall or meeting room. A ballroom will have different acoustics than a convention room that does not have decorations or treatments on the walls.

LISTENING TO THE SPACE’S ACOUSTICS

First, the audio technician needs to listen to space when it is empty. A good audio technician can walk through the hall and test the room’s reverb. A big room with acoustic treatments will not have a booming sound or a lot of reverb. A room with no decorations or treatments will echo so much that it could be distracting.

HOW DO LIVE SOUND ENGINEERS SOLVE ACOUSTICAL PROBLEMS?

The audio technician can ask the event staff to put drapes on the wall or raise the room’s acoustic treatments. Plus, the audio technician could ask that the room’s stay closed at all times. An acoustic treatment sucks up sound that would otherwise bounce off the walls, which results in poor audio.

The audio technician also needs to account for a stage, because the stage itself has its own acoustic properties. The stage can also cause a lot of reverb. If this is the case, sound from the back of the stage will not reach the audience. Also, the speaker at the front of the stage may sound much louder than normal.

Once the audio technician understands the room’s sound, they can begin choosing microphones for the speakers, performers, singers, and musicians.

How Does a Sound Technician Choose Microphones?

A traditional event or convention with a speaker can use a normal microphone or microphone pack. In order to deliver the best sound possible, it is important that the audio technician knows how these microphones sound.

AUDIO CONSIDERATIONS FOR LIVE MUSIC

If the event will include live music, the audio technician needs to choose microphones for use with musical instruments. These microphones are completely different from a regular microphone used by a singer, and they must be set up on racks that bring them close to the musicians.

ELECTRONIC MUSIC CONSIDERATIONS

If the audio engineer works with a band that uses electronic instruments, all those instruments need to be plugged into the soundboard. Plus, the audio technician needs to do a full sound check with the band to make sure that all the instruments sound good. Some bands will bring their own cables, and they may have their own monitors. The audio technician must make sure that they have integrated what the band uses with the system that is already in place.

What About Monitors?

Monitors are a big part of any large event. The monitor is a speaker that faces the performer or the speaker, so they know what they sound like. Monitors can also be earpieces, known as in-ear monitors, which provide the same function as a traditional setup.

The audio technician needs to do a sound check just for the monitor, and they need to ensure that the monitors hook up to the system correctly.

Checking the Soundboard

The audio technician will be responsible for all soundboard maintenance during an event. If speakers or microphones need to be muted during a show or talk, the audio technician needs to turn them off at the appointed time. Because of this, the audio technician needs to be alert at all times.

ORGANIZATION TIPS FOR AUDIO TECHNICIANS

The audio technician can write down a list of all the levels on the soundboard so that they can adjust the board quickly, and they can show other people how to manage the board in case of an emergency. The board needs to be powered properly, and all the cables that go into the board need to be labeled.

Furthermore, some audio technicians will go the extra mile by labeling all the cables plugged in on the stage. These labels make it easy for the audio technician to change the setup between performances or speakers. If the technician wants to bring their own cables, they might be able to help with the setup for a speaker or live performer who does not normally use electronics.

Event Hall Sound

When the event or convention wants to send messages to everyone at the same time, the all-call speakers will be used. However, an audio technician needs to make sure that the microphone sounds good when it is turned on. If the microphone is turned down too far, no one can hear. If the microphone is turned up too high, it will be deafening. Plus, the microphone cannot be around other cables or mics that could cause interference.

A simple test before the event begins helps the audio technician avoid any feedback or static that may occur while using the all-call button.

 

If the event is held in more than one place, it is up to the audio technician to go to each space to hear what it sounds like. Some of these spaces will sound very dry and dead because they have too much acoustic treatment. There are other rooms that sound very bright and vibrant because the sound waves are bouncing around the room. Apply the same techniques to each room to ensure that is sounds good when people walk in for the first time.

Event Hall Music

If the convention organizers want to play music throughout the event space, they need to work with the audio technician to have that music played on the proper loop. The audio engineer also needs to know where the music is coming from, and they need to know what kind of music it is.

The music plays through all the speakers on a volume that seems moderate, and the technician can advise the organizers that certain sounds may be too loud. Plus, some songs may not sound good because they have too many instruments or sounds playing at the same time.

The audio tech needs to have an understanding of what sounds good in the space, and they should play the music while walking around to get an idea of how the event hall sounds.

Sound for Vendor Booths

There are vendor booths that might want to have sound playing all the time, and it is wise to ask the audio technician how to make the sound work properly. The audio technician should have a basic understanding of how soundboards and stereos work. The vendors could show up with any speaker or music configuration, and it is the audio technician’s job to make sure the music sounds good.

The audio technician also needs to know how to make each vendor sound good without overpowering the event hall. If the tech has spent enough time in the space, they will know how to set up sound for each vendor. The vendors should not change the volume, so the people in the convention space will not be overwhelmed by loud noises.

Where Can These Skills Be Used?

The skills that one would pick up from working at events and conventions can be used on cruises or at large universities. The audio engineer also could be hired to manage sound in a professional theater or run sound for the cruise ship’s performances every night.

These very same skills help an audio technician manage sound for a band that tours, to manage sound inside a busy meeting hall, or to help a banquet hall set up sound for a new event every night. Convention sound can be used for theatrical shows hosted by casinos or resorts, and they could adapt their skills to work as a DJ.

AUDIO CAREERS IN RADIO AND TV

If an audio engineer works in radio or TV, they will know how to make live audio sound better because they understand what the room sounds like, how to treat that room, and which microphones to use. This could be a vital skill if the technician works for a local TV station that hosts live TV shows, or it could be useful for someone who works in radio. Live or remote events have their own issues, and can make the event sound perfect.

So How Do You Become an Audio Technician?

The aspiring audio technician can learn all these things by studying the art of audio engineering in a vocational program. Some people will use these skills to work in a music studio, and others will ensure that they can work in regional productions that are near their home.

Someone who is very committed to conventions and events may want to get a full-time job managing a university student center, or host parties because they know how to set up sound for any event space. If a student served an externship with any of these professionals, they would be more than ready to work in an event hall or convention center.

Conclusion

Learning how to manage convention sound is one of the most interesting things that an audio technician can do. There are many problems to solve when the convention starts, and it is important that the technician knows how every room sounds, remains organized, and works with the event staff to create the best experience for everyone. Vendors, speakers, live performers, and organizers are counting on the technician to make sure that everything their guests hear is pleasing to the ear.

Want to Learn More?

No event or convention is complete without pristine sound to make the performances taking place highly memorable. The process to provide these results is one that entails a lot of hard work & improvisation. If this kind of creativity appeals to you & you’re curious enough to learn more, take a moment to check out IPR’s Sound Production Program and the training that they provide on-site about the tools needed to succeed in that area.

What are the other related occupations in sound engineering?

·         Studio Engineer

·         Sound Recordist (on set/location)

·         Music Composer

·         Music Arranger

·         Film Sound Designer

·         Game Sound Designer

·         Mixing Engineer for Films and Music

·         Live Sound Engineer for Concerts and Events

·         Music Producer

·         DJ / Electronic Music Producer

·         Promo Producer

·         Radio Sound Engineer

Reference

https://www.ipr.edu/blogs/live-sound-and-show-production/audio-technician-conventions-events/

 

APPLICATIONS OF LINEAR PROGRAMMING FOR SOLVING BUSINESS PROBLEMS IN TODAY'S WORLD

APPLICATIONS OF LINEAR PROGRAMMING FOR SOLVING BUSINESS PROBLEMS 

A mathematical optimization model consists of an objective function and a set of constraints in the form of a system of equations or inequalities. Optimization models are used extensively in almost all areas of decision-making, such as engineering design and financial portfolio selection. This site presents a focused and structured process for optimization problem formulation, design of optimal strategy, and quality-control tools that include validation, verification, and post-solution activities.
Applications of linear programming for solving business problems;

1. Production Management: LP is applied for determining the optimal allocation of such re­sources as materials, machines, manpower, etc. by a firm. It is used to determine the optimal product- mix of the firm to maximize its revenue. It is also used for product smoothing and assembly line balancing.

2. Personnel Management: LP technique enables the personnel manager to solve problems relating to recruitment, selection, training, and deployment of manpower to different departments of the firm. It is also used to determine the minimum number of employees required in various shifts to meet production schedule within a time schedule.

3. Inventory Management: A firm is faced with the problem of inventory management of raw materials and finished products. The objective function in inventory management is to minimize inven­tory cost and the constraints are space and demand for the product. LP technique is used to solve this problem.

4. Marketing Management: LP technique enables the marketing manager in analyzing the audience coverage of advertising based on the available media, given the advertising budget as the constraint. It also helps the sales executive of a firm in finding the shortest route for his tour. With its use, the marketing manager determines the optimal distribution schedule for transporting the product from different warehouses to various market locations in such a manner that the total transport cost is the minimum.

5. Financial Management: The financial manager of a firm, mutual fund, insurance company, bank, etc. uses the LP technique for the selection of investment portfolio of shares, bonds, etc. so as to maximize return on investment.

6. Blending Problem: LP technique is also applicable to blending problem when a final product is produced by mixing a variety of raw materials. The blending problems arise in animal feed, diet problems, petroleum products, chemical products, etc. In all such cases, with raw materials and other inputs as constraints, the objective function is to minimize the cost of final product.

BEING A MANAGER IN SOUTH AFRICA

 

INTERCULTURAL MANAGEMENT - SOUTH AFRICA

BEING A MANAGER IN SOUTH AFRICA

Management Guide South Africa

Successful cross cultural management is more likely is you understand the importance of spending time developing personal relationships and getting to know your colleagues. Because the country was closed to outside influences for many years, some older Afrikaners remain suspicious of anyone who might dilute their culture, including foreigners.

There are strong regional differences that affect the way business is conducted. There may be a lack of time urgency in cities such as Cape Town that is best explained by the phrase "just now", which means immediately, just past, now, later, or sometime in the future; whereas business can be quite fast paced in Johannesburg.

The white "Old School Tie" or "Old Boy" network that ran major businesses two decades ago is slowly being replaced by a new generation of executives who are more interested in accomplishment than where someone went to school. This is a country in transition and successful cross cultural management is more likely is you understand that you should expect to find many different management styles. Often the behavior you experience will be more a matter of personality than cultural dictate.


The Role of a Manager

The purpose of meetings in South Africa is to share information among co-workers. There is not a great deal of emphasis placed on position or status. All present are assumed to have value and therefore have value to contribute. The agenda will be set by the leader, and the leader will guide the pace and content of discussions, but all present have both an obligation and a right to contribute.

Meeting schedules are not rigid in South Africa. There may be an agenda, but it serves as a guideline for the discussion and acts as a springboard to other related business ideas. As relationships are highly important in this culture, there may be some time in the meeting devoted to non-business discussions. Time is not considered more important than completing a meeting satisfactorily, so meetings will go on until they come to a natural ending.

Approach to Change

South Africa’s intercultural adaptability and readiness for change is apparent. South Africa is seen to have a medium tolerance for change and risk. It is important for innovations to have a track record or history noting the benefits if they are to be accepted and implemented.

The fear of exposure, and the potential of embarrassment that may accompany failure, brings about aversion to risk. Because of this attitude, intercultural sensitivity is going to be required, especially when conducting group meetings and discussing contributions made my participating individuals.

Approach to Time and Priorities

South Africa is a controlled-time culture, and adherence to schedules is important and expected. In South Africa missing a deadline is a sign of poor management and inefficiency, and will shake people’s confidence.

Since South Africans respect schedules and deadlines, it is not unusual for managers to expect people to work late and even give up weekends in order to meet target deadlines. Successful intercultural management will depend on the individual’s ability to meet deadlines.

 

Decision Making

As with many other aspects of South African business, the relationship between managers and subordinates is changing. Afrikaner managers were known for being autocratic; however, the management style is becoming increasingly collaborative. That is not to say that hierarchical relationships are not respected.

Boss or Team Player ?

In South Africa, groups collaborate well together as teams. Members are generally chosen to participate based on tangible skills or the knowledge base they bring, and are equally welcome to contribute to any discussion that may arise. The success of the cross cultural manager will depend on the individual’s ability to harness the talent of the group assembled, and develop any resulting synergies.

Communication and Negotiation Styles

Women have yet to attain senior level positions. If you are a woman, you can expect to encounter some condescending behavior and to be tested in ways that a male colleague would not. Do not interrupt a South African while they are speaking. South Africans strive for consensus and win-win situations. Include delivery dates in contracts as deadlines are often viewed as fluid rather than firm commitments. Start negotiating with a realistic figure. Decision-making may be concentrated at the top of the company and decisions are often made after consultation with subordinates, so the process can be slow and protracted. Patience may be a necessary cross cultural attribute.

Want more? Go to the Intercultural Management Guides page