Q&A: Payment Processing With Precidia Technologies

Written by: Deepak Wanner, President and CEO, Precidia Technologies Inc.

Precidia has issued several press releases, through late 2008 and early 2009 regarding the TransNet solution. What is your strategy with this product?
In introducing TransNet, we are offering the market an alternative to the established integrated payment model. Our solution addresses some of the limitations of the current alternatives. Our payment engine software offers our partners an alternate solution for their customers. Most of our announcements have highlighted certifications and partnerships with key dealers, ISOs, processors and equipment vendors. It’s important to us to demonstrate our credibility with key players in the industry such as Sharp, Toshiba, Maitre’D, PixelPoint, First Data, RDS POS, Merchant Warehouse, and Cisco. Our reputation in the industry is important to us, and we want to show the confidence that other companies have in us


What has been your biggest challenge to date in terms of introducing TransNet for integrated payments?
Building awareness that alternate solutions are available as well as correcting misconceptions about the company and the product have been our key challenges. We’re challenging a pretty entrenched model that has been out there for many years, so the onus is on us to demonstrate we bring something different to the table. On security, for example, we proactively tell our customers and partners that not only have we received PA-DSS validation on all TransNet releases, but we explain how the design and implementation of TransNet on our payment routers is inherently more secure.

Since we sometimes introduce products that compete with existing solutions, we are careful to address any questions regarding intellectual property. To these queries, we point out that we have a long history of bringing innovation to the payment market and have successfully introduced many competing products. We make every effort to respect the intellectual property of others, and are cautious not to infringe upon the rights of others. We’re proactive in communicating this to our partners and customers, to put to rest any rumors or misperceptions that may circulate in such a tight knit sector.


What makes TransNet different?
Probably the three key differentiators for TransNet compared with other available solutions are its router-based design, which makes cardholder data more secure; NetVu, our management server, which streamlines installation and maintenance as well as its flexibility, which brings capabilities like switching processors easily. Flexibility is an important factor for many of the partners and customers that are working with us – they’ve been told for so long that they can only send transactions directly to one processor, choosing any other processor means vendor-controlled changes and extra fees. TransNet eliminates this problem – the router is controlled by the Dealer or ISO, and can route transactions directly to any certified processor without any fees or difficulty.

Let’s talk more about cardholder data security. How does TransNet stack up?
We’ve designed the software to run on a secure payment router, the POSLynx220. This approach basically allows the router to act like a ‘fortress’, protecting cardholder data, so that it isn’t being stored or handled by other, less secure devices like PCs or POS systems.

TransNet and the POSLynx220, both designed by Precidia, are PA-DSS validated – it’s important for anyone looking at an integrated payment solution to check Visa’s website and ensure the solution is compliant, as ours is. TransNet also brings a little extra value to the merchant when it comes to security. We’ve created default settings, for passwords, for example, that encourage PCI DSS compliance, and help merchants maintain their compliance easily. These settings can’t be changed or ‘undone’.

Precidia recently announced a reduced-cost PA-DSS Assessment Program for Developers using TransNet. Doesn’t TransNet eliminate the need for PA-DSS compliance for the developer?
In most cases, developers are using TransNet and POSLynx220 to handle the transaction direct from the card swipe. If the developer’s software does not store, transmit or process cardholder data, there will be no need to seek PA-DSS compliance if they are using TransNet/POSLynx220.

The 403 Labs/Precidia Program is targeted to developers whose applications do store or otherwise handle cardholder data before passing it to TransNet. These developers would otherwise have to pay a significant fee to obtain PA-DSS compliance, but if they are using TransNet, they can take advantage of this program, which offers them an assessment and validation that is 50-75% less expensive than if they applied independently. This results in a significant cost savings, especially for developers or vendors with multiple systems to certify.

You’re working with ISOs and Dealers. How do you approach these two very different players?
We see the market moving away from competition between ISOs and Dealers, and towards cooperation; TransNet can play a key role in that evolution. By placing control of the transaction in the hands of those providing first line support to merchants, we have created opportunity for Dealers and ISOs to team their expertise in payments and hardware together to deliver what the merchant wants most: a ‘one-stop’ shop for payments. The TransNet/POSLynx220 system has been designed to deliver tools such as reporting, alerts, and settlement data, all things that enhance the Dealer/ISOs position of strength in supporting merchants.

ISOs or Dealers, whether working together or alone, can take advantage of the TransNet’s direct routing capability. For the ISO/Dealer, this means never losing a customer because they can’t cost-effectively work with a particular processor.