Approval Link™ Credit Card Processing FAQs
This page answers Frequently Asked Questions on the credit card processing software for use with DDMS® business systems, including Approval Link™ credit card processing software and related authorization providers. Topics include comparing versions/providers, setup, level III (3) line item detail processing, and how to take advantage of specific benefits and features.
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Overview and Setup
- What Is Approval Link and What Does It Automate?
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Approval Link is a key component in a network of connections that let you accept procurement, corporate, major, and private-label credit cards from your customers.
The Approval Link application automates the following functions:
- Receives merchant, customer, and transaction data when Pay on Prepay is executed in DDMS, either on individual orders or in batches.
- Translates the data to the appropriate proprietary format for your authorization service provider.
- Establishes a Secure Socket Layer (SSL) connection with your authorization provider, so that all transaction data is encrypted.
- Transmits a request for authorization to capture funds across your TCP/IP network connection to your authorization provider.
- Receives authorization numbers from your authorization provider.
- Writes the authorization numbers to your DDMS O/E History data for each transaction.
Before DDMS introduced Approval Link software years ago, dealers manually entered credit card transactions into a separate system for authorization.
- What are the General Benefits of using Approval Link?
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All currently supported versions of Approval Link offer dealers the following benefits:
- Use of approved DDMS point-of-sale equipment
- Authorization of credit card orders placed through your integrated Web storefront (such as the Dealer Station® and ecInteractive® product families).
- Fast, reliable TCP/IP connections from your server to the authorization provider
- Level I transaction detail such as the merchant's name, merchant category code, the transaction amount, and the date
- Level II transaction detail such as the above basics plus sales tax amount, customer accounting code, merchant postal code, merchant minority code, and merchant state code
- Compatibility with all major credit card services
- Acceptance of procurement, corporate, major and private label credit cards
- Acceptance of multiple merchant IDs (for example, by location)
- Flexibility in changing Prepay transactions
- Control of approval numbers and dollars
- Merging of the flow for bill-completes and credit card authorization
- Does ECI/DDMS have a strategic relationship with any credit card processors?
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ECi has developed interfaces with various credit card processing services who have come and gone. However, ECi's joint development with NET1 Payment Solutions results in a deeper integration, and therefore streamlined processes and greater cost savings. Approval Link™ 4.0 for NET1, available in DDMS 8.12 and above, is the direct integration interface between your DDMS system and NET1 Payment Solutions.
- Is there a benefit for me as a dealer to work with a particular credit card processor?
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Approval Link 4.0 for NET1 gives you the following edge:
- Fully Integrated: Authorization requests are automatically transmitted directly from your DDMS system to NET1without the need for middleware — a time-saving trait that also halves your initial investment.
- Free for DDMS Customers: Approval Link 4.0 is free for DDMS users who sign up with NET1 as their credit card processor.
- No Additional Hardware or Software Required: Because Approval Link is part of your DDMS system, you won’t need to set up another PC on your network just to process credit card transactions.
- Level III Processing: Approval Link 4.0 supports Level III transaction processing for your Pre Pay Tickets (requires Approval Link+™ option). Level III offers the additional transaction details required by some government, educational and corporate customers, as well as lower transaction fees for you.
- Delayed Funds Capture: A slight delay allows for streamlined processing: a single reference number marries an authorization with its invoice.
- Settlement Matching: Some vendors process an authorization request and its settlement as separate sales. But to keep you from paying twice for the same transaction, Approval Link matches the settlement and request — two items with one fee, saving you 50% on every transaction.
- Online Transaction Access: Look up transaction information using your Web browser with NET1’s secure Virtual Terminal.
- Superior Service: Unlike most payment processors, NET1 has employees who are familiar with DDMS and other ECi products, so you receive the best possible service and support.
- How do I set up Approval Link 4.0 for NET1 Payment Solutions?
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The first step in getting started with Approval Link 4.0 is to contact Brian Morabito (brian@net1creditcard.com) at NET1 Payment Solutions (1-800-718-8005). There is no other software to purchase and no other party to contact.
For detailed instructions on the information you need to gather and the steps involved in setup, authorization, and use, see Credit Card Processing with Approval Link 4.0 (pdf).
- What happened to Paypal Payflow Pro®?
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PayPal acquired Payflow Pro from VeriSign in late 2005. For more information, see PayPal's Payflow Pro Product Information. In respect for our customers' needs for a credit card payment gateway with reasonable setup and monthly fees, ECi Software Solutions no longer sells DDMS authorization for Approval Link 3.0 for PayFlow Pro.
- What happened to POS-Partner?
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POS-Partner offered automated authorization and capture software, for which ECi DDMS wrote the Approval Link 2.0 interface.
However, after being acquired first by Vital® and then by TSYS®, POS-Partner began announcing the termination of its support in July 2009.
Effective Feb. 1, 2010, TSYS no longer supports transactions generated from POS-partner applications. Any remaining POS-partner merchant's transactions are rejected by the TSYS processing platform. All DDMS dealers were advised to migrate to a newer version of Approval Link.
- What happened to ParaData Systems, and what options do Canadian dealers have?
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Paradata Systems is not taking on new customers, after its acquisition by Payment Processing Inc.
Canadian dealers have had confirmed success implementing Approval Link 3.0 for PayFlow Pro.
Consider Approval Link 4.0 for NET1 Payment Solutions as their services for Canadian dealers have rolled out in 2011.
Credit Card Processing FAQs
- What can you tell ne about PCI Compliance in DDMS?
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Major credit card companies created the Payment Cardholder Industry (or PCI) standard to protect cardholder information and reduce data theft. Learn about DDMS PCI compliance »
- How do I report 1099-K on credit card transactions to the IRS?
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The Housing Assistance Tax Act of 2008 included the enactment of Section 6050W of the Internal Revenue Code, which requires reporting entities to report payment card transactions and third party network transactions to the Internal Revenue Service (IRS) for each calendar year beginning January 1, 2011.
As a result, reporting entities are required to file an annual information return with the IRS and provide each merchant payee with a corresponding Form 1099-K, reporting monthly and annual gross sales.
NET1/Sage sends each merchant this 1099-K in the mail at the end of the year. Once you receive your copy in the mail, please keep it for your records. To understand the impact of 1099-K, contact a tax, legal or professional advisor. Reporting on business Information herein does not constitute tax, legal or other professional advice and must not be used as such.
Included on the 1099-K is the legal name of your business, the Tax Identification Number (TIN), your monthly payment card transaction volume and other important information. Please note that the monthly and total volumes show the total dollar amount of aggregated transactions in which a payment card is accepted as payment without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts.
If you have any questions on this topic, please call NET1 Customer Support by calling 817.662.3715 or emailing net1support@net1creditcard.com.
- How do I contact NET1?
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Contact NET1 Customer Support by calling 817.662.3715 or emailing net1support@net1creditcard.com.
- How do I offer Level III Line Item Detail for Procurement Accounts?
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Regular consumer credit card statements include Levels 1 and 2 transaction details (merchant and order totals). Corporate and government purchasing card statements require Level 3 procurement details.
Level 3 details may include line item pricing, quantities, product codes, descriptions, shipping ZIP code, freight amount, and duty amount.
- selling price
- item quantity
- unit of measure
- a generic item name or description: "Office Supply Products/Furniture"
- transaction category number or product code: 001
- shipping ZIP code
- freight amount
- duty amount
- line item tax (for Visa)
- extended line item total (for Visa)
Processing Level 3 transaction detail may be critical to land corporate or government procurement contracts. It can also significantly lower your costs for credit card processing.
When you enter an order, receive and process customer credit card payments in Accounts Receivable or from ECinteractive, DDMS processes Level 3 details for years using a specialized software gateway: Approval Link +. Approval Link + is an optional DDMS product that enables Level III transaction detail. It can be used with any other currently supported version of Approval Link. Although it is a standard feature of most DDMS packages, it may require authorization in some cases.
If you are not already set up for Level 3 Processing, see the "Setting Up and Using Level 3 Processing" section on page 9 of Credit Card Processing with Approval Link 4.0 for NET1 (pdf).
- How do I set Up Multiple Merchant IDs?
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New! Multiple Merchant ID - Order Type (pdf) Implementing a new merchant ID no longer requires multiple General Ledger locations to be set up in DDMS. In DDMS 10.2 and higher, you can apply orders to different merchant IDs by Order Type. Orders can be applied by order type as set for the customer account on the Order Entry 2 tab. The four order types are web (W), commercial (C), retail (R) or blank (default for all other credit card transactions including accounts receivable payments, etc.). With this capability, you can improve your credit card rates!
New! Multiple Merchant ID - Customer Account (pdf) Implementing a new merchant ID no longer requires multiple General Ledger locations to be set up in DDMS. In DDMS 10.2 and higher, you can apply orders to different merchant IDs by Customer. You can now set up a four-character merchant ID for an individual customer account on the Order Entry 2 tab. This field is only enabled if you have a Merchant ID in the (+VI) Approval Link Id Setup screen where the new Type field is set to C. This capability is helpful for members of is.group, AOPD and other trade associations to win accounts that demand strategic sourcing such as government contracts, educational institutions, and large corporations!
New! Multiple Merchant ID - Location (pdf) A third — and older — method to set up multiple merchant IDs for credit card processing is by setting up multiple General Ledger locations, each with a different merchant ID. While setting up multiple merchant IDs by location is an option, it is not the recommended option. See also setting up multiple merchant IDs by customer account or order type.
- Will installing ECi Cardlink interfere with my existing services?
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During installation of DDMS Server in versions 8.12 and higher, you are given the option to install Cardlink. Rest assured, installing Cardlink will NOT interfere with your existing credit card services.
The Cardlink software will not be activated until you configure Utility Extensions for use with NET1, following the setup instructions in Credit Card Processing with Approval Link 4.0 for NET1.
Note: Cardlink merely establishes the channel for communicating directly with NET1 Payment Solutions via Web Services.
If you have not installed Cardlink, you will need to install DDMS 8.12 or higher with the Cardlink option enabled, before setting up Approval Link 4.0 for NET1 Payment Solutions.
- How do I control advance payment percentage?
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One benefit of all versions of Approval Link is the ability to control what percentage of an order must be paid in advance.
In the (LG5) Additional Order Entry Parameters screen, you can set the Default Prepay Due As% Of Backorders field to require a percentage of the remaining backorder amount as advance payment each time you use pay code [4] Prepay or [P] Pay on Prepay.
If you leave this field blank, the customer must pay only the shipped total. If you enter 100 in this field, the customer must pay for the entire order in advance.
If you require a 50% advance payment on special orders, for example, you enter a prepay order with in-stock items that total $5.00 and backordered items totaling $10.00. This means that the customers must pay $10.00 — $5.00 for the in-stock items and $5.00 as advance payment for the backordered items. When some of the backordered items are received and delivered, the received items total $5.00, which the customer has already paid in advance. However, since you also require that the customer pay 50% of the backorder total, you would bill the customer $2.50 at this time. For more information, see In the LG5 Screen.
Note: If you set the Default Prepay Due to Ø, you can set your (LA2) screen to use the Pre-Authorize Credit Cards Through the Gateway When Zero Amount is Due field to pre-authorize credit cards.
- How do I control authorization number assignment?
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One benefit of all versions of Approval Link is the ability to control whether you are prompted for an authorization number.
In the (LA2) A/R Parameters screen, you can use the Require Authorization On Credit Card Payments field to prompt for an authorization number on credit card transactions. If you use POS-partner, the authorization number is automatically assigned. With other services, you can manually enter an authorization number. Type Y to require an authorization number. If you do not use POS-partner, you must enter the number manually. Type N if you do not require authorization numbers for credit card. For more information, see In the LA2 Screen.
- How do the flows of bill-completes and credit card authorization merge?
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One benefit of all versions of Approval Link is the ability to merge the flow of processing batch bill-completes and credit card authorizations.
To do so, you will use a combination of the (TR-B) Bill Complete option and the (TR-P) Credit Card Service Capture and Invoicing of Prepay Orders option in the Standard Order Entry Reports.
As you may know, Bill Complete lets you delay a customer's invoice from automatically flowing to accounts receivable until the order ships. In the Customer Order Entry tab, the Hold Invoices box indicates whether you’ve set up the customer for “C” Bill Complete or “S” Bill/Ship Complete.
After the order ships, running the (TR-B) Bill Complete function releases the bill complete invoices to A/R and moves credit card orders to a status 8 or 9. When you execute the (TR-P) Credit Card Service Capture and Invoicing of Prepay Orders, the uninvoiced credit card orders are transmitted to your credit card authorization service, set to a status B Invoice, and released to A/R.
- How does delaying the capture of funds work?
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One benefit of all versions of Approval Link is the ability to delay the capture of funds. It is a widely used practice for merchants whose items may not in stock at the time of the order, However, it works differently with various authorization providers.
In general, your authorization service confirms the availability of funds in the customer’s account, and allows you to authorize either a partial or full amount of the order.
This initial authorization earmarks or “holds” the requested funds, which may reduce the customer’s available balance for subsequent purchases. In many cases, this gives the merchant the opportunity to capture the funds billed, reauthorize a slightly different amount, or void the authorization, until the authorization expires. The expiration period and the reauthorization limits are set by your credit card authorization service.
Using Approval Link 2.0 with POS-Partner ties up the customer’s funds until the initial hold expires, even after the order is billed and debited, because the invoice is sent in a separate transaction.
With Approval Link 3.0 for VeriSign and with Approval Link 4.0 for NET1, a single reference number marries the authorization with the invoice.
- How can I exercise flexibility in changing Prepay transactions?
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A benefit of all versions of Approval Link is flexibility in changing Prepay transactions.
As discussed above, when you delay capture of funds, you can authorize either a partial or full amount of the order, and you then have some time to capture the funds billed, reauthorize a slightly different amount, or void the authorization, until the authorization expires.
For more information, see online help topics related to Understanding Prepay Orders and Pay on Prepay Orders.
- Do I use (TR-K) Gateway Credit Cards Report or (TR-P) Credit Card Service Capture and Invoicing of Prepay Orders?
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Tech Note #257: (TR-K) vs. (TR-P) for Prepays and Credit Cards In the (TR) Order Entry Standard Reports screen, there are two credit card selections that are closely related and often confused: (TR-K) Gateway Credit Cards Report and (TR-P) Credit Card Service Capture and Invoicing of Prepay Orders. Learn how each selection works and when it is best to use each one.
- What Do the Different Versions of Approval Link Do?
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Different versions of Approval Link have been developed to automate the process of credit card authorization, by translating into the appropriate proprietary formats for each authorization provider:
- Approval Link 4.0 connects to NET1 Payment Solutions.
- Approval Link 3.0 connected to PayPal® Payflow Pro®.
- Approval Link 2.0 connected to TSYS® (formerly Vital) POS-Partner until TSYS terminated support for POS-Partner transactions in February 2010.
It also connected to Paradata Systems for Canadian transactions until Payment Processing Inc. acquired it in 2006. - Approval Link 1.0 connected to Cybercash (formerly Tellan) PC Authorize (no longer supported).
- How does DDMS show Credit Card information in Order Entry?
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When you install software version 8.23, all but the last four characters of a customer´s credit card on record are automatically hidden in Order Entry's Totals tab. For example, American Express cards contain a total of 15 characters. The system hides 11 by default and shows only the last four.
This applies when selecting existing credit cards as the payment method in O/E. However, if a credit card is scanned or manually entered, the entire credit card number is shown for verification purposes.
To enable this new feature, we added a new parameter in the Keyop Order Entry General Configuration window: Display Credit Card Numbers in OE. This box is left blank (N) by default, indicating to hide all but the last four credit card digits.
For more details, see the online help topics Display Credit Card Numbers in OE (under Keyop Order Entry General Configuration Parameters), and the Order Entry Totals tab.