POS Technical Documents

Microsoft RMS Payment Processing

Setting up payment processing in Microsoft Dynamics RMS

Microsoft Dynamics Retail Management System (RMS) 2.0 supports two ways of accepting and settling credit and debit card payments: an integrated preferred acquirer solution and a third-party software solution. This article describes these solutions, explains how to implement the preferred acquirer solution, describes best practices for using payment processing, and provides links to Web sites were you can find more information.

On This Page

	Overview of the solutions
	Implementing the preferred acquirer solution
	How the preferred acquirer solution works
	Frequently asked questions (FAQ)
	Additional information
	Glossary of payment processing terms

Overview of the solutions

The preferred acquirer solution

Microsoft Dynamics RMS supports a direct integration with TSYS Acquiring Solutions (formerly Vital Processing Services). Microsoft Dynamics RMS is ready—out of the box—for you to sign up for a merchant account with an acquiring bank supported by TSYS Acquiring. You can then start accepting and settling credit and debit card payments for your store’s sales transactions.

Note
Although TSYS Acquiring provides check processing, Microsoft Dynamics RMS does not support check processing though the preferred acquirer solution.

The third-party software solution

Microsoft Dynamics RMS also supports integration with third-party software solutions for payment processing, such as ICVerify, PCCharge, and Atomic Authorizer. This solution requires the purchase of additional software, and debit card processing is not supported. PCCharge supports check and credit card processing, while ICVerify and Atomic Authorizer support credit card processing only.

Implementing the preferred acquirer solution

Follow these steps to implement the preferred acquirer solution for payment processing that is built into Microsoft Dynamics RMS.

1.	Ensure that all registers that process credit and debit cards have an Internet connection. Note Microsoft recommends a high-speed Internet connection such as DSL, cable, or ISDN.
2.	Set up a merchant account with an acquiring bank. When setting up the account, be sure to notify the bank that you will be using Microsoft Dynamics RMS to process credit and debit card transactions. The bank will provide you with a welcome packet that includes specific merchant and bank setup information for you to enter into Microsoft Dynamics RMS (see Step 4).
3.	If you intend to accept debit cards, purchase and install a PIN pad. See the Hardware compatibility list (HCL) to ensure that you purchase a compatible PIN pad. The PIN pad must have a serial (9 pin) connection. Before you can use the PIN pad, you must send it to your acquiring bank for “injection.” The bank will insert a security code into the PIN pad. When the bank returns your PIN pad, connect and set up the device according to the manufacturer’s instructions.
4.	Specify your bank and merchant setup information i. Start Microsoft Dynamics RMS Store Operations Administrator. ii. On the File menu, click Configuration. iii. On the EDC tab, select the Use electronic draft capture software to verify credit card transactions check box. iv. Under EDC software, select Preferred acquirer Credit/Debit Card processing. v. Click Advanced. vi. Enter the bank and merchant setup information from the welcome letter you received from you acquiring bank. Note The Sharing group and Settlement agent number are not required if your store does not accept debit cards.
5.	Create credit card and debit card tender types in Microsoft Dynamics RMS Store Operations Manager. Each of these tender types must be enabled for payment processing. On the Advanced tab for each tender type, select the Verify via EDC check box. You can also specify whether or not you allow cash back, the maximum cash-back amount, and any fees your store assesses for debit card use. Note Charging fees for debit card use is illegal in some states.
6.	Configure your PIN pad and magnetic stripe reader (MSR) devices. Use the Microsoft OPOS service object configuration utility to install the PIN pad service object. The utility is available on the Start menu in the Microsoft Dynamics RMS directory. For a list of compatible MSR devices, see the Hardware compatibility list (HCL).
7.	In Store Operations Manager, enable a PIN pad on each register that will be processing debit card transactions: i. On the Database menu, point to Registers, and then click Register List. ii. Select the register where the PIN pad is located, and then click Properties. iii. On the PIN Pad tab, select the PIN Pad is enabled for this register check box, enter the device name you configured in Step 6, and then click OK.
8.	Verify that each register has an Internet connection with ports 5003 and 443 open. Under normal circumstances, these ports should be open by default.
9.	Restart the POS program on each register.

For more information
How to set up the Preferred Acquirer Credit/Debit Card Processing feature

How the preferred acquirer solution works

Credit and debit card authorization

At the time of transaction, a secure request is sent to the processor over the Internet (https for credit transactions and SSL for debit transactions) and routed to the acquiring bank. This request contains transaction information, such as account information and the amount to be authorized. Microsoft Dynamics RMS then waits for a response from the processor, which will contain an approval code if accepted or an error code if the transaction is not authorized (declined).

Credit and debit card return

Returns are handled as a negative amount being authorized. In the case of a debit transaction, the authorization is similar to a sale except the amount is negative. The customer is required to enter their PIN, the authorization request is sent to the processor, and an approval code is received. Negative amounts on credit card transactions do not need to be authorized (industry standard). Therefore, no communication occurs between the processor and Microsoft Dynamics RMS until settlement.

Credit void

Voids are not supported on debit card transactions. All negative amounts on debit cards must be processed as returns. When working with credit card transactions, as long as the credit card transaction has not been settled, the transaction can be voided. When a transaction is voided, the status is changed so the authorization is never sent for settlement. No communication is required between the processor and Microsoft Dynamics RMS. If the credit card transaction has been settled, the transaction must be processed as a return.

Authorization by phone

Sometimes authorization codes are obtained by phone from your acquiring bank (your welcome letter should include the phone number for authorization). If an authorization code is entered manually in the Account Verification screen, Microsoft Dynamics RMS will not try to authorize the transaction again since the transaction has already been authorized through the acquiring bank. This means the cashier needs to make sure the account number, expiration date, approval code, and sales amount are correct, because the information is not being verified by the acquiring bank. The authorization will then be included in the next settlement batch.

Address verification system (AVS)

The address verification system provides the merchant with a better rate and additional security. When a credit card number is entered manually, the merchant provides the customer’s zip code and street address to acquiring banks at the time of authorization. (The street address is not required but can be useful to manually match the address with the card holder.) Microsoft Dynamics RMS allows manually entering the credit card details when either the card reader is not working or the credit card’s magnetic stripe is not reading properly. All credit card requests will still be sent as “card present,” “track 2 capable,” and “signature received.” This feature is only available when using the Preferred Acquirer Credit/Debit Card Processing option.

Frequently asked questions (FAQ)

Q: Can Microsoft Dynamics RMS settle credit and debit card transactions on a scheduled basis?
A: No, there is no settlement scheduler built in.

Q: Does payment processing in Microsoft Dynamics RMS support direct modem dialing?
A: No, all credit and debit card transactions must be processed through an SSL gateway.

Q: Does Microsoft Dynamics RMS support phone authorization?
A: Yes, authorization codes are obtained by phone from your acquiring bank. Enter the number in the authorization code box when processing the credit transaction.

Q: Which PIN pads are currently supported?
A: See the Microsoft Dynamics RMS Hardware compatibility list (HCL) for a list of compatible PIN pads.

Q: Does Microsoft Dynamics RMS support address verification?
A: Yes, on the credit card processing screen, address verification is available when using the Preferred Acquirer Credit/Debit Card Processing option.

Answers to additional frequently asked questions are provided in the Payment processing FAQ.

 

Glossary of payment processing terms

Card holder

The card holder is the person to whom a credit or debit card is issued.

Issuing bank

The issuing bank is the financial institution that holds the contractual agreement with the card holder and issues the card. The issuing bank holds an issuing license from the card organization that gives them access to a payment and withdrawal network. The role of the issuing bank is to issue cards, establish credit limits, set up PIN numbers, and process customer payments.

Merchant

A merchant is any retail outlet that meets the qualifications to accept card payments.

Acquiring bank

An acquiring bank is a financial institution that provides merchants with credit card processing or merchant accounts. The acquiring bank transfers credit card and other purchase information to a credit card association such as Visa or MasterCard, and they in turn forward it on to an issuing bank. The acquiring bank works directly with the merchant.

An acquiring bank is responsible for:

•	Processing merchant applications
•	Negotiating a fee or discount rate with merchants for handling transactions
•	Acting as a processor or working with a third-party processor to authorize card purchases and provide settlement

Merchant account

A merchant account is a bank account established by the merchant with an acquiring bank. The account is used for the authorization and settlement of credit and debit card transactions.

Payment processor

A payment processor is a company used by acquiring banks to route transactions to the appropriate bank card organizations for authorization and settlement.