CASE STUDY

COMPANY BACKGROUND:

Juno Payments recently  worked  with  a  furniture  retailer  that  has  50+ showrooms, completes 60,000 deliveries and processes $40 million in credit card volume each month.

In  order  to  better  manage  all  facets  of  their  business,  the  retailer  selected SAP to implement an ERP system. The system SAP provided was designed for business-to-business organizations and lacked many of the capabilities a retail store would rely on to accommodate and secure an in-store transaction.

SUMMARY: Juno Payments provided the furniture retailer an all-in-one solution for integrated, secure payment processing consisting of:

1. PCI-Validated P2PE Terminals: encrypts and tokenizes transactions at the swipe
2. Juno Payments Gateway and Vault: transmits tokenized information into SAP and securely hosts raw cardholder data
3. Juno Payments Merchant Services:   delivers low transaction rates, cost savings and automated reconciliation reporting

UNMATCHED SECURITY: 

According to  SafeNet’s Breach Level  Index, there  was a 224%  increase in  data breaches in  2014, affecting nearly half  of  all Americans.  The furniture  retailer understood  the increased  risks facing  retailers  and sought  the  best  available solution for safeguarding customer payment data. The  retailer   was  using   a  simple   swipe  device connected to a computer running its SAP application to  process transactions.  Swiping a payment card on the device would automatically  populate SAP with the  transaction information. While  the card    numbers    would    then    be    immediately tokenized, there was a small period of time where sensitive data could theoretically be stolen.

Juno Payments  solved    the    furniture   retailer’s security issues with P2PE, the only available  point-to-point encryption  hardware-based  solution for SAP  users.  P2PE  consists  of encrypts  all  card data  at  the  point  of entry,  removing  the  retailer’s  PCI burden  related  to  accepting  and processing  payment  cards. Juno Payments also  stores  the  associated  signature image  with  each  transaction record. The furniture retailer plans to implement more than 1,000 CardSecure P2PE terminals in 2015.

About Juno Payments

Juno Payments is a leading provider of payment processing and technology that focuses on transparent multichannel integrated solutions for ecommerce, mobile, and standard merchants services. Juno Payments accepts hundreds of millions of dollars in card transactions each year focusing on Global solutions for national, mid-market and limited risk merchants. Designing comprehensive solutions that directly impact our customers bottom lines. We provide advanced payment solutions backed by PCI-certified point-to-point encryption (P2PE) and tokenization. Powerful reporting and transaction management portal which extends to mobile devices. For enterprise-level organizations, Juno Payments integrates omni-channel payment acceptance into several ERP systems – such as Oracle, SAP, JD Edwards and Infor M3 – in a way that minimizes PCI compliance requirements and lowers transaction costs.

We can help design a solution that is just right for you!

1-888-514-8118

[email protected]

www.junopayments.com

Overview:

The client is a wholly-owned government corporation with a fundamental mission to employ and provide job-skills training to inmates. It accomplishes this goal by producing market-priced quality goods and services that are exclusively sold to Federal Government agencies. The client has over 100 factories in federal prisons, producing approximately 175 different types of products and services including textiles, electronics, vehicular components, industrial products,  activities, data entry and encoding. The client uses SAP Enterprise Central Component to support the sales and finance cycles and has implemented the Sales and Distribution (SD) and Financial Accounting (FI) modules.

Client Situation:
The primary customers for the client are servicemen and women who are deployed around the world. These soldiers make purchases with credit cards and GSA Cards that have limited credit. Under the previous system, failed purchase attempts and numerous authorizations erroneously reserved available credit that would otherwise be needed by the buyer. Additionally, as more transactions failed and the credit limit was exceeded, it was difficult for the client to ship goods until the account was reviewed and corrected.  Many orders had multiple authorizations for a single invoice and the customer, as a result, would see multiple charges on their statements.

The client charted a project to address these issues and set the following goals: 

• Increase order accuracy and decrease repetitive authorizations
• Provision and deliver orders more quickly and reduce the fulfillment delays so that our soldiers receive purchases sooner (of critical importance given the nature of their work).
• Provide better and error-free assistance to our servicemen and women

The client identified the following critical factors for a successful implementation: 

• Secure all transactions
• Implement a method to “void” a credit card transaction
• Include additional order information (sales order and invoice numbers) on the billing statement
• Ensure one authorization per invoice
• Design a method to prevent returns from being credited to expired cards
• Create a mechanism to inform customers that their card will not be billed until their item is shipped unless they request advance billing

Solutions: 

To address the challenges, the client integrated payments into SAP. The goals were met by providing client with the following solutions:

On- Demand Authorizations and Settlement – Executes authorizations and settlements on-demand and made visible on orders and invoices. This is done at both the order level and invoice level.

Authorization and Settlement Reports – Shows a daily transaction log from your various payment sources ( ie. e-commerce, SAP, etc.)

Provides greater flexibility in charging payments in a timely manner. Allowing payments to be charged only after the items were shipped and prevents charges from exceeding the credit limit.

Settlement Consolidation – Eliminates multiple charges appearing on the statement by allowing a single authorization on the invoice.

Tokenizes customer credit card information during transactions and severely limits the chance of fraud.

Authorization Reversal – Allows the merchant to void previous authorization attempts.

The client was able to:

• Reduce sales cycle time by integrating payments
• Decrease PCI scope by using tokenization
• Lower fees per transaction
• Improve sales and finance processes by eliminating non-value added steps
• Add features and functionality that enhanced the customer experience
• Keep SAP ECC compliant for future releases

Want to Learn More?

1-888-514-8118

[email protected]

www.junopayments.com

Overview: 

The Pampered Chef, a Berkshire Hathaway company, is the premier provider of professional-quality tools for cooking and entertaining. With a product line that includes more than 500 offerings—from entertaining to cookware, cutlery to cookbooks, stoneware to spices—coupled with an interactive direct sales method, TPC offers a unique and affordable solution to make cooking and entertaining easier. TPC was in need of a universal payment platform that both accommodated the company’s various sales channels and could integrate into its existing Oracle E-Business Suite infrastructure. Specifically, the company desired a solution that allowed TPC Consultants in the field to accept mobile payments at their popular “Cooking Shows”. Given the requirements, CardConnect conceptualized and designed the first mobile-to-ERP payments solution without modifying TPC’s existing Oracle E-Business environment.

In home cooking shows: 

The Pampered Chef uses the party plan model as their main selling method, and the overwhelming majority of their sales occur at in-home “Cooking Shows”. At these private parties organized by Pampered Chef consultants, guests prepare a recipe using TPC products and then have the opportunity to purchase these products—and anything else in the Pampered Chef catalog—at a partyexclusive discount.

Designing the payment acceptance platform for the in-home Cooking Shows proved complicated. The time between the Cooking Shows and the time the orders were finalized and the products delivered could span 3-4 weeks. A card transaction receives a higher interchange rate when you authorize a card and wait more than two weeks to capture and settle. In order to avoid the high interchange fees associated with violating the authorization– capture/settlement window, CardConnect had to find a way to securely collect payment information without authorizing the card. After deliberation by CardConnect payment and technology experts with consultation by the PCI Council and Trustwave, CardConnect’s PCI compliance partner, a solution CardConnect identifies as a “store-andforward” process was conceptualized.

The Problem: 

The original payment acceptance process for purchases made at these in-home cooking shows was very disjointed. When the show was winding down, Pampered Chef consultants would write down customers’ orders, including their credit card information (a PCI Compliance no-no!). The consultant would later type these orders into TPC sales software on their at- home computers. This software was not integrated with Oracle EBusiness, which meant these orders had to be replicated in Oracle by TPC’s finance department.

1. When the Cooking Show is winding down, TPC consultants will use mobile secure card readers to accept payment for orders placed. When cards are swiped, authentication data is captured, encrypted, tokenized, and stored at CardConnect’s PCI compliant data center.
2. Over the following 2-3 weeks guests can call in and adjust their orders. When the consultant closes the show, the track data will be passed to the processor for authorization, capture, and settlement.
3. CardConnect will run a settlement-capture process 4 times daily that will take the settlement file from the processor and feed it into Oracle. Through CardConnect’s solution, Oracle will then be able to automatically reconcile all matched settlement files, leaving only those that require investigation marked with a red flag.

The CardConnect Solution: Store-and-Forward

Benefits of Store-and-Forward

1. Card-present rates: Card-present rates typically are 30 basis points less than card-not-present transactions. In its previous process, the consultant would key-in the transactions and all transactions would receive card-not-present rates. Since the new process will allow consultants to physically swipe the card at the end of the party, cardpresent rates will be in effect.
2. It minimizes the authorization/capture window: With most mobile payment providers, you would authorize or pre-authorize the card the night of the party. Later, when the orders were finalized and the amount was captured (often 3-4 weeks after), the transactions would fall out of the 14 day capture window and the transaction would downgrade to a worse rate.
3. It keeps card data safe: Because the authentication data is stored at CardConnect’s PCI-compliant data center, The Pampered Chef and its Oracle ERP stay completely out of PCI scope.

Want to Learn More?

1-888-514-8118

[email protected]

www.junopayments.com