In order to turn your payment processing system into the best payment gateway for online business you need to implement account updater mechanism. This mechanism is responsible for regular updates of cardholder information such as card expiration date, sometimes card numbers, etc. Account updater functionality is extremely important for recurring payments.
There are three basic account updater models used by different credit card associations. Namely they are file-based model, subscription based model and integrated models. Let’s describe all of them. In the file-based model a merchant sends a file with card numbers and after some certain period of time receives the file with the information on the respective updates (used by Visa and MasterCard). Subscription-based model functions a little bit differently. A merchant sends a file with accounts and subscribes to get updates for them. After that a merchant gets an opportunity to download the file with updates on the regular basis, for instance, once a week, once a month, etc. (used by American Express). When integrated model is used the information on updates is got from the issuer during processing, then this data is sent to a merchant with a specific transaction (used by many e payment gateways).
This information will be helpful to companies which have their own subscription payment gateways while they need to implement account payment functionality in order to make their products modern and reliable. Are you interested in the details and examples? Read the new publication at #UniPayGateway. You can also visit Paylosophy Payment Advice Portal.