Setup
Be warned that installing vPOS server software locally will require an investment of a heavy-duty server and a
commitment to Windows NT. Locally, vPOS requires Windows NT Server, Microsoft Windows NT Server,
Microsoft SQL Database software and merchant/storefront software, such as Microsoft Site Server. (vPOS is directly
supported in software from
iCAT, Information Builders, Intershop, Microsoft, Open Market and Oracle.) And
you''ll want as much processing power, RAM and bandwidth as possible on a local server. Generating secure
communications is a CPU- and RAM-intensive process -- in fact, if you are anticipating a lot of traffic, you''ll
want to offload encryption processing to a dedicated board from the likes of Rainbow Technologies -- and you
shouldn''t estimate the high level of hardware needed to enable many secure transactions locally.
Given this need for a steep upfront investment in hardware, as well as other trends in the electronic-commerce
world, it''s apparent that most companies are looking to outsource their transaction processing, rather than
investing in an in-house, industrial-strength server. That flexibility is accomplished with the VeriFone Hosting
vPOS software.
vPOS software provides standard credit-card transaction capabilities, with the actual processing occurring on ISP servers.
(This is contrasted with the CashRegister system, where CyberCash servers actually perform the processing.)
However, ISPs seem to slow to embrace vPOS processing (as opposed to other credit-card processing
services), and you''ll want to check with your ISP about vPOS availability.
The software can handle all the basic transactions: authorization, credit, reversal, void and capture. It also offers
a number of special functions, including recurring payment, installment payment, split shipment and purchase card
transactions. ISPs can set up transactions between a merchant and a bank with a vGATE Internet gateway:
This allows vPOS to communicate directly with financial institutions to obtain payment authorizations and to
automatically process payments. According to Verifone, future versions of its software will include electronic checks and cash transactions.
These payment options are currently not available with Verifone.
Merchants get the power of vPOS processing without having to invest in an expensive transaction
server. (Indeed, if there''s one reason why Internet commerce hasn''t become more ubiquitous, it''s because
services like this require serious investments in hardware and software.) Transactions and reports can be
viewed by the merchant through a Web browser, such as Internet Explorer or Netscape Navigator.
As with the locally installed version of vPOS, vGate supports both SSL and SET.
The secure-transaction world was slow to see the need for ISP-hosted credit-card processing, so it''s a little hard
to fault VeriFone for being a little slow to push vPOS technology in the ISP and hosting worlds. However, that
delay means that vPOS isn''t yet a standard in the ISP/hosting world. Still, with the reliability promised with the
established VeriFone technology and the wide acceptance of VeriFone in the banking and financial world, you
could do a lot worse than rely on vPOS for your commerce site''s credit-card processing.
Pros: Transactions can be processed locally or on a remote host; reports can be viewed locally or via a Web
browser; support for both SET and SSL.
Cons: Move to remote processing came late, and most larger ISPs don''t support vPOS processing.
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