Credit Card Processing Integration Storm Brewing

Although it’s been discussed for well over a year there appears to be some amount of backlash brewing over Sage’s recent decisions about credit card processing integrations.

It’s no secret that Sage North America is wildly profitable with their Sage Payments Service subsidiary which offers credit card processing for customers. They’ve discussed this on the last several earnings calls and continue to expand their reach.

Starting with Sage 100 ERP 2013 Sage had announced last year that credit card information would no longer be integrated into the software. Instead all payment information is extracted (and removed) during the upgrade to Sage 100 ERP 2013. This data is moved to the Sage Vault which exclusively allows Sage Payment Processing transactions to be integrated to a number of sources – including the customer’s ERP.

A post on the Sage Linkedin Group (link) by Linda Cade – Sr. Product Manager, Core Mid-Market ERP Solutions at Sage, seems a tad disingenuous (to me) seeing as this whole process began well over a year ago with an announcement at last years’s Sage Summit 2012:

Our decision to use the SPS (Sage Exchange) vault to store sensitive credit card information in compliance with PA-DSS/PCI standards gives Sage a central point of control. We no longer accommodate the storage of that information in the local ERP data tables. An ISV that uses a non-SPS payment processor would therefore need to find a means to provide a compliant storage option for this information. Sage lacks the ability to monitor the options implemented by those ISVs. Until and unless there are protections in place to ensure compliance for our customers, we can only authorize those Development Partners using the approved integration standard (SPS payment processing). Perhaps as a result of the on-going review mentioned above, protections can be put in place to ensure and monitor compliance. Let’s allow the BPAC, the executive team, and the subject matter experts the opportunity to explore those possiblities and see what the combination of all that brain power can produce.

Developing. Stay tuned.

 

Sage LinkedIn Group: Sage Payments – No Comment on Third Party CC Integrations  To Sage 100 ERP

2 Replies to “Credit Card Processing Integration Storm Brewing”

  1. Cade’s concern seems to be Sage’s legal liability over a customer using a non-SPS method of handling cc. I’m no lawyer, but if that liability were true, wouldn’t it apply to all of the other connected services that Sage partners with?

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