Insight

Creating Subscription-Based and Recurring Payments with Magento Enterprise

Two growing aspects of ecommerce are coming to a head. The ability for recurring billing or subscription based payments and PCI Compliance.

With sites like www.cigar.com  www.wine.com and www.shoedazzle.com , ecommerce shoppers are able to subscribe to monthly samples of their favorite products, which are automatically charged to their credit cards and shipped without a single click. This is obviously important for the pharmaceutical and vitamins and supplements industries as well.

Furthermore, PCI Compliance has gone from a buzzword to a necessity in ecommerce.  Ecommerce channels must have credit card information and their customers’ billing information securely stored. Fines from the Payment Card Industry, as well as a loss of customer trust if a breach were to occur could be damaging to the bottom line.

The Magento Enterprise framework allows for recurring billing through PayPal. Ecommerce merchants have turned to Gorilla to expand this out-of-the-box functionality to include standard credit card billing through Magento that takes steps to enhance their PCI compliance profile.

Authorize.net CIM - Stored Credit Card
Gorilla recommends a custom payment method utilizing Authorize.net’s CIM API to allow for stored billing data within the payment gateway, rather than within the Magento platform. This will allow customers to save credit card data for future use. This data will be stored safely within Authorize.net and only a token will be stored in Magento’s database that relates to the Authorize.net billing credentials. For example, credit card number 4444-3333-0000 is stored within Authorize.net and that corresponds to the Token ID XTY555G68SDP2 stored within Magento. When payment occurs, Magento will pass the Token ID to Authorize.net instead of the sensitive raw data. The transferring of funds will occur in Authorize.net.

For a more detailed explanation, you can go here to read more about Authorize.net CIM.

If your business is currently storing credit cards and transferring data to the Authorize.net CIM API, you will need to create Authorize.net tokens for existing customers that Gorilla will import into the system, as well as provide all Authorize.net account credentials and API access. Gorilla will add a “My Credit Cards” tab in the “My Account” area in Magento and create a custom payment method in the Checkout process to facilitate using and saving stored credit card information.

Recurring Billing through Magento utilizing Authorize.net CIM
As mentioned, this is a customization for recurring product/order functionality that exists out -of-the-box with Magento. Businesses will be able to designate certain products as recurring in the admin panel. The front-end interface will allow customers to choose the product and how often they would like orders to occur (X days, X Months, X years).  Gorilla has created the ability to prepay (such as pay for a one year subscription in advance), schedule automatic charges until the customer cancels the order, or create their own product/kit bundles to be billed on a monthly basis.

Gorilla now offers a Authorize.Net CIM extension for your Magento store. Please visit our Magento Connect page or our Magento extensions store.