Payment solutions integrated with D365 have become a crucial aspect of managing financial transactions in businesses. With the increasing demand for efficient and secure payment methods, ISVs are constantly looking for ways to enhance their payment solutions. When it comes to developing these solutions, ISVs have two options – using the Software Development Kit (SDK) or writing code natively. While many ISVs opt for the SDK due to its ease and speed of development, those who choose to write code natively can take advantage of a more advanced payment solution within the core product. In this blog post, we will delve deeper into the differences between native and SDK solutions for payment management in D365, and which approach may be more suitable for your business needs.
Introduction to Payment Solutions in D365
In the dynamic landscape of business financial transactions, Dynamics 365 (D365) needs a comprehensive suite for managing payment transactions such as credit cards, ACH, Apple Pay, etc. catering to a wide range of payment types. This flexibility is crucial for businesses aiming to stay abreast of consumer preferences and technological advancements. D365 payment solutions need to support various payment forms, including Card Not Present (CNP) transactions, which are vital for online and over-the-phone sales, Card Present (CP) transactions for in-person retail, comprehensive eCommerce integrations, Automated Clearing House (ACH) payments, wallet payments, gift cards, and more. The strength of D365 lies in its ability to integrate seamlessly with a business’s existing processes while providing the scalability necessary to accommodate growth. Whether a business is looking to expand its online sales channels or streamline in-store payment systems, D365’s payment solutions need to be designed to adapt and align with evolving business needs. This inherent flexibility and scalability ensure that businesses can not only meet their current requirements but also anticipate and prepare for future demands without the need for replacing their core payment systems. Your payment solution should extend the functionality of D365, making it a versatile tool in the arsenal of financial transaction management.
Advantages of Native Credit Card Solutions
Advantages of Native Credit Card Solutions in Dynamics 365 (D365) extend far beyond the surface level, providing deep integrations that enhance the financial transaction capabilities of businesses. One of the most notable benefits is the flexibility in transaction management, allowing the use of more than one credit card per transaction. This feature is particularly advantageous for businesses that deal with large orders or cater to clients who prefer splitting payments across multiple cards. Additionally, the system supports unlimited merchant IDs (MIDs) within a single company setup. This capability is crucial for businesses operating across multiple locations or online and in-store, enabling them to manage all transactions under one umbrella without the need for separate systems. The feature of omnichannel tokens further elevates the payment experience, allowing merchants to use the same payment token for in-store and online purchases. This seamless integration across channels enhances customer satisfaction and loyalty. Chain tokenization presents another significant advantage, offering the ability to link merchant accounts across different locations. This facilitates easier management of payments and transactions across a business’s entire network. Moreover, credit card captures at various stages of the order process, such as pick, pack, ship, or invoice, ensure that payments are secured before merchandise leaves the warehouse. This feature minimizes financial risk and enhances operational efficiency. Automatic validation of original payment authorization and the capability to capture funds multiple times against the original credit card authorization are crucial for maintaining cash flow and customer trust. These features ensure that customers’ credit or funds are not unnecessarily held, promoting a smoother transaction process. The system also allows for tax adjustments or increases after the initial order and tax calculations, providing the necessary flexibility for shipping and fulfillment adjustments. Finally, the ability to customize the solution as per business needs stands out as a key advantage. This level of customization ensures that businesses are not just adapting to D365’s credit card solutions but are also tailoring the system to fit their unique transactional requirements and challenges.
Cons of Utilizing SDK Solutions
While SDK solutions for credit card processing in D365 offer convenience and speed in development, they come with several limitations that can impact business operations. A significant drawback is the restriction to a single credit card per order, which can be a barrier for businesses dealing with large transactions or customers wanting to split payments across different cards. This limitation reduces the flexibility in managing diverse customer needs. Additionally, SDK solutions do not support re-authorization for partial amounts in cases of back orders, which can complicate inventory and order management. With SDK, there’s also a constraint of having only one merchant account per company setup. This can be particularly challenging for businesses operating across multiple locations or channels, as it restricts transaction management under a unified system. Customization options are minimal to nonexistent with SDK solutions, limiting businesses from tailoring the payment processing system to their specific requirements. This could result in a mismatch between the payment solution and the business’s operational needs. Another notable con is the limited support for wallet payments, and issues with some transactions not being captured before shipment. This poses a risk of financial loss if goods are shipped without securing payment. Lastly, businesses not using Microsoft D365 Finance and Operations (F&O) call center may find the functionality of SDK solutions severely restricted, which can hinder the seamless integration and optimization of credit card processing within their transaction management system.
Summary
Choosing the right credit card solution in D365 hinges on understanding the unique needs of your business and the capabilities. Native payment solutions in D365 provide a deep integration with existing business processes, offering unparalleled flexibility, ensuring that businesses can tailor the system to meet their specific transactional requirements, enhancing operational efficiency and customer satisfaction. When it comes to selecting between a native and SDK payment solution within D365, it’s crucial to weigh the trade-offs between deeper system integration and customization versus development ease and speed. Understanding these aspects will enable businesses to make an informed decision that best supports their current and future payment processing requirements.
About Red Maple
Red MapleTM has specialized in expanding the capabilities of Microsoft Dynamics 365 since 2003. Globally deployed by 500+ companies, Red Maple’s solutions offer native extensions and additions for Finance & Operations (F&O) and Business Central (BC) users. Additions such as card present, card not present, ACH, Level II/III processing, surcharging, PCI 4.0 ready, and omnitoken capabilities are a few of the robust features.
FAQs
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What is an SDK?
An SDK, or Software Development Kit, is a collection of software tools, libraries, documentation, code samples, processes, and/or guides that developers use to create applications for specific software, frameworks, hardware platforms, computer systems, operating systems, or video game consoles. In Microsoft Dynamics 365 F&O, the Payment Connector SDK is used to provide a framework for payment processing in both F&O and in Dynamics 365 Commerce.
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What language is the SDK programmed in?
The SDK requires that the company or ISV code the solution using C#.
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Why didn’t they use X++ like all other code in Dynamics 365 F&O?
This is a good question and not one that we can answer. More than likely, Microsoft wanted something that could be used in Dynamics 365 F&O with the least amount of administrative overhead possible. By using C# and compiling the code into a DLL, the software could be easily deployed.
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Is there any downside to this?
Yes. Since the code is compiled and run as a DLL, the code cannot be modified like most functionality in Dynamics 365 F&O. Instead, companies must use the DLL as is it delivered.
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Is Red Maple’s payment connectors compiled into a DLL like the SDK?
No, all of Red Maple’s payment code is written in X++ and is available for customization or addition. We do caution companies that want to customize the code to be cognizant of PCI validation and not to compromise that validation.