How to Set Up a Connected Terminal API at Your Dealership

A "connected terminal" does more than process payments — it communicates with your other systems. When set up properly, transactions flow directly from terminal to your DMS without manual intervention.

This guide explains how connected terminal APIs work and how to implement them at your dealership.

What Is a Connected Terminal?

A connected terminal has two capabilities:

1. Payment processing: Accept cards, authorize transactions, move money
2. System integration: Communicate with external software via API

Traditional terminals only do #1. You process a payment, then manually enter it somewhere else.

Connected terminals do both. Payment data flows automatically to your DMS, accounting system, or other software.

How Connected Terminal APIs Work

The Architecture

[Customer Card] → [Terminal] → [Processor] → [Authorization]
                      ↓
                   [API]
                      ↓
              [Your DMS/Systems]

The terminal sends payment data through two channels:

1. To the processor for authorization and settlement
2. To your systems via API for record-keeping

What Data Flows

Depending on the integration:

• Transaction amount
• Card type (Visa, Mastercard, etc.)
• Last four digits
• Authorization code
• Transaction ID
• Timestamp
• Customer identifier (if captured)

Real-Time vs. Batch

Real-time:

• Data transmitted immediately after transaction
• Appears in DMS within seconds
• Preferred for operational visibility

Batch:

• Data collected and transmitted periodically
• Delay between transaction and posting
• May be simpler to implement

Integration Options

Option 1: Processor-Provided API

Your payment processor offers API connectivity directly.

How it works:

• Processor handles both payment and data transmission
• Single vendor relationship
• API is part of their product

Pros:

• Simpler setup (one vendor)
• Integrated support

Cons:

• Tied to that processor's capabilities
• May have limitations

Option 2: Terminal-Direct API

The terminal hardware itself exposes an API.

How it works:

• Terminal has local network API
• Your systems query the terminal directly
• Processor handles payments separately

Pros:

• More control over data flow
• Can work with any processor

Cons:

• More technical setup required
• Must manage terminal connectivity

Option 3: Middleware

Third-party software bridges terminal and your systems.

How it works:

• Middleware connects to terminal
• Transforms and routes data
• Sends to your DMS

Pros:

• Flexibility in terminal and DMS choice
• Can customize data handling

Cons:

• Another system to manage
• Additional vendor relationship

Implementation Steps

Step 1: Define Requirements

What systems need payment data?

• DMS (most common)
• Accounting software
• Customer database
• Reporting systems

What data do you need?

• Just amounts? Or full transaction details?
• Customer identification?
• Department/location tagging?

What's your timing requirement?

• Real-time posting essential?
• Batch (hourly, daily) acceptable?

Step 2: Evaluate Integration Options

Talk to your processor:

• What API options are available?
• What DMS integrations exist?
• What's the setup process?

Talk to your DMS vendor:

• What payment integrations are supported?
• What data can be received?
• What's the configuration required?

Step 3: Plan the Architecture

Network requirements:

• Where will terminals be located?
• What network connectivity is available?
• Are there firewall considerations?

Data flow:

• Terminal → Processor → API → DMS
• Document each hop
• Identify potential failure points

Failover:

• What happens if API connection fails?
• Can transactions still process?
• How is data recovered?

Step 4: Configure and Test

Terminal setup:

• Network configuration
• API credentials
• Endpoint configuration

DMS setup:

• Receiving endpoint
• Data mapping
• User permissions

Testing:

• Test transactions (small amounts)
• Verify data appears correctly
• Test all transaction types (sale, refund, void)
• Test failure scenarios

Step 5: Staff Training

Staff should understand:

• What the integration does
• Where payment data appears
• What to do if data doesn't sync
• Who to call for help

Step 6: Go Live and Monitor

Cutover:

• Start with one location/terminal if possible
• Monitor closely initially
• Expand after proving reliability

Ongoing monitoring:

• Daily reconciliation (terminal vs. DMS)
• Error/exception tracking
• Performance monitoring

Technical Considerations

Authentication

APIs must be secure:

• API keys or tokens
• OAuth if available
• Credentials stored securely

Never expose API credentials in logs or user-visible settings.

Data Format

Common formats:

• JSON (most modern APIs)
• XML (older systems)
• CSV (batch files)

Ensure your systems can handle the format provided.

Error Handling

What happens when things fail:

• Transaction succeeds but API fails?
• API receives bad data?
• Network timeout?

Build resilience:

• Queue failed transmissions
• Retry logic
• Alert on failures

Security

Payment data is sensitive:

• Encrypt in transit (HTTPS/TLS)
• Don't log full card numbers
• Follow PCI DSS guidelines

Common Implementation Challenges

Challenge: DMS Doesn't Have Good API

Symptom: DMS can't receive API data natively

Solutions:

• Use DMS's import feature (batch files)
• Middleware that speaks to DMS
• Different DMS (long-term)

Challenge: Network Segmentation

Symptom: Terminals can't reach API endpoints

Solutions:

• Firewall rule adjustments
• DMZ configuration
• VPN for remote locations

Challenge: Data Mapping

Symptom: Data arrives but doesn't post correctly

Solutions:

• Review field mapping configuration
• Work with both vendors on mapping
• Custom transformation if needed

Challenge: Real-Time Feels Slow

Symptom: There's delay before data appears

Solutions:

• Verify it's truly real-time integration
• Check network latency
• Confirm DMS processes imports immediately

Testing Checklist

Before going live, test:

☐ Standard credit card sale ☐ Debit card sale ☐ Contactless transaction ☐ Manual card entry ☐ Refund/return ☐ Void (same-day cancel) ☐ Partial authorization ☐ Declined transaction ☐ Large amount transaction ☐ Small amount transaction ☐ Network interruption and recovery ☐ API failure and recovery

For each, verify data appears correctly in receiving system.

Metrics for Success

Reliability

• What percentage of transactions post automatically?
• How often does manual intervention needed?
• What's the failure rate?

Target: 99%+ automatic posting

Timeliness

• How quickly does data appear?
• Is "real-time" actually real-time?

Target: Under 30 seconds for real-time; defined schedule for batch

Accuracy

• Do amounts match?
• Is card type correct?
• Are all fields populated?

Target: 100% data accuracy

Staff Efficiency

• How much time saved vs. manual entry?
• Are staff trusting the integration?

Target: Significant time savings, high staff confidence

Maintaining the Integration

Regular Checks

• Weekly: Review error logs
• Monthly: Reconciliation audit
• Quarterly: Performance review

Updates

When systems update:

• Test integration after DMS updates
• Test after terminal software updates
• Test after processor changes

Documentation

Keep current:

• API credentials and endpoints
• Configuration settings
• Troubleshooting procedures
• Vendor contacts

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Implement Connected Terminal Integration →

Anchorbase provides connected terminals with turnkey DMS integration. We handle the API complexity so you get seamless payment posting without the technical headaches.