Category: Visa MasterCard American Express

Unnecessary Credit Card Declines Frustrate Digital Consumers.

Of the 17 percent of consumers who reported having had their credit card declined during a card-not-present (CNP) transactions. As many as one-third of those declines were unnecessary. The result is consumer aggravation, increased operational costs for banks and credit card companies and as much as $40 billion in lost revenue for online retailers.

TrustInsight which helps establish trusted relationships between financial institutions, merchants and online consumers conducted study. A report and infographic detailing the findings of the study found that avoidable online credit card declines lead to loss of trust for consumers, sales for merchants and increased operational costs for credit card companies and issuing banks.

Study also revealed that consumers handle credit card declines in a variety of ways all of which carried negative economic impact to at least one party in the transaction, resulting in unnecessary operating costs for banks, decreased loyalty for the credit card company and lost revenue for all. Almost half call their issuer immediately when their card is unexpectedly declined. This is a natural response. 34 percent of consumers try again another credit card, other use a different payment method and 24 percent will skip the purchase altogether or shop at a different online retailer.

No one wants to turn away business, and no one wants their business declined. The frustration and impact of wrongful declines is a real problem especially as more and more transactions occur in non-face-to-face situations.

Impact of consumer action in the face of a decline can have real and measurable effects on all parties, including credit card companies, banks and merchants manifesting itself in lost customer loyalty, lost fees and lost revenues. Creating a standard for online trust that enables credit card companies, merchants and issuing banks to better recognize trusted digital consumers and reduce the number of wrongly declined consumers avoiding unnecessary losses.

In a world where people are increasingly reliant on a variety of Internet-connected devices for everything from banking to shopping to entertainment and media, creating friction-free customer experiences and preventing online fraud are constant business challenges.

Posted in Best Practices for Merchants, Credit card Processing, Credit Card Security, Electronic Payments, Financial Services, Gift & Loyalty Card Processing, Merchant Services Account, Small Business Improvement, Visa MasterCard American Express Tagged with: banking, consumers, credit-card, decline, declined, declines, different payment method, digital, digital consumers, financial, frustrate, internet-connected devices, issuing banks, loyalty, Merchant's, online credit card declines, online fraud, online retailers, shopping, transactions, wrongful declines, wrongly declined

Get Compliant, PCI DSS 3.0 Standards

PCI DSS 3.0 standard, which took effect January 1^st, introduces changes that extend across all 12 requirements, aimed to improve security of payment card data and reducing fraud. There will be some shakeups for many organizations when it comes to their day-to-day culture and operations. Transitioning to meet the new requirements will help e-business build a stronger, safer, lower-risk environment for their customers.

While the growing number of digital payment avenues offers convenience to customers, it also offers a larger attack surface for criminals.

As cloud technologies and e-commerce environments continue to grow, creating multiple points of access to cardholder data and online retailers will only become more appealing targets for hackers. Cybercriminals are cunning and determined. They understand payment card infrastructures as well as the engineers who designed them.

A scary proposition and it’s exactly why the payment card industry is so determined to help keep e-commerce organizations protected. Meeting the new standard, businesses will be better armed to fight evolving threats. Changes will also drive more consistency among assessors, help business reduce risk of compromise and create more transparent provider-customer relationships.

Transitioning to PCI DSS 3.0 will involve some work, but doing that work on the front end is going to save much work down the line. Adopting the new standard ultimately will drive your e-commerce business into a secure and efficient era.

Cultural Changes – One of the main themes of 3.0 is shifting from an annual compliance approach to embedding security in daily processes. Threats don’t change just once a year. They’re constantly evolving and that means e-commerce organizations must adopt a culture of vigilance. Only through a proactive business-as-usual approach to security can you achieve true DSS compliance. Realistically, this could mean the need to provide more education and build awareness with staff, partners and providers, so that everyone understands why and how new processes are in place.  

Operational Changes – The 3.0 standard addresses common vulnerabilities that probably will ring a bell with many of you. These include weak passwords and authentication procedures, as well as insufficient malware detection systems and vulnerability assessments, just to name a few. Depending on your current security controls program, this could mean you’ll need to step up in these areas by strengthening credential requirements, resolving self-detection challenges, testing and documenting your cardholder data environment and making other corrections.

Overview Changes – How much work lands on your plate will depend on your current security program. Examining your current security strategies and program is a good idea. Below are the areas requiring your attention, which this series will explore in more detail in future installments.

Service Provider Changes –  Some organizations made unsafe assumptions in the past when it comes to third-party providers. Some have paid the price, from failed audits to breaches. One reason that the new standard is designed to eliminate any confusion over compliance responsibilities. Responsibilities, specifically for management, operations, security and reporting all will need to be spelled out in detailed contracts. In addition to improved communication, an intensified focus on transparency means that you should have a clear view of your provider’s infrastructure, data storage and security controls, along with subcontractors that can impact your environment. So if your organization isn’t exactly clear on which PCI DSS requirements you manage and which ones your providers handle, prepare to get all of that hammered out.

The Compliance Rewards – The path to preparing for the 3.0 deadline in January 2015 sounds like it’s a lot of work. So to get started request your QSA’s opinion on how the changes will impact your organization, by doing the gap assessment and you’ll be able to address any shortcomings.    

Meeting the new 3.0 requirements isn’t just about passing audits. In fast paced payment IT landscape, staying smart and protected is part of our commitment to our customers. Beefing up security game not only reduce audit headaches, but also enjoy stronger brand reputation as a safe and reliable e-commerce business.

Posted in Best Practices for Merchants, Credit card Processing, Credit Card Security, e-commerce & m-commerce, Electronic Payments, Financial Services, Payment Card Industry PCI Security, Small Business Improvement, Visa MasterCard American Express Tagged with: 3.0, attack surface, authentication, breaches, businesses, cardholder data, complance, compliant, credential, cybercriminals, digital payment, DSS, e-business, e-commerce, embedding, hackers, lower-risk, online retailers, passing audits, payment card infrastructures, PCI, processes, reducing fraud, requirements, risk of compromise, security controls, security of payment card data, security program, standards

Integrate Cloud-Based e-commerce Platforms

Integrate Cloud-Based Platforms

E-commerce businesses increasingly rely on cloud-based applications, such as hosted shopping carts, analytics platforms, cloud-based accounting, customer service tools, and more.

To operating smoothly, a merchant’s cloud-based apps should integrate with each other, to save time and to otherwise prevent data loss and ensure accurate reporting.

It’s important, therefore, to have an integration mindset when choosing and using software-as-a-service solutions.

Some tips:

Ask Around

As with evaluating any vendor for your company, go beyond the company’s website. Ask the vendor about other customers. Get references. Contact those companies and ask how the platform is working. Is it easy to set-up? Does it integrate seamlessly with other apps? How long does it take to transfer data from one app to the other? These are just some of the questions you need to ask when evaluating an app. Also check social media sites for any discussions pertaining to the program. Read what people are tweeting. Check relevant LinkedIn groups.

Check the Company’s Integrations Page or API

When evaluating a software-as-a-service (SaaS) solution, first determine if it integrates with the platforms that you’re already using. Pre-built integrations will save much time. Alternatively, if a company has an application programming interface (API), use it to integrate the app with your existing systems.

If you can’t find the integration you need or if you want to avoid the API option, contact the vendor directly and ask if it can make its platform sync with your existing solutions. Don’t underestimate the power of reaching out to your vendors.

Use Cloud App Integration Services

Another option is to use SaaS integration services. You have plenty of choices, depending on what you need to connect. If you just need to integrate two apps, like Dropbox to Gmail, for instance, you can use (IFTTT) If This Then That –  a service that lets you assign triggers and actions to each app through a drag-and-drop interface. When one program does something, it will automatically trigger another app to perform an action. For example, you can create a recipe wherein all your Gmail attachments are automatically saved to your Dropbox folder. IFTTT is free to use, to integrate up to 80 apps.

A similar service, Zapier, lets you do the same thing, but on a larger scale. It supports more than 250 applications, including Salesforce, Zoho CRM, Xero accounting, Campaign Monitor email, and more. Zapier is free for five integrations. It also offers Basic, Business, and Business Plus plans that cost $15, $49, and $99 per month, respectively.

IFTTT and Zapier work well to integrate two cloud applications. However, if you’re running a combination of cloud and on-premise applications, or if you have an ecosystem of apps and data sources that have to connect and exchange data, you need more sophisticated options.

That’s where services such as Dell Boomi and SnapLogic come in. Like IFTTT and Zapier, these solutions use a drag-and-drop interface, but at a larger scale. They connect multiple combinations of cloud and on-premise applications.

Use Free Trials

Always test-drive your apps or integration services. Most SaaS platforms offer free trials. Take note of user-friendliness, functionality, and observe how they function with programs you already have.

Posted in Best Practices for Merchants, Credit card Processing, e-commerce & m-commerce, Financial Services, Internet Payment Gateway, Payment Card Industry PCI Security, Small Business Improvement, Visa MasterCard American Express Tagged with: api, apps and data sources, cloud applicaitons, cloud based applications, cloud based apps, cloud-based accounting, customer service, dropbox, e-commerce, ecommerce, exchange data, existing systems, gmail, integration, SAAS, salesforce, shopping carts, social media, software-as-a-service, sync, zapier

Payment Processor Security Begins

Payment processors share an inherent responsibility to keep their systems secure. It requires a system of governance that includes a broad array of policies, procedures, planning activities, responsibilities, practices and resources for implementing and maintaining a secure system and network operating environment.

To help organizations identify the best payment processors, a recent white paper from i2c outlines the various governance and security best practices processors should use. And it all starts from the top.

Good governance calls for establishing internal audit, compliance, and information security groups within the organization that have separate reporting channels to upper management and/or a board-level audit committee,  the report notes. This organizational structure ensures that all security and operational-related risks are appropriately addressed and that all internal processes and practices remain in compliance with the organization’s defined policies and procedures, which in turn should align with applicable external security standards, regulatory laws and payment systems operating rules.

Resource Dedication

Payment processors also need to dedicate proper resources to the task of understanding, and complying with all applicable government, industry, association, legal and regulatory requirements that are relevant to each of their operating regions, according to the paper. Such applicable requirements need to be carefully identified, documented, applied, and updated on a regular basis.

Payment processors’ compliance activities need to cover not only the applicable government, industry, association operating rules and legal/regulatory requirements pertaining to their operations, but they also need to understand and comply with the applicable rules and regulatory requirements pertaining to their client partners. Let say you process customer data on behalf of a partner whose data is governed by a given regulatory rule, then you as their third-party provider must also apply those regulatory rules when handling their data.

Policies and procedures should be developed and put into practice that ensure the payment processor remains in compliance with these various requirements.

Risk Management

Risk management should be incorporated into every payment processors’ system of governance. It provides a framework for identifying and addressing risks within the organization and provides a process for regular operational review and improvement, according to the report. An effective risk management process should adopt an appropriate risk management methodology to identify, evaluate, mitigate and monitor risks pertaining to critical business assets and operations.

Security best practices also call for a defense-in-depth strategy to ensure the protection of information assets and overall risk reduction. A defense-in-depth approach ensures that the failure of any one control does not lead to successful penetration. By providing multiple layers of protection, the controls collectively ensure the confidentiality, integrity, and availability of critical system assets and data.

Posted in Best Practices for Merchants, Credit Card Security, Payment Card Industry PCI Security, Small Business Improvement, Visa MasterCard American Express Tagged with: availability, confidentiality, defense-in-depth, information security, internal audit, layers of protection, network operating, payment processors, risk reduction, secure system, security best practices, system assets and data, system operating rules, systems secure

Payment Processor and Payment Processing

A payment processor is a company often a third party appointed by a merchant to handle credit card transactions for merchant acquiring banks. They are usually broken down into two types: Back and Front-End.

Back-End Processors accept settlements from Front-End Processors and, via The Federal Reserve Bank, move the money from the issuing bank to the merchant bank.

Front-End Processors have connections to various card associations and supply authorization and settlement services to the merchant banks’ merchants. In an operation that will usually take a few seconds, the payment processor will both check the details received by forwarding them to the respective card’s issuing bank or card association for verification, and also carry out a series of anti-fraud measures against the transaction.

Additional parameters, including the card’s country of issue and its previous payment history, are also used to gauge the probability of the transaction being approved.

Once the payment processor has received confirmation that the credit card details have been verified, the information will be relayed back via the payment gateway to the merchant, who will then complete the payment transaction. If verification is denied by the card association, the payment processor will relay the information to the merchant, who will then decline the transaction.

Modern Payment Processing

Due to the many regulatory requirements levied on businesses, the modern payment processor is usually partnered with merchants through a concept known as software-as-a-service (SaaS). SaaS payment processors offer a single, regulatory-compliant electronic portal that enables a merchant to scan checks “often called remote deposit capture or RDC”, process single and recurring credit card payments (without the merchant storing the card data at the merchant site), process single and recurring ACH and cash transactions, process remittances and Web payments. These cloud-based features occur regardless of origination through the payment processor’s integrated receivables management platform. This results in cost reductions, accelerated time-to-market, and improved transaction processing quality.

Payment Processing Network Architecture

Typical network architecture for modern online payment systems is a chain of service providers, each providing unique value to the payment transaction, and each adding cost to the transaction. Merchant>Point-of-sale SaaS> Aggregator >Credit Card Network> Bank. The merchant can be a brick-and-mortar outlet or an online outlet. The Point-of-sale (POS) SaaS provider is usually a smaller company that provides customer support to the merchant and is the receiver of the merchant’s transactions. The POS provider represents the Aggregator to merchants. The POS provider transaction volumes are small compared to the Aggregator transaction volumes. The POS provider does not handle enough traffic to warrant a direct connection to the major credit card networks. The merchant also does not handle enough traffic to warrant a direct connection to the Aggregator. In this way, scope and responsibilities are divided among the various business partners to easily manage the technical issues that arise.

Transaction Processing Quality

Electronic payments are highly susceptible to fraud and abuse. Liability to merchants for misuse of credit card data creates a huge expense on merchants, if the business were to attempt mitigation on their own. One way to lower this cost and liability exposure is to segment the transaction of the sale from the payment of the amount due. Some merchants have a requirement to collect money from a customer every month. SaaS Payment Processors relieve the responsibility of the management of recurring payments from the merchant and maintain safe and secure the payment information, passing back to the merchant a payment token. Merchants use this token to actually process a charge which makes the merchant system fully PCI-compliant. Some payment processors also specialize in high-risk processing for industries that are subject to frequent chargebacks, such as adult video distribution.

 

Posted in Best Practices for Merchants, Credit card Processing, Electronic Check Services, Electronic Payments, Internet Payment Gateway, Merchant Services Account, Payment Card Industry PCI Security, Point of Sale, Visa MasterCard American Express Tagged with: aggregator, aggregator transaction volumes, back end, card associations, card data, chargebacks, credit card transactions, electronic portal, front end, front-end processors, issuing bank, merchant, merchant bank, network architecture, online payment systems, payment gateway, payment processing, payment processor, payment transaction, pci-compliant, point of sale, POS, SAAS

Forego EMV Chip and Signature As Breach Concerns Rise

Merchant and Consumer Groups Seek Senate Support To Forego EMV Chip and Signature As Breach Concerns Rise

There’s no shortage of answers  in trying to put a stop to hackers set on throwing chaos into the way consumers transact at the point of sale, or online for  that matter. Yesterday, the Banking, Housing and Urban Affairs subcommittee on national security and international trade and finance got its chance to hear some of them.

During the hearing, William Noonan, deputy special agent in charge, U.S. Secret Service, noted the advances in computer technology and greater access to personally identifiable information online, which have created a virtual marketplace for transnational cyber criminals to share stolen information and criminal methodologies. As a result, the Secret Service has observed a marked increase in the quality, quantity, and complexity of cyber crimes targeting private industry and critical infrastructure. These crimes include network intrusions, hacking attacks, malicious software, and account takeovers leading to significant data breaches affecting every sector of the world economy.

The recently reported data breaches of Target and Neiman Marcus represent only the most recent, well-publicized examples of this decade-long trend of major data breaches perpetrated by cyber criminals intent on targeting the nation’s retailers and financial payment systems.  The increasing level of collaboration among cyber-criminals allows them to compartmentalize their operations, greatly increasing the sophistication of their criminal endeavors and allowing for development of expert specialization. These specialties raise both the complexity of investigating these cases, as well as the level of potential harm to companies and  individuals.

So how should the industry react to prevent further breaches? Those opinions provided during testimony at the hearing varied widely, though both consumer and merchant groups would like the card networks to give up requiring only signatures for smart card purchases at the point of sale.

Consumer program director at the U.S. Public Interest Research Group, called for myriad of changes, citing that the greater risk from the recent breaches is less related to identity theft than it is to fraud on existing accounts,  and he said it’s time for players on both sides of the transaction to focus more on protecting consumers than on managing their own risk.

Until now, both banks and merchants have looked at fraud and identity theft as a modest cost of doing business and have not protected the payment system well enough. They have failed to look seriously at harms to their customers from fraud and identity theft -including not just monetary losses and the hassles of restoring their good names, but also the emotional harm that they must face as they wonder whether future credit applications will be rejected due to the fraudulent accounts.

As a first step, Congress should institute the same fraud cap, $50, on debit/ATM cards that exists on credit cards, or eliminate the $50 cap entirely, since it is never imposed because of the zero-liability policies issuers have voluntarily have imposed. Congress also should provide debit and prepaid card customers with the stronger billing-dispute rights and rights to dispute payment for products that do not arrive or do not work as promised, just as many credit card users enjoy.

Congress should  endorse a specific technology, such as EMV smart cards and if it does, require the use of PINs when initiating smart card transactions. The current pending U.S. rollout of chip cards will allow use of the less-secure chip-and-signature cards rather than the more-secure chip-and-PIN cards. Why not go to the higher-and-PIN authentication standard immediately and skip past chip and signature? There is still time to make this improvement.”

Retailers have spent billions of dollars on card-security measures and upgrades to comply with PCI card security requirements, but it hasn’t made them immune to data breaches and fraud. The card networks have made those decisions for merchants, and the increases in fraud demonstrate that their decisions have not been as effective as they should have been.

The card networks should forego chip and signature and go straight to chip and PIN. To do otherwise would mean that merchants would spend billions to install new card readers without they or their customers obtaining PINs’ fraud-reducing benefits. We would essentially be spending billions to combine a 1990’s technology chips with a 1960’s relic signature in the face of 21st century threats.

Posted in Best Practices for Merchants, Credit card Processing, Credit Card Reader Terminal, Credit Card Security, Digital Wallet Privacy, Electronic Payments, EMV EuroPay MasterCard Visa, Financial Services, Merchant Services Account, Payment Card Industry PCI Security, Point of Sale, Small Business Improvement, Visa MasterCard American Express Tagged with: banking, Breach, card networks, card-security, chip and signature, chip cards, chip-and-PIN cards, computer technology, credit applications, credit cards, critical infrastructure, cyber crimes, cyber-criminals, data breaches, debit atm cards, EMV, hackers, hacking attacks, international trade and finance, malicious software, managing risk, merchant, national security, netwrok intrusions, new card readers, online, payment system, pci card security requirements, PIN, point of sale, prepaid card customers, smart card transactions, technology chips, the secret service, transnational cyber criminals, virtual marketplace, world economy

Global Growth, Market Consolidation Ahead For MPOS Mobile Point-of-Sale.

Mobile point-of-sale is evolving as more merchants and consumers begin to accept payment through smartphones and tablets. The end of 2013 saw a number of acquisitions and new players shape the market, and all the signs are pointing to 2014 as the year in which MPOS goes mainstream.

Indeed, 2014 should be a defining year for MPOS. Data contained  in the most recent MPOS Tracker as an indication that the major players are moving seriously to capture market share, educate merchants on the benefits of MPOS and work to make interaction with the systems simpler for consumers.

Existing companies bringing out new platform enhancement, new players popping in, partnership made it was more active, and it’s been very active in the past. This technology is going in the market, and where this industry is headed is upmarket and globalization. In order for each of these things to happen, it’s much more about the application programming interfaces and the platform that enables than the actual app itself.

A critical trend this year is global expansion outside of the U.S. This growth will help promote MPOS and push it into the mainstream as a vehicle for payment.

More adoption  happening as major retailers start to integrate MPOS into their existing systems. Over time, consumers will start to use their mobile devices to make payments more frequently.

In the past, most of the activity has been in the small and midsize business space in the U.S. A lot of the use cases were niche markets, as this technology moves up to major retailers, it will become more visible to consumers that it’s not just a niche application, but it’s a regular, day-to-date encounter for them to run into MPOS.

As for the future, the signs point to continued growth both in terms of new players appearing and in market consolidation among the smaller players. However, some will have a tougher time than others as new MPOS companies seek both market share and relevance in the wider ecosystem.

Posted in Best Practices for Merchants, Credit card Processing, Credit Card Reader Terminal, e-commerce & m-commerce, Electronic Payments, Internet Payment Gateway, Merchant Services Account, Mobile Payments, Mobile Point of Sale, Point of Sale, Small Business Improvement, Smartphone, Visa MasterCard American Express Tagged with: accept payment, app, application programming interfaces, integrate mpos, major retailers, make payments, Merchant's, Mobile Devices, mobile point of sale, MPOS, platform, Smartphones, tablets

Mobile Payment Solutions

A solution for mobile commerce will be needed eventually, whether you’re an ecommerce merchant or you run a brick-and-mortar shop.

There are mobile payment platforms for digital wallets, smartphone apps with card-reader attachments, and services that provide alternative billing options. Here is a list of mobile payment solutions.

Boku enables your customers to charge their purchases directly to their mobile bill using just their mobile number. No credit card information, bank accounts or registration required. The Boku payment option can be added to a website, mobile site, or app. Price: Contact Boku for pricing.

Intuit GoPayment  is a mobile credit card processing app from Intuit. It accepts all credit cards and can record cash or check payments. Intuit GoPayment transactions sync with QuickBooks and Intuit point-of-sale products. Intuit GoPayment works with iOS and Android devices and provides a free reader. Price: $12.95 per month and 1.75 percent per swipe, or 2.75 percent per swipe and 3.75 per keyed transaction.

iPayment MobilePay is a mobile payment solution from Flagship Merchant Services and ROAMpay. The service accepts all major cards and can record cash transactions. To help build your customer database, the app completes customer address fields for published landlines. The app can handle taxes, tips, and can record transactions offline. You can use the service month-to-month. The app and the reader are free. Price: $7.95 per month; Each transaction costs $0.19 plus a swipe fee maximum of 1.58 percent, or a key fee between 1.36 and 2.56 percent.

ISIS mobile commerce platform enables brick-and-mortar stores to collect payments (via an NFC terminal) from the mobile devices of their customers. Provide your customers with a simplified checkout process through the contactless transmission of payments, offers, and loyalty integrated in one simple tap. Price: Isis does not charge for payment transactions in the Isis Mobile Wallet. Payment transaction fees will not be increased by working with Isis.

LevelUp is mobile payment system that uses QR codes on smartphones to process transactions. Use LevelUp with a scanner through your POS system, or use a standalone scanner with a mobile device. You can also enter the transaction through the LevelUp Merchant App, using your smartphone’s camera to read the customer’s QR Code and entering the amount to complete the transaction. LevelUp also provides tools to utilize customer data. Price: LevelUp charges a 2 percent per transaction fee. Scanner is $50; tablet is $200.

MCX is a mobile application in development by a group of large retail merchants. Details on the solution are vague, but MCX is intended to offer a customizable platform that will be available through virtually any smartphone. MCX’s owner-members include a list of merchants in the big-box, convenience, drug, fuel, grocery, quick- and full-service dining, specialty-retail, and travel categories. Price: To be determined.

mPowa is a mobile payment app to process credit and debit card transactions, and record cash and check sales. mPowa will soon launch its PowaPIN chip and PIN reader for the EMV (“Europay, MasterCard, and Visa”) card standard. (Developed in Europe, EMV utilizes a chip embedded in a credit card, rather than a magnetic strip.) The EMV standard is likely to gain footing to combat credit card fraud. mPowa is a good solution for merchants with a global presence. Price: 2.95 percent per transactions, or .25 percent or $0.40 per transaction when used as a current processor’s point-of-sale system.

PayAnywhere is a solution to accept payments from your smartphone or tablet with a reader. It features an automatic tax calculation based on your current location, discounts and tips, inventories with product images and data, and more. Bilingual for English and Spanish users. PayAnywhere provides a free credit card reader and free app, available for iOS and Android. Price: 2.69 percent per swipe, 3.49 percent plus $0.19 per keyed transaction.

PayPal Here gives you a variety of options for accepting payments, including credit cards, PayPal, check, record cash payments, or invoice. With PayPal Here, you can itemize sales totals, calculate tax, offer discounts, accept tips, and manage payment email notifications. Available for iOS and Android. The app and reader are free. Price: 2.75 percent per swipe and 3.5 percent plus $0.15 per manually-entered transaction.

Square is a simple approach to mobile credit card processing. Square provides a free point of sale app and a free credit card reader for iPhones and iPads. Square offers a selection of tools to track sales, taxes, top-purchasing customers, and more. Square’s pricing is on the higher end, but with no monthly fee Square may be a good fit if you have infrequent mobile transactions. Price: 2.75 percent per swipe and 3.5 percent plus $0.15 per manually-entered transaction.

 

 

Posted in Credit card Processing, Credit Card Reader Terminal, Credit Card Security, Digital Wallet Privacy, e-commerce & m-commerce, Electronic Check Services, Electronic Payments, EMV EuroPay MasterCard Visa, Financial Services, Internet Payment Gateway, Mail Order Telephone Order, Mobile Payments, Mobile Point of Sale, Near Field Communication, Point of Sale, Small Business Improvement, Smartphone, Visa MasterCard American Express Tagged with: accepts all credit cards, alternative billing, Android, bank accounts, brick and mortar, check payments, contactless transmission, credit and debit transactions, credit card reader, credit-card, database, Digital wallets, ecommerce merchant, EMV, free app, iOS, itemize, keyed transaction, mobile commerce, mobile credit card processing, mobile payment platforms, mobile site, mobile transactions, nfc terminal, point of sale, process transactions, qr codes, record transactions offline, smartphone apps card-reader attachments, transactions

Payment Alternatives More Popular than Credit Card Payments Online by 2017

Emerging economies, such as the BRIC countries and the next layer of emerging markets, are seeing particularly fast growth of alternative payments, said Kevin Dallas, chief product and marketing officer for e-commerce at WorldPay. This means the complexity of the payment landscape will increase further. Merchants will need to ensure they understand diverging regional and sector trends in preferred methods of payment.

In three years alternative payments will eclipse credit card payments as the dominant way to pay online, according to a report yesterday from London-based e-commerce processor WorldPay. In Your Global Guide to Alternative Payments (Second Edition), WorldPay found card payments online, which accounted for 57 percent of transactions in 2012, will fall to 41 percent in 2017. Alternative payment methods (defined by the report as anything other than credit or debit cards including bank transfers, direct debits, e-wallets, mobile, COD and others) will rise to 59 percent of online transactions in the next three years. Part of the reason is the preferred payment methods in some of the fastest growing e-commerce markets are not cards.

The report predicts e-wallet transactions alone will equal the number of credit card transactions online at 41 percent, becoming the most popular method of paying online globally by 2017. Currently, PayPal is the most popular alternative payment method in the world with a market share of 57 percent. China’s Alipay is second at 20 percent.

Posted in Credit card Processing, Digital Wallet Privacy, e-commerce & m-commerce, Electronic Payments, Internet Payment Gateway, Mobile Payments, Mobile Point of Sale, Near Field Communication, Visa MasterCard American Express Tagged with: alternative payments, bank transfers, card payments online, cod, credit card payments, credit card transactions, debit cards, direct debits, e-commerce, e-commerce processor, e-wallet transactions, e-wallets, methods of payment, mobile, online transactions, pay online, paying online, payment, PayPal, transactions

Payment Tokenization Security Standards

Payment Tokenization Standards

Tokenization is the process of replacing a traditional card account number with a unique payment token that is restricted in how it can be used with a specific device, merchant, transaction type or channel. When using tokenization, merchants and digital wallet operators do not need to store card account numbers; instead they are able to store payment tokens that can only be used for their designated purpose. The tokenization process happens in the background in a manner that is expected to be invisible to the consumer.

EMVCo – which is collectively owned by American Express, Discover, JCB, MasterCard, UnionPay and Visa – has announced that it is expanding its scope to lead the payments industry’s work to standardize payment tokenization. EMVCo says that the new specification will help provide the payments community with a consistent, secure and interoperable environment to make digital payments when using a mobile handset, tablet, personal computer or other smart device.

Key elements of EMVCo’s work include adding new data fields to provide richer industry information about the transaction, which will improve transaction efficiency and enhance the consumer and merchant payment experience by helping to prevent fraudulent card account use. EMVCo will also create a consistent approach to identify and verify the valid use of a token during payment processing including authorization, capture, clearing and settlement.

EMVCo’s announcement follows an earlier joint announcement from MasterCard, Visa and American Express that proposed an initial framework for industry collaboration to standardize payment tokenization. EMVCo says it will now build on this framework with collective input from all of its members and the industry as a whole.

Posted in Credit card Processing, Credit Card Reader Terminal, Credit Card Security, Digital Wallet Privacy, Electronic Payments, Financial Services, Payment Card Industry PCI Security, Visa MasterCard American Express Tagged with: American Express, authorization, capture, card account numbers, clearing, data fields, device, digital payments, Digital Wallet, Discover, EMV, emvco, fraudulent card account, interoperable, jcb, MasterCard, merchant, mobile handset, payment, payment processing, payment token, secure, security standards, settlement, smart device, specification, standardize, tablet, token, tokenization, transaction, visa