January 6th, 2017 by Elma Jane
Online fraud is not going away; hackers are becoming more sophisticated. While technology offer more avenues for consumers to pay, they also offer new ways for hackers to steal data.
There are several factors that increases the growth of online fraud:
EMV migration: because of EMV migration, fraud in face to face transactions becomes more difficult and moves to card-not-present transaction. This has been observed after EMV is implemented in other country.
Banking activity: it is moving online not only via online-only banks, but also mobile and online bank services.
An increase of online marketplaces: financial services pros are more proficient in identifying fraud compare to individual consumers who become sellers that can be victims of online fraud.
How can e-commerce and financial services companies reduce online fraud?
Merchants: Ensure that you have payment security. Fraudsters use sophisticated technologies, ask your payment provider for encryption and tokenization. You can also use BIN LookUp as an added security and number of benefits. Bin LookUp allows merchant or institution to check more about the transaction.
Online marketplaces: Marketplaces can protect their reputation by validating new sellers using sophisticated device and applying advanced models and machine learning to detect unusual patterns of activity that indicate misuse.
Banks: Fraudsters continue to innovate. Bank technology needs to be flexible and stay one step ahead.
For account set up or terminal upgrade call now 888-996-2273 or visit www.nationaltransaction.com
Posted in Best Practices for Merchants, e-commerce & m-commerce, EMV EuroPay MasterCard Visa, Mobile Payments, Mobile Point of Sale Tagged with: banks, card-not-present, data, e-commerce, EMV, encryption, financial services, fraud, merchants, online, payment, provider, Security, terminal, tokenization, transactions
March 4th, 2016 by Elma Jane
A number of financial institutions are beginning to implement biometric authentication. They started to replace traditional knowledge-based passwords with biometric authentication.
A British multinational banking is introducing biometric tests for its customers in U.K., letting account holders access online banking using their fingerprint or voice. If you’re using phone-banking services you can register your voiceprint with the company instead of using a regular password. A special voice biometrics technology will analyze a customer’s voice when they call the bank.
Customers using Apple’s Touch ID will be able to access their accounts on their mobile phones using their fingerprint.
Customers in the U.S., Canada, Mexico, Hong Kong, and France will have the technology by the end of the year. Other markets will follow in 2017 and 2018. The British multinational banking and financial services company have nearly 50 million retail banking customers around the world.
Posted in Best Practices for Merchants, Financial Services Tagged with: account, bank, banking, biometric, customers, financial, financial institutions, financial services, mobile, online, retail
February 8th, 2016 by Elma Jane
The U.S. House of Representatives voted to end the Obama administration’s Operation Choke Point.
The vote was 250-169, which represented a group of all Republicans and 10 Democrats voting to revoke the law.
Operation Choke Point, which began in 2013, leveraged the government’s regulatory power over merchant banks, acquirers and payment processors, forcing them to drop clients engaged in industries like payday lending, firearms and other high-risk sectors especially online like gambling and adult entertainment.
In a statement by U.S. House Rep. Luetkemeyer, the first step has been taken to ensure that federal banking agencies can no longer compel financial or payment institutions from offering financial services to licensed, legally-operating businesses that has been a target not because of potential wrongdoing, but purely on personal and political motivations and without due process.
Posted in Best Practices for Merchants Tagged with: acquirers, banks, financial services, merchant, payment, payment institutions, processors
February 4th, 2016 by Elma Jane
Companies providing electronic money services, such as online or mobile payments accounts, have more than doubled since 2013.
This number has been on the rise over the past few years as consumer confidence in alternative payments methods has increased.
UK consumers and businesses are increasingly comfortable with the idea of a cashless economy, in which they might not be able to physically see or access money. More are embracing pre-paid cards, contactless and mobile payment systems for ease of use, efficiency and enhanced security.
According to a specialist financial services regulatory consultancy, there has been a significant increase in the number of electronic money providers registered with the Financial Conduct Authority (FCA).
E money providers must be authorized with the FCA under the Electronic Money Regulations 2011 and meet stringent consumer protection criteria, including adequate capital, the separation of customer’s money from the company’s funds.
The regulatory background is complex and electronic money providers need to ensure that systems, processes and controls are tight to ensure a high level of consumer protection. The FCA is not afraid to place these businesses under a microscope.
Many are concerned that this increase in alternative payments methods will lead to the death of the traditional bank, but only if they fail to innovate and adapt to market trends and consumer needs.
Posted in Best Practices for Merchants Tagged with: bank, cards, consumers, contactless, customers, electronic money, financial services, Mobile Payments, online, payment systems, payments, payments methods, provider's, Security
November 12th, 2015 by Elma Jane
The United States will leap-frog over chip-and-signature EMV cards quickly and move into biometrics and other security measures, a recent panel discussion on payment technology has heard.
Biometrics is going to play a bigger role in payments going forward because it can be more convenient and it can be a stronger form of verification.
Biometric technology has been a major topic in the payment industry. In another panel held during the recently concluded Money 20/20, experts discussed the role that it will play in the future of the payment industry.
The panel also talked about various biometric technologies including voice, face, iris and fingerprint recognition, which are paving way for new applications in the financial services and payments sectors.
Posted in Best Practices for Merchants Tagged with: biometrics, EMV, financial services, payment industry, payment technology, payments, payments sectors
November 6th, 2015 by Elma Jane
Money 20/20 was billed as the largest convention in payments history held in Las Las Vegas, during the last week of October 2015.
The show delivered well-organized, incisive content such as Europay, MasterCard and Visa (EMV) migration, mobile payments, security and omnichannel commerce.
20/20 Highlights
- Alternative lending and credit.
- Bill Payments, Financial Services: Newly released market research provides insights into the future of household bill payments, millennials, and financial services.
- Connected Commerce and the Mobile Enterprise: The Internet of Things is changing the way that consumers interact with their environments. Analysts predict up to 30 billion interactive devices will be connected to the Internet by 2020, noting that many of these devices will be payment-enabled.
- Marketing and Customer Experience: Most marketers agree that the era of demographic profiles and pull marketing is over. Retailers, card brands and information technology professionals looked at the customer experience in the digital world. They explored new marketing practices, trends in e-commerce and mobile commerce, and big data findings in other industries that may be useful to financial service companies.
- Mobile Banking: Banks are undergoing an incremental transformation as they learn to compete with nonbank lenders, balance cash management with digital currencies, and shift from local branches to online and mobile forms of banking.
- Mobile Payments: Payments analysts reviewed Apple Pay a year after its launch and a range of other mobile wallet offerings, and they speculated on how third-party wallets will impact bank apps.
- Payment Card Evolution: Payment card issuers, processors and network service providers analyzed the changing look, feel and role of payment cards in the greater ecosystem. Discussions ranged from card linking to the coolness factor of gift cards to how e-cards are expanding market opportunities.
- POS, Processing and Open Platforms: Executive roundtables with leading acquirers explored front-end and back-end technology and omnichannel commerce for small and midsize businesses.
- Regulatory Landscape: Increased federal and state oversight has had a significant impact on the financial services sector.
- Security: Security analysts made in-depth presentations on tokenization, end-to-end encryption, and secure methods of authentication designed to protect consumers, merchants and industry stakeholders from cybercriminals. Many agreed that EMV implementation in the United States will drive fraudsters to the card-not-present space. They discussed how EMV adoption has changed fraud patterns in other regions and offered examples of best practices geared toward identifying and preventing electronic payment fraud.
More than 10,000 attendees and 3,000 exhibitors from 75 countries attended Money20/20. Financial services professionals from mobile, retail, marketing services, data and technology met at what show organizers described as the intersection of mobile, retail, marketing services, data and technology.
The years to come will be a turning point in the payments sector, and with the recent shift to EMV, the entire conference confirmed that all the players are more interested than ever in finding innovative solutions for combating online fraud.
Posted in Best Practices for Merchants Tagged with: Apple Pay, big data, bill payments, card-not-present, e-commerce, electronic payment, EMV, EuroPay, financial services, Gift Cards, MasterCard, merchants, Mobile Payments, mobile wallet, payments, POS, processors, Service providers, tokenization, visa
June 3rd, 2014 by Elma Jane
Apple announced new Touch ID API better known among the masses as fingerprint ID, which will allow app developers to use fingerprint authentication for mobile payments and other applications.
This means that in addition to protecting the mobile device itself, the technology can now be used also to secure individual applications on the device against unauthorized use. Customers could potentially use prints from different fingers to control different apps. For instance, right thumbprint for access to the device, left index finger for access to the mobile bank app within the device.
The new feature for third party software developers provides a logical progression for the removal of password protection across a range of applications, including payments.
Financial services providers who offer the convenience of a mobile application for their customers can now also offer said customers an additional layer of security for the information that application holds.
Posted in Credit Card Security, Mobile Payments, Smartphone Tagged with: app, Apple, bank, device, financial services, Financial services providers, fingerprint authentication, fingerprint ID, mobile, mobile application, mobile bank app, Mobile Payments, payments, Security, software, software developers, Touch ID API
March 31st, 2014 by Elma Jane
Money remittance companies can achieve real benefits by embracing a mobile-first strategy. In fact, when it comes to financial institutions, I can definitely say this is a perfect match! Specially for us who are transferring money to our home country for our loved ones.
Here are some factors why.
It decentralizes transaction points, making it inherently safer for customers.
People carrying cash in and out of remittance centers are prime targets for criminals. In some countries, it’s not rare to have people mugged just outside of banks and remittance centers.
By allowing people to transact wherever they are, mobile remittance decentralizes the transaction points, making it harder for thieves to find unsuspecting prey.
It has the potential to reduce bottlenecks in branches.
Mobile remittance can reduce the number of people who would visit a remittance branch to complete transactions. It alleviates traffic inside the branch, reducing lines and wait times and making visits by other customers more hassle-free.
Makes remittances more accessible.
The reduction in costs of running a remittance operation means these companies can actually lower the costs of sending money for the end-customer. This makes remittances more accessible to the areas that most need it, such as developing nations and remote rural areas. Lower costs also make it more attractive for people to use formal remittance solutions to send over money. For the poor, every cent counts, so lower costs can make the added security only a financial institution can provide more attractive for them.
Mobile makes money transfers faster and more convenient.
While today’s contactless mobile payments solutions are still not as simple as handing over a wad of cash or swiping a card for over-the-counter payments, in the world of money remittances, mobile can actually smooth out friction points.
Through mobile, senders can send funds wherever they are. They won’t have to drive or commute to a local remittance center, they don’t have to fill out forms and they don’t have to fall in line to complete the transaction. It’s all seamless and convenient.
For the recipients, mobile remittance can save them the trouble of having to go to a remittance center, fill out a form and fall in line to receive their money. All they’ll need is a simple SMS code that they can use to withdraw funds from a nearby ATM through cardless transactions.
Money can stay within the remittance company’s network longer.
One of the side effects of successful mobile money campaigns is that users are also using these mobile money solutions as storage mediums for their money. They don’t withdraw the funds all in one go. Instead, they only take out what they need and withdraw funds later.
Having the ability to withdraw small sums at a time has multiple benefits. For one, carrying less cash makes it safer for the customer. For the remittance company, the money stays in its network longer.
Opens up doors for financial inclusion
This is particularly true for developing countries where a vast majority of the population are un-banked or under-banked. The costs of building and maintaining a physical presence in poor countries has made traditional financial services difficult to access for their citizens. Even in poor countries, a large number of the population has access to a mobile device, giving them an opportunity to receive financial services.
Opens up other opportunities for remittance companies
Having a mobile service can help remittance companies expand to other services. They can add bill payments into the app, for example, allowing their customers to pay for utility bills using funds sent to them through their mobile devices.
Paves the way forward to progress
Mobile use is so widespread that it is no longer wise for remittance companies to turn a blind eye to it. If they won’t embrace it, you can bet their competitors will. Whoever gains traction in the mobile channel will have a huge advantage in the market. It’s now a case of move now or be left behind.
Reduces costs for remittance companies
Mobile remittance can cut costs for remittance companies by reducing the need for physical branches and personnel to accommodate walk-in clients. Mobile can scale without incurring significant costs making a mobile investment much better in the long-term for remittance companies that want to expand their operations.
Posted in Best Practices for Merchants, Financial Services, Mobile Payments, Small Business Improvement, Smartphone Tagged with: atm, bill payments, cardless transactions, complete the transaction, contactless mobile payments, financial services, mobile channel, mobile device, mobile money, mobile remittance, mobile service, mobile-first, money remittance, network, payments, sms, swiping a card, transaction, transferring money
February 17th, 2014 by Elma Jane
Discover’s Free FICO Service
Executives across all industries have begun forsaking consumer input when designing products. it’s not a customer’s job to know what they want.
Julie Loeger, senior vice president of brand and acquisition at Discover, has found success by bucking this recent trend. Launched just one year ago, Discover’s it Card – a credit card that comes with no late fees, no over limit fees and no APR penalties for late payments, was crafted precisely to meet the desires of increasingly demanding credit card users.
This November, Discover once again illustrated its ability to put consumer needs front and center with the announcement that it would begin providing cardholders with free FICO credit scores as part of their monthly credit card statements.
A lot of information, and what consumers wants to do is share that information to help them achieve their financial goals and personal goals.
The result was an overwhelming positive response that led Loeger and her team to put together a program that included FICO scores, while keeping the end-product simple and straightforward.
One year after the Discover it Card was introduced, and one month after the launch of its FICO service, a regrouped with Loeger for a conversation that revealed new insights into what consumers are looking for in the market and what Discover has learned about marketing successful card products.
Posted in Financial Services, Visa MasterCard American Express Tagged with: apr penalties, card products, cardholders, credit scores, credit-card, dicover, fico, financial services, late fees, late payments, over limit fees, statements
January 21st, 2014 by Elma Jane
Myths about seniors abound. Among them are that most seniors are poor, they don’t shop online, and they only buy necessities. Yet statistics show that this overlooked segment of our society has money to spend. Ecommerce vendors that can reach out to older Americans can be richly rewarded.
Conventional wisdom suggests that when seeking customers, ecommerce merchants should pursue teens and people in their twenties. These are the people who own the most electronic devices, are the most comfortable with technology, and do the most online buying. However, you may be overlooking a large and neglected segment of the U.S. population that is eager to spend money online — people over 50.
Advertisers ignore them, concentrating mainly on the 18 to 34 age group. Nielsen, the research firm, estimates that only about 5 percent of advertising dollars are directed at seniors. Merchants too tend to offer products that appeal only to younger shoppers. Marketing efforts are directed mainly at this group.
Why Target People Over 50?
Quite simply there are a lot of them and they have money. Nevertheless, brands focus on the under 50 age group. Yet the almost 78 million Baby Boomers in the U.S. — those born between 1946 and 1964 — are fairly affluent, well educated, comfortable with technology, and willing to try new products. They were raised in a spending-driven economy, unlike their parents who grew up during the Depression.
Indeed, according to Nielsen, Boomers’ online habits are similar to those of the 18 to 34 age cohort. Boomers represent 38.5 percent of all consumer packaged goods expenditures. Research firm Ipsos, in cooperation with Google, conducted interviews with 5,100 Boomers and seniors in April 2013 and found that while the most common reason to use the Internet was to find out about the news and weather, 57 percent shopped online in the prior month and 45 percent looked for coupons or daily deals.
As a society, we tend to stereotype seniors. The only advertising directed at them emphasizes physical infirmity. But older people do buy things other than pharmaceuticals, adult diapers, and scooters. Even those who are retired have disposable income. According to the U.S. Census Bureau and Bankrate, a financial services company, Americans over 50 account for 77 percent of all financial assets, and 54 percent of total consumer demand. They comprise 47 percent of all car sales and 80 percent of luxury travel purchases. They also buy toys, games and electronics for their grandchildren.
According to the 2010 Census, there are 51.6 million Americans aged 60 to 84 comprising 16.6 percent of the population and 41.9 million between 50 and 59 years of age. Statistics from the U.S. Bureau of Labor Statistics show that approximately 18.5 percent of Americans age 65 and over were working in 2012. This percentage will likely increase in future because of erosion in traditional pension plans, a decrease in the value of financial assets, and the uncertainty of 401K plans. Working people need clothing, cars, and electronics.
The results of the 2012 Pew Internet & American Life Project Survey showed that over half of those 65 and older are online and 70 percent use the Internet on a daily basis. However, persons over 75 do not use the Internet very much. But the age group right behind them is comfortable with the Internet and when they reach 75 they will likely continue to use the Internet for email, research, and shopping.
Thirty-four percent of those over 65 visit social networking sites, while 86 percent use email.
What do Older Shoppers Look For Online
U.K. research firm Shoppercentric advises that seniors look for quality and value over bargains when shopping. However, they do tend to use coupons and discounts.
In most cases, it’s not necessary to change your website or your product offerings to attract seniors. It is simply a matter of letting them know that you are interested in their business. Many online businesses find that partnering with organizations such as AARP and offering a discount is a good first step in attracting older customers.
Seniors have the inclination and time to perform extensive research before making a purchase decision. Be sure to provide detailed information about your products and services. Visuals are helpful too. Seniors like to do online research on hobbies, vacation destinations, auto, and appliance purchases. They also rely on the Internet for health information.
Seniors are receptive to email marketing. They are more likely to respond to that than other online forms of communication.
Is Millennial Purchasing Power Overestimated?
Merchants who target people in their teens and 20s may be overestimating the purchasing power of this segment of the population. A substantial number of them are living with their parents, are underemployed or unemployed and don’t have a great deal of discretionary income. In 2012, 36 percent of the country’s young adults ages 18 to 31— the Millennial generation — were living in their parents’ home, according to a Pew Research Center analysis of U.S. Census Bureau data. Of those still living with parents, only 29 percent were employed. Millennials may actually have considerably less purchasing power than Baby Boomers and seniors.
Posted in e-commerce & m-commerce, Electronic Payments, Financial Services, Internet Payment Gateway Tagged with: bargains, ecommerce, electronic devices, email, financial services, Merchant's, online businesses, online buying, shop online, shopped online, spend money online
