Ecommerce Conference Umass Dartmouth April 19, 2013

Transcription

1 Ecommerce Conference Umass Dartmouth April 19, 2013

2 As a seminar Special,for all who call and request additional information from 4/19 to 5/30/2013, you will receive: A. Free Consultation no charge to evaluate and provide information B. If application is taken a credit of $250 will be given to cover application fee, set up fee and 1 card swipe. Call or CELIA SMITH AT celia.smith@veracitypayments.com Don t forget to mention Seminar. Thank You!

3 AGENDA Issues and Trends in Online Payment Systems Including Mobile Processing Systems and Virtual Terminals Veracity Payment Solu6ons Trends in Online Payment Systems Mobile Processing Systems Credit Card Processing Needs Ques6ons

4 WHO WE ARE AND WHAT WE DO Veracity Payment Solu6ons is a leading, privately held merchant acquirer and provider of payment transac6on processing services. With our commitment to Truth in Processing, we re dedicated to quality service, reliability and affordable straighnorward pricing. PCI Compliant Provider Since 2008 Market Place Ethics, Category II Sponsor Bank: Veracity Payment Solu6ons is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, CA., and Synovus Bank, Columbus GA.

5 VERACITY COMPANY OVERVIEW Veracity is headquartered in Atlanta, GA with a 15,000 square foot Opera6ons Center in Aiken, SC. Addi6onal office loca6ons in Moline, IL, Lansing, MI, Honolulu, HI. Ranked¹ as the 65th largest acquirer in the United States out of more than 5,000 registered service providers. Currently processing for over 15,000 merchants na6onwide. Annual processing volume of more than $2.5 billion in Visa and MasterCard volume winner of the Be`er Business Bureau s Torch Awards for Marketplace Ethics. Third consecu6ve year that Veracity has been recognized by the Be`er Business Bureau for Outstanding Marketplace Ethics Stevie Award Bronze winner in the category of Customer Service Contact Center Team ¹ The Nilson Report, April 2012

6 PRODUCT SNAPSHOT Mobile Solu?ons Integrated Payment Solu?ons Virtual Solu?ons Value Added Check Services Pricing & Profitability Modeling Merchant Educa?on 24/7 Online Repor?ng Best Prac?ces- Selling Techniques Compliance

7 Trends in Online Payment Systems

8 ONLINE TRENDS Driving demand for more payment options Buying via mobile Ease of use and speed are top consumer needs Consumers are demanding easier and faster ways to shop and pay Buy now, pay later Headed towards a cashless economy

9 ONLINE TRENDS Paper checks become obsolete Online promo6ons are the new blow out sales Ecommerce widens offers Online banking becomes the norm Prepaid credit cards gain market share Ease of foreign transac6on management Security remains a concern The move to cloud storage Digital payment processing takes precedence Mobile sites are a necessity, not an op6on Smartphone and tablet use s6ll growing, over 10% of online retail dollars were spent on mobile devices Virtual Solu?ons

10 SIMPLE CHECKOUT Authorize.net is a subsidiary of Visa and the world s largest provider of secure gateway services Simple Checkout is an easy and inexpensive way to accept payments on the web. Features & Benefits: Customized seings Ability to add a Buy now or Donate bu`on to your web page Accept orders without crea6ng a shopping cart Secured transac6ons Great for non profit organiza6ons accep6ng dona6ons

11 FUTURE TRENDS With the development of wireless technologies and the online industry, it becomes clear that in the near future credit cards will become obsolete. In development are new online and off line mobile payment technologies which allow for increased flexibility of using your mobile device, which has all your credit card data encrypted and stored with in your SIM card. This will allow for future merging of online banking and mobile services together and usage of the full poten6al of wireless technologies. Here are some in- development as well as already implemented technologies

12 Mobile Processing Systems & Virtual Terminals

13 ONLINE Online payments All credit, debit card and bank account details are encrypted and stored within the mobile device. When a customer reaches a payment page online, the mobile device recognizes it and suggest payment methods available on it. Then the desired payment method details are pre populated automa6cally on the payment page. Authoriza6on of a transac6on is only done via touch screen fingerprint recogni6on sooware as well as a password to prevent data theo in case of lost or stolen mobile devices.

14 OFFLINE Near field communica6ons (NFC) is a short- range, high- frequency, standards- based wireless communica6on technology that enables exchange of data between devices in close proximity (less than four inches). When NFC is used for mobile POS payments, a mobile device embedded with a NFC chip sends encrypted data to an NFC- enabled POS device. Instead of swiping a card or paying with cash or check, the consumer taps or waves his mobile device at the POS device. NFC can also be used for mobile person- to- person transfers if the sender s and receiver s mobile devices are in close proximity. Reliability at the POS Enhanced Security Ease of use and convenience Wallet functionality Value-add applications

15 MOBLIE PAYMENTS EXPECTED GROWTH U.S. MOBILE PAYMENTS GROSS DOLLAR VOLUME ESTIMATED THROUGH $Billions A recent U.S. survey asked consumers what factors would cause them to use a contactless card or a contactless device, such as a NFC- enabled mobile phone : Ease of use was the reason cited most ooen for using contactless payments (57 percent), followed by speed (53 percent) e2012 e2013 e2014 e Source: Aite Group November Source: Javelin Strategy & Research 2011

16 Symphony Payment Suite Overview Payment Gateway Virtual POS E- commerce Toolkit Automa6c Payments Secure Card Vault w/tokeniza6on Secure ACH Payment Vault

17 Symphony Features - Advantages Payment Gateway The Payment Gateway is the core performer of the virtual suite offering powerful, flexible and affordable Web technology for securely processing your payment transac6ons. The Gateway supports any ecommerce, retail or mail order environment and all major credit cards. U6lize fraud preven6on tools and transac6on monitoring to provide that extra security your business needs. You benefit from user friendly tools that integrate the payment process into exis6ng order entry products, shopping carts and electronic cash registers.

18 Symphony Features - Advantages Virtual POS U6lize a secure, reliable and cost- effec6ve system for authoriza6on and management of payment transac6ons over the Internet. It is easy to turn your computer into a versa6le all- in- one payments tool with our Virtual POS (point of sale) solu6on. With the advantages of speed, reliability and cost- saving benefits, Virtual POS is easy- to- use and can process in both card present and card not present environments.

19 Symphony Features - Advantages E- commerce Toolkit This scalable solu6on contains integra6on tools simple enough for new online businesses, yet comprehensive enough for the most demanding e- commerce professional. From a basic Buy bu`on and shopping cart, to customized pay pages with full web site integra6on, our e- commerce toolkit makes it easy to develop, maintain and grow a successful online business. This scalable solu6on has tools simple enough for new online businesses, yet comprehensive enough for the most demanding e- commerce professional.

20 Symphony Features - Advantages E- commerce Toolkit - Basic Toolkit Fully PCI- compliant payment pages Customizable look and feel to mirror customer s exis6ng web site design No harsh transi6ons from the merchant s web site to another company s external check out page Fully customizable fields for addi6onal data collec6on No payment account data stored in your web applica6on or on your servers Available payment confirma6on page with the ability to post order confirma6on numbers Customer payment URL is hidden so shoppers never know they have leo the merchant s web site Convenient mul6ple payment op6ons for customers Fewer abandoned purchases and more completed orders

21 SYMPHONY FEATURES - ADVANTAGES E- commerce Toolkit - Developer Toolkit Fully PCI- compliant payment system Comprehensive API s with/without Web Service- Card present/card not present Convenient mul6ple payment op6ons for customers Fewer abandoned purchases and more complete orders

22 Symphony Features - Advantages Automa?c Payments Recurring transac6ons, such as subscrip6ons or installment payments are more convenient and efficient with this flexible, secure web- based solu6on. Customers can pre- arrange to automa6cally make payments directly from their account to yours, speeding your access to cash and simplifying collec6ons. Great browser- based repor6ng capabili6es make monitoring your cash flow and managing your business easier than ever

23 Symphony Features - Advantages Automa?c Payments Features: No sooware to install access accounts through your web browser Integra6on with virtual POS and automa6c account updater PCI- compliant storage of credit card numbers and other sensi6ve data Eliminate costs associated with tradi6onal manual or paper- based systems Be`er serves customers who prefer to maintain account on file Convenient payment history repor6ng receipts

24 Symphony Features - Advantages Secure Vault with Tokeniza?on With tokeniza6on capabili6es merchants can store their customer credit card, electronic check and other sensi6ve data in a secure and reliable industry compliant (PCI, PABP) environment without the need to store the data on local servers. Customer s data is informa6on that should be protected at all costs. While storing data locally PC or in paper form within a merchant s business is inefficient and 6me consuming, it can also be dangerous from a cardholder security standpoint. The data stored in the Secure Card Vault does not reside in the merchant s office or PC.

25 Symphony Features - Advantages Secure Vault with Tokeniza?on Features: No sooware to install access accounts through PC browser Secure, PCI Compliant Cardholder Informa6on Storage No data stored locally on PC Wide range of search op6ons to allow merchants to locate data quickly and efficiently Quick and easy transac6on processing from Secure Cards interface Edit or delete cardholder data with the touch of a bu`on

26 VERACITY PAYMENT SOLUTIONS The EMV 1 standard was first introduced in 1994, when Europay, MasterCard and Visa formed EMVCo, the EMV organiza6on defined the interoperability standards for chip- bearing smart card technology. EMV is not a technology itself; it is a global standard for chip- based payment cards and acceptance devices. These standards dictate the physical nature and capabili6es of the chip, the format of the hosted data applica6ons and the way they interact with POS devices. 1 EMV is a registered trademark in the U.S. and other countries, and is an unregistered trademark in other countries, owned by EMVCo.

27 NORTH AMERICA ASSOCIATION TIMELINE Q Contactless Data Elements published in Release 12.2 April 19, 2013 Processor Compliance Migration of point of sale locations begin in earnest October 1, 2015 Liability Shift (Except Petro) October 1, 2017 Liability Shift for Petro Merchants Milestones: April 1, 2013 Acquirer processors are required to support merchant acceptance of chip transac6ons; some infrastructure updates will be required. (American Express April 30, 2013) October 1, 2015 Liability will shio to acquirers for domes6c and cross- border counterfeit fraud card- present POS transac6ons if the merchant does not have an EMV- enabled POS device. October 1, 2017 Liability shio takes effect for transac6ons generated from automated fuel dispensers - this allows more transi6on 6me to account for higher equipment/pump costs. Sourced: 2012 Discover Financial Services LLC

28 WHY NOW? Growing incompa6bility between tradi6onal magne6c stripe payment cards s6ll used in the U.S. and widespread EMV acceptance abroad. Mobile payment acceptance is accelera6ng Risk of fraud migra6ng to the U.S. from other countries that use more secure EMV technology. Value added features will be added to drive alterna?ve fee income.

29 EMV STANDARD INDUSTRY CONVERSION IMPACT Point of Sale: Es6mated 16 million devices will be upgraded in the US alone Costs range from $200 to $1500 per device Install EMV security data in applica6ons Load relevant func6on and feature parameters Cer6fy EMV card acceptance Dynamic and interac6ve environment

30 WHERE ARE WE HEADED Seamlessly integrate loyalty programs and offers to power future innovation Present Future Seamlessly integrate stored value and e-wallet programs

31 CHIP FEATURE ALTERNATIVE VALUES BENEFITS OF QR CODE A QR Code is a two- dimensional barcode containing more informa6on than a conven6onal one- dimensional linear barcode. QR Codes enables fast data access and is ooen used in conjunc6on with smart phones. Mobile POS payment applica6ons using QR Codes include Starbucks and Target pre- funded accounts. A mobile device displaying a QR Code with the consumer s pre- funded account informa6on is scanned by a POS device at checkout.

32 CONCLUSION The biggest benefit of EMV is the reduc6on in card fraud resul6ng from counterfeit, lost and stolen cards. Protect customer informa6on with addi6onal security features in the microprocessor compared to that of a magne6c stripe card. EMV roadmap will enable dynamic authen6ca6on across mul6ple channels crea6ng global interoperability. Big Data : Loyalty, Stored Value, Gio Cards and Electronic Coupons U.S. mobile payments expected to exceed $200B by 2015.

33 THANK YOU! ADDITIONAL RESOURCE LINKS h\p:// h\p:// emv.html h\p://about.americanexpress.com/news/pr/2012/emv_roadmap.aspx ADDITIONAL MATERIALS LOCATED AT THE VERACITY TABLE