CIB Bank Zrt. s ecommerce online card-acceptance service

Transcription

1 27/1/2010 CIB Bank Zrt. s ecommerce online card-acceptance service

2 CONTENTS 1. ELECTRONIC COMMERCE AND THE BANK S ECOMMERCE SERVICE WHAT IS THE ECOMMERCE SERVICE? BENEFITS FOR THE MERCHANT AND THE CUSTOMER BUSINESS-RELATED INFORMATION CUSTOMERS AND CONTRACTS CONCLUDING A CONTRACT AND THE PRECONDITIONS FOR DOING SO PROCEDURE ACCEPTED BANK CARDS INTERPRETATIONS RELATED TO BANK-CARD TRANSACTIONS FUNCTIONS AND FEATURES OF THE CIB ECOMMERCE SERVICE INTERNET SECURITY SSL PROTOCOL SECURITY IN DATA MANAGEMENT VERIFIED BY VISA CONTRIBUTORY ROLE IN PROMOTING E-COMMERCE ONLINE MERCHANT OF THE YEAR AWARD MEMBERSHIP OF THE ASSOCIATION FOR ELECTRONIC COMMERCE (SZEK) INTERNET BANK CLUB LOYALTY PROGRAMME POSSIBILITY OF CARD PAYMENT VIA MOBILE PHONE IZISHOP LEGAL REGULATIONS... 9 For further information, please visit the following page of CIB Bank s website: 2

3 1. ELECTRONIC COMMERCE AND THE BANK S ECOMMERCE SERVICE Electronic commerce (e-commerce) represents a trading solution that relies on an electronic network. One type of e-commerce is B2C (business to consumer), which covers retail activity that is, it represents the sales activity of the retailer towards the shopper. Internet-based e-commerce provides an opportunity for conducting shopping through an electronic channel, through which products may be purchased and their price settled quickly and conveniently, e.g. through purchase with a bank card without the physical presence of the card What is the ecommerce service? CIB Bank Zrt. (hereinafter CIB) offers a bank-card payment solution for its corporate clients that conduct sales activities over the internet, which includes the secure execution and settlement of internet-based e-commerce transactions. The ecommerce service is an internet-based card payment solution. This service allows the bank s merchant clients to offer their customers the option of shopping in their webstore by card, securely, based on an SSL encryption procedure. To use this service, customers (shoppers) need a bank card that is suitable for online shopping Benefits for the merchant and the customer For merchants who would like to trade on line, CIB s online card-payment service offers numerous advantages over traditional forms of trading: Benefits of online bank-card payment: Immediate real-time payment information on transactions Transactions can be automated and thus take less time Payments can be traced electronically Financial events that are easier to plan for than with other payment methods Excellent marketing opportunity Benefits for customers: Convenient and secure cashless payment method International: purchases can be made anywhere in the world regardless of the currency of purchase and the currency of the card account. Open for business 24/7 Purchased products are delivered to the customer s door, and services can be used immediately after purchase, online 2. BUSINESS-RELATED INFORMATION 2.1. Customers and contracts Merchant (Card Acceptor) client: A legal entity, a business association with no legal personality, or another organisation selling products or services to consumers, which accepts bank cards as a means of payment for the goods or services. Card acceptor agreement: A contract between the Bank and the Merchant regarding the authorisation and settlement of bank card payments made in the course of internet-based trading. Operator: A legal entity, a business association with no legal personality, or another organisation operating and maintaining a webshop or webstore, allowing the Merchant to sell goods and services over the internet. 3

4 As a financial institution, our bank only performs transaction authorisation and settlement, and therefore we cannot provide any webshop software applications. Naturally, we can recommend several providers who are capable of developing a payment application for your webshop or webstore, that is, for providing operator services Concluding a contract and the preconditions for doing so CIB Bank Zrt. concludes ecommerce service agreements exclusively with business entities registered in Hungary. Such agreements are not concluded with private persons. A card acceptor agreement may be signed by merchant clients who intend to open an independent shop on their own website or to rent one within an online department store and where, as part of their commercial activities on the site, they would like to enable their customers to pay by card. Each application for a card acceptor agreement is subject to case-by-case assessment. A card acceptor agreement is only concluded if the application form has been approved by the Bank. Merchant clients must have a company history of at least six months, or an active accountmanagement history with CIB Bank of at least three months. For the purpose of transaction settlement, the minimum precondition for concluding a card acceptor agreement is the existence of a forint or euro current account opened at any branch of the Bank, which is used at least for the processing and recording of online payments. No card acceptor agreement will be concluded with merchants who intend to sell products or services over the internet that are illegal or otherwise inconsistent with the Bank s business interests (e.g. pornography, illicit drugs, arms, gambling services, etc.) Procedure Clients wishing to use the ecommerce service may apply for and start using the online card-payment system in their webshop as follows: 1. General information (CIB , cib@cib.hu verbally/in writing, or at any branch, list of branches: 2. Application for the ecommerce service By visiting the bank branch where they have chosen to open and keep their account, and presenting their company documentation (original articles of association, specimen signature, and a company-register extract issued not more than 30 days previously. List of CIB branches: Completing an application form, providing it with an authorised signature, and submitting it at the given branch. 3. Assessment of the application The Bank verifies the company data on the basis of the application form in accordance with the requirements of the Card Companies. Feedback from the customer relationship officer, and agreeing on a date and time for concluding the agreement in person 4. Opening a corporate bank account, concluding the Card Acceptor Agreement The company s authorised representative(s) visit(s) the branch in order to conclude the agreement, at the same time presenting the above-mentioned company documents 5. Technical arrangements Liaison by the Bank with the Operator: Sending of the technical specifications to the address specified in the contract Performance of the tasks described in the technical specifications Reporting of the completion of the technical works to the Bank Testing period 6. Going live Handing over of the encrypted final key required for the bank-card payment function to go live on the merchant s website 4

5 2.4. Accepted bank cards Within the context of the ecommerce service, CIB Bank accepts and settles transactions performed using MasterCard or Visa cards. From among the cards suitable for shopping purposes, the following may be used for initiating online transactions via CIB s system: MasterCard VISA VISA Electron using this over the internet is subject to the consent of the card-issuing bank. (The issuing bank decides whether to allow the use of the card in card not present, or CNP, transactions.) Virtual bank cards specifically designed for online payment (e.g. CIB Internet Card) 2.5. Interpretations related to bank-card transactions International card companies differentiate between two types of transactions initiated by card. One of them is the card present transaction, where the card is physically present during the transaction. The other is the card not present" (CNP) transaction, where the card is not physically present when the transaction is initiated. These include transactions made via an electronic channel (the internet), during which the card holder simply provides his or her card data (the number, expiry date, and validation code of the card) when initiating the transaction Functions and features of the CIB ecommerce service Forint and euro-based transaction and settlement: The ecommerce service can be authorised and settled both in forint and in euro. Accordingly: in the case of euro-based transactions, it is a statutory obligation to indicate prices in forint even for foreign customers, the amount of the payment by card in the chosen currency is credited to the Merchant s current account kept with the Bank in the same currency. Naturally, cards linked to a bank account kept in a currency other than forint or euro can also be used for payment that is, by any card suitable for online purchases, issued by any bank in the world thus not only by a forint or euro-based bank card. Transaction control options: Cancellation (item cancellation/refund) CIB s system allows the cancellation of an already debited item (cancellation of a purchase amount already deducted from the card holder s account), or the cancellation of a partial amount. Example in practice: following an online purchase transaction, the customer cancels the purchase, the order, or a part of it. Electronic account statement of transactions and payments As part of the free supplementary services we offer, our customers can ask for their Merchant Statements, which are provided to them in paper-based format anyway, to be made available to them electronically as well. The merchant s e-statement contains the data of successful transactions processed on the given day, which can be monitored through an installed program the CIB Soft Business Terminal or the CIB Üzleti Terminál. Multilingual payment page We enable our merchant clients to customise the standard payment page provided, by inserting any header of their choice. Available language versions: Hungarian, English, German, French, Italian, Spanish, Czech, Polish, Portuguese, Romanian, Slovakian 5

6 3. INTERNET SECURITY 3.1. SSL protocol The encryption of online transactions is ensured by SSL technology. SSL is the abbreviation of the accepted Secure Sockets Layer encryption procedure. Our bank has a 128-bit cryptographic key that protects the communication channel, based on which we ensure the use of SSL-based encryption. At present, this encryption method is used in 90% of e-commerce transactions the world over. The 128-bit encryption protects messages from unauthorised access by building a secure channel, which at current technical levels guarantees the integrity of the messages. The browser used by the shopper encrypts the card holder s data before forwarding it, and thus the data arrives at its destination in an encoded format, preventing unauthorised persons from being able to interpret it Security in data management In electronic commerce, in the course of card payments, data is handled by our bank separately, and thus it can only arrive at the appropriate destination: The financial data (card number) is forwarded directly to the bank, and thus the merchant is only notified of whether the transaction has been successful, Only the merchant has access to the data related to the service or the product sold; the data is not available to the bank. During the communication phase, the data travels in an encrypted format. CIB uses 128-bit SSL coding, and the server has been certified by VeriSign Verified by VISA In order to reduce the risk to which online merchants are exposed, CIB has joined the Verified by Visa system, a solution provided by Visa International for securing online card transactions. The Verified by Visa system, which is designed for internet transactions and serves to verify the identity of card holders, considerably reduces the likelihood of internet fraud, and enhances overall confidence in online shopping. Visa card holders registered in the Verified by Visa system can specify a password at the card-issuing bank to identify themselves in the course of online shopping, which provides protection against the unauthorised use of Visa cards. 6

7 By reducing risks, merchants can strengthen the confidence of shoppers in e-commerce transactions, as the Verified by Visa logo certifies that the merchant meets the security requirements prescribed by Visa and handles card information securely. In addition, card holders can be sure that nobody else will use their Visa card at a merchant that uses the Verified by Visa system, as nobody else knows the password. 4. CONTRIBUTORY ROLE IN PROMOTING E-COMMERCE 4.1. Online Merchant of the Year Award The Association of IT Companies (IVSZ), CIB Bank (as the legal successor of Inter-Európa Bank) and Kirowski Zrt. have recently teamed up to establish the Online Merchant of the Year Award, which is received each year by the internet retailer which, based on the results of an online vote by customers and the decision of a professional jury, is deemed to have done the most in terms of furthering e- commerce in Hungary and which, in the opinion of the jury, is the best domestic online merchant. Embracing CIB Bank s suggestion, IVSZ (as the founder) and Kirowski Zrt. and CIB Bank (as the cofounders) recently introduced the Online Merchant of the Year Award with the agreed aim of recognising and encouraging excellence in the field of e-commerce, the significance of which is increasing in business terms. Ever since its merger with Inter-Európa Bank, CIB Bank has remained firmly committed to its role as a supporter and promoter of e-commerce. The online merchant of the year earns the right to use the title for one year, and can take advantage of the numerous benefits offered by the award s founders and media sponsors. In addition to this award, the professional jury also selects a Most Promising Online Merchant of the Year. The online public voting takes place at Based on the results of the public vote and the decision of the jury, Bookline.hu was the winner of the Online Merchant of the Year Award in Alongside this main award, the jury selected a Most Promising Online Merchant of the Year in 2009: Bigyoshop.hu. Also in 2009, the jury announced a special award for Innovative Merchant of the Year, which went to Netpincér.hu Membership of the Association for Electronic Commerce (SZEK) CIB Bank is committed to the development of innovative solutions and, more specifically, to the development of electronic commerce and online payment systems, and therefore it regards it as important that it should join and contribute to an association that is active in this field and that embodies and promotes the highest standards of professional integrity. Since 2005, CIB Bank has been a sponsor of the E-Commerce Conference held annually by the Hungarian Association for Electronic Commerce, and has been a member of the association since For more information about SZEK, go to Internet Bank Club loyalty programme More than 300,000 of our customers manage their finances safely and securely via the CIB Internet Bank, enjoying reduced transaction fees as they do so. One of the internet bank s services is available under the menu item Club, and offers an excellent opportunity for merchants who would like to promote their webstore, and who would naturally like to increase the number of active customers visiting the shop and thus their overall turnover. The main point of the Club scheme is that a virtual shop window is displayed for the user under this menu item, in which the various webstores that have joined can be seen, together with their product or service range including any discounts they are offering. All users have to do is to click on an item this will immediately take them to the webstore s site, from where they can take advantage of the discounted price by initiating a purchase. A special hyperlink embedded in the webstore serves to identify the internet-bank user. 7

8 What advantages does collaboration offer? Marketing your products and services to a potential customer base of more than 300,000 users: According to surveys we have conducted, customers of ours who use the CIB Internet Bank tend to be active online shoppers. Users of the Internet Bank frequently shop over the internet with a bank card, including with CIB Bank s internet card specifically designed for this purpose. Free display of your webstore under the CIB Internet Bank s Club menu item, in the following format: For more information: 5. POSSIBILITY OF CARD PAYMENT VIA MOBILE PHONE IZISHOP CIB Bank Zrt. is an enthusiastic partner in the support of innovative online payment technologies. At the initiative of software technology company Hedz Kft. and in collaboration with them, we have developed a mobile payment platform, the engine for which is provided by our online card-acceptance system. The services are marketed and operated by Hedz Kft. To use the sales channel built on GPRS technology, just one application needs to be installed on the user s mobile phone, which can be done by sending a simple text message. As a result, the izishop mobile shopping function is added to the handset s menu, and through this, the purchasing process can be launched simply and quickly. A unique feature of the system is that it is independent of the mobile service providers; purchases are not added to the mobile phone bill, as the payment is made from a bank card. In creating the secure online payment function that accepts MasterCard and Visa cards, CIB Bank has proved itself to be a reliable and innovative banking partner for Hedz Kft. Another benefit of the service is that it is available for customers who use a foreign mobile service, just as it is for those using domestic mobile services. The cost of a purchase transaction is even lower than the price of a basic-rate text message and may even be free, depending on the terms of the shopper s mobile phone subscription. 8

9 6. LEGAL REGULATIONS Act C of 2003 on Electronic Communications The Act on Electronic Communications (Eht.) specifies the preconditions for launching electronic communication services and activities, the general rules applicable to the performing of such activities, and the obligations of the services providers. To ensure that adequate telecommunication services are available to users and for other public-interest purposes (e.g. consumer protection), the act regulates in detail: universal electronic telecommunications services (e.g. the content of such services, and their financing and oversight), the issues related to the interests and rights of subscribers (e.g. the powers of the Representative of Telecommunication Consumer Rights, rules on the conclusion of subscriber contracts, handling of complaints and the reporting of incidents), and the related data management (e.g. protection and use of personal data). The particular rules applicable to e-commerce services are contained in Act CVIII of 2001, but in the course of the activities all other legal provisions must be complied with that apply to traditional commercial activities (e.g. consumer protection, advertising, regulations concerning authority permissions). Government Decree 17/1999. (II.5.) on contracts concluded between distant parties 1 (1) The effect of this decree extends to contracts concluded between a business entity or a foreignregistered enterprise by way of its Hungarian branch (hereinafter together: business entity) and a consumer in the context of the business entity s product-sale or service-provision activity solely by means of the use of one or more distance-communication devices (contract concluded between distant parties). 1 (5) For the purposes of this decree, a distance-communication device is any device suitable for making a contractual declaration for the purpose of concluding a contract in the absence of the physical presence of the parties. Such devices include in particular: addressed or unaddressed printed forms, standard letters, advertisements published in a newspaper together with an order form, catalogues, the telephone, automatic calling devices, the radio, videophones, videotex (microcomputer with screen) with keyboard or touchscreen, electronic mail ( ), telecopiers (faxes), and the television. Act CLV of 1997 on consumer protection This determines the range of customer information that needs to be provided in relation to the sale of goods and services (specification of prices, information for consumers regarding the products, packaging, labelling, etc.). IV. 8 The information must be suitable for ensuring that the consumer has at his or her disposal: Knowledge about the basic features and properties of the product or service, and about the quality, price or fees for the product or service, and the instructions for, and the risks associated with, using the product or service which is needed for assisting in product or service selection, for using the product or service, and for maintaining the product. The basic knowledge required for enforcing his or her rights. IV. 9 The product except for the goods defined in a separate legal regulation may be placed on the market if the data specified in 10, required for informing consumers and for the performing of oversight by the authorities, are clearly and legibly indicated on the packaging or elsewhere, but on a label inseparable from the product, in Hungarian, in a manner that is easy for a layman to understand. IV. 14(1) When the product is placed on the consumer market, the distributor is obliged in accordance with the provisions of a separate legal regulation to inform consumers in writing about the sales price, the unit price and the service price. IV. 14(2) The sales price, the unit price and the service price must be stated clearly, visibly and legibly, in the legal tender of the Republic of Hungary. Act LVIII of 1997 on commercial advertising activity 3(3) Advertisements pertaining to goods that are intended to be sold to consumers by mail order on the domestic market must, in a legible manner, contain the name and registered office of the advertiser or indicate the location of its permanent establishment (retail outlet) in Hungary, as well as the registration number specified in a separate legal regulation. 9

10 Government Decree 133/2007. (VI.13.) on the conditions for performing the individual trading activities that may be conducted without a store A list of trading activities that may be conducted either in or without a store The detailed rules on the issuing of an operating permit for a store The rules on the checking of compliance with the legal provisions pertaining to trading activities Terms and conditions applicable to occasional and mobile vending Provisions pertaining to the packaging of certain products and to the sale of alcoholic drinks The rules applicable to mail-order services The latest statutory regulations related to e-commerce are available at 10