First Data Learns to Manage Online Merchant Risk
|
|
- Shawn Owen
- 7 years ago
- Views:
Transcription
1 Case Studies, A. Litan Research Note 1 April 2003 First Data Learns to Manage Online Merchant Risk Selling accounts and payment processing to online merchants represents First Data's fastest-growing market. The enterprise had to quickly change its processes to manage the risk and rapid growth of this clientele. Core Topic Financial Services: Financial Services Architectures and Emerging Technologies Key Issue What architecture models and technologies will enable FSPs to adapt to major industry trends such as straight-through processing, the real-time enterprise, corporate performance measurement and risk management? In the late 1990s, First Data's Merchant Services division (FDMS) found itself in the middle of the Internet "bubble." It was surrounded by a quickly growing Web merchant population that needed merchant accounts and payment processing, also known as merchant acquiring. Online merchants also needed help mitigating their chargebacks and fraud risks, which are at least 12 times higher on the Web than in the physical point-of-sale (POS) world. First Data was no stranger to merchant acquiring. By early 2000, it already had 44 percent of the U.S.-based merchant acquiring business and more than 2 million merchant customers. However, the tools that it and its competitors used to acquire and manage physical-world merchants were unsuitable for the high-growth, high-speed Web, where most merchants were startups with little, if any, credit history. To become a market force in online merchant acquiring, First Data needed to retool and develop processes that mitigated risk and maximized growth opportunities of this new market. POS transactions were growing by 2 percent to 3 percent a year; mail order/telephone order (MOTO) was growing at 5 percent to 8 percent a year; but Web transactions were almost doubling in the late 1990s, and are still growing at 20 percent to 25 percent a year. FDMS could not afford to miss the growth opportunities of the Web. To take advantage of the opportunities, it had to: Quickly ascertain the financial viability of an online merchant, so that FDMS incurred minimal risk if the merchant went out of business. Reserve enough merchant funds in FDMS accounts, so that it could cover debts to the merchant's customers in case the merchant went out of business and was unable to fulfill orders after a customer had made payment. Gartner Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.
2 Keep the level of online fraud at the merchant sites low, so that the fraud would not put the merchant out of business. That would leave FDMS responsible for settling any paid orders that were left unfulfilled. Problem: FDMS, like its competitors, had built its merchant acquiring and risk management processes for the physical world. They were inadequate in such areas of the online environment as: Merchant boarding. In the POS world, a merchant that accepts credit/debit card payments completes a paper application from an acquiring bank (normally the bank with which it already does other banking business). The approval process from submission until deployment typically takes up to fifteen days and involves several due diligence checks performed by FDMS risk management staff. The checks generally include a review of the owner's personal credit report, commercial reports and bank/trade references. Once merchants establish their accounts, they are paid for credit/debit card transactions in one to three days, and pay a discount fee to First Data for guaranteeing the payments and funds. In the online world, these processes don't work. Internet merchants that are building their businesses from "scratch" typically put everything together at the same time for their Web sites. This includes obtaining their server certificates (typically from VeriSign), merchant identification and account numbers, communication links to payment gateways and transactions processors, and back-end accounting and information systems. Without merchant accounts to process payments, their businesses cannot get started. Online merchants, working on "Web time," expect quick decisions on their applications to process payments within hours, and rarely want to wait more than a day or two. Underwriting. In the POS world, merchants generally have historical credit data from prior business years. They also have physical-world locations and assets that can be verified by First Data's risk management staff. In the anonymous online world, retailers are often startups with no business credit history or physical store locations and assets that can be verified during the underwriting process. Monitoring. Online companies sometimes grow their sales at double-digit rates or greater, forcing First Data to implement new business rules to ensure that adequate funding levels are reserved all along the transaction stream. In this way, if a merchant goes out of business, each party involved in a transaction gets paid on transactions still in transit. Typically, First Data releases funds from card issuers to POS 1 April
3 merchants with a one- to three-day delay, in effect creating a reserve to ensure the integrity of the banking system. However, fast-growing online retailers can often use up a week's reserves in one day as they ramp up sales. To handle rapid sales growth, First Data needed more-effective monitoring processes to ensure that adequate funding levels were reserved for these merchants. First Data's processes that monitor fraud in the POS world also had to be modified for the online world, where fraud patterns are different. Objective: To effectively acquire and manage online merchant accounts, FDMS needed to develop and implement new systems and processes that: Enable online merchants to apply for and receive merchant accounts, if they qualify, within 24 hours. Assess and assume the risk of online merchants, many of whom have little or no credit history. Enable First Data to effectively and safely manage the growth of online merchants without incurring unacceptable financial risk. Proactively prevent fraud for online merchant Web sites that use First Data's interconnections to the banking system. Approach: FDMS tackled its objectives by: Merchant boarding. As an acquiring processor, First Data assumes financial responsibility for the accounts of the merchants it underwrites. First Data does own a bank in Colorado First Financial Bank that houses the funds for several of the merchants it underwrites, but more prevalent are its relationships with a handful of domestic banks that form the basis of the FDMS bank alliance strategy. For example, FDMS has partnership alliances with Chase Merchant Services and Wells Merchant Services, and each of these alliances has its own credit policy and underwriting criteria. However, when most smaller online merchants sign up for merchant accounts and services, First Data becomes a "onestop shop" for them, providing merchant accounts primarily through its Card Services International (CSI) subsidiary, as well as providing processing and other Web-payment-related services. First Data's presence in the smaller, moredependent merchant marketplace grew rapidly when it completed its acquisition of CSI in mid CSI leads the market for acquiring and servicing higher-risk merchants for the MOTO market and increasingly for the Internet. FDMS is integrating CSI technology into the rest of its operation. 1 April
4 To put the process of acquiring new online merchants into one system, First Data developed its own virtual application that merchants can use to apply for accounts and related services. First Data linked the virtual application to the traditional and new information sources in the banking system so that FDMS could check merchant bank accounts and any financial history that could be established. FDMS also fine-tuned its risk parameters because it would not be making the typical phone calls and checks that are conducted for physical-world merchants. Assuming FDMS verifies that the merchant is a manageable risk, a decision is made on the application in less than 24 hours (many in minutes) and grants the merchant an account so it can accept card payments. Smaller merchants that carry higher risk pay much higher fees up to 5 percent (or more) of the transaction amount, compared to approximately 2.5 percent for large online merchants, and the lowest rates of 1 percent to 1.5 percent for the largest POS merchants. If a merchant application does not meet the required criteria, the virtual application program sends an notification to the credit department to manually check out negative information. In unusual cases, such as pre-revenue startups, the FDMS credit department contacts the new merchant's bankers, investors or venture capitalists to confirm their access to sufficient cash flow to support operations. Underwriting. To meet the urgency of online applications, it was necessary to provide automated underwriting approval at least for small accounts (usually less than $1 million in sales) based on meeting selective criteria that could be checked in real time by the FDMS credit department online. A perhaps-surprising number of merchants could meet these criteria, although how enterprises such as First Data make such decisions is considered proprietary. In the end, FDMS has to calculate how long to hold back transferring payments to the merchants to ensure coverage of transaction streams in process to account for rapid sales growth and unexpected cutbacks in operations. Monitoring. Even with FDMS' new risk-management processes, some e-tailers, like Priceline's WebHouse Club, grew so quickly with transaction volumes exceeding 10,000 per hour in just the fourth month of operation that they eclipsed a previous week's funding reserve in a single day. First Data had to constantly upgrade its monitoring capabilities to manage the funding risk without unduly penalizing the fast-growing startup by keeping too much of its capital tied up in the funding reserve. Proof that FDMS met this challenge came on 5 October 2000, when WebHouse Club announced that it no longer had access to 1 April
5 sufficient capital to remain in business. In the ensuing days, tens of millions of dollars worth of in-transit transactions were settled to the satisfaction of all involved parties. Fraud control. FDMS has been aggressive in providing a suite of fraud control services to its online merchants. The enterprise offers standard fraud-prevention services, including Address Verification Scheme, Cardholder Verification Code checks, screens on shipping and billing, and various Internet addresses. In addition, FDMS offers Global Scan, which bases fraud scoring on transaction velocity and the geography of a specific machine or device, which it "fingerprints." FDMS is also designing what it calls a more-efficient authentication process than offered by Visa (Verified by VISA) and MasterCard (MasterCard SecureCode) by combining the authentication and authorization protocols into one message stream rather than two. FDMS can introduce innovative services more easily than many other companies in this market because it touches more than 44 percent of Internet acquiring volume, either on its own or through partners such as Chase, Wells Fargo and Paymentech, and, through card issuers that it processes transactions for, more than 50 percent of the volume on the issuing side. FDMS can send many transactions on a more-efficient path through its "on-us" network, where it directly manages processing for the issuing and acquiring sides. Results: FDMS' steps to support the online merchant community paid off. By year-end 2002, it was able to: Routinely turn merchant account applications around in minutes and board them as transaction accounts in less than 24 hours. Process 62,000 applications successfully between January 2001 and September Grow its online merchant base by 66 percent, compared to year-end 2001, through direct and partners' merchant acquisition and through its acquisition of CSI, which has approximately one-quarter of First Data's 200,000 online merchants. Lower the average cost of processing a merchant application online to less than $100 vs. an average of $700 for POS applications. Account for $2.8 billion of First Data's $7.6 billion revenue in 2002, and grew at an annual rate of 22 percent. Revenue from Internet transactions, which was 5 percent of the total 1 April
6 transaction volume, represents about 7 percent of FDMS' total revenue. Critical Success Factors/Lessons Learned: To succeed in implementing new processes to support the rapidly growing Internet merchant channel, FDMS needed: A skilled cadre of risk and credit management staff who understood the unique risks posed by working with dot-coms, many of which "bombed" as quickly as they grew. Solid understanding of credit risk assessments, and how to perform them quickly within 24 hours with relatively scarce online information available. Strong partnerships with leading acquirers, such as Chase and Wells Merchant Services, creating a symbiotic and beneficial relationship in a growing channel. Good, solid technology and technical prowess, enabling FDMS to build new monitoring systems that enabled it to quickly change the business rules and risk management paradigm in a dynamic business environment. Acronym Key CSI Card Services International FDMS First Data Merchant Services MOTO Mail order/telephone order POS Pointofsale Bottom Line: The dot-com explosion was followed by the implosion of thousands of startup companies. As the largest card processor in the United States, First Data could have suffered financial loss if it had not kept up on the back end, constantly assessing risk and building out the tools and infrastructure to service a dynamic and risky e-commerce market. It proved adept at developing and implementing new processes and systems, which enabled its Merchant Services division to earn a profit in the new market without sacrificing the soundness of its business model and financial underpinnings. 1 April
PayPoint.net Gateway Guide to Identifying Fraud Risks
PayPoint.net Gateway Guide to Identifying Fraud Risks Copyright PayPoint.net 2010 This document contains the proprietary information of PayPoint.net and may not be reproduced in any form or disclosed to
More informationFive Steps Towards Effective Fraud Management
Five Steps Towards Effective Fraud Management Merchants doing business in a card-not-present environment are exposed to significantly higher fraud risk, costly chargebacks and the challenge of securing
More informationCOM-18-8578 K. Harris, D. Free, D. Furlonger
K. Harris, D. Free, D. Furlonger Research Note 23 January 2003 Commentary The RTE in Financial Services: One Size Does Not Fit All The application of real-time enterprise concepts is a competitive necessity
More informationCard Not Present Fraud Webinar Transcript
Card Not Present Fraud Webinar Transcript All right let s go ahead and get things started, and to do that, I d like to turn it over to Fae Ghormley. Fae? Thank you for giving us this opportunity to share
More informationSelect CRM Applications Carefully to Get Maximum Benefits
Strategic Planning, B. Eisenfeld Research Note 19 February 2003 Select CRM Applications Carefully to Get Maximum Benefits Enterprises pursuing the advantages of a customer relationship management strategy
More informationThe IFX Standard Opens the ATM and POS Channels
Strategic Planning, M. Knox, S. Cohen, B. Adrian Research Note 27 August 2003 The IFX Standard Opens the ATM and POS Channels Interactive Financial exchange v.1.4 introduced significant new messaging standards
More informationMerchant Account Glossary of Terms
Merchant Account Glossary of Terms From offshore merchant accounts to the truth behind free merchant accounts, get answers to some of the most common and frequently asked questions. If you cannot find
More informationDon't Pay to Support CRM 'Shelfware'
Tactical Guidelines, J. Disbrow Research Note 3 May 2003 Don't Pay to Support CRM 'Shelfware' Enterprises license customer relationship management solutions that are often never totally deployed. Software
More informationInterchange Optimization: Are you getting the best rate?
2012 Interchange Optimization: Are you getting the best rate? Northpark Town Center 1200 Abernathy Road, Suite 1700 Atlanta, Georgia 30328 (800) 846-1305 www.optimizedpmts.com There are many costs associated
More informationRisk & Fraud Management Solutions
Risk & Fraud Management Solutions Protect Your Business and Reduce Fraud Transaction Type Summary Last 14 days 150k 100k 50k 0k 26.11. 27.11. 28.11. 29.11. 30.11. 1.12. 2.12. 3.12. 4.12. 5.12. 6.12. 7.12.
More informationPhishing Victims Likely Will Suffer Identity Theft Fraud
Markets, A. Litan Research Note 14 May 2004 Phishing Victims Likely Will Suffer Identity Theft Fraud Fifty-seven million U.S. adults think they have received a phishing e-mail. More than 1.4 million users
More informationCreditCard Processing. Payment MadeEasier
CreditCard Processing Payment MadeEasier Buyers Guide for Credit Card Processing 1. A Brief Introduction of Credit Card Processing 2. Benefits of Credit Card Processing 3. How to Choose a Service Provider
More informationYour Gateway to Online Success
The NETBANX gateway is a leading, proprietary online payment processing platform operating on a world class technology infrastructure. Trusted by global brands and companies around the world, the NETBANX
More informationManagement Update: Selecting the Right ERP II Service Partner Is a Critical Success Factor
IGG-10232002-02 P. Phelan Article 23 October 2002 Management Update: Selecting the Right ERP II Service Partner Is a Critical Success Factor Service partner relationships will grow to enable more holistic
More informationCredit/Debit Card Processing Requirements and Best Practices. Adele Honeyman Oregon State Treasury Training Specialist
Credit/Debit Card Processing Requirements and Best Practices Adele Honeyman Oregon State Treasury Training Specialist 1 What? What do I need to know about excepting credit cards? Who s involved, how it
More informationA Study of an On-Line Credit Card Payment Processing and Fraud Prevention for e-business
A Study of an On-Line Credit Card Payment Processing and Fraud Prevention for e-business Nucharee Premchaiswadi*, James G. Williams** and Wichian Premchaiswadi*** *Faculty of Information Technology Dhurakij
More informationManaging TPPPs and TPSs in the Current Regulatory Environment
November 2015 Managing TPPPs and TPSs in the Current Regulatory Environment Prepared by: Jodie Ruby, Director Audience: This document is intended for managers, directors and executives who deal with business
More informationJCharge White Paper. Merchant, Acquirer, Bank, Authorization Network
JCharge White Paper A company using an IBM iseries (AS/400) has several methods from which to choose in taking credit card payments. Whether the payments are for retail, mail order, phone order, or Internet
More informationCost-management strategies. Your guide to accepting card payments cost-effectively
Cost-management strategies Your guide to accepting card payments cost-effectively Table of Contents Guidance from Wells Fargo Merchant Services...3 The secret to better interchange rates...4 Why interchange
More informationMidsize Enterprises Lead in Adoption of Payment Outsourcing
Research Brief Midsize Enterprises Lead in Adoption of Payment Outsourcing Abstract: More than one-third of midsize enterprises plan to use payment outsourcing by 2004. New areas of interest include automated
More informationCredit Card Processing Buyer's Guide By the purchasing experts at BuyerZone
Introduction When Western Union first gave charge cards to their best customers in 1914, no one would have guessed that over $2.56 trillion would be charged in the U.S. alone in 2008. As ubiquitous as
More informationWestpac Business Banking. Accepting EFTPOS and credit card payments
Westpac Business Banking Accepting EFTPOS and credit card payments Our team of EFTPOS Solution Specialists are here for you. Whether you re setting up or making changes to how you handle customer payments,
More informationOnline Payment Processing Definitions From Credit Research Foundation (http://www.crfonline.org/)
Online Payment Processing Definitions From Credit Research Foundation (http://www.crfonline.org/) The following glossary represents definitions for commonly-used terms in online payment processing. Address
More informationAn access number, dialed by a modem, that lets a computer communicate with an Internet Service Provider (ISP) or some other service provider.
TERM DEFINITION Access Number Account Number Acquirer Acquiring Bank Acquiring Processor Address Verification Service (AVS) Association Authorization Authorization Center Authorization Fee Automated Clearing
More informationHow To Accept Credit Cards From A Credit Card Provider
This page intentionally left blank START YOUR MERCHANT SERVICES ACCOUNT By Wendy Byford The ebook companion to the elearning module Start Your Merchant Services Account with Wendy Byford & Gary Bauer Start
More informationProven Best Practices for a Successful Credit Portfolio Conversion
Proven Best Practices for a Successful Credit Portfolio Conversion 2011 First Data Corporation. All trademarks, service marks and trade names referenced in this material are the property of their respective
More informationPowering e-commerce Globally. What Can I Do to Minimize E-Commerce Chargebacks?
Powering e-commerce Globally What Can I Do to Minimize E-Commerce Chargebacks? Chargebacks are not going away. And now there are new rules. Selling products and services online and using credit cards for
More informationEDUCATION - TERMS 101
EDUCATION - TERMS 101 ACH (Automated Clearing House): A processing organization networked with others to exchange (clear and settle) electronic debit/credit transactions (no physical checks). ABA Routing
More informationVolume PLANETAUTHORIZE PAYMENT GATEWAY. vtiger CRM Payment Module. User Guide
Volume 2 PLANETAUTHORIZE PAYMENT GATEWAY vtiger CRM Payment Module User Guide S A L E M A N A G E R M E R C H A N T S E R V I C E S User Guide and Installation Procedures Information in this document,
More informationACQUIRER OR ACQUIRING BANK A financial institution (often a bank) where a merchant has an account to process transactions and card payments
A TO Z JARGON BUSTER A ACQUIRER OR ACQUIRING BANK A financial institution (often a bank) where a merchant has an account to process transactions and card payments ATM Automated Teller Machine. Unattended,
More informationOutlook for the CRM Software Market: Trends and Forecast (Executive Summary) Executive Summary
Outlook for the CRM Software Market: Trends and Forecast (Executive Summary) Executive Summary Publication Date: October 30, 2002 Authors Thomas Topolinski Chad Eschinger Pranav Kumar This document has
More informationMagic Quadrant for Storage Services, 2Q05 25 May 2005 Adam W. Couture Robert E. Passmore
Magic Quadrant for Storage Services, 2Q05 25 May 2005 Adam W. Couture Robert E. Passmore Source: Gartner Note Number: G00127958 Leading storage service providers in North America are executing on clear
More informationApril 12, 2004. To: Verified by Visa Merchants Verified by Visa Acquirers Verified by Visa Merchant Service Providers
April 12, 2004 To: Verified by Visa Merchants Verified by Visa Acquirers Verified by Visa Merchant Service Providers The year 2003 was an active one for the Verified by Visa program, and 2004 promises
More informationAmerican Express and Discover are proprietary entities performing the functions of both a card association and an issuing bank.
ELECTRONIC VALUE TRANSFER CONTRACT (EVT) CREDIT CARD BACKGROUND INFORMATION What is a Credit Card? A credit card is a plastic card issued to an individual or business which is accepted by participating
More informationThe Four "A's" of Information Security
Strategic Planning, R. Witty, A. Allan, J. Enck, R. Wagner Research Note 4 November 2003 Identity and Access Management Defined An IAM solution requires multiple products from multiple vendors. It also
More informationManagement Alert: Microsoft Will Be a Strong Force in the CRM Market
IGG-02052003-01 E. Thompson, J. Outlaw Article 5 February 2003 Management Alert: Microsoft Will Be a Strong Force in the CRM Market Microsoft is poised to have a major impact on the customer relationship
More informationThe Comprehensive, Yet Concise Guide to Credit Card Processing
The Comprehensive, Yet Concise Guide to Credit Card Processing Written by David Rodwell CreditCardProcessing.net Terms of Use This ebook was created to provide educational information regarding payment
More informationCredit Card Related Merchant Activities
Credit Card Related Merchant Activities Standards Examiners should evaluate the above-captioned function against the following control and performance standards. The Standards represent control and performance
More informationYour gateway to card acceptance.
MERCHANT SERVICES Authorize.Net Solutions Your gateway to card acceptance. Processing transactions reliably and securely is essential to your business. That s why BBVA Compass and Authorize.Net, a leading
More informationNational Student Clearinghouse's Web Services Network
Case Studies, B. Lheureux Research Note 3 January 2003 National Student Clearinghouse's Web Services Network NSC provides access to U.S.-based college and university student records via electronic data
More informationMerchant Guide to the Visa Address Verification Service
Merchant Guide to the Visa Address Verification Service Merchant Guide to the Visa Address Verification Service TABLE OF CONTENTS Table of Contents Merchant Guide to the Visa Address Verification Service
More informationSAN Management Software Magic Quadrant
Markets, C. DiCenzo, R. Paquet, N. Allen, R. Passmore Research Note 22 April 2003 SAN Management Software Magic Quadrant In the storage area network management software market, expect increased competition
More informationCREDIT CARD PROCESSING GLOSSARY OF TERMS
CREDIT CARD PROCESSING GLOSSARY OF TERMS 3DES A highly secure encryption system that encrypts data 3 times, using 3 64-bit keys, for an overall encryption key length of 192 bits. Also called triple DES.
More informationGlobal Iris Integration Guide ecommerce Remote Integration
Global Iris Integration Guide ecommerce Remote Integration February 2013 Table Of Contents 1 About This Guide... 3 1.1 Purpose... 3 1.2 Audience... 3 1.3 Prerequisites... 3 1.4 Related Documents... 3 2
More informationIntroduction and Background
Introduction and Background The Community College League of California is a nonprofit public benefit corporation whose voluntary membership consists of the 72 local community college districts in California.
More informationCRM4M Accounting Set Up and Miscellaneous Accounting Guide Rev. 10/17/2008 rb
CRM4M Accounting Set Up and Miscellaneous Accounting Guide Rev. 10/17/2008 rb Topic Page Chart of Accounts 3 Creating a Batch Manually 8 Closing a Batch Manually 11 Cancellation Fees 17 Check Refunds 19
More informationEMV A Gated Parking Systems Perspective PIE 2014. March 18 th 2014
EMV A Gated Parking Systems Perspective PIE 2014 March 18 th 2014 EMV & Gated Parking Systems Past practice PCI EMV in Canada NFC Contact & contactless Terminals Certification Support What s next? Past
More informationRTE Strategies for Revenue Cycle Management
Tutorials, M. Davis Research Note 18 February 2003 RTE Strategies for Revenue Cycle Management By 2005, care delivery organizations will have to adopt realtime enterprise strategies to survive the continued
More informationOffice Relocation Planner Guide to Credit Card Processing
Office Relocation Planner Guide to Credit Card Processing Introduction The world of merchant services can be confusing, especially for businesses who have never accepted credit cards for payment before.
More informationCardholder Authentication Guide. Version 4.3 August 2013 Business Gateway
Cardholder Authentication Guide Version 4.3 August 2013 Business Gateway ii This page is intentionally blank Table of Contents About this Guide... 1 History... 1 Copyright... 2 Introduction... 3 What is
More informationTitle Page. Credit Card Services. User Guide. August 2015. CyberSource Corporation HQ P.O. Box 8999 San Francisco, CA 94128-8999 Phone: 800-530-9095
Title Page Credit Card Services User Guide August 2015 CyberSource Corporation HQ P.O. Box 8999 San Francisco, CA 94128-8999 Phone: 800-530-9095 CyberSource Contact Information For technical support questions,
More informationRBC Insurance Fetes Online Auto/Home Insurance Growth
Case Studies, K. Harris Research Note 29 October 2002 RBC Insurance Fetes Online Auto/Home Insurance Growth RBC Insurance's e-business successes are generating greater than $3 million in premiums per month.
More informationIncrease revenue. Reduce operating costs. Improve efficiencies. Accomplish all this and more with eselectplus.
Increase revenue. Reduce operating costs. Improve efficiencies. Accomplish all this and more with eselectplus. eselectplus makes payment simple for you, and for your customers. eselectplus is an easy-to-use,
More informationHeartland Payment Systems Inc. April 11, 2014
Heartland Payment Systems Inc. April 11, 2014 General Overview Heartland Payment Systems (HPY) provides electronic payment processing for merchants. They install point-of-sale terminals for their Small
More informationMerchant Payment Solutions
Merchant Payment Solutions Credit Card Processing Diagram CUSTOMER S CREDIT CARD ISSUING BANK CUSTOMER 4 5 $ MERCHANT S BUSINESS MERCHANT S BANK ACCOUNT MERCHANT S BANK 9 CREDIT CARD NETWORK 8 INTERNET
More informationLike all football clubs, PSG suffered from unsold seats for the less-popular games. Even when it was able to sell tickets for
Case Studies, E. Thompson Research Note 2 January 2004 Paris Saint-Germain Football Club Scores With CRM Strategy French soccer club Paris Saint-Germain switched from mass marketing to more targeted customer
More informationAmerican Express Data Security Operating Policy United States
American Express Data Security Operating Policy United States As a leader in consumer protection, American Express has a long-standing commitment to protect Cardmember Information, ensuring that it is
More informationMERCHANT PORTAL VALUE AT YOUR FINGERTIPS
MERCHANT PORTAL VALUE AT YOUR FINGERTIPS EASY TO USE IN THE FORMAT YOU PREFER LOGIN TODAY VALUE AND CONVENIENCE ANYTIME, ANYWHERE WorldPay s Merchant Portal is your source for self-service tools that can
More informationHow To Change A Bank Card To A Debit Card
The Evolution of EFT Networks from ATMs to New On-Line Debit Payment Products * Stan Sienkiewicz April 2002 Summary: On June 15, 2001, the Payment Cards Center of the Federal Reserve Bank of Philadelphia
More informationPayment Card Industry (PCI) Data Security Standard. PCI DSS Applicability in an EMV Environment A Guidance Document Version 1
Payment Card Industry (PCI) Data Security Standard PCI DSS Applicability in an EMV Environment A Guidance Document Version 1 Release date: 5 October 2010 Table of Contents 1 Executive Summary... 3 1.1
More informationFactoring Guide. Understanding the Principles
Factoring Guide Understanding the Principles This report introduces factoring topics that every factoring candidate should know. It provides a concise, easy to understand presentation of the factoring
More informationRedwood Merchant Services. Merchant Processing Terminology
ACH - Automated Clearing House for member banks to process electronic payments or withdrawals. (Credits or debits to a bank account) through the Federal Reserve Bank. Acquiring Bank - Licensed Visa/MasterCard
More informationRSA Adaptive Authentication For ecommerce
RSA Adaptive Authentication For ecommerce Risk-based 3D Secure for Credit Card Issuers SOLUTION BRIEF RSA FRAUD & RISK INTELLIGENCE The Threat of ecommerce Fraud ecommerce fraud is a threat to both issuers
More informationBPI SECURE PAY ecommerce MERCHANT AGREEMENT
BPI SECURE PAY ecommerce MERCHANT AGREEMENT KNOW ALL MEN BY THESE PRESENTS: This BPI Secure Pay ecommerce Merchant Agreement ( Agreement ) entered into by and between: BANK OF THE PHILIPPINE ISLANDS, a
More information2: Credit cards, etc. Overview of the sector
19 2: Credit cards, etc Overview of the sector Note: This sectoral guidance is incomplete on its own. It must be read in conjunction with the main guidance set out in Part I of the Guidance. 2.1 A credit
More informationEMEA CRM Analytics Suite Magic Quadrant Criteria 3Q02
Decision Framework, J. Radcliffe Research Note 26 September 2002 EMEA CRM Analytics Suite Magic Quadrant Criteria 3Q02 Europe, the Middle East and Africa Customer Relationship Management Analytics Suite
More informationBACKUP IN A VIRTUAL WORLD. Data-Protection Challenges in Virtual Server Environments
BACKUP IN A VIRTUAL WORLD Data-Protection Challenges in Virtual Server Environments Data protection for virtual environments became crucial when end users began virtualizing tier-one, mission-critical
More informationAccepting Credit Card Payments
Accepting Credit Card Payments An Introduction Objectives Understand the Credit Card Acceptance Process What Type of Merchant are You How to Choose An Acquirer How to Get It All Going for Non Cash Payment
More informationCOM-18-7559 J. Holincheck
J. Holincheck Research Note 3 December 2002 Commentary Leveraging HCM Technologies to Control Labor Costs Large human capital management application suite purchases will be few and far between in 2003.
More informationRealex Payments Integration Guide - Ecommerce Remote Integration. Version: v1.1
Realex Payments Integration Guide - Ecommerce Remote Integration Version: v1.1 Document Information Document Name: Realex Payments Integration Guide Ecommerce Remote Integration Document Version: 1.1 Release
More informationFraud Mitigation and Identity Verification for Card Not Present Transactions Overview
Fraud Mitigation and Identity Verification for Card Not Present Transactions Overview Credit card fraud costs businesses over $11 Billion dollars annually. The percentage of revenue lost to fraud is rising;
More information2003 Desktop Software Distribution Magic Quadrant
Markets, R. Colville Research Note 15 April 2003 2003 Desktop Software Distribution Magic Quadrant Software distribution is the critical component for desktop configuration management. Vendors in our Magic
More informationHow To Choose A Payment Processor In Australia
PAYMENT PROCESSING Do you truly understand? A Payment Processing Primer For a business owner, payment processing is one of those aspects of the business that you shouldn t have to worry about. It s not
More informationVersion 1.0 STRATEGIC PARTNER TRAINING MANUAL
Version 1.0 STRATEGIC PARTNER TRAINING MANUAL Table of Contents Introduction... 3 Features of the Strategic Partnership... 3 Responsibilities... 3 Billing... 4 Gateway Service... 4 Risk... 4 I. PRODUCTS/SERVICES...
More informationFighting Online Fraud
White Paper Fighting Online Fraud Maintaining tight security, including using both standard and advanced fraud detection and prevention tools, is crucial to maintaining a successful business. No merchant
More informationPayment Processor Secrets Page 1
Payment Processor Secrets Page 1 Table of Contents Introduction to Payment Processor Secrets... 2 Why Do You Need a Payment Processor?... 5 Traditional vs. Mobile... 6 Merchant Accounts... 7 Reputation...
More informationClinical Decision Support: Core Capability of Evolving CPR
Tutorials, B. Hieb, M.D. Research Note 6 November 2003 Clinical Decision Support: Core Capability of Evolving CPR More-sophisticated computer-based patient record systems can offer increasing value to
More informationUnified Communications MQ Selection Criteria for 2003
Decision Framework, B. Elliot Research Note 22 January 2003 Unified Communications MQ Selection Criteria for 2003 Unified communications enable enterprises to control their communication options, leveraging
More informationAdjustment A debit or credit to a cardholder or merchant account to correct a transaction error
Glossary of Terms A ABA Routing Number This 9-digit number is assigned by the American Banker s Association and is used to identify individual banks. When performing an ACH transfer from one bank account
More informationDear Valued Merchant,
Dear Valued Merchant, Welcome to Central Payment thank you for becoming our client. We are committed to providing our merchants with outstanding customer service and superior products. It is our company
More informationThe disaster recovery procedures started immediately. Services to IBM users were restored within 48 hours.
C. Da Rold, S. Mingay Research Note 7 November 2003 Commentary Italian Blackout Impacts IBM Image and Clients' Business IBM's data center in Vimercate failed to deliver IT services to several clients after
More informationUpheaval in the CRM Services Market
Markets, J. Kirkby Research Note 24 October 2002 Upheaval in the CRM Services Market The customer relationship management services market is in upheaval: Competitive changes will strongly influence trends.
More informationPrediction 2003: CRM Software Market Faces Tough Times
Dataquest Predicts Prediction 2003: CRM Software Market Faces Tough Times Abstract: The customer relationship management software market falls from its pinnacle, and downward license revenue challenges
More informationBSM Definition, Drivers and Inhibitors
Events, D. Curtis, M. Govekar Research Note 11 August 2003 BMC Positions Itself for Business Service Management BMC Software's announcement of its business service management strategy is solidified by
More informationLeasing vs. Purchasing
How to overcome customers most common objections to financing Leasing vs. Purchasing Help your customers see the value of leasing their IT acquisitions The Equipment Leasing Association of America says
More informationData Center Conference Survey Results: Server Consolidation
Events, J. Phelps Research Note 31 March 2004 Data Center Conference Survey Results: Server Consolidation At the December 2003 Data Center Conference, attendees were asked questions for each presentation.
More informationElavon Payment Gateway Integration Guide- Remote
Elavon Payment Gateway Integration Guide- Remote Version: v1.1 Table of Contents 1 About This Guide 3 1.1 Purpose 3 1.2 Audience 3 1.3 Prerequisites 3 1.4 Related Documents 3 2 Elavon Payment Gateway Remote
More informationVendors of specialized applications protect the keystones of fusion
Strategic Planning, M. Raskino, A. Kyte, W. Andrews, C. Abrams Research Note 19 January 2004 SOBA Offers New Hope for Niche Vendors of Business Software Niche vendors often fall prey to larger rivals that
More informationVertical Data Warehouse Solutions for Financial Services
Decision Framework, M. Knox Research Note 24 July 2003 Vertical Data Warehouse Solutions for Financial Services Packaged DW financial services solutions differ in degree of and approach to verticalization,
More informationMeasuring Sarbanes-Oxley Compliance Requirements
IGG-10012003-03 R. Mogull, D. Logan, L. Leskela Article 1 October 2003 CIO Alert: How You Should Prepare for Sarbanes-Oxley Sarbanes-Oxley is the most sweeping legislation to affect publicly traded companies
More informationGeneral Industry terms
General Industry terms Address Verification: A service provided through which the merchant verifies the Cardholder s address. Primarily used by Mail/Telephone order merchants. Not a guarantee that a transaction
More informationSSL VPN 1H03 Magic Quadrant
Markets, J. Girard Research Note 8 April 2003 SSL VPN 1H03 Magic Quadrant The emerging Secure Sockets Layer virtual private network market is standards-based, with good short-term return on investment
More informationCredit Card Processing 101
Credit Card Processing 101 Customers have come to expect credit cards as a payment option. With ATM fees continuing to rise, some consumers may even exclusively choose to take their purchasing power to
More informationMerchant Payment Solutions
Merchant Payment Solutions What We Do Connecting your Web site to the payment processing networks is typically beyond the technical resources of most merchants. Instead, you can easily connect to the Authorize.Net
More informationMerchant Application Form
emerchantpay Limited Merchant Application Form Hand written applications will not be accepted. CORPORATION DETAILS European Company Details n-european Company Details If applicable Company Registration
More informationBusiness Activity Monitoring: The Merchant's Tale
Case Studies, D. McCoy Research Note 26 April 2002 Business Activity Monitoring: The Merchant's Tale Vendors are gearing up to deliver BAM installations. Will they be prepared for the organizational dynamics,
More informationA CHASE PAYMENTECH WHITE PAPER. Expanding internationally: Strategies to combat online fraud
A CHASE PAYMENTECH WHITE PAPER Expanding internationally: Strategies to combat online fraud Fraud impacts nearly eight in every ten international online retailers 1. It hampers prospects for growth, restricts
More informationThe Merchant s Guide To Achieving Better Interchange Rates
The Merchant s Guide To Achieving Better Interchange Rates Wells Fargo Merchant Services 2007 Wells Fargo Merchant Services, L.L.C. All rights reserved. 04/07 Table of Contents Manage Your Card Payment
More informationHoliday Fraud Myths. How They Leave Retailers Vulnerable
Holiday Fraud Myths How They Leave Retailers Vulnerable Table of Contents 03 04 06 08 10 12 14 Introduction Myth #1 Digital Gift Cards Myth #2 Distance, Dollar and Expedite Myth #3 Machine vs. Manual Review
More informationHIPAA Compliance Hindered by Lagging Vendors
Markets, M-21-473 W. Rishel Research Note November 3 HIPAA Compliance Hindered by Lagging Vendors Independent software vendors are significant contributors to the delays on HIPAA transactions. Their customers
More information