E-COMMERCE, MAIL AND TELEPHONE ORDER INNOVATIVE PAYMENT SOLUTIONS FOR RETAIL AND MAIL ORDER



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E-COMMERCE, MAIL AND TELEPHONE ORDER INNOVATIVE PAYMENT SOLUTIONS FOR RETAIL AND MAIL ORDER

Wirecard is a flexible partner who supports our international growth efforts substantially by providing country-specific and mobile solutions. We also have a high regard for the professional consulting they provide and the fraud prevention measures they implement. Thomas Langen, Head of ecommerce MEDION AG We have relied on Wirecard s expertise in customer risk management for years. The decision to turn over payment processing to the pros now was thus not difficult. Over the last fifteen years our international sales have risen by a third as a percentage of total. And with Wirecard at our side we are excellently positioned for further international growth. Dr. Markus Warncke, Group Financial Controller Villeroy & Boch 2

As the world s most international trading corporation, the METRO GROUP requires a flexible partner of international stature for regular and e-commerce payment processing. We have thus opted to work with Wirecard AG. Robert Herzig, Head of POS Clearing/Financial Services Metro AG Being able to realistically assess payment default probability is extremely important to us. Yet we also want our customers to enjoy maximum confidence on our part. That s why we have been using Wirecard AG risk management solutions for years now. Risto Pfalz, Managing Director Schneider Versand GmbH 3

WIRECARD PAYMENT SOLUTIONS FOR E-COMMERCE Wirecard AG is one of the world s leading providers in the areas of electronic payment processing, risk management and banking services. Wirecard provides intelligent solutions from a single source, helping businesses ensure secure electronic payments for their international operations. The close integration of technology into banking services is key to be able to offer cutting-edge, marketrelevant solutions at all times. Success in e-commerce depends on the ability to accept a wide array of national and international payment methods. A variety of complementary risk management products and solutions affords a high level of protection against payment default. At the core of the Wirecard offering is a central platform for all sales channels that streamlines processes and cost. Outsourcing financial processes to Wirecard allows customers to focus on the essential: running their business. Ongoing development of products adapted for e-commerce gives rise to flexible solutions for optimising the entire spectrum of financial processes. Wirecard AG has acquired in-depth expertise in its many years of partnering with prominent e-commerce firms. And this is reflected in the company s customer portfolio, in which different market segments are represented. The particular requirements of international distance-selling and mail-order firms flow continuously into product design. Wirecard offers customised solutions for the consumer goods industry that are innovative, global and flexible. 4

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RISK MANAGEMENT PAYMENT PROCESSING Wirecard s intelligent systems reduce the risk of payment default with all mail-order payment options. This yields key benefits like fraud prevention and minimised payment default, which boost sales and profits. Wirecard offers customised solutions for secure, transparent and efficient payment processing in global commerce. The company s portfolio spans all popular payment methods and all major currencies, meeting the highest security standards. 6

BANKING SERVICES CUSTOMER ACCOUNTING Wirecard has a bank subsidiary through which it provides services along the entire value chain, setting the company apart in the financial services market. Integrating technology with banking services means merchants get payment processing and payment acceptance from a single partner. Reliable customer accounting is a major requirement for success in e-commerce. Wirecard offers comprehensive service for the complete range of sub-processes, from payment monitoring on down to forwarding problem accounts to qualified specialists. 7

RISK MANAGEMENT Preventing fraud and minimising payment default are no problem with Wirecard s risk management solutions for e-commerce and mail order. Many merchants restrict customers payment options so as to contain risk. But fewer payment options negatively affects sales. Wirecard risk management systems afford effective protection against fraud and payment default with all commonly-used payment methods. This allows capturing full sales potential with minimum risk. Wirecard s multi-level risk management solutions allow merchants to offer the option of purchase on open invoivce, which is popular among consumers. This combines a credit check and industry or merchantspecific rule systems and real-time payment recommendations, which together afford robust fraud protection. Wirecard s proprietary Fraud Prevention Suite employs advanced analytics allowing faster and more effective detection of fraud in payment processing. Fraud patterns detected automatically in elec tronic online payment processing flow directly into the rule system. This ensures extremely efficient and effective fraud protection. Wirecard also offers payment guarantees and instalment purchasing, in partnership with RatePay, as the associated risk is not borne by the online merchant. RatePay can be easily and quickly integrated into the check-out process like any other payment option. Fraud prevention through rating of new and existing customers Standard industry-specific rules Merchant-specific decision logics Real-time payment mode recommendations Link with major credit bureaus 8 The Fraud Prevention Suite reduces the fraud rate for card payments by up to 92 %.

92% Case»1 One of the most prominent mail-order firms for fashion and lifestyle products for men, women and children operates in 65 different countries around the world, and is listed on the NYSE. The firm s online store is available to customers in several European countries. This company relies on Wirecard for payment processing and fraud prevention, using the Fraud Prevention Suite, in addition to Wirecard Bank AG credit card payment solutions. Wirecard deploys a modular system for this customer that identifies transaction and merchant-specific fraud patterns for effective avoidance. Analysis, simulation and rule definition are employed in combination for continual optimisation. Payment default is minimised and sales are maximised, yielding substantial competitive advantages. 9

PAYMENT PROCESSING Wirecard offers customised solutions for fast, secure and transparent payment processing in global commerce. Wirecard offers merchants custom solutions for all electronic payment modes, tailored by business model and target market. This includes a portfolio of internationally accepted payment methods like credit card, as well as country-specific payment modes. In addition optimal protection against payment default is a key element. Wirecard solutions offer great reliability and cost efficiency, being designed to meet the customer s needs in all cases. A range of integration options and ready-made plugins allow smooth implementation into existing IT structures and business processes. As a leading payment service provider, Wirecard provides worldwide processing of credit card payments, transaction management, statistics, reports and financial data reconciliation. Wirecard payment solutions are incorporated into the entire e-commerce process chain, from order acceptance down to funds settlement in the merchant s account. Multi-channel: e-commerce, mail order/phone order, point of sale Plug-ins for all major shop systems Transaction management, statistics and reports PCI-certified, customisable payment page Wirecard payment processing solutions can 1053% increase profitability by up to %.

Case»2 A world leader in teleshopping expands into a new country. The channel broadcasts 24 hours a day, 17 of which live, reaching 18 million households. This broadcaster relies on Wirecard for processing of Visa, MasterCard and Diners Club payments via the provider s transaction platform. The teleshopping channel also utilises industry-specific services like partial posting processing and reconciliation, so as to meet the specific needs of customers in its target market while reducing process costs thereby gaining a decisive competitive advantage. Wirecard Bank AG provides card acceptance. This mail-order business thus benefits from Wirecard AG s close integration of IT into banking services. The bottom line: significantly higher profits for the channel. 11

BANKING SERVICES Wirecard Bank AG is a wholly-owned subsidiary of Wirecard AG; as a fully licensed German bank, it is a member of the German deposit guarantee fund. The bank has enabled Wirecard Group to expand its service portfolio along the value chain, setting the company apart in the financial services market. Combining payment processing technology with innovative banking services yields tremendous advantages. The Wirecard Group s offering thus goes beyond that of conventional payment service providers. The portfolio of payment methods spans credit card acceptance for Visa, MasterCard, Maestro, American Express, Diners Club/Discover, JCB, Union Pay and many other national debit cards, plus numerous other online payment options including open invoice, instalment purchasing, SEPA Direct Debit, Direct Debit for Germany and Austria (ELV), giropay, eps, ideal and many more. Rounding out the offering are Visa and MasterCard card issuance (co-branded cards) and gift cards (e-money) usable with customer loyalty programs. European acquiring license for nearly all credit card organisations Global network of acquiring partners Multi-currency management Country-specific payment methods affording worldwide coverage 12 Wirecard Bank AG products can increase payment acceptance by up to 78 %.

Case»3 A mail order firm specialising in consumer products dominates the market in Germany and Austria, and is set to expand into additional countries. The firm wants to offer the national payment methods most often employed in the respective countries. This merchant utilises a prepaid credit card for long-term customer retention. This can be used worldwide as a co-branded card at the same conditions as a fullfledged MasterCard. Since introduction of the card, the company s sales have risen significantly. In addition to long-term customer retention which is an important factor for success in the mail order business the card also generates valuable marketing data for the company. Leading international and national payment methods are offered, thanks to conclusion of a single contract with Wirecard Bank. Ensured payment acceptance and a high customer retention rate are delivering long-term growth and a competitive advantage for the merchant. 13

CUSTOMER ACCOUNTING Regular matching of payments due with customer payments received generally involves a lot of effort. Wirecard provides flexible and transparent solutions for managing financial transactions. From payment monitoring, matching and open item management on down to forwarding problem accounts to market-leading specialists, Wirecard can take over the entire customer accounting process chain. Customer accounting is a key part of e-commerce. Some outstanding payments go unrecognised and uncollected unless payment matching is regularly conducted. Wirecard provides transparent and scalable solutions in all areas of customer accounting from customer account management to incoming payment matching and monitoring to open item report generation, and on down to forwarding to collection services. Wirecard AG solutions and partners are tailored to fit e-commerce merchants specific business models, ensuring their effectiveness. Wirecard provides useful tools for all business process phases to secure long-term success in e-commerce. Lower payment default rate Customer accounting Dunning Collections 14 Wirecard AG customer accounting can lower process costs by up to 29 %.

29% Case»4 A leading international dealer in construction materials has set up its own online shop for direct sales. The company is market leader in Germany and the Benelux countries, and among the leaders in several other highly competitive EU markets. This enterprise relies on support from Wirecard for its customer accounting services, which include tailored payment default minimisation methods. The merchant employs a robust system specially designed for cross-border data flow reconciliation, featuring an interface to collection services in its respective markets. The bottom line: significantly lower cost thanks to the customer accounting services utilised. 15

Wirecard AG Einsteinring 35 85609 Aschheim Germany Phone: +49 (0)89 4424-1400 Fax: +49 (0)89 4424-1500 www.wirecard.com consumergoods@wirecard.com