As technology continues to advance, online criminal activity is maintaining pace.

Fraudsters become more proficient every day, every time a loophole is closed, it seems a new one opens. Consideration must be given to all channels equally.
According to Jeff Sawitke, Chief Product Officer for Verifi, the best way to prevent fraud is to put a consistent policy into place across all sales channels. As he says, “Data-sharing limitations increase a merchant’s fraud risk because those orders may not get the same level of review and validation as orders in other channels. That creates a weakness in the merchant’s system that criminals can find and exploit.” For example, if a customer’s IP address is tracked during purchases on the website, it should also be tracked during purchases on the mobile app.
This and more was the topic of a recent sponsored special report Verifi  published in Internet Retailer Magazine. As one of the top payment management and chargeback protection solutions in the country, Verifi uses industry-leading fraud prevention and detection systems to assure the safety of their merchants and customers.

Mobile phones are more than another payment and shopping option according to an article in PYMNTS.com. Mobile phones can also make payments more secure. Their geolocation allows for position-based fraud analytics. Their cameras are used by Alibaba to ensure buyers are themselves with “selfie-validation” and Uber requires new users to take pictures of a card that must be in their possession.
Now biometrics, using secure payment processing software such as TouchID, are keeping mobile wallets secure. These tools and others could improve or replace vulnerable security measures like static passwords and lead to secure global payment processing.

Retailers and financial institutions have banded together in the wake of highly public security breaches.

National trade organizations representing merchants and banks said they are establishing a cybersecurity partnership enabling a higher degree of information sharing about payment and data security efforts, the shift to mobile payments and the growing threat of card-not-present fraud. This move should be a win-win because fighting CNP fraud is a complicated problem that takes cooperation to manage.
”We are committed to working together to ensure customer personal and financial information is secure and protected,”€ said Tim Pawlenty, CEO of Financial Services Roundtable (FSR). Other associations that have signed on to the effort include: the American Bankers Association, the American Hotel & Lodging Association, The Clearing House, the Consumer Bankers Association, the Financial Services Forum, the Food Marketing Institute, the Electronic Transactions Association, Independent Community Bankers of America, the International Council of Shopping Centers, the International Franchise Association, the National Associations of Convenience Stores, the National Grocers Association, the National Restaurant Association and the National Retail Federation.

Google has purchased SlickLogin, an Israeli start-up company which has developed a sound authentication technology which allows websites to verify a user’s identity by using sound waves. The app analyzes the sound that is sent to the user and sends a signal back that confirms the person’s identity, this security layer is an effective tool to prevent online fraud.
Biometrics are a great option for payment security, especially  if used as part of a multi-layered security strategy. Although not many biometric measures are currently utilized besides Apple’s TouchID, biometrics could be used for card-not-present and point-of-sale transactions. As merchants and banks band together to set new fraud prevention standards, Google might be seeing an opportunity to gain a foothold in the emerging biometric security market.

According to The Payper, the Target data breach has so far cost US banks more than 172 million USD in re-issued plastic cards, according to data from the Consumer Bankers’ Association (CBA).

A recent analysis estimated that 4.8 million to 7.2 million of the 40 million cards affected by the breach could experience fraudulent activity, resulting in a $1 billion breach bill from the payments card industry.
Yet, while very public. the Target breach was not nearly the biggest data breach in history. We can expect to see bigger ones in the future, too. Although, as EMV is adopted, POS fraud will sharply decline, fraud shall still grow as it migrates to online channels. Now is the time to find the right secure payment processing software to prevent credit card fraud.

On Feb. 13, the banking, payments and retail industries joined forces to combine their efforts to combat cybercrimes.

The new partnership will reportedly focus on better information sharing and  developing effective technologies to protect consumers and discuss areas of disagreement. Participants include the Financial Services Roundtable, the Retail Industry Leaders Association and several trade associations, according to Reuters.
The timing of this could not be better. With card-not-present credit card fraud and cyberattacks on the rise, now is the time to learn about efficient payment processing practices, even more so with the advent of omni-channel commerce and related fraud problems.
 

FIDO Digs Its Teeth Into 21st Century Authentication

FIDO (Fast IDentity Online) Alliance, proposed authentication security standards that use modern authentication techniques. The organization seeks to bring two-factor authentication into the mainstream for more secure global  payment processing software. By doing so, notoriously vulnerable security measures like passwords will become a thing of the past.
There has been some resistance to the idea of utilizing fingerprints, irises, facial structures, and the like for authentication purposes. Nevertheless, mobile phones with biometrics are in common use. Static passwords are not very secure – users often set up the same password for all accounts. Once one account is hacked by brute force or a data breach, a user’s entire digital life could compromised. In contrast, biometrics are always attached to the user, thereby ensuring they are the only user of his or her accounts.

Churn is defined as the probability rate at which customers will cancel their subscriptions.

Any vendor with a recurring payment model is at high risk as their business relies on receiving timely, recurring payments. See how other companies boost their card-not-present revenue by reducing or eliminating churn.

Did you know that churn from “card declined by processor” – is estimated to be responsible for 2-5% of all lost potential sales?

While losing customers to cancellation is bad, losing customers who want to keep paying you is painful.  Merchants that use decline salvage can reduce churn and recover recurring revenue some would consider un-collectable.
How much of your Monthly Recurring Revenue (MRR) is at risk?
Every customer lost to churn today negatively impacts future annuity revenue. How much of your revenue is at risk and are you doing everything you can to retain recurring customers? What are you doing to reduce credit card declines?
Any business that depends on MRR will see churn from unwanted credit card errors.
It is important to understand that churn not only happens when a customer comes up for renewal, but it also happens much earlier in the customer lifecycle. Simple reasons (such as an incorrect credit card number or expiration date, insufficient funds, credit card rejecting an international charge, or other technical issues) are as much to blame for churn as a cancellation. One example is the “Card declined by processor” error, in which case the card information is often correct but the bank won’t allow a merchant to charge the card.
While many other processes can be improved and optimized, churn from “card declined by processor” – is estimated to be responsible for 2-5% of all lost sales.

Request a copy of our white paper: “The Simple Economics of Decline Salvage” and learn how to reduce credit card declines, how to reduce churn and stop a preventable drain on revenue.

 

…TO ELIMINATE CHARGEBACKS AND REDUCE FRIENDLY FRAUD

Los Angeles, CA, November 11, 2013 – Verifi, Inc., the leading provider of payment and risk management solutions for card-not-present merchants today announced the Cyber Monday Chargeback Reduction Program to prepare merchants for the onslaught of chargebacks during the busiest shopping season of the year.
Verifi reports that their clients have seen chargeback volumes spike by as much as 50% during the holiday shopping season – from late November  through the end of February.
Verifi, through independent research, found that customers were contacting merchants directly only 14% of the time to resolve credit or debit card disputes for products they purchased. Customers contact their Issuing Bank 86% of the time!
The Cyber Monday Chargeback Reduction Program was designed to help online merchants redirect customer disputes and eliminate up to 40% of their chargebacks during the busiest 30 online shopping days of the year. The program uses Verifi’s Cardholder Dispute Resolution Network (CDRN) – a service that connects merchants with issuers to resolve consumer complaints before they become chargebacks.
Verifi’s self-service CDRN portal empowers merchants to manage disputes in a more timely and cost effective manner. The CDRN Merchant Portal is a browser-based solution that requires only a username and password to access critical dispute data directly from Issuing Banks. Because the service is web-based, IT integration is not needed.
Merchants can register online for the Cyber Monday Chargeback Reduction Program by visiting:
https://www.verifi.com/products/cyber-monday-chargeback-reduction/
During this 30-day free trial offer, Verifi is making the Cardholder Dispute Resolution Network (CDRN) self-service portal available to new merchants at no cost.
About Verifi, Inc.
Verifi, Inc. is a leading provider of global electronic payment and risk management solutions for card-not-present merchants. The highly customizable payment and real-time reporting platform serves as a foundation for Verifi’s suite of fraud solutions and risk management strategies. With a commitment of reducing risk while increasing profitability for clients, Verifi’s multi-layered approach enables transaction risk management and mitigation, business optimization strategies, cardholder authentication and chargeback re-presentment for all major credit card brands. Verifi is offered via Software-as-a-Service model and is PCI Level 1 certified headquartered in Los Angeles, California.
For more information on Verifi’s Cyber Monday Chargeback Reduction Program, please visit: https://www.verifi.com/products/cyber-monday-chargeback-reduction/ or please email us at Info@Verifi.com.
*CDRN is not guaranteed. Success is determined on a case-by-case basis and is dependent upon various factors outside of Verifi’s control.

Verifi joins DRF board

Verifi joined 14 of the largest payment processor and service providers on the advisory board of the Direct Response Forum (DRF). Verifi will be joining the other members of the DRF advisory board including Digital River World Payments, Discover Network, First Data, Global Collect, JCB International Credit Card Co., Ltd., Litle & Co., MasterCard Worldwide, Retail Decisions, Inc., TSYS Merchant Solutions, Vantiv, Visa, and WorldPay.
The DRF was formed in 1989 by dedicated payment professionals. They set aside issues of competition in order to improve the payment environment. The forum meets annually to discuss payments.
“Verifi is proud to be on the board. We are a leader in global electronic payment and risk management solutions for card-not-present merchant. We have an excellent track record of stopping direct response chargeback fraud. With the coming EMV liability shift, it is more important than ever that we work with other companies to stop card not present fraud.”