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Online Payments vs VPN: The Challenge Online businesses face both great opportunities and significant risks. While the internet offers immense potential for growth, it also opens the door to fraud. Fraudulent transactions can harm your business by eating into profits and damaging customer trust. To protect themselves, payment providers, banks, and card schemes use security measures like fraud detection systems and 3D Secure authentication. However, even the best security systems can sometimes cause problems. One of the issues is customers using Virtual Private Networks (VPNs). The High Cost of Fraud Fraudulent transactions cost online merchants dearly. According to Research, global losses from online payment fraud could exceed $362 billion over the next five years. Merchants not only lose money to fraud but also face chargebacks, increased security costs, and damage to their reputations. This makes it vital to minimize fraud risks and avoid declining legitimate transactions. The VPN Challenge Many customers, especially in the GCC region, use VPNs for privacy and work. While VPNs are great for privacy, they can trigger false alarms in fraud detection systems. Because VPNs hide the user’s true location, the payment system might flag the transaction as suspicious, leading to a declined payment. Solutions for Minimizing VPN Payment Failures Here are some ways to reduce failed transactions due to VPN usage: Clear Communication: Let customers know that using a VPN could cause issues during checkout. A simple message asking them to disable their VPN can help. Dynamic Routing: Payment systems can use dynamic routing, which assesses various factors (like purchase history and device data) to approve legitimate transactions even if a VPN is used. Customer Experience: Ensure a smooth checkout process. Security is important, but keeping things simple for customers can help increase sales and satisfaction. The Bottom Line Fraud is a serious issue, but it shouldn’t mean lost sales. By balancing security with a smooth customer experience, you can protect your business while keeping customers happy. #OnlinePayments #FraudPrevention #VPNChallenge #EcommerceSecurity #PaymentGateway #CustomerExperience #CyberSecurity #BusinessGrowth #MerchantSolutions #Fintech

Online Payments vs VPN: The Challenge Online businesses face both great opportunities and significant risks. While the internet offers immense potential for growth, it also opens the door to fraud. Fraudulent transactions can harm your business by eating into profits and damaging customer trust. To protect themselves, payment providers, banks, and card schemes use security measures like fraud detection systems and 3D Secure authentication. However, even the best security systems can sometimes cause problems. One of the issues is customers using Virtual Private Networks (VPNs). - The High Cost of Fraud Fraudulent transactions cost online merchants dearly. According to Research, global losses from online payment fraud could exceed $362 billion over the next five years. Merchants not only lose money to fraud but also face chargebacks, increased security costs, and damage to their reputations. This makes it vital to minimize fraud risks and avoid declining legitimate transactions. - The VPN Challenge Many customers, especially in the GCC region, use VPNs for privacy and work. While VPNs are great for privacy, they can trigger false alarms in fraud detection systems. Because VPNs hide the user’s true location, the payment system might flag the transaction as suspicious, leading to a declined payment. - Solutions for Minimizing VPN Payment Failures Here are some ways to reduce failed transactions due to VPN usage: * Clear Communication: Let customers know that using a VPN could cause issues during checkout. A simple message asking them to disable their VPN can help. * Dynamic Routing: Payment systems can use dynamic routing, which assesses various factors (like purchase history and device data) to approve legitimate transactions even if a VPN is used. * Customer Experience: Ensure a smooth checkout process. Security is important, but keeping things simple for customers can help increase sales and satisfaction. - The Bottom Line Fraud is a serious issue, but it shouldn’t mean lost sales. By balancing security with a smooth customer experience, you can protect your business while keeping customers happy. #OnlinePayments #FraudPrevention #VPNChallenge #EcommerceSecurity #PaymentGateway #CustomerExperience #CyberSecurity #BusinessGrowth #MerchantSolutions #Fintech For more information drop your queries at sanskarb@itio.in

Processor 🆚 Network Tokens 𝐓𝐡𝐞 𝐢𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐬 𝐢𝐧 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬: 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 (𝐍𝐓) is an industry standard published by EMVCo. First introduced with the launch of ApplePay and the payment networks, NT is gaining traction in the Card-on-file and wallet markets 𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐨𝐫 𝐯𝐬 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐬: ▶ Processor Tokenization is a proprietary service offered by PSPs, Acquirers, and Processors to minimize a merchant’s PCI scope. The generated token, a replacement for a Personal Account Number (PAN), is restricted to the merchant and PSP limiting its value in the event of a data breach ▶ Network Tokenization goes further by generating tokens in cooperation with the Card Issuer and Card Network (i.e. Visa & Mastercard) to offer additional benefits to the merchant and protect the PAN throughout the value chain 𝐓𝐡𝐞 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐌𝐞𝐫𝐜𝐡𝐚𝐧𝐭𝐬: 🔸 𝐂𝐨𝐬𝐭 𝐎𝐩𝐭𝐢𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧 - Merchants can optimize costs with Visa’s pricing changes. Security and compliance costs can be reduced since NT reduces the scope of PCI DSS. 🔸 𝐑𝐞𝐝𝐮𝐜𝐞𝐝 𝐅𝐫𝐚𝐮𝐝 - Implementing NT offers a higher level of security for CNP transactions. The impact of any potential data breach is greatly reduced since the data is useless when stolen (i.e. 26% decline in Fraud rates). 🔸 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐑𝐚𝐭𝐞𝐬 - NT involves card issuers, unlike processor tokenization. NT can be limited in scope and offer additional payment details (i.e. 2.1% increase). 🔸 𝐁𝐞𝐭𝐭𝐞𝐫 𝐂𝐗 - Card issuers can update NT in real-time replacing the need for card members to update the information periodically (i.e. 35% of cardholders stop shopping after one decline). 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 — 𝐚𝐧 𝐎𝐦𝐧𝐢𝐜𝐡𝐚𝐧𝐧𝐞𝐥 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲: 👉 𝐖𝐞𝐛𝐬𝐢𝐭𝐞 - Token information is captured by the merchant and shared with the Token Service Provider (i.e. VGS) and Card Issuer to validate the token and authenticate the transaction. Card Issuer then shares PAR along with the token to complete the transaction. 👉 𝐈𝐧-𝐀𝐩𝐩 - Token information is shared from the digital wallet with the token service provider and card issuer to validate and authenticate the requests. Card Issuers authorize the transaction and share customer PAR information back to the merchant PSP along with the token. 👉 𝐈𝐧-𝐒𝐭𝐨𝐫𝐞 𝐂𝐚𝐫𝐝𝐬 - The Payment Terminal captures the card data and shares it with the card issuer to authorize the transaction. Card issuers authorize transactions and share with merchants the response and PAR while the processor provides the Processor Token. Source: Deloitte — “Network Tokenization for Merchants” edited by Arthur Bedel 💳 ♻️ ( 👈 Follow this guy) Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] 

Retail Xpress Offline Card Payment works only where the buyer or seller is online for the reasons below; Offline card payment systems, where transactions are processed without immediate online authorization, pose several security implications: 1. **Delayed Detection of Fraudulent Activity:** Since transactions are not immediately verified with the issuer, fraudulent activities may go undetected until the transactions are batch processed. This delay allows more time for fraudsters to exploit stolen card information. 2. **Increased Risk of Counterfeit Cards:** Without real-time authorization, counterfeit cards may be used for transactions since there's no immediate validation of the card's authenticity. 3. **Limited Fraud Detection Measures:** Offline systems often rely on offline fraud detection mechanisms, which may not be as robust as online systems. This can make it easier for fraudsters to bypass security measures. 4. **Risk of Data Breaches:** Storing transaction data offline increases the risk of data breaches if the system is compromised. Since the data is stored locally before being transmitted for processing, it may be vulnerable to theft or hacking. 5. **Reduced Accountability:** With offline processing, it's more challenging to trace and investigate fraudulent transactions since there's no real-time monitoring. This can make it harder to hold parties accountable for security breaches. 6. **Limited Transaction Controls:** Without real-time communication with the issuer, it's difficult to implement dynamic transaction controls such as spending limits or transaction blocking based on certain criteria. 7. **Dependency on Offline Authorization Codes:** Offline transactions rely on authorization codes generated by the terminal, which may be vulnerable to manipulation or forgery, leading to unauthorized transactions. Overall, while offline card payment systems offer convenience, they also introduce significant security risks that need to be carefully managed to protect both consumers and merchants from fraud and data breaches. Our team will continue to innovate until this bridge is crossed. Welcome to the Retail Xpress World! #Retail #retailsoftware #accounting #Retailxpress

Part 6: The Role of Transparency and Security in Payment Options In the realm of e-commerce and online transactions, the role of transparency and security in payment options cannot be overstated. 💳💻 Secure payment processing is crucial in safeguarding sensitive financial information and preventing fraud. Encrypted connections and compliance with industry standards such as Payment Card Industry Data Security Standard (PCI DSS) are essential in ensuring that customers' payment details are protected from unauthorized access. Implementing multi-factor authentication and tokenization techniques also add an extra layer of security to payment processing systems. Moreover, transparency in fees and policies plays a significant role in building trust with consumers. Hidden charges or unclear refund policies can erode confidence in a brand and lead to abandoned purchases. By clearly communicating all costs associated with a transaction and providing easy access to terms and conditions, businesses can establish credibility and foster long-term relationships with customers. Best practices for ensuring payment security include regularly updating security protocols, conducting vulnerability assessments, and monitoring transactions for any anomalies. Using fraud detection tools and implementing strict access controls to limit employee access to sensitive data are also recommended to mitigate the risk of data breaches. Additionally, offering secure payment options such as two-factor authentication and biometric authentication can further enhance the protection of customer information. In conclusion, prioritizing transparency and security in payment options is essential for building a strong foundation of trust with consumers and safeguarding their sensitive financial information. By implementing best practices in secure payment processing and maintaining clear communication about fees and policies, businesses can not only protect their customers but also establish a reputation as a trustworthy and reliable vendor in the online marketplace. #PaymentSecurity #SecureProcessing #TransparencyInFees #ConsumerTrust

🔒 Understanding 3D Secure: Enhancing Online Payment Security 💳 Let's talk about 3D Secure (3DS), the protocol that's adding an extra layer of protection to your online payments. Here's everything you need to know about 3DS! 👇 What is 3D Secure? 3DS stands for "Three-Domain Secure." It involves three domains: Issuer Domain, Acquirer Domain, and Interoperability Domain. 3DS requires cardholders to authenticate themselves during online transactions via passwords, SMS codes, or biometric verification. This protocol shifts the liability for fraudulent chargebacks from the merchant to the card issuer, reducing the merchant's risk. Essentially, 3DS is an authentication method that aims to balance security and user convenience, especially with advancements in 3D Secure 2.0. The Three Domains 1. Issuer Domain 🏦 The bank that issued your card. Card Issuance: Manages your card. Authentication: Verifies you during transactions. Risk Management: Prevents fraud with advanced security measures. 2. Acquirer Domain 💼 The bank that processes payments for the merchant. Merchant Services: Allows merchants to accept payments. Transaction Authorization: Processes and forwards transaction requests. Fund Settlement: Transfers funds to the merchant's account. 3. Interoperability Domain 🌐 Managed by payment schemes (Visa, MasterCard, etc.). Payment Network: Connects issuers and acquirers. Protocol Standards: Maintains secure transaction standards. Security Measures: Ensures data integrity and confidentiality. How 3D Secure Works Customer Initiates Payment 💸 Payment Gateway 🔗 3D Secure Request 🔐 Redirection to Issuer ⬅️ Authentication Challenge 🔍 Customer Authentication ✅ Authentication Response 📩 Transaction Completion 🛒 Notification 📢   #Ecommerce #CyberSecurity #OnlinePayments #3DSecure #Fintech

Part 6: The Role of Transparency and Security in Payment Options In the realm of e-commerce and online transactions, the role of transparency and security in payment options cannot be overstated. 💳💻 Secure payment processing is crucial in safeguarding sensitive financial information and preventing fraud. Encrypted connections and compliance with industry standards such as Payment Card Industry Data Security Standard (PCI DSS) are essential in ensuring that customers' payment details are protected from unauthorized access. Implementing multi-factor authentication and tokenization techniques also add an extra layer of security to payment processing systems. Moreover, transparency in fees and policies plays a significant role in building trust with consumers. Hidden charges or unclear refund policies can erode confidence in a brand and lead to abandoned purchases. By clearly communicating all costs associated with a transaction and providing easy access to terms and conditions, businesses can establish credibility and foster long-term relationships with customers. Best practices for ensuring payment security include regularly updating security protocols, conducting vulnerability assessments, and monitoring transactions for any anomalies. Using fraud detection tools and implementing strict access controls to limit employee access to sensitive data are also recommended to mitigate the risk of data breaches. Additionally, offering secure payment options such as two-factor authentication and biometric authentication can further enhance the protection of customer information. In conclusion, prioritizing transparency and security in payment options is essential for building a strong foundation of trust with consumers and safeguarding their sensitive financial information. By implementing best practices in secure payment processing and maintaining clear communication about fees and policies, businesses can not only protect their customers but also establish a reputation as a trustworthy and reliable vendor in the online marketplace. #PaymentSecurity #SecureProcessing #TransparencyInFees #ConsumerTrust

As online shopping continues to increase in popularity so too does fraud. Online fraud rates are 7 times higher than in store purchases and cyber criminals are ready to exploit exposed card numbers, causing huge headaches for cardholders and massive losses for merchants.⁣ ⁣ That is one of the reasons Mastercard is aiming to remove the use of manual card entry, passwords and one-time codes for online purchases by 2030. Instead the payments card service provider is focused on using the technology of tokenisation and biometrics to enhance security of card use online and reduce fraud. ⁣ ⁣ Tokenisation replaces your card’s 16-digit number with a secure token, reducing fraud, speeding up approvals. Not only that, according to Mastercard is can boost sales and reduce cart abandonment. Statics show that nearly two thirds of shoppers have difficulty with manual card entry, with 25% of carts abandoned because checkout is too complex or slow. Today over 30% of Mastercard transactions worldwide are tokenised with some countries such as India at nearly 100%.⁣ ⁣ Mastercard also plan to adopt secure biometric authentication which uses your device’s biometrics such as fingerprints and facial recognition, to make online payments safer and simpler. The new Mastercard Payment Passkey has been launched in India, Singapore and the United Arab Emirates to date.⁣ ⁣ And the final tool is Click to Pay which allows customers to load multiple cards onto their mobile device to enable smart and swift transactions.⁣ ⁣ John H., Director of Marketing at AIB Merchant Services, remarked, “This is a highly positive step by Mastercard toward making card payments both more secure and seamless for our customers. As technology advances, so does our capability to safeguard against fraud and improve the payment experience.”⁣ ⁣ To find out how AIB Merchant Services is protecting your business security contact our Fraud Team today www.aibms.com. #powerebyaibms #backedbyaib⁣ First Merchant Processing (Ireland) DAC, trading as AIB Merchant Services, is regulated by the Central Bank of Ireland.

𝗪𝗶𝗹𝗹 𝗣𝗮𝘀𝘀𝗸𝗲𝘆𝘀 𝗯𝗲𝗰𝗼𝗺𝗲 𝘁𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗮𝘂𝘁𝗵𝗲𝗻𝘁𝗶𝗰𝗮𝘁𝗶𝗼𝗻? Everyone knows that transaction fraud is the bane of our collective existence in the world of online payments acceptance. The latest evolution in this journey to thwart malicious fraudsters from using stolen credentials to make payments is the use of Passkeys. Both Mastercard and Visa are all-in on Passkeys as a method to improve payment authentication in order to increase the security of payments that run over their networks and to reduce the costs of managing fraud for merchants and financial institutions. The focus in Mastercard's latest release is on Europe, as customers already are accustomed to some friction to authenticate transactions in many cases. ❓ What are Passkeys? A Passkey uses a pair of cryptographic keys: a public key stored on the service’s server and a private key stored securely on the user’s device. When a passkey is used to login to a website or to authenticate a transaction, the private key generates a cryptographic signature sent to the server that holds the public key. It can use biometric authentication (e.g., FaceID or fingerprint) to unlock the private key on the device (e.g., phone, tablet, or laptop). ❓ Where are Passkeys in Use Today You may have already started using them to access services like Gmail or your Kayak account. We are starting to see them in the world of payments, for example, the Stripe Link checkout service. ❓ What is the Use Case for Payments? Beyond account access, Passkeys can authenticate individual transactions. When a customer has Passkeys enabled, they can authenticate the transaction using biometrics. Combining Passkeys with tokenization leads to a highly secure transaction, similar to how an Apple or Google Pay transaction works today. Today, this uses the 3D Secure protocol. Mastercard and Visa will include Passkeys in the Click to Pay wallet using 3D Secure. Merchants with cards on file can use Passkeys to authenticate transactions when a cardholder adds a new card and subsequent transactions. ❓ How Will Passkeys Affect Conversion? In places where merchants are not mandated to use multifactor authentication, Passkeys may be used to secure higher-risk transactions or to offer another secure option to customers who don’t use Apple or Google Pay. Using Passkeys also removes the need to log in (and remember a password in the process) to access stored credentials for checkout. ❓ How is this better than One-Time Passwords? Passkeys are resistant to phishing and man-in-the-middle attacks, making them a more secure form of multi-factor authentication.