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Answer:  Offer alternative payment options

Okay, so what exactly does that mean?  Well, traditionally, merchants only had the option of accepting electronic payments online in the form of bank drafts, and debit and credit cards from the major card brands – Visa, MasterCard, American Express, Diners Club and JCB.  That is until payment product innovators discovered that merchants were losing potential business from consumers who did not have bank accounts or credit cards.  Most importantly, in the ecommerce space, some consumers are simply wary of using cards and bank account information for online transactions because of the fraud risk.  Most of this concern stems from consumers’ lack of trust in web site security.  Additionally, with card companies cutting cardholder credit limits, alternative payment methods are the only option. Continue reading "Want To Gain More Online Customers?"

Password security is important and knowing the different types of identity theft is great, but what are the best ways to prevent identity theft? Many believe that PCI compliance does not affect them because they are not a payment processor or don’t run a gateway. This is a common mistake and can cost online businesses a lot of money. This doesn’t mean you need to be paranoid about being a company that is going to be the victim of identity theft. Use common sense and ask yourself if strangers are able to access your personal information.

Here are some tips to help prevent identity theft:

Continue reading "Online Network Security Must Haves – Part 3"

Part one of this series talked about identity thieves wanting your password, and we discussed ways to protect against having your passwords compromised. Securing your password seems to be only 25 percent of the battle these days. Many network security breaches, like the Heartland Breach, occurred from within. So it is important to be PCI Compliant internally and know who is working for you.

I wish there were a specific set of characteristics I could post to detect an identity thief, but unfortunately they are as broad as the criminal population itself.  I like to divide attacks by criminals into two categories: internal attacks and external attacks.

Internal attacks are usually traced back to disgruntled, dishonest, and/or careless employees. Some common characteristics of an internal attack are:

Continue reading "Online & Network Security Must Haves – Part 2"

The word “hacker” is often associated with the terms crime and fraud. However, hackers can be a good defense against online fraud, such as the “white hat” hackers that work to prevent fraud and fight identity theft. Unfortunately, white hat hackers aren’t as common as criminal hackers. 

It is important to first understand what different types of identity theft occur, and then you can find out how to get protection.

The easiest item for a criminal or hacker to obtain is your password. Some common mistakes made when setting up passwords is using names of kids, birthdates, or hometowns. Spelling your child’s name backwards is another frequent mistake. I have even seen people write their passwords on a sticky note, in a notebook or in your PDA. Do not give office assistants your passwords. Remember passwords are used in more than 90 percent of all online network security practices. People use passwords for online banking, shopping, stock trading, and network logons. It is imperative to create a strong password. 

Continue reading "Online & Network Security Must Haves – Part 1"

We have seen the contactless functionality pop up in many stores over the last few years. You have probably seen the popular commercial where people are walking in an efficient circle, taping their card onto a contactless device, until one guy pulls out cash and the whole line comes to a screeching halt. Contactless payment systems are credit cards that have a device using a Radio Frequency Identifier (RFID) to make a secure payment. The consumer is able to wave their card over a reader at the consumer location to make their purchase. There is typically no signature required for purchases under $25.00.

Although many large retail chains such as Regal Cinemas and McDonalds have the technology available, the process has been put under a great deal of scrutiny because it is said to be more susceptible to identity theft and other types of fraudulent activity. The devices are easily hacked using a wireless frequency. Regardless of the security risks, all the major credit card companies were ready to get their piece of the action. In July of 2005, AMEX launched ExpressPay, which was quickly ditched because of a lack of response by consumers. The Discover Network released its Zip technology, Visa Inc released payWave, and MasterCard has PayPass.

Continue reading "The Evolution of Contactless Technology"

WEP (Wired Equivalent Privacy) is an algorithm used to secure wireless networks. Many major retailers, such as TJ Maxx, use WEP and have recently been hacked into. Many weaknesses have been identified when using a WEP connection and it has been known to be easily hacked.

In the PCI DSS 1.2 Summary of Changes, the PCI Security Standards Council announced several adjustments to the wireless network security requirements:

• Wireless must be implemented using strong encryption for authentication and transmission. The Council cites IEEE 802.11i as an appropriate example.
• Merchants are no longer permitted to deploy any new Wired Equivalent Privacy (WEP) networks as of March 31^st, 2009.
• Merchants using WEP networks must transition to Wi-Fi Protected Access (WPA) security no later than June 30, 2010.

Converting to WPA should be a fairly easy process. Most technical websites show that all wireless equipment manufactured since late 2003 comes standard with WPA (Wireless Application Protocol), which is an open standard for application layer network communications in a wireless environment. It is mainly used to enable mobile phones.

Continue reading "Is Your Company’s Wi-Fi Network Secure?"

Visa has always been on the cusp of technology and is always looking for new and innovative ways to expand their sphere of influence. Visa is launching four new programs that allow payments and services via mobile devices. Two such programs are being launched in Brazil and Korea, and the other two will be in the United States.

Previously, I have talked about Google’s Android platform working with Visa on a service that sends you an alert if any payments have been made on your Visa card. This is great in helping to protect against fraud, and will also help in locating ATMs, but I don’t consider this to be a new technology.

In 2007, Visa partnered with Qualcomm, a wireless chip developer, to create technologies that allow consumers to make credit card transactions with a cell phone and a reading device. This would add another way for wireless carriers to make additional revenue by being paid a percentage of the transaction.

Continue reading "Visa Inc. Pushes For Mobile Technology"

In 1730, the first advertisement for credit was placed allowing furniture to be purchased over time. Almost 200 years later, Western Union issued a metal plate to their employees instead of a paycheck. Of course this card was only good in company owned stores. It was not until the 1950s that Bank of America issued the first revolving credit card.

Technology in the payment card industry has grown tremendously in just the last 5 years. Merchants are able to accept payment using any java enabled cell phone, and can even turn their laptop into a credit card terminal. But the best is yet to come.

Continue reading "Technology Trends and Card Processing"