American Express SafeKey for hotels

Direct from American Express hospitality industry webinar, hotels number one protection from card not present fraud is American Express SafeKey®. SafeKey leverages the global industry standard, 3-D Secure®*, to detect and reduce online fraud by adding an extra layer of security when Card Members pay online.

How to mitigate 3rd party authorization chargeback risk? Merchant best practices:

  • Ensure the cardholder participated in the initial transactions. Safekey is the best method to prove that, making signatures irrelevant.
  • Get written authorization of what expenses the cardholder will allow.
  • Put cardholder name on the folio.
  • Show where cardholder opted in to all policies, including damages, cancellation etc.
  • Authorization must be CARD NOT PRESENT.
  • Use solution that includes cardholder name in the authorization response; retrievable record.

American Express SafeKey

How does Amex SafeKey impact the customer shopping experience? The cardholder may have some or no difference in the checkout experience, based on many factors, including prior online shopping history. The cardholder may be asked authentication question(s) to confirm it’s really the cardholder.

How does Amex SafeKey impact merchants?

  • Fraud liability for “It wasn’t me, I didn’t authorize it” goes away as liability shifts back to the issuer.
  • For business to business, where cardholder billing and shipping address frequently vary, cardholder authentication plays an important role not available with four digit CID security code validation only.
  • At this writing, American Express merchants do not receive a specific interchange discount as may be available with other card brands.

How can merchants adopt the Amex SafeKey service?

  1. Enroll your company on the American Express web site. https://network.americanexpress.com/globalnetwork/safekey/us/en/merchants-acquirers
  2. Receive e-mail from SafeKey Certification Team with your SafeKey ID and next steps.
  3. SafeKey Certification Team gets approval from Acquirer.
  4. Acquirer and SafeKey Certification Team complete required setup.
  5. Activate 3-D Secure on the application. (Ecommerce shopping cart, payment gateway, or ERP.) Both payment gateway and application must support the service.

* 3-D Secure is a registered trademark of Visa International Service Association in the United States and other countries.

Want to add American Express SafeKey to your business and get a great third party authorization form solution all included? Contact CenPOS global sales and integrations reseller, Christine Speedy, 954-942-0483 for more information.

D365 Finance & Operations Questions To Ask Before Choosing Credit Card Processing Solution

Upgrading to D365 from Microsoft AX? Engaging a payment processing professional can save boatloads of development time while opening up new ways to engage with customers. Additionally, payment gateway selection directly impacts EBITDA project objectives. What three key questions must be asked when choosing a credit card processing solution for your business to business operation?

I’ll save merchants and consultants reading this a lot of time. Ask the 3 questions and then pretty much disregard the answers. You’re unlikely to find anyone who will be able to answer all three questions adequately so on that basis alone, it’s best to contact a subject matter expert like Christine Speedy, here at 3Dmerchant.com.

  1. Does the payment gateway support Unschedule Credential On File? Virtually every business to business operation stores at least a few credit cards for the occasional customer on file need, which is a good thing because if you’re one of those that require customers to call in each time, that’s negative friction impacting cash flow, profits, and satisfaction. What most businesses don’t know is that the rules and technical specifications for storing cards and processing transactions with stored cards changed tremendously in October 2017. Virtually no payment gateway has upgraded to get compliant, leaving businesses exposed to multiple financial penalty risks. Note, this is not just ‘tokenization’, which most gateways support, but rather a specific set of new card acceptance rules. Everyone in the payment ecosystem has some responsibility to make changes for compliance- issuer, acquirer, merchant and payment gateway. No one can ‘automatically’ get merchants compliant with new UCOF rules; if any vendor says they have, call 3Dmerchant to review why it’s not.
  2. If the initial authorization and final settlement amount are not the same, what happens? This is a common scenario for distributors, manufacturing and ecommerce, but if there’s a mismatch, an or an open authorization is not reversed, merchants pay an expensive processing penalty fees. For example, MasterCard Data Rate 1 might appear on merchant statements for interchange rate qualification, which is nearly 100 basis points higher than if settled optimally.
  3. Is there any difference between the type transaction transmitted to the acquirer when a customer self-pays an invoice such as through a payment portal vs when an employee key enters the cardholder data? The answer must be yes. One is submitted as a phone order (MOTO) and one is submitted as an ecommerce order.
  4. BONUS: What’s the process for renewing an expired authorization? Preauthorizations are common in manufacturing and ecommerce. While an expired authorization is usually approved for final settlement within 30 days, there are financial penalties and risk associated with using expired authorizations. Merchants should automate this process as much as possible, removing decisions from employees, which is always fraught with risk.
  5. BONUS 2: Can I process EMV chip transactions with level 3 processing in F&O? Due to October 2019 licensing changes, some merchants may find it more profitable to skip the retail license add-on.

Call Christine Speedy, PCI Council QIR certified, for all your Microsoft Dynamics AX and D365 payment processing needs from ACH to credit cards and more. Get a new or keep existing merchant account at 954-942-0483, 9-5 ET.

Visa Prevents Approximately $25 Billion in Fraud Using Artificial Intelligence

Since pioneering AI in payments, continuous evolution of the technology in Visa Advanced Authorization helps drive commerce and consumer confidence

SAN FRANCISCO–(BUSINESS WIRE)–Visa Inc. (NYSE: V) today announced new analysis showing Visa Advanced Authorization (VAA) using artificial intelligence (AI) helped financial institutions prevent an estimated $25 billion in annual fraud—making the global payment ecosystem safer for retailers and consumers.i VAA is a comprehensive risk management tool that monitors and evaluates transaction authorizations on the Visa global payment network, VisaNet, in real time to help financial institutions promptly identify and respond to emerging fraud patterns and trends. Visa processed more than 127 billion transactions between merchants and financial institutions on VisaNet last year, and employed AI to analyze 100 percent of the transactions—each in about one millisecond—so financial institutions can approve legitimate purchases while quickly identifying and preventing fraudulent transactions.

“One of the toughest challenges in payments is separating good transactions made by account holders from bad ones attempted by fraudsters without adding friction to the process,” said Melissa McSherry, senior vice president and global head of Data, Risk and Identity Products and Solutions, Visa. “Visa was the first payment network to apply neural network-based AI in 1993 to analyze the riskiness of transactions in real time, and the impact on fraud was immediate. By striking the right balance between human expertise and technology innovation, we continue to evolve our capabilities as new AI breakthroughs expand the realm of what’s possible.”

For financial institutions, friction in the payment process can lead to the abandonment of a payment card. A study by Javelin Strategy & Research revealed more than half of cardholders affected by false declines (51 percent) used a secondary payment card to complete the purchase at the same merchant, which can push a competitor’s card to the top of wallet.ii However, removing friction cannot come at the expense of identifying and preventing fraud. As a survey by the National Retail Federation and Forrester discovered, the top payment-related challenge faced by retailers is fraud, cited by 55 percent of those surveyed.

Visa Advanced Authorization is a layer of fraud prevention that can help drive down risk and fraud for financial institutions and retailers, and help reduce friction due to false declines for payment account holders. More than 8,000 financial institutions in 129 countries use Visa Advanced Authorization.

Preventing fraud near the speed of light

Visa pioneered using neural networks modeled after the human brain to power its AI platform to identify possible fraud. This delivers faster and deeper insights through previously unknown correlations. Delivered through Visa Advanced Authorization, retailers and financial institutions benefit from:
• Machine Learning models used for real-time examination of each transaction for indicators of fraud—looking at activities, patterns and more than 500 risk attributes—all in about one millisecond.
• Risk scoring, which Visa shares with the account holder’s financial institution, where the decision is made to either approve or decline the transaction, or flag the transactions for follow up with the account holder.
• The ability to identify good transactions even when made by new or infrequent shoppers, reducing the likelihood of false declines.
• Real-time authorization using integrated, global predictive analytics to identify and prevent fraud.
Visa has kept global fraud rates at historic lows—less than 0.1 percent—through a multi-layered approach of investing in human intelligence and technology like A.I.; empowering consumers and clients with tools, resources and control to manage risk; and setting governance processes to help businesses and regulators stay nimble.iv
“Consumers identified Visa as the most trusted company to provide financial services or payments among all payment networks and we believe it is due to Visa’s unrelenting focus on eliminating fraud and protecting the payment ecosystem,” said McSherry.v

Additional Risk Solutions Using AI
Visa champions security every day to protect the payment ecosystem and offers a portfolio of risk products and services that can help consumers, merchants and financial institutions prevent fraud. This includes Visa Risk Manager (VRM), Visa Consumer Authentication Services (VCAS) and CyberSource Decision Manager (DM), among others. For more information about Visa’s Risk solution portfolio, visit Visa Security.

Additional Resources

About Visa Inc.

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa,visa.com/blog and @VisaNews.

i For the 12 months ended April 30, 2019.

ii “Addressing the Threat of False Positive Declines” by Kyle Marchini and Al Pascual, Javelin Strategy & Research, October 17, 2018.

iii “The State of Retail Payments Report – Outlook for 2019” by Brendan Miller, principal analyst, Forrester, November 2018.

iv Visa Global Fraud Data, Visa Inc., April 2019.

v “Omnichannel and Branch: The Current U.S. Consumer Banking Environment,” by Peter Reville, Director of Primary Data, Mercator Advisory Group, March 2019.

Source: Visa Inc.

B2B Credit Card Processing Hot Tips

Compliance with credit card processing rules maximizes profits while mitigating risk. This is especially true for business to business companies. But it’s getting harder and harder with the onslaught of new rules, and virtually impossible if not using a sophisticated cloud solution to help manage compliance.

If your B2B company stores credit cards, there’s a pretty good chance you’re not compliant. For example, Visa’s 2017 Stored Credential Transaction framework outlines merchant responsibilities to obtain customer consent as well as storing credit cards, using stored credentials (token), and managing stored tokens. Failure to comply with Authorization rules, for example preauthorization and final settlement do not match, has far-reaching consequences including higher interchange rates (the bulk of credit card processing fees), penalty fees and new chargeback risks. With so many new rules across multiple card brands that vary based on business and transaction type how can a business quickly ascertain if they’re compliant?

Most processing details occur seamlessly behind the scenes so merchants have not had a simple way of knowing whether they’re compliant. Until now.

Quick tips to validate compliance:

  • Is a transaction receipt delivered to customer when a stored credit card credential (token) is created? Compliant answer is yes.
  • Is cardholder authentication with a zero dollar authorization or a purchase transaction performed at the time token is created? (A small charge is not an acceptable practice.) Compliant answer is yes.
  • Does the receipt include “RECURRING” or “REPEAT SALE” for token transactions? Compliant answer is yes.
  • Review merchant statements, usually the last 1-2 pages with the heading “pending interchange” or “fees” section. Do you see EIRF, STANDARD (STD), or DATA RATE I? Compliant answer is no.
  • Can you produce documentation of customer consent to store their card (including with 3rd party service) and how it will be used?

If you’re not in compliance, your payment gateway is the most likely culprit, followed by ERP or other software integration limitation. For a Microsoft Dynamics AX, Dynamics 365, and other ERP integrated solutions, call 954-942-0483 9-5 ET.

Reference: Card brand links.

Christine Speedy, CenPOS Sales 954-942-0483. CenPOS is a cloud business solutions provider with end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement.

Mastercard Simplifies Managing Your Digital Footprint with Launch of Consumer Control

New solution will help the 60 percent of people who say they don’t know where their card credentials are stored

PURCHASE, N.Y. –October 23, 2017 – Do you know all the places you’ve stored your payment card details? From shopping sites to billers, keeping track of where your card credentials are held can be a daunting task. Today, Mastercard Consumer Control was introduced to address just this. The solution provides consumers a central view of where their cards are stored across all digital channels, as well as the ability to control how, when and where those cards are used.

This solution enables consumers to look no further than their own trusted bank or credit union to take control of their digital payment footprint – across devices and channels. Through this solution, issuers can help their cardholders more easily add their cards to their preferred shopping sites and payment devices, and optimize spend across the digital ecosystem.

“As digital payments continue to evolve, cardholders have more and more options to enable new types of devices for payment, and to pay in new ways online and in-app,” said Jessica Turner, executive vice president Digital Payments & Labs, Mastercard. “In our ongoing commitment to deliver consumer-centric solutions, Mastercard is introducing a series of APIs that will give the consumer direct control to view where their card is stored and manage spend across all digital channels – all from right within their mobile banking app or website.”

Your Bank Your Control

According to the findings of a recent Mastercard study, about three-quarters (73%) of Americans are interested in digital management of their credit/debit card information, and they want it from their bank or credit union. Mastercard Consumer Control uniquely empowers issuing partners to deliver a bank-branded, all-digital payment solution to provide consumers full oversight of their digital payment footprint. The solution helps issuers differentiate their mobile banking offering by adding powerful new functionalities. First Tech Federal Credit Union will be among the first issuers to support Mastercard Consumer Control.

The Simplest, Most Secure Path Forward

Mastercard is also partnering with token service providers, merchants and device manufacturers like Fitbit (NYSE: FIT), Fitpay and Garmin to enhance the overall consumer experience while delivering a streamlined solution across card on file and IoT devices. Layering services including tokenization with bank identification and verification of cardholders, Mastercard Consumer Control also leverages the most advanced security methods today. And with more than three quarters (78%) of survey respondents hesitant to store their financial information online, this added peace of mind is critical.

Consumer Control is one of the more than 35 APIs available through our Mastercard Developers portal. Mastercard envisions a future powered by an API for everything – one that inspires innovators to bring their ideas to life by plugging our technology into their solutions without having to start from scratch. Through our Payments, Data Services and Security APIs, we enable customers and partners to easily integrate Mastercard proprietary technology, products and services into their digital solutions. In the last year alone, the Mastercard API Platform has seen a 400% increase in usage.

About Mastercard

Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news.