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fraud prevention

Services for credit and debit cards

Services for credit and debit cards

You can submit credit card payments and debit card payments either online via the Merchant Interface as a batch file or via the SSL-Terminal. The following table describes the services of

Payment methods available

The credit card is a widely used international payment tool on the Internet. Transport Layer Security (TLS) is successor of Secure Socket Layer (SSL) and an asymmetric encryption method in the Internet which protects credit card data against tapping and manipulation, during transfer for example. In the case of credit card payments with TLS the card holder enters the credit card data in a form which is encrypted with TLS.

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Entry form with TLS-encryption for credit card data

For safety reasons an SSL certificate is required for TLS-encryption.

Transaction procedure with TLS-credit card payments

Credit card payments with TLS

Credit card payment with TLS checks the credit limit of the customers but offers no protection against fraud using stolen card data. Please note therefore the security processes Verified by Visa, MasterCard SecureCode and American Express SafeKey in the following chapter.

Payment methods available

This chapter gives a short introduction to the operating principle of the payment methods offered by

Credit cards with Verified by Visa, MasterCard SecureCode and American Express SafeKey

MasterCard SecureCode (UCAF), Verified by Visa (VbV) and American Express SafeKey are authentication methods which verify the identity of the card holder before making the payment. The name 3-D Secure used by technicians describes only the protocol. The correct brand names are Verified by Visa, MasterCard SecureCode and American Express SafeKey.

Merchants benefit from authentication with Verified by Visa, MasterCard SecureCode or American Express SafeKey because the card associations enact a liability shift: If you use Verified by Visa, MasterCard SecureCode or American Express SafeKey you benefit from a secure payment claim, the liability shift transmits the default risk to the card-issuing bank,  should the customer dispute the payment. Irrespective of whether the card holder actually uses the authentication you obtain in effect a payment guarantee in case the customer asserts that it has not implemented the credit card payment itself.

. The descriptions do not concentrate on the technology but on technical aspects from the perspective of merchants and customers.

Credit card payments with TLS

The credit card is a widely used international payment tool on the Internet. Transport Layer Security (TLS) is successor of Secure Socket Layer (SSL) and an asymmetric encryption method in the Internet which protects credit card data against tapping and manipulation, during transfer for example. In the case of credit card payments with TLS the card holder enters the credit card data in a form which is encrypted with TLS.

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Entry form with TLS-encryption for credit card data

For safety reasons an SSL certificate is required for TLS-encryption.

Transaction procedure with TLS-credit card payments

In the case of TLS-payments the customer chooses the Credit card payment method at the Internet checkout. The customer is then requested on an TLS-encrypted page to input the credit card number and expiry date. The

Credit card payment with TLS checks the credit limit of the customers but offers no protection against fraud using stolen card data. Please note therefore the security processes Visa Secure, Mastercard ID Check and American Express SafeKey in the following chapter.

In the case of American Express payments From a technical perspective Verified by Visa, MasterCard SecureCode and American Express SafeKey are not payment methods but an authentication process which precedes the payment: Once the credit card data has been entered,

Transaction procedure with Verified by Visa, SecureCode or SafeKey

can protect against fraud by comparing the order address with the address stored at American Express:

Credit cards with Visa Secure, Mastercard ID Check and American Express SafeKey

Mastercard ID Check (UCAF), Visa Secure (VbV) and American Express SafeKey are authentication methods which verify the identity of the card holder before making the payment. The name 3-D Secure used by technicians describes only the protocol. The correct brand names are Visa Secure, Mastercard ID Check and American Express SafeKey.

Merchants benefit from authentication with Verified by Visa, MasterCard SecureCode or American Express SafeKey because the card associations enact a liability shift: If you use Visa Secure, Mastercard ID Check or American Express SafeKey you benefit from a secure payment claim, the liability shift transmits the default risk to the card-issuing bank in case of a successful customer authorisation, should the customer dispute the payment. You obtain in effect a payment guarantee in case the customer asserts that it has not implemented the credit card payment itself.

From a technical perspective Visa Secure, Mastercard ID Check and American Express SafeKey are not payment methods but an authentication process which precedes the payment: Once the credit card data has been entered,

Transaction procedure with Visa Secure, ID Check or SafeKey

The customer selects the Credit card payment method in the Internet shop and enters the card number and expiry date. If the customer's credit card has been registered by the issuing bank for Verified by Visa, MasterCard SecureCode or American Express SafeKey the authentication process now starts:

The subsequent authorization contains the 3DS 2.1 identifier so that the acquirer and the card-issuing bank can carry out the authorization with the identifierIf the password is correct

ELV Score: Direct debit with block list check

Since there are substantially more accounts than credit cards, many Internet purchases are paid for by direct debit. The direct debit process is unsafe for merchants without a block list check: in the case of SEPA direct debits there is no authorisation because it is not possible to carry out a credit rating on the account of the customer. There are frequently return debit notes due to lack of funds in accounts.

The block list check links the benefits of the direct debit with the security of a block list check and individual sales limits.

Transaction procedure of a direct debit payment on the Internet

In order to pay with a direct debit, the customer selects the Direct debit payment method at the Internet checkout and enters his account details on an Internet page. This Internet page is TLS encrypted to protect the account data during the transmission against tapping and manipulation. After the input

International direct debit payments via PPRO International Direct Debit (IDD)

Electronic direct debits over

Money transfer with giropay, eps, iDEAL and DIRECTebanking

giropay is a standard which was founded by the German banks Sparkasse, Postbank, Volks- und Raiffeisen Banken. The giropay online transfer has a number of advantages for merchants. Firstly giropay provides the vendor with a guarantee for payments of up to 10,000 euros; secondly the transfer is a prepayment which minimises the payment term. Last but not least the customer is using the familiar and trusted online banking of its own credit institution, just the same as with online banking.

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giropay links customers directly to their banks

Dutch banks established the iDEAL money transfer standard, which works in a similar fashion to giropay in Germany. Approximately 70% of all e-commerce payments in the Netherlands are processed with iDEAL. Therefore offering iDEAL is a vital success factor for e-commerce business in the Netherlands.

In Austria

Example of an online transfer procedure with giropay

In the first step the customer chooses the giropay payment method at the checkout of the online shop and selects its credit institution. The customer is then connected directly to its Sparkasse/bank and logs on as normal using a PIN. A pre-completed transfer form then appears. The customer need only enter their TAN to confirm the payment.

In the Netherlands the procedure of an iDEAL online transfer is similar but there is an unlimited payment guarantee.

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Entry of giropay TAN into the transfer form

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Entry of giropay TAN into the transfer form

As usual with online banking, the data disclosed in the online transfer is encrypted with TLS (Transport Layer Security) to prevent manipulation.

Internet addresses with information about online money transfers

International online transfers

Przelewy24 in Poland

Przelewy 24 is supported by 18 large banks and reaches 95 % of the polish customers in online banking. The system has no transaction limit and directs customers via its online banking environment directly to the payment processing.

PostFinance Yellowpay in Switzerland

The PostFinance-Bank’s Yellowpay online transfer operates without a transaction limit, but with a payment guarantee for the merchant and reaches about one million customers with online accounts in Switzerland.

POLi in Australia and New Zealand

Over POLi you can reach 90 % of the customers in Australia and New Zealand – after all, that’s 33 million online banking customers. There is a transaction limit of 9,999 AUD.

TrustPay in Eastern Europe

TrustPay provides a real-time online transfer system in Central and Eastern Europe under the supervision of the National Bank of Slovakia. Numerous banks and the respective currencies of the participating states – Slovakia, Czech Republic, Türkey, Hungary, Estonia, Latvia, Lithuania, Croatia as well as Slovenia – are supported.

SafetyPay in Brazil, Costa Rica, Germany, Colombia, Mexico, Nicaragua, the Netherlands, Austria, Panama, Peru, Spain

SafetyPay, whose head office is in Florida, offers an international system for online bank transfers, with which the customers pay for international purchases in their own currency using their familiar online banking system. Merchants reach about 250 million potential bank customers in this way.

Trustly in Scandinavia, Poland and Spain

Founded in 2008 Trustly is a technology enterprise from Sweden, which enables secure and convenient payments via online banking for the customers. Trustly offers Collecting as well as an automated credit via API and reconciliation files for all supported acquirers (all 21 main banks in Sweden, Denmark and Finland). Trustly is FSA regulated.

AmazonPay

With Checkout by Amazon AmazonPay you offer your customers the level of comfort which they are used to with Amazon: Simply select delivery address from the address book, define payment method and confirm the order. Done.

Checkout by Amazon AmazonPay is available in Germany, Great Britain and the USA. Amazon.de alone has around 16.7 million customer accounts. Amazon customers know the ordering procedure and trust it. This trust and the familiar procedures can improve the conversion rate of your shop. Last but not least, Amazon Payments AmazonPay offers a payment guarantee.

Checkout by Amazon AmazonPay starts with the Amazon login in a popup window. The individual widgets then permit the selection of the addresses and methods of payment saved by the customer at Amazon. Amazon makes these details available to the

PayPal Express Checkout

PayPal offers its users several payment methods

PayPal was a subsidiary of eBay and is widespread amongst eBay users worldwide. The old PayPal-standard solution however has required manual processing for reasons bound up with the history of eBay.

Customers in more than 100 markets

PayPal is particularly useful for customer purchases abroad since

Seller protection and address verification

PayPal Express Checkout Fewer order cancellations

Long order processes increase the rate of cancellations.

PayPal Express Checkout button

If the customer selects Continue to Checkout instead of PayPal Express Checkout in the shopping cart area, PayPal is displayed again as a payment method on the payment page. Selecting PayPal lets your customer log into PayPal to confirm the payment. In this case it is important that the delivery address is transmitted to ensure that the PayPal seller protection is activated.

Process optimisation for PayPal payments

Along with standard processing,

Wallet

system: Skrill (Moneybookers)

Skrill from Moneybookers has around 21 million, mostly younger, account holders from the gaming sector, ranks alongside PayPal as one of the world’s largest wallet systems for online payments. Skrill is available in 200 countries with 41 currencies and offers merchants a payment guarantee without chargebacks as well as the possibility to process credits (refunds).

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Logos of Moneybookers and QIWI

 

chargebacks as well as the possibility to process credits (refunds).

Image Added         Since 2007 the QIWI Wallet has developed into the largest alternative payment system in Russia with over 400,000 transactions daily. Success is also because cards are not very widespread and only 5 % of the population of Russia have a bank account. The QIWI Wallet can be topped up quickly and flexibly and used for guaranteed payment. Various access options exist for this, even including an iPhone app. Worldwide, QIWI is already available in 20 countries such as China, India, the USA and Brazil.

Payment type	URL
Skrill	http://corporate.skrill.com/	QIWI	http://www.qiwi.com/en/

Web pages page with information about Skrill and QIWI

Guaranteed payments on invoice

With payment by invoice you can reduce the number of uncompleted orders in your online shop by up to 81%. This increases your turnover and your sales. Therefore

Provider logos for guaranteed invoice purchase

Full service from Klarna and

Ratepay

With Klarna and RatePAY Ratepay you profit as a merchant from a full invoice and hire purchase service. All you have to do is pass on all the invoice data during the order to the service provider, who then takes over the complete billing and debtor management. That than takes over the complete billing and debtor management. Your customers gain financial flexibility with Klarna, since they can choose between invoice purchase and hire purchase. Furthermore RatePAY offers classical hire purchase and SEPA direct debit.

Klarna already offers invoice purchase and hire purchase in many European countries.

Debtor management for BillPay

With BillPay the merchant sends the invoice with the logo and bank details of BillPay. BillPay pays the invoice amount and takes over the complete downstream debtor management.

Invoice, direct debit and hire purchase with PayByBill

purchase and hire purchase. Furthermore Ratepay offers classical hire purchase and SEPA direct debit.

Klarna already offers invoice purchase and hire purchase in many European countries.With PayByBill from the Gothia Financial Group you can offer your customers popular methods of payment such as direct debit, purchase on invoice or flexible hire purchase. PayByBill enables merchants to send their own invoice. At the same time merchants will receive payments. PayByBill takes care of the debt collection.

Internet addresses of Klarna, RatePAY, BillPay Rateay and PayByBillafterpay

Guaranteed hire purchase

Rate payment within the online shop motivates your customers to order high value baskets. This also increases your turnover. Therefore 

As a

Provider logos for guaranteed hire purchase

As merchant you benefit from rapidly available liquidity. With Klarna, Ratepay and RatePAY afterpay your customers increase financial flexibility, as they can define the instalment amount themselves.

Debit payments in England and Denmark

Debit cards are more widespread in Europe than credit cards. Direct debit, bank- and savings banks cards (formerly ec-Cards) are extremely popular in Germany. Our European neighbours also prefer to use debit cards. 

With 23 million card holders, Maestro offers huge customer potential in the UK.

Notice: In the UK Maestro replaces the old Switch/Solo-Cards. It works there without SecureCode but does require an address verification. Outside the UK Maestro functions worldwide only with SecureCode (see also next chapter).

Logos of the debit cards in France, England and Denmark

In Denmark you can reach around 3.5 million card holders with the Dankort-solution. The significance of Dankort is also demonstrated by the fact that the Danes make 535 million payment transactions annually using the Dankort.

Maestro worldwide and in UK

250 million people in Europe own a Maestro card. Maestro offers a potential of 570 million customers worldwide. In the UK Maestro replaced the former Switch-Cards and therefore works a little differently to the rest of the world:

Notice: Maestro with SecureCode does not function in the UK for all cards!

The customer potential of 570 million Maestro card owners worldwide is very attractive for merchants with customers abroad. Since 2006, 250 million card holders in Europe, for example the British and the Austrians, have been able to use their Maestro card on the Internet. However while the Austrians must first apply for a SecureCode password to use their Maestro card online, 23 million British people can now use their Maestro on the Internet without a SecureCode.

Logo from Maestro

All current payment solutions for Maestro to date however only work with SecureCode, which the 23 million British card holders do not have. Therefore

Along with worldwide distribution, Maestro has several benefits for business: firstly the discount costs are generally lower than with credit cards and secondly you benefit from shorter payment terms. Business also benefits from a secured payment claim in the Maestro SecureCode. Maestro therefore has much to recommend it, particularly for merchants with customers abroad.

paysafecard and Barzahlen

Logos from paysafecard and Barzahlen

Paysafecard is widespread in the gaming, gambling and adult content sectors. You can tap into additional target groups with this prepaid system:

• customers who do not want to disclose personal data such as bank account or credit card number
• young people who are denied access to classic payment systems such as credit cards
• customers who do not obtain a credit card from their bank
• as well as customers who prefer to pay with paysafecard

The prepaid system is international: the paysafecard Group operates in more than 40 countries in Europe as well as in North and Latin America and processes around 20 million prepaid payments annually.

Barzahlen is aimed at all customers in Germany who are unwilling to enter their sensitive data online, and those who do not use credit cards or online banking. An alternative to cash on delivery, Barzahlen is quicker and less expensive. Customers pay the amount to an associated retailer, on the basis of a payment form; the retailer transmits a payment confirmation in real time to the online shop so that the goods can be dispatched quickly.

Web links to paysafecard and Barzahlen

Address-checks and credit rating

Popular with customers, risky for the merchant: Payment methods such as direct debit or purchase on account involve a high level of default risk.

SecurePay is integrated directly into the

Logos from providers of address checks and credit ratings

As it is integrated into the interface between the online shop and

The use of SecurePay gives online merchants many more options in addition to credit card acceptance while minimising the risk, enabling them to compile individual payment options including electronic direct debits and even purchase on account for their customers. The pre-transaction credit rating means maximum possible payment security for the merchant with a substantially greater and therefore more customer-friendly package of payment methods.