Zanzibar seminar jan2014 (2)

3G Direct Pay Limited presents

ZANZIBAR SEMINAR – JAN/2014Online PaymentsFraud Prevention

3G Direct Pay – news and updates

31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |

ONLINE PAYMENTSZANZIBAR SEMINAR JAN/2014

3G DIRECT PAY LIMITED

Online Travel Booking Statistics

Number of travel bookings made on the internet each year 150 million

Percentage of all travel reservations made on the internet 57%

Percentage of same day hotel reservations made from a smartphone 65%

Internet Source for Hotel Booking

Branded WebsitesWebsites where distribution is operated and managed by the brand (e.g www.marriott.com)

Merchant Websites(e.g. Expedia/Hotels.com, Travelocity and Orbitz)

Opaque WebsiteCustomers choose a fare or rate without knowing the brand of the supplier until after the item is purchased (e.g. Priceline)

Online Booking – Statistics

2012 2011 2010 2009

Online Travels Sales ($ billions)

Online Sales ($ billions)

Online Booking – Statistics

Hotel Reservations

Air Ticketing

Packaged Tour

Corporate Travel Others

ONLINE TRAVEL SALES REVENUE BREAKUP

Online Payments – what is it?

“…any transaction where the credit card and it’s owner are not present…”

Forms of (online) payments

Credit Card – what is it?

“…payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder’s promise to pay for them…”

Credit Cards - general termsCredit card schemes

Owners of the payments scheme – network

‘four party scheme’ – open scheme

Visa and MasterCard

CLICK HERE

IssuerCard association issuing branded payments card

To pay on behalf of the cardholder/consumer

Card HolderThe person who owns the card

Credit Card Scheme

Issuer Acquirer

MerchantCardholder

Card Scheme

Interchange feesSettlement funds

Service feesSettlement funds

PaymentStatement

Card paymentService/product

Credit Cards - general termsAcquire

Process credit card payments for the merchant

Acquires credit card payments from the card issuing bank within an association

Merchant accountBank account that allows business to accept credit card payments

GatewayE-com application service provider

Authorize online credit card payments

PSPOnline services to accept online payments

Variety of payment methods

Credit Cards – security and standardsCard Security Code

CSC / CVV

For card not present transactions (online)

3D secureOnline security protocol providing an additional security level to credit card transactions

Verified by Visa

MasterCard secured

Special code

Change liability

Many disadvantages (popup, non - compatible issuers)

Credit Cards – security and standardsEMV

Europay MasterCard and Visa

Chip and pin based cards

Highest card data security

PCI DSSPayment Cards Industry – Data Security Standards

Global standards

All levels – merchants to banks

Card Present [CP]Card physically present

Low risk

Low fees

Easy settlement

Simple technology

Issuing bank is liable for restitution

| 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |31/01/14

Card Not Present [CNP]Card holder is not physically present with the card

Mail / Phone / Fax / Internet / Mobile

High risk

High fees

Long settlement

Advanced technology

Acquiring bank liable for restitution

| 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |31/01/14

Setting your Online PaymentsAccount

Payments Service Provider - PSP

Direct merchant account (all options – Visa, MasterCard, Amex, currencies etc…)

TechnologySecured payment page

Integration

Compliance PCI DSS

Terms and Conditions

Privacy control

Merchant Category Code - MCC

Setting your Online PaymentsCustomer Care

Enquires

Cancellation policy

Refund

Fraud PreventionReal-time platform

Transaction screening

Payments Service Provider - PSPOne stop shop

Single account

Single agreement

Multi card types

Multi currencies

Additional form of payments – mobile money, PayPal and more…

Technology

Customer Care

Fraud Prevention

Compliance

Easy settlement

Charge-back – how does it works?Return funds to the consumer the consumer protection program

Why to submit a charge-back?Service quality / Service not provided / Merchant not following cancellation policy / Fraud / Friendly fraud

The processCard holder and the issuing banks

Scheme policy

Acquire and merchant

How to avoid charge-back?Fraud prevention

Service Level Agreement – all levels and refunds

FRAUD PREVENTIONZANZIBAR SEMINAR JAN/2014

Where is the Risk?Classic Fraud >> RISK LEVEL: low to med to the merchant

Stolen credit card

Identity theft

Service will be consumed

Merchant Fraud >> RISK LEVEL: high to the PSP (bank)Fake agent

Professional fraudster

No service, no passengers

Friendly Fraud >> RISK LEVEL: low to the merchantGeneral dispute

Service consumed

The Online Fraud – How Does It Works?Classic Fraud – Individuals

General Characteristics Individual fraudster, One-time campaign, access to stolen cards list (low quality), no ‘fine’ details

The ServiceFlight/s, One way, City hotel, One night, short term booking

PassengerThe fraudster, family member, friend

The Online Fraud – How Does It Works?Classic Fraud – Mass operation

General Characteristics Individual/group, professional fraudster/s, massive stolen cards list (low quality), acting as an agent, no close relationship with the

passengers, massive payment attempts, very low conversion rate

The ServiceFlight, one way and return

PassengerNot the fraudster, no idea that the service paid using stolen card

The Online Fraud – How Does It Works?Classic Fraud – Professionals and Identity Theft

General CharacteristicsGroups only – organization, stole cards list – high quality, 3D-secure lists, access to the card holder details, using ‘fine’ details –

complete ‘storyboard’

The ServiceFlights, accommodation

Passenger The passenger is also a professional fraudster

The Online Fraud – How Does It Works?Merchant Fraud

General Characteristics ‘well organized scam..’, mitigating the KYC procedures, designed websites, products and services, real people, working plan, long

term operations

The serviceDetailed service, package, accommodation, no-flight !

PassengerFake but well designed identity, no real passenger

Basic Fraud PreventionThe Golden Rule

KNOW YOUR CUSTOMER

Basic Fraud PreventionBasic Check-List

Do I know this customer?

Service details:- short term?- one way / one PAX?- remote destination? (e.g. Ghana to Rio)

Customer details- name- address- hone number- email

Who is/are the PAX?- PAX name different than the customer name

Any unusual customer behavior?- sending passport / card copy

Basic Fraud PreventionTechnology

Fraud alerts- multiple card usage- ‘blocked’ customer / computer

Scoring - risk profile- fraud / safety parameters

Basic Fraud PreventionCheck-in

Ask the customer to present the credit card

It’s the final (and most effective) action

Case Studies1. Multiple credit cards

2. Individual fraudster

3. Sophisticated fraudster – merchant fraud

1. Multiple (stolen) Cards

2. Individual Fraudster

3. Merchant Fraud

3G Direct Pay LimitedNews and UpdatesZANZIBAR SEMINAR JAN/2014

3G Direct Pay – WHY?…because we believe that service providers and end customer should have the FREEDOM to shop and pay online using ANY card type and ANY currency…

Quick updatesTZS – now available

Direct PayCustomer present

Booking.com / Expedia Virtual Card / Agoda

Link to payment page

Catalog – new featuresDate, photos

Fraud prevention – scoring module

Settlement to a new credit card 3G Direct Pay issue the new MasterCard

Funds sends directly to the credit card

Mobile Money

xPAYB2B payments platform

Pay to your travel providers

Collect payments from agents, tour-operators and others

CostsOutbound – FREE of charge !

Inbound – only $0.5

mSwipe

Thank you !more than 550 Registered travel providers

24 airlines

more than 180 hotels

more than 300 agents and tour operators

more than 70 hotels in Zanzibar

more than 6 diving centers in Zanzibar

Zanzibar seminar jan2014 (2)

Business

Transcript of Zanzibar seminar jan2014 (2)

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