Paying with Plastic - pymnts.com

Paying with Plastic - pymnts.com

Just read this free first chapter and based on my knowledge of the payments industry it is one of the best I have read. Great job!

Visa paying $2B for payments processor CyberSource

Congrats to CyberSource!!!
I take a great deal of pride from having developed, signed and managed the relationship with Visa 11 years ago in spite of much skepticism both internally and externally!!! Visa invested $1.5m in CyberSource pre-ipo and agreed to the joint product, CyberSource Advanced Fraud Screen Enhanced by Visa. :-) Oh, the stories I could tell you!

Data Portability in a PCI Crazy World!

I have written previously about service providers such as gateways and payment processors holding their customers data hostage using PCI as the excuse.

There are two new efforts underway to raise the awareness of these inappropriate practices;

portabilitystandard.org

groups.google.com/group/credit-card-data-portability

Please check out these two web pages and join the Google group on the subject.

Welcome your feedback!!!

Note - that the story I wrote about last fall is still not resolved.

Do Not Assume Payment Methods Are Universal! Neither Demographically or Geographically!

One of the challenges we all face is being able to step out of what works for us and understand what any one or group of our customers is going to have a preference for. This is especially true for payment choices. The closest thing we have to “universal” in ecommerce is Visa/MasterCard. But, if you are selling to Germans, you better support something called ELV which is a form of direct debit or move on to another country. And, as a person with a marketing degree I have a hard time saying this, but surveying your customers to ask them what payment methods they want or what is most important about those choices, may lead you down the wrong path. What people say they want and how they act in this regard can be significantly disconnected. ie; Is security important to you? Who is going to say “no”? But, many payment methods have fallen flat on their face if the hurdles to usability are significant due to security. What was one of the things that made PayPal grow incredibly fast? All you needed was an email address. Of course, their fraud rates were through the roof too but they had the luxury of taking in a whole bunch of VC money and being able to tolerate the cost and eventually they dug themselves out of the hole. Two of the most important questions you have to ask yourself are; 1) what is my target demographic and 2) what geographies do I want to serve? Then and only then can you seriously research the options and start making decisions about what to offer.

More on New Text Alert System...

So, there it was this morning, the email from Wells about this transaction that took place last Thursday.

The only comment that I would make about this new mobile text alerting system from Visa that Wells has now deployed is that it should have been automatic that when I enrolled for that, the previous (and mostly useless) email alerting enrollment should have been cancelled or at least I should have been able to modify/cancel it.

My guess is that I was actually enrolling for the mobile alerts on a Visa hosted page, branded Wells Fargo. Even if it is not hosted by Visa on Well's behalf, it is clear that the two systems are not in synch. I had to go this morning and de-select the overlapping alerts. The site is; https://rapidalerts.wellsfargo.com/rapidalerts/ .

Referencing my background dealing with Phishing issues (ie; PassMark Security), the Catch-22 with all of these things is the possibility that something potentially good, like these real-time text alerts, can be just another oppty for phishing attacks. A url like the one above could (or should) make someone like me suspicious of if I am really at a legit Wells Fargo page or not. It is also interesting to note that Wells (or Visa) chose not to invest in a "secure" url for such a sensitive page as this. You know those green urls from Verisign and others called Extended Validation SSL Certificates. While I do not put much stock in these (or any of the "trust" seals), I doubt they cost considerably more and I guess they cannot hurt.

Fair is Fair....Hats off to Visa...Genuine progress in fraud prevention!

Wells Fargo announced a few days ago that they were taking advantage of a new Visa feature. Of course, I had to immediately enroll. You then receive text message alerts when certain types and size of transactions occur. The idea is that if it isn't you, you can immediately respond and become part of the fraud prevention paradigm. I was somewhat skeptical, as usual, but as it turned out hours later I was picking up my wife's BMW from the shop (ouch $1200!!!) and while I was still standing at the check-out desk, my phone got a text reporting the transaction to me. It was very descriptive, telling me that my "Wells Fargo Card ending in xx was used at xxx Motors in xxx town for $xxxx.xx ....


This is real progress.


I had previously enrolled in their alerting offer but due to the number of different acquirers and issuers and the batch nature of credit card processing, these often did not arrive until days later.

Since, Visa's switch is involved in the authorization of all Visa transactions, these alerts can go out literally in real time.



Of course someone will try and call this a mobile payment! (see my article in Venture Beat!)
http://venturebeat.com/2010/03/10/what-will-it-take-to-make-mobile-payments-mainstream-in-the-us/

Progress...Finally!

Interesting tidbit in the WSJ yesterday - The Fed is down to one site in Cleveland, Ohio from forty five sites 7 years ago that processed paper checks. I specifically recall sitting with the CEO of the company I worked for back in the early '80s as he proclaimed we would be completely checkless within that decade. And you wonder where I get my skepticism about the pace of change in payments!!!!