E-Payment Solutions

By Nadeem Gafoor Senior Manager, Product & Technology Development Emaratech Nadeem.gafoor@emaratech.ae +971 50 5684052

Agenda
Payment Services Framework Payment methods, channels & participants Basic System Solutions required to offer an e-Payment Services Online Payments Providers Mobile Payments Ecosystem and Technologies Challenges Security Q&A

Payment Services Framework

Methods, Channels & Participants

End Users Consumer Payment Types Channels Cash/Check POS/Card Bill Invoice SWIFT RTGS/ACH Business Banks Government

Mail
Counter ATM/Kiosks Mobile Phone Online

Online Payment Providers

http://en.wikipedia.org/wiki/List_of_on-line_payment_service_providers

Mobile Payments Ecosystem and Technologies

SMS

Bank Account
Device App USSD

Mobile Payment Ecosystem

SIM App

Mobile Payment Technologies

Telecom Billed

Credit Card

WAP/GPRS

NSDT

NFC

Merchant challenges towards e-commerce payments

Exorbitant transaction costs for merchants by Banks and Acquirers. Large amounts of setup and maintenance fees to pay for subscribing to a Payment Gateway provider. Charge back liability shift on the merchant. Merchant in a dilemma whether to put a red tape and scare away the consumer or accept the business risks. Delayed settlements by the banks and PSPs/Acquirers. Last minute change in decision as most PSPs asks consumers to setup an wallet account before making a payment, this is a loss of business for a merchant.

Technical challenges towards e-commerce payments

No standard or common technologies to integrate with multiple payment partners, the merchant need to implement individual PSP technologies. Most PSPs provide a URL re-direction to their web site for accepting payments, too many payment failures due to re-direction failures and consumer closing the browsers before completion or timeouts. PSPs provide SDKs to integrate with the merchant e-commerce site, sometime these SDKs are hacked. PCI certifications requirement if the merchant wish to hold the consumers card information in its database.

Security Type of Online Payment Frauds

Purchase Fraud Purchasing online through stolen credit cards. Online Material Theft Fraudsters escape the payment and enjoy digital material on the internet through hacking of websites, phishing of passwords, sharing or illegal copying of a single purchased access or online service. Identity Theft Stealing of confidential information like access details, credit card information by merchants by selling online materials at a very low price or free if you provide such information. Phishing Capture confidential/payment information through false emails and websites. Page jacking Landing to similar counterfeit web sites by clicking URLs from another site where you will un-knowingly purchase counterfeit goods.

Security Fraud Management Solutions

Geo-location helps unmask spammers and hackers. Device fingerprinting tracks and identifies devices used for fraudulent transactions. Velocity check generates an alert in case of multiple transactions in a short span of time. Global address validation verifies billing and shipping addresses in 200+ countries

Security Fraud Management Solutions

Geo-location helps unmask spammers and hackers. Device fingerprinting tracks and identifies devices used for fraudulent transactions. Velocity check generates an alert in case of multiple transactions in a short span of time. Global address validation verifies billing and shipping addresses in 200+ countries

Identification Technologies

Magnetic Stripe Card ATM/Kiosks

Smart Card ATM/Kiosks

Proximity Card ATM/Kiosks

Mobile Payment

POS/EFTPOS
Bank Accounts/Credit Cards Contains a magnetic track Minimum Information is stored and can be decoded Requires PIN Used as an access ID to retrieve information from host system

POS/EFTPOS
Bank Accounts/Credit Cards A memory chip containing volatile memory Extended Information is stored, encrypted and hard to decode be decoded Requires PIN Used as an access ID to retrieve information from host system

POS/EFTPOS
Bank Accounts/Credit Cards Is built on RFID technology and is much faster. Extended Information is stored, encrypted and hard to decode be decoded Requires PIN Used as an access ID to retrieve information from host system

NFC ATM/Kiosks POS/EFTPOS

NSDT

Remittances
Person 2 Person Payments

Payment Networks
SWIFT
The Society for Worldwide Interbank Financial Telecommunication ("SWIFT") operates a worldwide financial messaging network which exchanges messages between banks and other financial institutions. An interbank network, also known as an ATM network, that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks. An EFTPOS network is a POS network where ATM cards are used for purchases. A merchant wising to host an EFTPOS device must enter an agreement with the country provider for the EFTPOS, this is different from the Credit Card POS. This is a standard POS network where standard credit/debit card payments are accepted. A merchant wising to host an POS device must enter an agreement with the acquirer.

Interbank Network

EFT/POS

Card POS

RTGS

Real time gross settlement systems (RTGS) are funds transfer systems where transfer of takes place from one bank to another on a "real time" and on "gross" basis between banks within a country. Eg: UAEFTS, ACH, SARIE, RTGS/NEFT, SEPA, KEPSS Etc.

Thank You!