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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 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%
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
Internet Source for Hotel Booking
Branded WebsitesWebsites where distribution is operated and managed by the brand (e.g www.marriott.com)
65%
Merchant Websites(e.g. Expedia/Hotels.com, Travelocity and Orbitz)
19%
Opaque WebsiteCustomers choose a fare or rate without knowing the brand of the supplier until after the item is purchased (e.g. Priceline)
11%
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
Online Booking – Statistics
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
0
20
40
60
80
100
120
140
160
180
2012 2011 2010 2009
Online Travels Sales ($ billions)
Online Sales ($ billions)
Online Booking – Statistics
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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…”
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
Forms of (online) payments
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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…”
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
Credit Card Scheme
Issuer Acquirer
MerchantCardholder
Card Scheme
Interchange feesSettlement funds
Service feesSettlement funds
PaymentStatement
Card paymentService/product
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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)
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
Setting your Online PaymentsCustomer Care
Enquires
Cancellation policy
Refund
Fraud PreventionReal-time platform
Transaction screening
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR 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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
Basic Fraud PreventionThe Golden Rule
KNOW YOUR CUSTOMER
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
Basic Fraud PreventionTechnology
Fraud alerts- multiple card usage- ‘blocked’ customer / computer
Scoring - risk profile- fraud / safety parameters
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
Basic Fraud PreventionCheck-in
Ask the customer to present the credit card
It’s the final (and most effective) action
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
Case Studies1. Multiple credit cards
2. Individual fraudster
3. Sophisticated fraudster – merchant fraud
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
1. Multiple (stolen) Cards
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
1. Multiple (stolen) Cards
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
2. Individual Fraudster
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
2. Individual Fraudster
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
2. Individual Fraudster
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
3. Merchant Fraud
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
3G Direct Pay LimitedNews and UpdatesZANZIBAR SEMINAR JAN/2014
3G DIRECT PAY LIMITED
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…
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
Mobile Money
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
xPAYB2B payments platform
Pay to your travel providers
Collect payments from agents, tour-operators and others
CostsOutbound – FREE of charge !
Inbound – only $0.5
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
mSwipe
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
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
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |
31/01/14 | 3G DIRECT PAY LIMITED | ZANZIBAR SEMINAR | JAN 2014 |