Payments Archives - Page 19 of 19

What is 3D Secure 3DS and how does it fight fraud?

3D Secure or 3DS is a protocol designed as another layer of security for online credit and debit card transactions (also known as CNP – cardholder not present). Visa developed it with the intention of improving the security of Internet payments. Visa company offered it to customers as the Verified by Visa (vbv) service. MasterCard also adopted services based on this protocol, under the name MasterCard SecureCode. JCB International did the same with J/Secure.

3D secure brings trust gained via additional security layer

The 3D secure standard creates a ‘trust-chain’ between the merchant and the issuing bank. Thanks to this standard, under specific conditions, the issuing bank takes the charge-back liability from the merchant. This standard is very simple to use for the end-user (customer/consumer).

Prior to accepting the payment, 3D secure redirects the cardholder to a third-party website, where he/she needs to input a code or passphrase, which knows only he/she. If the authentication is successful (code is correct), the association gives the payment processor or gateway (such as Areto Systems) permission to go ahead to accept the payment. Certain information is also attached to the transaction which supports a shift in charge-back liability if conditions are met. It is important to note that 3D Secure or 3DS is not a standard service and merchants would require specific registration. End-users are also not “enabled” by default – the issuing bank must be able to support this protocol.

It is also important to note that 3Secure service is mandatory for any merchants accepting Maestro debit card (issued by Mastercard) since 2007. Failure to abide by this regulation might result in hefty fines on merchants. And in worse case scenarios might also result in the inability to accept online MasterCard payments. 3D Secure adds an authentication step for online payments. People should differentiate between 3D Secure 3DS and the Card Security Code. It can be a bit confusing. The Card Security Code is a short numeric code on the back of the card.

Acquiring bank and acceptance of online payments

An acquiring bank – also known as an acquirer. It is a bank or a financial institution that processes credit and/or debit card payments. These payments are for products or services on behalf of an online merchant. Acquiring Banks accept transactions from the card-issuing banks within an association being Visa, MasterCard, Discover, American Express, Diners Club, JCB and others.

Merchant accept online payments when acquiring bank takes action

The acquirer underwrites the merchant requesting to accept online payments. It means that this is a vital part in the payments acceptance process. As part of the process, prior to signing an agreement between the merchant and the acquiring bank, the bank usually conducts due diligence in order to ensure that the merchant is genuine and is able to support their business in order to avoid fraudulent activity and also cover the consumer’s interest.

What is a fixed reserve and situations when you need it

A reserve is an amount of cash retained by the payment provider or acquiring bank. This is due to the risk associated with a merchant account. Therefore a fixed monetary amount retains indefinitely and we call it a fixed version of reserve. As opposed to a rolling reserve, funds in a fixed reserve are never released, thus it brings further disadvantages to a merchant.

Why a merchant needs to keep fixed reserve?

In conclusion, the usual reasons why online merchant must have it :

if we talk about high-risk business
a business with a large average ticket size
a merchant having poor credit history or no processing history
a merchant with a high-processing volume
unregulated industries.

April 24, 2016

Payments

E-wallet: An introduction, how do they work?

What is the use of an ewallet? Well, merchants or buyers use ewallets to keep electronic money, just in the same way that one would keep his or her physical money in a physical wallet. Once funds are stored in your ewallet, you can then use your ewallet to purchase from thousands of web sites selling anything from tangible products, services and also entertainment, such as betting, poker and so forth.

Some of the most widely used ewallets are MoneyBookers, Neteller and EcoCard. Several online shops and also online casinos accept them. All merchants who sign up for such ewallet accounts via Areto Systems benefit from very significant reductions in processing fees and setup costs. Also, Areto regularly seek to increase their partners by partnering with other valuable e-wallets.

Why and how to use your ewallet?

So, why use an electronic wallet? It gives one various ways to pay when it comes to paying online. Ewallets provide an easy and safe way of purchasing or receiving payments. To start, you need to place funds into your account. Normally this is done via debit card, credit card, or wire transfer. Some e-wallets provide other services and different benefits.

So, thanks to the ability to purchase and accept payments with your e-wallet through AretoPAY– making payments and receiving payments has never been easier, safer and cost-efficient.

April 10, 2016

What is 3D Secure 3DS and how does it fight fraud?

3D secure brings trust gained via additional security layer

Acquiring bank and acceptance of online payments

Merchant accept online payments when acquiring bank takes action

What is a fixed reserve and situations when you need it

Why a merchant needs to keep fixed reserve?

E-wallet: An introduction, how do they work?

Why and how to use your ewallet?

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