online payments kata training

ONLINE PAYMENTSKATA TRAINING – JUN/2013

ERAN FEINSTEIN – 3G DIRECT PAY LIMITED

http://3gdirectpay.com/

E-com Statistics

27-Jun-13 | KATA TRAINING JUN/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

Online Booking – Statistics


Online Payments – what is it?

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


Form 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…”


http://www.youtube.com/watch?v=8SQ3qst0_Pk

Credit Cards - general termsCredit card schemes

Owners of the payments scheme – network

‘four party scheme’ – open scheme

Visa and MasterCard

CLICK HERE

IssuerCard association 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

| KATA TRAINING JUN/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |27-Jun-13

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

Mail / Phone / Fax / Internet / Mobile

High risk

High fees

Long settlement

Advance technology

Acquiring bank liable for restitution

| KATA TRAINING JUN/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |27-Jun-13

How it works – the flowOption 1 – DIY (do it yourself) bit by bit…

Day 1Merchant

Acquiring bank/s

Merchant account/s



Day 2Merchant

Website developer

Secured payment page(SSL, PCI and more..)



Day 3Merchant

Payment gateway/s



Day 4Consumers

Customer care

Fraud prevention


How it works – the flowOption 2 – PSP (payments service provider)

Day 1Merchant

PSP



Day 2Merchant

Website developer

Connect to PSP



Day 3Consumers


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

Why?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


Electronic Wallets


http://www.youtube.com/watch?v=bscunpUQrqM

Electronic wallet – the concept Safe

No need to use your credit card more than one time

Secure Standard payment page

All transactions in one place

EasyUsername and password


PayPal – more detailsStarted in 1999

Enable the user to place all form of payments in one placeCredit cards

Bank account

E-cheque

PayPal taking care of the actual payment processConsumer visit the merchant website

Consumer starts the check-out process

Consumer select PayPal and login

PayPal settles with the merchant

PayPal debit the consumer


PayPal – more detailsC2C – eBAY www.ebay.com

Customer to customer

The biggest e-com arena

For the merchantOne stop shop

All form of payments

All currencies

No need to maintain customer care, fraud prevention


http://www.ebay.com/

PayPal – how does it works?


http://www.youtube.com/watch?v=so9uIkFKCnc

PayPal – quick figures$4,423 per second (Q3/2012)

128M active users

193 markets

20% yearly growth

1/5 of the worldwide e-com


online payments kata training

Technology