Acquirers: 4 reasons why your investment in Enterprise Fraud Management will be your biggest ’17 mistake.

 

 

Number 4. Fraud is only one of many risks you have to be concerned with.

Most Enterprise Fraud Systems are sold as a do-it-all swiss army knife that started life as an issuing fraud system. And besides fraud, there are many other risks that you have to be concerned about. Here is a quick checklist of the most important acquiring risk capabilities you will need for your shop:

  • Authentication (more specifically, risk based authentication)
  • Unified real-time fraud controls (POS, MPOS, eCommerce, Kiosk, eMOTO, MOTO)
  • Chargeback prediction
  • Risk based pricing
  • eMarketplace risk management
  • Merchant risk management controls
  • Real-time origination platform with fraudulent application
  • eKYC
  • AML controls

 

Number 3. You’re buying a “budget option” EFM because of tightening budgets.

Just when you think you are getting the Mercedes Benz of the risk world, the truth of the matter is what you’ve really gotten is the bottom of the barrel “rental-spec econo” version that really doesn’t deal with today’s real-world issues.

Big name EFM providers tend to make everything optional. And optional shall they remain as acquiring banks begin to tighten their wallets.

 

Number 2. You’re not using risk management as a business enabler.

Most acquirers in Asia miss this point completely. If there’s one thing you need to get right, it’s risk. One good example would be Paypal. Paypal started life as Confinity which was essentially an ePayments risk company. Other folks like Square and Stripe could also arguably credit some of their success to extraordinary risk controls – particularly in areas of eKYC.

In tomorrow’s commerce, the ability to reduce friction by using risk based authentication will certainly be a requirement for your new merchants. Some may even list the availability of a gateway agnostic fraud detection and eMarketplace risk management tool as a pre-requisite.

 

Number 1. Origination. Origination. Origination.

Pre-read: For Merchant Acquiring, Asia’s Banks Must Go Fax to the Future

Your acquiring business and customer needs are changing. Fast. Instant gratification is the name of the game.

Most acquiring banks seem to think that their biggest competitor would be the bank next door. With the mindset (and people) that scream “I know acquiring better the other guy”, you’ll probably not see the real competition heading your way.

Your biggest challengers from now on would be from the technology world and to certain extent, acquirers who have embraced technology. Your biggest threat is on how they are able to on-board merchants quickly.

If you’re taking 14 days or longer to on-board your merchants, you’ve got to start re-thinking your risk strategy. EFM is certainly not the solution to your current challenges.

Jewel Paymentech signs MoU with PCI-QSA Rock

Jewel Paymentech and Rock Pte Ltd (Rock), a PCI Qualified Security Assessor (QSA) and Visa Approved Security Assessor (SA) inked a Memorandum of Understanding to collaborate in developing and deploying PCI-related products to clients in order to expedite on-boarding and manage risks of merchants and agents.

The framework will enable the development of next generation products that will address current industry pain points on merchant KYC.

Jewel Paymentech develops intelligent solutions to manage risks associated with payments acquiring for banks, payment processors and marketplaces. The solutions encompass merchant application due diligence, predictive chargebacks, detection of illegal and counterfeit products, anti-money laundering and transaction fraud prevention.

Rock provides IT consulting, audit and education services. It is an approved PCI company which conducts data security assessment for banks, processors and merchants. In addition, Rock is also approved by Visa to perform ACS (Access Control Server), Approved Vendor Program (AVP) and PIN assessments.

The MoU was signed by Lee Wooi Siang, COO of Jewel Paymentech and Gwendyln Chong, CEO of Rock Pte Ltd.

 

External References

Global List of PCI Qualified Security Assessors (QSA)

Global List of Visa Security Assessors (SA)s

Rock

Coming Soon: Fraud Wall™ eCom 3.0

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Coming soon in Jan 2017: Fraud Wall 3.0. A game changing multi-dimensional intelligence fraud prevention system. A new Artificial Intelligence engine for boosting sales tailored to each and every merchant and industry segments. Combined with our real-time analytics engine, merchants and gateways can deploy risk based authentication and controls in order to improve customer experience.

 

Technology vs. Fraud in Emerging Markets: Who’s Winning?

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Your customers deserve peace of mind. Security breaches not only lead to loss of revenue, but can also make it hard for your business to regain the trust of your customers.

Chat with Sean Lam, CEO of Jewel Paymentech, and find out how you can arm yourself with the right online tools and use technology to win the war against online fraud.

Join e27’s  FB Live session on Nov. 9, Wednesday, at 6PM SGT.

Event details here.  Powered by Braintree.

One Sentry V2.0

OS teaser

Merchant risk monitoring just got Simpler and Smarter. Some of our feature highlights:

  • Enhanced UI/UX
  • Enhanced AI
  • Integrated Multi-Gateway APIs – AMA
  • Integrated Fraud Wall APIs – AML
  • Redesigned Case Management

eCommerce fraud solutions that offer 100% chargeback protection – an absolute red herring.

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A common Merchant question: Is there such a thing as 100% chargeback protection? absolutely not. But close.. and you don’t need any third party service to enjoy this.

Background – What is a chargeback? 

It’s a dispute resolution service that enables credit card issuers to recover losses arising from a disputed transaction.What you need to know is that there are several types of chargebacks. Some fraud related, some not. And some fraud losses (actually, most) will have to be borne by the credit card issuers as write-offs.

A very simplistic overview of the the type of disputes are illustrated below.

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Visa Core Rules & Mastercard Rules

What is perhaps less publicly known is the fact that Visa and Mastercard both offers 100%* Chargeback Protection to their merchants if the checkout  gateway supports 3D-Secure. The only exception to the rule is that there is excessive fraud to indicate that perhaps the merchant itself is a fraud, or condones fraud – which is a different story altogether.

Conclusion

Merchants and payment gateways that are looking for a sophisticated fraud prevention tool should not be distracted by chargeback protection services. (This is nothing new, similar companies have appeared in the past but are no longer around and/or no longer offer such services)

Speak to us and we’d be happy to share with you how our tools can assist in fraud prevention, trigger risk based authentication such as 3D-Secure – which will ultimately increase conversion and approval rates.

 

Sean Lam was a former fraud instructor at the Visa Business School and currently serves a trainer and advises the region’s largest financial institutions on ePayment fraud related matters. 

Jewel Paymentech sponsors Mastercard’s Global Risk Leadership Conference (AP)

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Do drop by and check out our demos at the Mastercard Global Risk Leadership Conference next week!

For details of the event, please visit mastercard.com

Board of Advisors – Welcoming Mr. Joe Cunningham

joecJewel Paymentech is extremely pleased to welcome Mr. Joe Cunningham to our Board of Advisors.

Joe Cunningham is the Head of Risk for Visa Inc. in Asia Pacific. In this position, he is responsible for protecting Visa’s interests through strategic risk management, credit settlement risk and brand protection programs. Working with clients and regulators, Joe also leads fraud management and data security across the Visa payment network in the region.

From 2009-2015 Joe represented Visa on the Executive Committee of EMVCo, the global payments industry organization responsible for ensuring interoperability and security of chip-based products; including contact, contactless and mobile-NFC payments.

Joe joined Visa in San Francisco in 2008 with responsibility for all future-focused aspects of Visa’s technology agenda. His accountabilities included defining Visa’s long term technology strategy, chip & mobile payment standards, and Visa’s R&D technology innovation programs.

Joe holds an MBA from Melbourne Business School, and is an honors graduate in Applied Mathematics and Computing. He lives in Singapore.

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