With customers migrating to a more digital marketplace, merchants are faced with balancing customer experience whilst ensuring they comply with industry standard and protect both parties of the transaction. Shane Fitzpatrick, president and managing director of Chase Paymentech Europe, sets out guidelines to help ensure your payment process is secure from online fraudsters.
Research from the British Retail Consortium, ‘Cost of Payment Collection’, found that the use of alternative payment methods, such as manufacturers’ money-off coupons and PayPal, has more than doubled on the previous year and now accounts for five per cent of all transactions (Source: British Retail Consortium). With this growing trend and an ever-increasing number of transactions being conducted online, it has become vital for online retailers to have secure payment processing platforms. Taking payment systems beyond industry compliance rules from the Payment Card Industry Data Security Standard (PCI DSS) by implementing additional security measures has now become necessary in order to help protect future online business growth.
Fraud impacts nearly eight in every ten international online retailers (Dynamic Markets: Putting Customers First, March 2013). In May 2013, the Federal Reserve indicted eight men for netting $45 million by hacking credit card processors in the U.S. and India. Fraudsters know no boundaries and the threat faced by online retailers in the U.S. and India is the same threat facing online retailers in Russia, Brazil, China, Ireland or the U.K. Fraud hampers prospects for growth, restricts profitability and increases overhead costs. But with the right tools, intelligence and strategy, retailers can effectively detect and manage fraud. Effective fraud management can enhance efficiency and productivity and can allow online retailers to focus on expanding their businesses into new countries and markets.
As we continue to migrate to a more digital marketplace, Chase Paymentech has found that merchants are facing a new challenge – mobile commerce and social media. Online retailers are now required to balance customer convenience with the need for data security compliance within their organisation.
Our experience has demonstrated that when it comes to maintaining data security in merchants’ environments, there is no one-size-fits-all approach for adhering to the industry’s global standard PCI DSS. Chase Paymentech has therefore provided guidance to help European online merchants upgrade security and reduce compliance costs while protecting customers’ payment information.
Our guidelines are designed to enhance the security of payment transactions for both retailers and their customers. A comprehensive security strategy is paramount when it comes to ensuring the success of a business. That strategy will vary depending on the size, type and processing capabilities of the business. Additionally, as the sales channels and environment shift rapidly, strategies will need to accommodate this shift and evolve accordingly.
Meeting compliance requirements in the card-not-present environment can be difficult for many organisations. Many solutions available in the market serve only to satisfy the need for PCI DSS compliance and do not take into account the overall consumer experience.
According to a recent survey conducted by Cisco, educating employees on the proper handling of cardholder data is the main cause for concern when it comes to maintaining and achieving PCI compliance (see chart below), and therefore should be given the most attention when it comes to successfully executing a strategy (Source: Cisco, Organizations See PCI as a Benefit, not a Burden 2011*).
(Chart source: Cisco, Organizations See PCI as a Benefit, not a Burden 2011)
However, when looking at PCI from a more comprehensive perspective, the majority of IT decision makers surveyed did not feel that the PCI requirements are in any way unreasonable. In fact, 70 per cent of participants surveyed feel their organisation is more secure than it would be if PCI were not required, with the vast majority (87%) going so far as to say that PCI compliance is necessary for optimal performance and data security (Source: Cisco, Organizations See PCI as a Benefit, not a Burden 2011.
Ultimately, the PCI standards are designed to protect not only cardholder data, but also the bottom line. Compliance with these standards applies to all systems, staff and processes involved in the handling, transmitting and storing of payment data. Businesses that accept credit card payments can choose to manage that process themselves, a costly and resource-intensive path, or seek to shift that responsibility to a trusted industry expert. But regardless of the avenue with which they chose to pursue data security, the end result justifies the means.
Three steps to secure payments:
- Educate the workforce – ensure clear policies are in place regarding the handling of cardholder data and technology usage in order to maintain secure data. Employees must be aware of the proper usage of technologies by employees, vendors, and anyone else who uses the network.
- Robust system – Creating a secure, seamless and compliant payment experience can be a complex, expensive and recurring task. The system must make it easy to capture sales, protect customers’ payment account data and provide a payment experience that inspires confidence – all while helping to meet PCI compliance standards.
- Tokenisation – This helps to minimise the burden on IT resources while providing the ultimate flexibility to brand and design the customer payment experience. Tokenisation addresses cardholder data at rest (in storage) by replacing the primary account number (PAN) with alternative identifiers (or tokens). The processor generates a token that replaces the card number and returns it to the merchant for use in a more secure manner helping to reduce exposure and helping ensure PCI compliance.
How to integrate and accommodate these technologies will depend on the business, culture and revenue models. Regardless of the type of business, PCI compliance should always be viewed as a business requirement and best-practice, not a one-time, stand-alone IT issue.
Ultimately, there is no quick-fix approach to both achieving and maintaining compliance. It is an on-going process that begins at the strategic level. As such, it is important that merchants address both the business side (e.g., process and payment flow) and the appropriate technological counterpart to ensure the security of payment data. The combination of tokenisation and a dynamic payments page provides the greatest likelihood of significant, long-term data security and PCI scope reduction.
Shane Fitzpatrick is the President and Managing Director of Chase Paymentech Europe Limited
Chase Paymentech Europe Limited, trading as Chase Paymentech, is regulated by the Central Bank of Ireland.
The information herein does not take into account individual client circumstances, objectives or needs and is not intended as a recommendation of a particular product or strategy to particular clients and any recipient of this document shall make its own independent decision.
© 2013, Chase Paymentech Europe Limited. All rights reserved.
*Research data used with the permission of http://thenetwork.cisco.com/
Tech talent visa sees 48% increase in applications over one year as global founders look to the UK
- Demand for Global Talent Visa applications has increased over two consecutive years since 2018 – up 45% and 48% respectively
- Demand is expected to increase from 2021as, from January, the Tech Nation Visa will be opening up applications to exceptional tech talent from the EU hoping to work in the UK
- 52% of those endorsed for the Tech Nation Global Talent Visa are employees, while 28% of those endorsed are tech founders
- App & software development, AI & machine learning,and fintech are the most common sectors for visa holders. Most endorsed applications come from India, the US and Nigeria
- 41% of Global Talent Visa applicantschose to reside outside of London to work in the UK’s strong regional tech hubs
Today, Tech Nation, the growth platform for tech companies and leaders, launches a new report, which reveals changes in the international talent landscape and growing interest in the Global Talent Visa.
The Tech Nation Global Talent Visa
As the race for global tech talent heats up, many countries have been making their pitch to attract the best and brightest tech talent to grow their tech industries and create jobs. The Global Talent Visa, for which Tech Nation is the official endorsing body for Digital Technology, plays a key role in enabling international tech talent to contribute to the UK economy and to the growth of high priority sectors such as AI and Cyber.
The visa has seen applications increase significantly over the past two years, with 45% and 48% increases respectively. Since November 2018, the Tech Nation Global Talent Visa has received 1,975 applications and endorsed 920 visas from over 50 countries worldwide. Demand is expected to increase in 2021 with the EU coming into the route.
52% of those endorsed for the Tech Nation Global Talent Visa since 2014 are employees at some of the UK’s leading tech firms, helping to fill existing talent gaps, while 28% are tech founders bringing ideas, talent and capital into the UK’s fast growing tech sector. In 2020, the visa enabled 421 founders to set up business in the UK, up from 400 in 2019.
This global talent is distributed right across the UK. 41% of endorsed applicants for the visa are based outside of London, working in the UK’s strong regional tech hubs. App & software development, AI & machine learning, and fintech are the most popular sector destinations for visa holders, reflecting growth in those tech sub-sectors. India, the US, and Nigeria are the top three countries from which exceptional talent has come into the UK with the Tech Nation visa.
A surge in demand and interest
Labour markets around the world and in the UK have undergone profound shifts in 2020. The data released today shows that there has been a 200% increase in the volume of users in the UK searching online for terms explicitly related to ‘UK tech visas’ between April and September 20201. This surge in interest to work in the UK’s digital tech sector is reflected globally too, with a 100% increase in users internationally searching for these terms in countries like the US and India.
Digital tech roles remain in high demand in the UK. Cyber skills are becoming increasingly important within the UK, particularly in regions such as Wales and the East and West Midlands where there has been a huge increase in demand between 2017 and 2019 (351%, 140%, and 86% respectively). Demand for AI skills has increased by 111% from 2017 to 2019, with Northern Ireland and Wales seeing the greatest increases in demand – 418% and 200% respectively.
Minister for Digital and Culture Caroline Dinenage said: “It’s no surprise the UK’s world-beating technology sector appeals to international talent. Our dynamic companies reflect the UK’s long-standing reputation for innovation and are renowned on the global stage. We are open to the brightest and the best talent, and this visa scheme makes it easier for companies across the country to recruit the talent they need to grow.”
Stephen Kelly, Chair of Tech Nation, comments: “The UK is a global talent magnet for Tech founders. The UK provides rich opportunities for entrepreneurs to set up, flourish and scale a business. The Global Talent Visa is crucial to making this process easy and accessible. Tech Nation’s Visa Report shows that, despite the pandemic, international interest to work in the UK tech sector has never been higher. Attracting tomorrow’s tech leaders to the UK is crucial to the continued growth of the sector, the UK’s place in the world, and driving the nation through recovery to growth in the digital age.”
Trecilla Lobo, SVP, People at BenevolentAI and Tech Nation Board Director, said: “The UK tech ecosystem continues to contribute to the creation of jobs and to innovative products and services. The Tech Nation Visa enables the UK tech sector to maintain its competitive advantage by attracting the best talent in specialist skills in tech, research and AI and a more globally diverse perspective to help us innovate and create amazing products and services. As an immigrant to the UK in my late teens, the UK visa scheme has enabled me to bring my experience, expertise and contribute to the people agenda for tech scale-ups in the UK, and helped me build a successful career in tech. I am really excited that the Tech Nation Visa will open opportunities and streamline the visa process for future global tech talent.”
Hao Zheng, Co-founder & CEO at RoboK, based in Cambridge and Newcastle, said: “I decided to work in UK tech because of the well-established ecosystem, world-class research and innovation and the high-level of experience that is extremely valuable for startup technology companies.”
Congcong Wang, Head of Operations at TusPark, based in Cambridge, said: “The UK is a world leading innovation hub, particularly in the fields of AI and Healthcare. Its environment fosters young talent, breeds disruptive innovation and creates amazing companies. Also, the culture of the UK is nurturing and tolerant for innovation, as it is considered a “safe place” for those inspired to take on the more risky route of entrepreneurship.”
Sumit Janmejai, Data-Driven Cybersecurity Professional at Capgemini, based in London said: “Having studied in the UK and worked with UK professionals, I could appreciate the fact that the UK is fast becoming the center of innovation, research and development in the Tech Industry. Besides that, the country offers an excellent life, welcoming culture, and a safe environment. It was an easy choice.”
Are bots eating your Facebook budget?
By Mike Townend, founding CMO of Beaconsoft Ltd
In an increasingly digitised world, social media has arguably become the most powerful and influential tool at the disposal of businesses, both large and small.
With more than 3.6 billion active social media users worldwide today, it is no surprise that many companies view it as an unparalleled means of marketing their products and services to new and otherwise unreachable audiences, as well as an opportunity to better understand consumer demand and habits.
Facebook is often regarded as one of the very best social media platforms for marketers – not least because of its targeted digital advertising service – but many firms using it may not realise just how much of their budget could be being wasted due to ad fraud.
Numerous studies suggest digital ad fraud affects between 10% and 60% of all types of digital advertising, with businesses of every size falling prey to so-called ‘bots’ – automated programs used by scammers to undercut deals, divert visitors or steal clicks.
But how do bots work, how might they be affecting businesses’ Facebook budgets, data and analytics, and what can be done to combat them?
How do bots work?
A report published by security firm Imperva found that bots – both good and bad – are responsible for 52% of all web traffic, while a separate study by White Ops concluded that as much as 20% of websites that serve ads are visited exclusively by fraudulent click bots.
In simple terms, a click bot is specially designed to carry out click fraud – in other words, the bot poses as a legitimate visitor to a webpage and automatically clicks on pay-per-click [PPC] ads, buttons or other types of hyperlinks.
Their purpose is to trick a platform or service – in this case, Facebook – into believing that real users are interacting with the webpage, app or ad in question.
Usually, bots will not just click a link once; they will click it over and over again to give the impression that the webpage is receiving a high level of traffic.
Why is this a problem?
The presence of click bots on Facebook is particularly problematic because they can effectively drain a business’ online marketing budget without many of its targeted ads reaching real users who might have a genuine interest.
There are a number of reasons why click fraud could be used – for example, competitors may employ a ‘click farm’ – a group of low-paid workers or bots hired to click on paid advertising links – or organised criminals may have found a way to profit from clicking on a business’ links.
In other cases, apps and software are created to collect the payout for a company’s ads, often with the help of bots.
Considering the average cost per click in the UK is £0.78, according to Hubspot, with some ad campaigns for popular key phrases running at £10 per click, or even more, it is clear to see how easily this could mount up if a firm’s budget were to be hijacked by scammers.
How might bots affect data and analytics?
Negative click bots have the potential to produce skewed analytics from Facebook advertising campaigns.
Because many businesses are unable to distinguish between fake clicks and legitimate ones, the data that they collect can lead to false conclusions and decisions that could have a detrimental impact on the business. For example, firms may choose to overspend or under-invest on a campaign based on findings that are substantially erroneous.
Businesses must be confident that they are making sound decisions that are informed by reliable data and analytics – and fortunately, there is a way that they can do this.
Taking the fight to the bots
There are a number of methods that firms can use to identify bot clicks, some more straightforward than others.
Frequently checking Facebook analytics for irregularities in traffic that could be attributable to bots can make this task considerably easier.
Specific things to monitor include the average number of page views, the average session time, and the source of referrer traffic – if there are any glaring anomalies in the data, bots could be the source.
Big spikes in page views caused by a higher number of visits than usual can also be indicative of bot activity and are especially dangerous given their propensity to slow down the page for genuine visitors.
Once malicious traffic has been identified, steps can then be taken in blocking it at source, although this is not a simple process and requires technical knowledge and know-how.
After removing negative click bots, companies can take comfort in knowing they are optimising their campaigns by gaining accurate insights that help to increase efficiency, lower the cost per visit, and improve return on investment.
Defeating the bots that are impairing a business’ performance on Facebook is by no means easy, and it requires time and effort to keep malicious traffic under constant surveillance.
Having experts on your side who are well versed in identifying and removing instances of click fraud can help to turn the tide in the battle against bots and ultimately allow a company to make big savings on its advertising spend.
Firms not only owe it to themselves, but to their customers also, to knock these harmful and disruptive programs offline for good.
Advanced Acquiring: How can omnichannel merchants optimise all payment needs through one provider?
By Marc Docherty, Head of UK Acquiring / Large – Strategic Business, Ingenico, a Worldline brand
Today’s consumers are constantly moving, buying across multiple touchpoints, devices and channels, thus driving significantly greater transactional volume. Against this backdrop, in order to capture and harness the market potential, omnichannel remains an essential strategy for merchants while conducting business operations.
Driven by consumer demands regarding a richer, more personalised and seamless buying journey, ease of use and frictionless transactions have always defined the terms for omnichannel success. However unsurprisingly, payments processing is not always at the forefront of merchants’ minds, hence, more often than not, businesses find it difficult to capture the fundamental importance of a seamless experience.
As a result, they risk not only alienating and losing customers and leaving revenue on the table, but also inefficient management of their costs by missing important savings on acquiring fees. It is therefore prudent for businesses to consider how best they can provide a frictionless experience if they want to remain competitive and ensure conversions in this increasingly fast-paced world.
Understanding how payments processing works
Innovation and efficiency in payment processing is often focused on the transaction itself, helping merchants conduct sales and process payments faster and through more convenient platforms, such as online and mobile. All these transactions, irrespective of the channel used or their value, might take only seconds to complete, however behind the scenes there are many different industry players (including an acquirer, an issuer, the payment gateway, the card network and the merchant), working together towards the same goal: making sure the payment process is flawless, secure and fast.
In theory, the payment should pass from each party without the customer ever noticing, however with a multitude of different providers at each stage, this process can be prone to errors or extra time added to the transaction, leaving shoppers with a disappointing payments experience hence less likely to return for another sale.
Much the same as their consumer counterparts, merchants also appreciate seamless experiences, frictionless integration and having everything in one place. They want to focus on their core business without any restrictions or having to worry about declines, chargebacks or interchange fees. As such, consolidating all this information in a single, comprehensive view will be a key asset for merchants, providing them with full visibility over their processes.
Offering the most relevant payment methods at the checkout is key
Local and alternative payment methods have enormous potential to drive greater value to merchants not only by expanding reach but also by strengthening the merchant – customer relationship. According to findings from a recent Capgemini report, online retail growth, coupled with the rapid adoption of transparent payment experiences and alternative payment methods will continue to drive non-cash transaction momentum, which is expected to reach 1.1 trillion by 2023.
Yet, while accepting a wide but relevant range of payment options at checkout will drive shopping enthusiasm and maintain consumer loyalty, this can add different complexity levels to the checkout process, depending on several factors, including performance, security, design, the merchant’s business size and geographical reach. Add targeted marketing programmes, product development and delivery strategies, return policies, risk and fraud management to the priorities list for merchants and surviving the long road ahead might easily become daunting.
That’s why, instead of trying to do it all by themselves, merchants should make it a top priority to partner with a competitive acquiring provider who can do this for them, ensuring the balancing act between security, flexibility, frictionless payments and speed.
By working with a partner that is acquirer agnostic and understands both business requirements and the importance of providing operational excellence, merchants can benefit from cost savings for each transaction with the different payment methods they offer. Furthermore, by working with a single acquirer better reconciliation for merchants will be achieved, thus ensuring faster payouts.
A full-service solution to rule them all
With coverage and expertise in over 120 countries, we are perfectly placed to assist businesses in delivering their expansion strategy in their home market or across borders. Our Advanced Acquiring full-service solution is a modular offering that addresses merchants’ needs for a more unified experience, including acceptance, payment gateway and acquiring.
What better way to expand geographical reach and boost revenues than by offering the most relevant payment methods for your target markets, while at the same time improving cash management with some of the fastest payouts on the market and keeping track of transactions and settlements into one unified omnichannel reporting solution which covers all your payments needs?
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