Alto Global Processing: Russia To Introduce National Payment Card

The Central Bank of Russia has revealed plans to launch a national payment card that will both rival Visa and Mastercard and create more choice for consumers, according to the country’s officials.

The card, which is the first of its kind in Russia, will use technical infrastructure provided by one of the country’s existing payment systems, with Sberbank’s Pro100 and Zolotaya Korona both being considered as partners. The latter, which means “Golden Crown”, was developed by the Centre of Financial Technologies Group, based in Russia. The chosen operator will clear payments made within Russia using the national card system, but the card will also be valid for payments abroad.

The move was welcomed by Russian Prime Minister Dmitry Medvedev as a way of giving Russian consumers more choice. However, it has also been interpreted as a reaction to financial sanctions imposed by the US over the Ukraine crisis, which led to Visa and Mastercard blocking card operations by Rossiya and SMP banks. Both institutions have been blacklisted by the Obama administration due to close ties between their key shareholders and Russian President Vladimir Putin. In addition to competition created by the national payment card, new rules mean that Visa and Mastercard will have to place collateral deposits into special accounts created at Russia’s Central Bank in order to continue operating in the country.

The national payment card system operator is undergoing state registration,” said Elvira Nabiullina, the Central Bank’s chief. “We have a roadmap for infrastructure development and the Central Bank has set up a commission composed of MPs, senators and government members for finding technological solutions.”

Source: http://www.paymenteye.com/2014/06/20/russia-to-introduce-national-payment-card/?utm_source=PaymentEye+Daily+Newsletter&utm_campaign=bf9e1621ce-20_06_2014&utm_medium=email&utm_term=0_3bd2a3a3c5-bf9e1621ce-14476705

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Alto Global Processing: GBP3,170 is spent online with Visa every second at UK-based merchants

GBP100 bn was spent online with Visa at UK-based merchants in the year to August 2013, equating to GBP3,170 being spent every second. This is according to figures from Visa Europe who also reveal that GBP1 in every GBP4 of all spend with Visa at UK merchants is now spent online.

E-commerce is exploding, with UK merchants attracting spend from well beyond the country’s borders with almost a fifth of e-commerce spend from outside the UK. International spend with Visa at UK merchants totalled GBP16bn, with GBP7bn of that spend from outside Europe. The top five international spenders were: the USA at number one, Italy at number two, and France, Japan and Germany at three, four and five respectively.

Total annual online spend with Visa at UK merchants has doubled in four years: in 2009 GBP50.2bn was spent online with UK merchants, a total that was surpassed in the first six months alone in 2013 (GBP52bn).

UK consumers are leading the world when it comes to online spend. In February 2013, Ofcom announced in a report that internet shopping is now more popular in the UK than any other major country, as consumers in the UK spend an average of GBP1,083 a year on internet shopping compared to just GBP842 in Australia (the second highest country studied). Fuelling this uptake is UK consumers’ high adoption rates of smartphones and tablets.

Visa Europe is developing products and services that will help merchants to tap into the burgeoning opportunities that e-commerce present. Leading this response is the development of V.me by Visa, its digital wallet which a range of merchants and banks have already signed up to.

Marc O’Brien, Managing Director at Visa UK said: “In just four years we have seen online spending at UK clothing merchants with Visa nearly double in growth from GBP1 in £7 in 2009, to GBP1 in GBP4 in 2013. In fact, online spending with Visa is now at an unprecedented scale across all sectors including airlines, supermarkets and services, indicative of the ever increasing preference to make purchases online, largely fuelled by the explosion in smartphones and tablets.

“At Visa Europe, we are enabling merchants to take advantage of the possibilities that e-commerce present by making sure that online spend is safe, through Verified by Visa, and convenient through the introduction of V.me by Visa, our digital wallet. Wherever customers are based, no matter what they buy, we are working with merchants to make sure that their customers have the best quality, safest and most convenient online spending experience.”

Source: http://www.paymenteye.com/2013/09/30/gbp3170_is_spent_online_with_visa_every_second_at_uk-based_m/#.UkmaCuAgaFk

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Alto Global Processing: Visa, MasterCard Offer Common Debit Solution

Written by writers of Card Not Present

Last week, Visa and MasterCard said they have partnered to offer a common debit solution in the U.S. Debit networks in the U.S. have been working for nearly two years toward a solution that would address inconsistencies between the debit network routing requirements of the Durbin Amendment and limitations of the chips in chip & PIN cards and the rules of EMVco—the organization that administers EMV standards. With migration to the EMV standard underway in the U.S., several groups had been working on the problem, with some consensus among debit networks, but no buy-in from Visa and MasterCard.

On Tuesday, Visa and MasterCard, which each had offered separate solutions earlier this year, said they have made proprietary EMV technologies available that would enable a debit chip transaction originating from a single-chip application to be routed by the merchant to Visa, MasterCard or any other U.S. PIN debit network that elects to participate in the solution.

While yesterday’s decision by a federal judge overturning the Durbin Amendment eventually may render the need for such a solution moot, a working group formed bythe Secure Remote Payment Council (SRPc) that includes most U.S. debit and ATM networks has been seeking the creation of a common application identifier (AID) that would solve the issue. Visa and MasterCard have been part of those discussions, but neither has committed to the common AID, apparently hoping proprietary technology would give them a competitive advantage in routing debit transactions.

Members of the working group are interested in Tuesday’s announcement from Visa and MasterCard, but further evaluation would be necessary to determine if signing on with the solution is fair, according to Paul Tomasofsky, president of the Secure Remote Payment Council.

“The announcement is an interesting one on the surface but of course more information is needed to determine how other networks would fit into the picture,” Tomasofsky said. “Before that, it would be helpful to understand how Visa and MasterCard will work together from an operational viewpoint. The SRPc Chip-and-PIN working group members have always advocated a solution that allows all participating networks equal access to technology, a voice in governance, appropriate business terms and the ability to compete and innovate on future enhancements. In short, our solution calls for a multilateral solution and not a bilateral one.”

Read more at http://cardnotpresent.com/news/default.aspx?id=1576

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Alto Global Processing: Payments Players Face Four Key Decisions As EMV Shift Nears

Source: http://www.pymnts.com/

Visa, MasterCard and Europay formed EMVCo in the 1993 to combat and reduce fraud internationally, but in the United States, the slow transition to this new standard is causing problems of its own.

To date, more than 1.62 billion payment cards have been upgraded to comply with the standards set by EMVCo. This accounts for nearly 45 percent of all cards globally – most of which are in use outside the United States.

As this figure continues to climb, domestic financial institutions (FIs), merchants and consumers face an increasing threat of fraud, which is increasingly likely to occur in nations where the financial infrastructure has fewer safeguards in place. With the U.S. EMV liability shift four years away, what does the road to compliance look like, and what steps do acquirers, issuers and merchants need to take to prepare?

This is the subject of a new white paper released by global management consulting firm Accenture. Entitled “Payments Transformation – EMV comes to the US,” the release outlines four key decisions facing those in the payments ecosystem.

In this PYMNTS.com Data Point, we’ll take a closer look at two of the four decisions Accenture highlights in its research.

Offline Or Online Authentication?

According to Accenture, FIs first need to determine how they will verify the authenticity of EMV cards. This process can occur online or offline. Either way, authentication validates the EMV card before a payment occurs while providing additional safeguards against fraud.

Offline authentication – The card is verified by the merchant’s POS terminal, which reads information and certificates embedded in card’s chip. With this option, the terminals manage the payments brands they will accept.

Online authentication – The card is approved by the issuer using cryptographic certificates created by a card or mobile phone. This removes the need for important information to be housed on the physical card

How To Verify The Cardholder?

In an EMV system, cardholders verify their identity through three Cardholder Verification Methods (CVMs). These are a PIN, a signature or no CVM. The second decision facing FIs is selecting one of these options. Factors that could influence this decision include the level of fraud reduction desired by the issuer and customer attitude toward PINs.

Chip & PIN – Since much of Europe has elected to use PIN technology over concerns of the use of signatures, EMV cards are sometimes known as “chip-and-PIN cards” overseas. Read by dipping the card into a POS, the chip-and-PIN is more secure, but alters the traditional customer experience.

Chip & Sign – The chip & sign method may lead to a smoother adoption of EMV cards in the United States because this process is similar to the one used currently with magnetic-stripe cards. However, these transactions are less secure, and may make consumers vulnerable to fraud and theft: one of the main issues the EMV transition could help the United States solve.

No CVM – In this choice, neither a signature nor PIN is used to verify transactions. By making this choice, issuers would need a merchant POS structure to support this feature. No CVM is best suited for low value transactions, such as unattended terminals ie mass transit, as an example.

For more insights from Accenture, read the full white paper here.

To access the Accenture Payments Transformation Series, visit Accenture here.

Email Accenture with questions at paymentservices@accenture.com.

Direct Link To Article: http://www.pymnts.com/briefing-room/security-and-risk/online-and-cyber-fraud/2013/payments-players-face-four-key-decisions-as-emv-shift-nears/

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Alto Global Processing: Visa and Ethoca Collaborate to Help eCommerce Merchants Reduce Fraud

 

Alto Global Processing is proud to announce the Collaboration of Visa with Ethoca developed Fraud Reduction Tools.

PRESS RELEASE

Visa Fraud Intelligence Enhances Issuer-to-Merchant Alerts Service, Available Through Ethoca and CyberSource

FOSTER CITY, Calif. and TORONTO, June 11, 2013 /PRNewswire-USNewswire/ — Visa and Ethoca are working together on a service that will notify eCommerce merchants of fraudulent transactions, allowing them to quickly stop the fulfillment process. The service is intended to help merchants reduce fraud losses and associated chargeback costs. The Visa-enhanced service is currently available to U.S. and Brazil merchants through Ethoca and also through CyberSource, a leading global payment management company and wholly-owned subsidiary of Visa Inc.

Using near real-time information from Visa on confirmed fraud transactions, Ethoca is able to send secure alerts to the affected merchants in the critical 24-72 hour window between when eCommerce orders are placed and when they are fulfilled or shipped, a significant reduction in time from the current average of three to six weeks it takes for merchants to be notified.

The offering compares transactions from Ethoca’s merchant customer base against fraud data sent by Visa and participating issuers. In the event a purchase is confirmed as fraudulent, Ethoca’s platform immediately notifies the merchant through its alerts dashboard. This early warning gives merchants more time to stop the fulfillment process, limiting fraud losses. An analysis of past transactions suggests Ethoca Alerts enhanced by Visa data could help prevent $300 million in fraud annually.

“We are excited about this new layer of security that we hope will make a real difference in an online merchant’s fraud losses,” said Silvio Tavares, global head of information products, Visa Inc. “Our relationship with Ethoca is another way that we are responsibly using our network intelligence and fraud information to deliver valuable services to merchants.”

U.S. online retail sales are predicted to reach $370 billion by 2017, up from $231 billion in 2012, according to Forrester Research[1]. Maintaining strong fraud prevention defenses will be important if merchants are going to make the most out of the opportunity ahead.

“The biggest differentiator in our service is that we provide merchants with timely access to information not previously available,” said Andre Edelbrock, Ethoca CEO. “Our collaborative approach to fraud management enables Visa, issuers and merchants to connect and work together toward a common purpose of reducing fraud.”

Ethoca’s proven platform catches up to 73 percent of transactions authorized by issuers that are subsequently confirmed by consumers as fraud, and the performance is expected to be further enhanced by the inclusion of Visa data. Ethoca’s growing list of customers includes more than 200 well-known eCommerce brands including 9 of the top 10 internet retailers[2].

About Ethoca – Ethoca is a secure network for card issuers and merchants to connect and work collaboratively outside the payment network in a unique and powerful way. Ethoca helps card issuers and online merchants recapture lost revenues and fraud that slips through the cracks of their defences. To find out more, please visit http://www.ethoca.com.

About Visa Inc. – Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks–VisaNet–that is capable of handling more than 30,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit corporate.visa.com.

[1] “U.S. Online Retail Sales to Reach $370 Billion by 2017,” Forrester Research, Inc., March 13, 2013.

alto global processing, AGP, Ethoca, Alto

[2] As ranked by Internet Retailer in its annual Top 500 Guide (2013 Edition).

SOURCE Visa Inc.

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Alto Global Processing: B+S card service launch European payment solution to the UK

German electronic payment processors and acquirers B+S Card Service have officially launched in the UK.

Andreas Stendera, Director of Sales, B+S Card Service commented:“B+S is excited to Imagebring its merchant focussed approach and experience of payment processing to the UK. A core example of this merchant centric approach is the China Union Pay (CUP) card acceptance of our product offering at a time when UK merchants need to be prepared for an exponential increase in Chinese tourism. This is as a result of travel visa laws being simplified in April 2013. For merchants to capitalise on this anticipated growth market they need to be able to accept the 2billion issued CUP cards. With these changes to the market merchants need to be prepared to adapt their practices to create the flexibility that is required for their evolving international customer base. B+S is gearing its product portfolio towards assisting merchants to meet these changes in an effective and profitable manner.”

Mr Stendera added: “The launch of B+S in the UK will bring a new dimension and approach to the market. We concentrate on getting the basics right to deliver long term customer satisfaction. By establishing local operations we can truly understand each individual market and provide the best level of support possible to our customers. B+S is built only on the best German principles and with 20 years’ experience in the European market we are well positioned to offer a Europe-wide solution for UK electronic payments sector.”

 

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Source: http://www.paymenteye.com/2013/03/18/bs-card-service-launch-european-payment-solution-to-the-uk/

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Alto Global Processing: More States Consider Ban On Credit Card Surcharges By Herb Weisbaum The Consumer Man

Source: NBCNews.com

Charge a fee to use your credit card? It’s legal for merchants to do that, unless barred by state law. Ten states already ban such surcharges – California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas – and more may join the list.

The legislatures in 13 other states are currently considering bills that would prevent these so-called “check out” fees. Lawmakers in Hawaii, Illinois, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Washington and Tennessee are responding to a rule change that took place late last month. A similar bill will soon be introduced in West Virginia.

Visa and MasterCard agreed to let merchants add a surcharge to credit card transactions as part of the settlement agreement in an antitrust lawsuit brought by retailers. Until Jan. 27, both Visa and MasterCard had prohibited merchants from charging the customer for the cost of processing that credit card transaction.

The settlement does not affect Visa or MasterCard debit cards. American Express still
prohibits a surcharge on any of its cards.

New Jersey Assemblyman Vincent Prieto (D-Secaucus) said he introduced a bill to ban surcharging because it would hit consumers in the pocketbook.

“The amount of the surcharge may seem miniscule on paper, but in the family budget 1.5 to 3 percent could add up to a shorter grocery list or less to spend on gas,” he said in a statement.

In Utah, Sen. Curtis Bramble (R-Provo) is sponsoring a bill that would prohibit surcharges on any type of “financial transaction card” which would include debit cards.

Major retailers are not expected to tack on a credit card surcharge, at least not any time in the immediate future. Wal-Mart, Target, Sears and Home Depot told NBC News they have no plans to add a credit card surcharge. But just the possibility has spurred some lawmakers into action.

“It’s a waste of the legislative process,” said Mallory Duncan, senior vice president of the National Retail Federation. “They could take steps to bring greater competition into the marketplace by prohibiting the price fixing of the hidden swipe fees merchants pay to process credit card transactions.”

Trish Wexler, spokesperson for the Electronic Payments Coalition, whose members include Visa and MasterCard Worldwide, told NBC News it has not taken a position on the issue.

“No one knows how checkout fees will work their way through the system,” Wexler said in an email statement, “but the settlement provides sufficient consumer protections while the process plays out.”

What about disclosures?

The advocacy group Consumer Action has published a booklet on credit card checkout fees. It warns shoppers to be on the lookout for these fees and advises them to express their dissatisfaction.

“Customers shouldn’t stand for it,” said Ruth Susswein Consumer Action’s deputy director of national priorities. “Our advice is to tell them you don’t like the fee and this makes you want to take your business elsewhere.”

The new rules from Visa and MasterCard require retailers who apply a credit card surcharge to post a notice at the store’s entrance. The exact percentage of the surcharge does not need to be disclosed until the point of sale. The customer receipt must list the amount of the surcharge.

Online stores with a surcharge will not be required to have a notice on the home page.
They only need to alert shoppers about this when they reach the page where credit cards are first mentioned. In most cases, that means the final step of checkout when the purchase is being completed.

Not the end of this story

The settlement that allows merchants to impose a credit card surcharge is only preliminary. The court has yet to issue its final ruling in this case. That’s expected later this year.

Once that happens, various retailers and business groups plan to challenge the settlement. That could drag into late 2014.

The possibility that the settlement could be modified will probably keep most businesses of any size from instituting credit card fees for the time being.

Source: http://www.nbcnews.com/business/more-states-consider-ban-credit-card-surcharges-1C8455523

Herb Weisbaum is The ConsumerMan. Follow him on Facebook and Twitteror visit The ConsumerManwebsite.

 

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