OscarPOS Cloud Developing for 3D Secure 2.0 Online Payments 3DS20

OscarPOS Cloud Developing for 3D Secure 2.0

A Brief History of EFTPOS …

eft manual imprinter

I remember the days when you had to get out the imprinter, load in the credit card, line up the triplicate slip, click clack the roller bit, get your customer to sign, compare it to the back of the credit card. Over your floor limit ? Then you had to make a phone call to get an authorisation number. Every couple of weeks we got sent a list of “suspect” credit card numbers that we had to check every time. Only then could you finalise the sale.

Next came swipe cards & PINs with eftpos pinpads. This made it so much faster to process the transaction as well as being a method designed to prevent credit card fraud and make the transaction more secure.

Then we got “stick it in chip n pin”. The “smart chip” is actually a computer that is designed to combat “card skimming” and “cloning”. The “smart chip” interacts directly with the terminal and is supposed to never give up its data to the wrong device / people.

Near Field Communication Payments ( NFC ) are also referred to as PayWave, PayPass Tap n Go, as well as Digital Wallet APPs or Mobile Banking APPs. Hold the card, phone or “wearable” against the reader for about one second. Depending on the type of device, the type of account, limits set by the merchant facility or bank, you may need to enter a PIN.

Most of us would think that online payments are very recent, but they actually began being used in the 1990’s. The interfaces however were very klunky, not intuitive and usually difficult to use. Companies like Amazon, PayPal & EBay really provided the initial impetus to develop online platforms to facilitate ecommerce in the formats we recognise today.

“eCommerce continues to grow: Worldpay’s 2018 Global Payments Report projects US online sales to surpass $1.1 trillion by 2022, with nearly a third ($360 billion) of that total coming from mobile commerce.”

http://worldpay.com

“A 2019 report from Juniper Research estimates that retailers may lose $130 billion from card-not-present (CNP) eCommerce fraud in the five years between 2018 and 2023.”

https://www.businesswire.com/

Ouch !

That is in the US ecommerce space alone !

 

OscarPOS Cloud In Store …

Where the customer is in your store and is able to physically use a debit / credit card with your eftpos terminal is referred to as a “Card Present Transaction”. For our OscarPOS Cloud POS APP ( Windows & Android ), we have chosen to offer you FREE integration with the Tyro range of pinpads. Even if you want a stand alone or a mobile eftpos facility, you will be hard pressed to find a more secure & faster solution.

 

From Tyro EFTPOS machine pin pads that are protected with a unique key entry shield, to encrypting data between the EFTPOS machine and Tyro, we take every opportunity to make sure you’re secure. No cardholder data is ever exposed or presented at point-of-sale meaning your business is protected. It’s never been more important to deter and prevent fraud against your business. At Tyro, your security is our number one priority. That’s why we’ve built in EFTPOS features that work to make your business safe.

Tyro Security & Fraud Protection

Even if you are not using OscarPOS, but want a fantastic solution for your EFTPOS needs, get in touch with Derek ( 0477 989 497 / derek@merchantpayments.com.au ) from Merchant Payments and he will give you a great deal.

OscarPOS Cloud Online Today …

OscarPOS Cloud Customer Mobile APP for Orders, Loyalty, Gift Vouchers & Feedback

Card Not Present ( CNP ) transactions are predominantly Online Payments. As a general rule, preventing misuse is often more difficult and a direct result of this is higher processing fees as the risk to the payment facilitator is also higher.

The OscarPOS Cloud Development Team love a good challenge. Making sure that your Customers can  order and pay online with confidence is a must. Making sure that you get paid for what you supply is also paramount.

We utilise the existing ( and emerging ) technology provided by eWAY to create a fast, seamless & secure payment process.

We know that the best payments systems are equal parts technology and humanity, so we’re always here to support your people, consult on your plans, and connect you with others who can help you get it done. Smarter payments with a personal touch. It’s what we’re all about.

eWAY Australia

We also have to minimise the interaction required by the  customer or business owner. Finding that balance between secure & user friendly will not only change with technology, but also user expectations.

I think all business owners will agree with me that where a bit of extra work may be required, it should not be put onto the customer to perform. If your customer feels more secure using your online payment process, rather than a competitors, then you deserve that sale.

OscarPOS Cloud Online in 2020 …

OscarPOS Cloud Developing for 3D Secure 2.0 Online Payments 3DS20

Card Not Present ( CNP ) transactions represent 85% of all fraud on Australian issued cards. This is costing Australian online retailers almost $500,000.00 per year. What is worse is that it continues to grow at about 15% per year.

Ecommerce is booming worldwide and, in Australia, there’s no exception. Last year, we Australians spent a total of A$28.6 billion (US$20.3 billion) on online shopping. As of January 2019, online shopping is responsible for 9% of Australia’s total retail sale.

Statista predicts that by the end of this year Australian online businesses will see a 15.1% growth in revenue. Also, the number of online shoppers will reach 20.3 million in 2019, which is 5% more than last year.

WebAlive eCommerce Stats

With this rapid growth in mind & the need for minimal impact on the customer, with maximum benefit to the online retailer, new legislation is becoming mandatory. While this is primarily aimed at high value transactions, there is nothing to stop us from taking advantage of this new counter-fraud initiative.

Strong Customer Authentication ( SCA ) is also known as two-factor or multi-factor authentication. You have probably already seen this in use when a website will send a verification code as SMS to the mobile number registered against the “account”. Some Australian banks are already using a form of SCA when performing transactions greater than a preset value.

Our Dev Team are building 3DS 2.0, using the eWAY Australia platform, into the OscarPOS Cloud online shopping experience. This will include our basic e-shop as well as our Customer Mobile APP. At this stage, allowing for Beta & Pilot  testing, we will be releasing this as an update in Q1 to support all of our vendors and protect all of your consumers.

What do you need to do to take advantage of this improved shopper authentication ?

Absolutely nothing. This technology will be built into your OscarPOS Cloud System as a part of your free update cycle.

We envisage this will be totally invisible to you as an online retailer.

Although we do expect you to see a decrease in CNP Fraud as more secure payments and authorisations make it harder and harder for unscrupulous online shoppers.

 

About the author: Tim Atkinson