Payment Methods
The cost of doing business
“You’ve got to spend money,
to make money”
Major Industry Topics
Industry Process Flow PCI DSS – Compliance
Risks of Non-Compliance & Breach EMV
What is it?
Affect for Merchant/Media Industry
Cost of accepting credit cards
Making a change to your program Payment methods
Industry Process Flow
1. Issuer
2. Acquirer (BASYS) 3. Merchant
PCI - DSS
Payment Card Industry – Data Security Standards
Set of comprehensive requirements to help ensure the safe handling of cardholder data throughout the payments chain. Ongoing process; not a one time survey
ALL Organizations, regardless of size or number of
transactions must comply with PCI DSS and fill out the annual questionnaire.
PCI, Audits and Breach
Completing the SAQ will sometimes uncover vulnerabilities or areas of concern that your IT department will need to address.
Data Audits may be necessary and are provided by one of the authorized 3rd party partners Visa/MC/Discover
have approved
Breach Insurance = Costs range from $10 - $40/month
Can cover $100,000 or more in expenses related to the breach
PCI Potential Risks
Non-Compliance
Fees range from $19.99 - $89.99 per month
Attacks against Level 4 merchants are on the rise
Merchants who process <1 millions transactions annually
Average organizational cost per breach is $5.5 million
Cost per compromised card is $195 on average
Recent surveys showed that over 70% of small businesses that have a breach do not recover
Credit card industry approach to PCI
Typically merchant processors prefer a Reactive approach
PCI Requirements and action items are buried in generic statement messages
Merchants are left on their own to complete SAQ
Non-Compliance is viewed as a revenue generator and a way for companies to assess additional fees
BASYS Processing approach to PCI
Unique and pro-active approach to Compliance
Fully staffed PCI Compliance team to assist with annual questionnaires as well as quarterly scans
Follow up on an annual basis to make sure you’re compliant
EMV – What is it?
EMV = Europay, MasterCard, Visa
EMV is a fraud – reducing technology that can help protect issuers, merchants and consumers against losses from the use of counterfeit and lost or stolen payment cards at the point of sale
Smart chip technology adds layers of security against fraud and is virtually impossible to duplicate due to the dynamic data included on the chip
EMV’s affect for Merchants
Most of this technology is for card-present transactions
Cards with a chip will be swiped, as well as requiring a card holder to either enter a PIN or signature for authentication. Businesses who fully adopt EMV will have a liability shift to the consumer for any fraud
Merchants slow to adopt this technology will be responsible for all liability after October 2015
EMV’s affect for the Media Industry
Majority of your transactions are Card Not Present
Card number provided via email, phone, fax and keyed in
Card Not Present
Little to no effect immediately
Merchants can choose to add additional security
Ensure use of AVS and CVV
E-commerce transactions
MasterCard = Chip Authentication Program (CAP) /SecureCode Visa = Dynamic Password Authentication (Verified by Visa)
Breakdown of the different fees
Interchange Rates
Set by the Issuing Bank Rate and per item fee Assessment Fees
Debit vs. Credit
Rewards vs. Corporate
Processor fees
Monthly Fees Per item fees Discount Rates
Programs
Tiered
Target Rate or Flat Rate Cost Plus
What’s your Rate?
Always the first question
How processing?
What type cards accepting? Re-Qualification analysis
Blind quotes will always lead you astray
How to lower your costs
Lower risk = Lower cost
Processing Method – Terminal, Software, Gateway Additional Data Sent
AVS = Address Verification System Level 2 vs. Level 3
Pre-Authorizations Daily settlement
Changing your program - Costs
Advantageous to review your program every 1-3 years.
Call your vendor and ask for a review of your program
Visa, MasterCard, Discover, American Express review and can make updates to their program costs every 6 months
April and October
This is a great time to review your statements to make sure there weren’t any major rate increases
Payment Methods
Is there a better way for you to be processing?
Keying all transactions = you SHOULD NOT be using a physical terminal
Not physically possible to get the best rates for your business if not processing online – especially in B2B Consider using a virtual terminal
Must be able to send additional data with transactions
Would it be helpful for you to securely store data?
Recurring transactions are very common for Media clients Save 10 hours a month or more by storing your data
Questions?
Thank you for coming!
Visit our booth in the Exhibit Hall
Contact me at [email protected]
