1. Overcoming payment
hurdles in e-business
Albert Dias, M&T Director

2. You have an idea

3. Your options
Pre-paid Direct Credit Debit
cards debit cards cards
Setup Free $1k + $0–2k $1k +
Transact 2–7% < 2% 2–4%* 2–4%*
Maintain Easy Varies Varies Varies
Mobile Varies Poor Varies Varies
Risk Low Low High High

4. How do pre-paid cards work
Card
Merchant provider

5. How does direct debit work
Merchant
Gateway
User’s
bank

6. How do credit/debit cards work
Merchant Gateway
Merchant
acquirer
3-D Card Card
Secure issuer association

7. A choice of two models
Three-party Two-party
> Pay at gateway > Pay at merchant
> Merchant needs SSL > Merchant needs PCI-DSS
> Gateway liable for card > Merchant liable for card
> Basic fraud detection > Detailed fraud detection
> Checkout drop-off risk > Low checkout drop-off

8. Credit/debit card types
Closed
Regular Corporate
group
Accept High Medium Very low
Transact 2–4%* 2–4%* 0–3%*
Maintain Varies Varies High
Risk High Very high Very low

9. What is 3-D Secure
> It’s not your 3-digit
Card Security Code
> Issuer authenticates
information that isn’t
printed on the card
> Reduction in fraud
> Lower merchant liability

10. How do you reduce card fraud
> Step into the shoes
of a criminal
> Use collaborative fraud
assessment tools
> Score your risk and set
your comfort zone
> Don’t be afraid to verify
> Learn and remember

11. Score your fraud risk
Common flags Business-specific flags
> Suspicious cards > Close travel
> Haste > Unusual routes
> User location > Expensive trips
> Local knowledge > Strange company
> Suspicious history

12. Why not just e-business?
> Establish direct payment
with your customers
> Simplify transactions
> Understand the risks
> Establish your threshold
> Works well for volume
> Tap into conservative
corporate markets

13. Overcoming payment
hurdles in e-business
Albert Dias, M&T Director