By David Dorf-Oracle on Feb 02, 2015
Last week I delivered a webinar for some of our Oracle Retail User Group (ORUG) members on payments in retail. With NFC, EMV, and the many emerging payment solutions on the market, its important to keep current. The deck is below, and a brief overview is after that.
Slide 2- The basics of credit card fees. With a $100 purchase, the merchant actually gets $98 after fees taken by the issuing back, card network, and acquiring bank. Card fees are one of the most expensive costs for retailers.
Slide 3- The big emerging payment solutions are Google Wallet, PayPal, SoftCard, ApplePay, and MCX/CurrentC. Google and Softcard is straightforward NFC with coupons and loyalty. ApplePay is focused simply on payment. PayPal is trying to extend online payments to the offline world, and MCX is trying minimize costs for retailers.
Slide 4- There are tons of smaller, emerging payment schemes including solutions from Final, Plastc, SimplyTapp, and Dwolla among others.
Slide 5- Krebs has a nice list of the types of fraud in the industry. There are lots of opportunities for thieves.
Slide 6- Data breaches occur in many industries, not just retail. Its a widespread problem.
Slide 7- Every retailer needs a Response Plan so they are prepared when a breach is discovered.
Slide 8- EMV is a step in the right direction, but it doesn't solve all the issues. With base EMV, card numbers are still in the clear so memory scraper malware, the cause of several recent breaches, would still capture account numbers. Also, retailers should be aware the when EMV is rolled out, fraud tends to migrate online.
Slide 9- There are three advanced solutions that help combat online fraud, but none of them is in widespread use due to additional friction and costs.
Slide 10- The liability shift is coming soon, so retailers need to understand what it entails.
Slide 11- The card issuer configures the card to determine the cardholder validation method, which can be online PIN, offline PIN, signature, and none. Unfortunately, some banks are choosing signature, which isn't the most secure.
Slide 12- The process of using an EMV card is slightly different than magstripe, so lots of training will need required.
Slide 13- Some advice for retailers when they implement EMV.
Keep your eye on this space as it continues to change.