Entries tagged with “regulatory compliance”.


The Direct Selling Management Association (DSMA) hosted an event on April 21, 2016 focused on helping direct selling organizations better understand the fraud landscape and how they can better protect themselves. The DSMA was founded in 2005 focused on creating collaborative relationships among Utah based direct sales companies and vendors. This event was a great example of bringing together local direct selling leaders around an essential topic.

Drew Peterson and Darrel Welling of ProPay and Dan England of American Express were featured presenters and provided valuable insights and information. A few of the highlights:

EMV is a success, sort of - The transition to EMV fraud protection has had a very positive impact on reducing card present fraud. An unfortunate effect of this success, highlighted by both ProPay and American Express presenters, is that fraudsters have now directed their energies online given the increased difficulty in card present situations.

Filters are your friend – A variety of transaction and data filters can dramatically reduce fraud and provide additional levels of protection. Velocity, IP velocity, address verification and card code verification filters offer additional levels of protection for organizations addressing fraud on the front lines.

Fraud drivers – The continued growth in online fraud is being driven by a number of factors. Data breaches, phishing scams, the continued explosion of digital goods and consumer logins being compromised opening access to accounts and personal information to criminals.

Data can help you win – Collecting more data, making better use of that data and leveraging the power of a network can help direct selling organizations respond effectively to these new threats.

Thanks to the DSMA and its members for a fantastic event.

For more information about how ProPay can help you with Fraud protection and prevention, call 888.227.9856, email sales@propay.com, visit www.propay.com.

Many cyber security breaches result from the lack of security that credit cards with magnetic strips provide. Since these cards are most common in the U.S., your business has to take steps to protect your financial data.

The alternative to using a magnetic strip is a credit card with an encrypted chip. Yet while these cards are popular in most European countries, they’re not quite as common in the States.

Unfortunately, cards with magnetic strips are more likely to result in security breaches. According to a recent Consumer Reports article, it’s important to secure your financial data to make up for the magnetic strips:

“Contributing to today’s security problem is the fact that the magnetic stripe on payment cards is easily counterfeited. MasterCard claims that the new cards with an encrypted chip (EMV cards) have reduced counterfeiting by 60 to 80 percent. Virtual wallets, such as Apple Pay, Google Wallet, and Softcard, which use your smart phone to make payments, also provide better security than magnetic stripes.”

The problem is that Apple Pay and Google Wallet are relatively new options for consumers. You can’t just expect all your customers to switch to a virtual wallet overnight. Instead, you have to take immediate steps to protect your business from cyber security breaches.

One way to do this is to use a secure payment processor for all credit card transactions. Payment processors come with security features that help protect your financial data. So even if all your customers use credit cards with magnetic strips, your data will be safe.

Until Americans start using cards with encrypted chips, businesses will remain responsible for protecting their financial data. If your company deals with credit cards often, then you should consider buying a new payment processor for added security.

To talk more about cyber security breaches, or anything else, please contact us. Thanks.

A major internet service organization recently found itself the victim of a cyber security breach regarding financial data.

The company fell prey to hackers by a spear-phishing attack. Spear phishing is the attempt to get corporate information by sending an e-mail message that appears legitimate. The fraudulent message sometimes asks the recipient to click on a link to verify information. Instead, that link can download spyware, Trojan horses, or malware. That’s what was believed to have happened in the breach; employees clicked on links in an e-mail that apparently led to the installation of malware.

Besides giving the hackers access to e-mail, the scam also compromised content management systems, internal communication systems, and the company’s data system for managing domains. Security enhancements implemented months ago, by the firm, likely limited the unauthorized access sought by the hackers.

While this company will no doubt be more vigilant guarding against future spear phishing scams, there’s a lesson here that businesses of any size and type can impart to their own employees: Don’t click on links in e-mails that looks suspicious, particularly if the message is asking for information.  To learn more, contact us here at ProPay.

In the world of merchandise processing, there are two different types of transaction processing: swiping and keying. With the constant accessibility to mobile devices such as tablets, smartphones, and laptops more and more merchants are using swiping, but why? In order to fully understand why more merchants are swiping cards versus keying them in, let’s take a look at the difference between swiping and keying credit cards.

Swiping vs. Keying Credit Cards

The difference between swiping credit cards and keying them in is pretty self explanatory, when swiping you have to have the card present and it typically requires either a mobile device with a swipe adapter such as ProPay’s JAK, or a computer/register with an internet connection. Whereas when you key a credit card in, merchants have to hand enter every card number and the credit card doesn’t actually have to be present. So, why are more merchants avoiding keying credit cards? Three reasons: fraud, savings, and convenience.

Fraud Rates

The biggest reason not to key in credit cards is plain and simple: fraud. Because merchants don’t actually have to have the credit card present with keyed payments, the chances of fraudulent transactions are a lot higher. Because most thieves steal credit card numbers instead of the card itself and then make by-phone or online orders, the card itself is never seen. Avoid these types of no-swipe fraudulent transactions altogether and only allow customers to pay for merchandise when they have the card present.

Savings

Because there is a higher fraud rate for credit cards that are being keyed in, credit card processors charge a higher rate for keyed transactions compared to swiped transactions, in order to protect themselves against any false transactions. How much more money do they charge? About .5% more per transaction. For example, credit card processors typically charge around 3.5% for keyed transactions, whereas ProPay only charges 2.29% for keyed transactions.

Convenience

Have you ever had to hand enter someone’s credit card only to realize you misentered one number and you have to start all over? With swiping, you never have to worry about that problem again. Also, you can swipe anywhere, at anytime—giving you the freedom and mobility your business needs in order to stay prevalent in this economy.

To learn more about swiped rates visit ProPay online.

Being a merchant nowadays is very challenging – not only do you have to worry about the rebound from our recent economic recession – you also have to now worry about cyber security. According to Tech Crunch, more and more retailers are succumbing to hackers.

Many retailers, including major clothing, home-improvement, grocery, and restaurant chains  have been attacked and successfully breached. “[one retailer] saw 56 million accounts compromised!” The article states that a major reason why most retailers are being breached is because they haven’t converted from mag stripe card readers to more up-to-date systems like chip and PIN. If there’s a takeaway to this: if you have a brick and mortar store – you should update your system to avoid any breaches. Keep in mind that whether it’s your payment processor or you that gets breached – you’ll experience a major dent to your reputation either way. Make sure to choose a cyber-secure payment processor – and update your hardware/software on your end as well.

ProPay has been providing thousands of merchants (with more joining each day) with excellent payment processor services since the 1990s. Contact us today to learn more about our state-of-the-art cyber security measures – and how we can help your business succeed further.