Online Payments Using Information Cards


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Online Payments Using Information Cards

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Online Payments Using Information Cards

  1. 1. Online Payments using Information Cards Your Questions Answered Sid Sidner, ACI Worldwide
  2. 2. Who the heck is ACI? <ul><li>30 years of delivering software to the payment card industry </li></ul><ul><ul><li>Payment engines and back office software </li></ul></ul><ul><li>In 2006, ACI customers processed over 70 billion transactions </li></ul><ul><ul><li>About half the plastic in the world goes through our software </li></ul></ul><ul><ul><li>Bank of America did 21.7 million on 23 Dec 2005 </li></ul></ul><ul><li>ACI’s customers include the largest banks, retailers, and payment networks in the world </li></ul><ul><li>ACI is one of the world leaders in EMV smartcard products </li></ul><ul><li>ACI also sells wholesale banking software </li></ul>
  3. 3. Why is Sid Sidner talking about this? <ul><li>During my 9 years at ACI </li></ul><ul><ul><li>ACI Virtual Wallet (for SET) </li></ul></ul><ul><ul><li>Mobile Banking </li></ul></ul><ul><ul><ul><li>National Bank of Greece </li></ul></ul></ul><ul><ul><ul><li>Movipay in Spain </li></ul></ul></ul><ul><ul><li>BankPass in Italy </li></ul></ul><ul><ul><li>3D-Secure </li></ul></ul><ul><ul><ul><li>Verified by Visa </li></ul></ul></ul><ul><ul><ul><li>MasterCard SecureCode </li></ul></ul></ul><ul><ul><li>Liberty Alliance participant </li></ul></ul><ul><li>My day job is the director of product security </li></ul><ul><li>But I love poking holes in new payment ideas! </li></ul><ul><li>I haven’t been able to find the hole in this one (yet…) </li></ul>
  4. 4. What’s in it for ACI? <ul><li>More clicks! </li></ul><ul><li>We also have an obligation as a long-time PCI thought leader to move the industry forward </li></ul><ul><li>We will not patent this and in fact published it on a blog to prove it. </li></ul><ul><li>We make money the old fashioned way: we build software and get it work at our customers </li></ul><ul><ul><li>“ Always strive to lower your talk-to-do ratio.” </li></ul></ul>
  5. 5. What are the problems with e-commerce? <ul><li>Increasing fraud </li></ul><ul><ul><li>MasterCard: Card Not Present fraud, up 52% , 2006 vs 2005 </li></ul></ul><ul><ul><li>The PCI Data Security Standard and compliance activities are severely tasking merchants </li></ul></ul><ul><li>Consumer perceptions of insecurity </li></ul><ul><li>Privacy </li></ul><ul><ul><li>Consumer data is everywhere, including billing addresses and phone numbers </li></ul></ul><ul><li>The hassle of entering payment data </li></ul><ul><ul><li>The click path for checkout is long </li></ul></ul><ul><ul><li>Too bad we can’t just swipe a card </li></ul></ul>
  6. 6. How do the payment networks work? Consumer Merchant Payment Networks Issuer Authorization flow Settlement flow Acquirer
  7. 7. Who are the real players? * ACI provides software * * * * * * * * * * * * * * * * Visa – 2006
  8. 8. What’s the history of e-commerce? <ul><li>Plain old virtual POS terminal </li></ul><ul><ul><li>Consumer enters data; merchant sends to an Internet gateway provider </li></ul></ul><ul><li>Secure Electronic Transactions </li></ul><ul><ul><li>Perfect security </li></ul></ul><ul><ul><li>PKI for merchants, networks, and consumers </li></ul></ul><ul><ul><li>Required a SET wallet </li></ul></ul><ul><li>3D-Secure </li></ul><ul><ul><li>“Son of SET” </li></ul></ul><ul><ul><li>Lighter weight </li></ul></ul><ul><ul><li>Uses browser redirects – no wallet required </li></ul></ul>
  9. 9. What did SET look like?
  10. 10. How about the 3D-Secure architecture?
  11. 11. What’s wrong with 3D-Secure? <ul><li>The card brands tried! </li></ul><ul><ul><li>Lower interchange rate </li></ul></ul><ul><ul><li>Risk shift to the issuer for fraud </li></ul></ul><ul><li>Poor merchant adoption </li></ul><ul><ul><li>It made the click path longer </li></ul></ul><ul><li>Poor issuer adoption </li></ul><ul><ul><li>Implementing an ACS was hard if done internally </li></ul></ul><ul><ul><li>Out-sourcing had data risk </li></ul></ul><ul><ul><li>Burnt from their SET experience </li></ul></ul><ul><li>Poor consumer adoption </li></ul><ul><ul><li>Hard to understand </li></ul></ul><ul><ul><li>Poor merchant & issuer adoption </li></ul></ul><ul><li>Other methods still accepted </li></ul>
  12. 12. How do Information Cards work? Identity Provider Relying Party User User Identity Selector Identity Selector Get a Card Use a Card
  13. 13. What’s your big idea, ACI? Bank Merchant User User Identity Selector Identity Selector Get a Card Use a Card
  14. 14. So what?
  15. 15. Isn’t this just like authentication? <ul><li>Yes, from an architectural standpoint </li></ul><ul><ul><li>Just a few little tweaks… </li></ul></ul><ul><li>But, the Information Card Issuer is a payment brand, not a specific issuer </li></ul><ul><ul><li>E.g. The same for all Visa card issuer Information Cards </li></ul></ul><ul><ul><li>E.g. Different for Visa and PayPal </li></ul></ul><ul><li>And, the Information Card claims from the merchant include variable data </li></ul><ul><ul><li>The transaction details </li></ul></ul><ul><li>The claims returned from the issuer include </li></ul><ul><ul><li>a one-time use pseudo card number for privacy </li></ul></ul><ul><ul><li>and a strong cryptographic token with the transaction details </li></ul></ul><ul><li>There is no impact to the PCI networks – these look just like 3D-Secure transactions </li></ul>
  16. 16. What does a Payment Information Card look like? <ul><li><Issuer> </Issuer> </li></ul><ul><li><SupportedClaimTypeList </li></ul><ul><ul><li><SupportedClaimType </li></ul></ul><ul><ul><li>Uri=&quot; account &quot;> </li></ul></ul><ul><ul><li><DisplayTag>Account Number</DisplayTag> </li></ul></ul><ul><ul><li></SupportedClaimType> </li></ul></ul><ul><ul><li><SupportedClaimType </li></ul></ul><ul><ul><li>Uri=&quot; VV &quot;> </li></ul></ul><ul><ul><li><DisplayTag>Verification Value</DisplayTag> </li></ul></ul><ul><ul><li></SupportedClaimType> </li></ul></ul><ul><ul><li><SupportedClaimType </li></ul></ul><ul><ul><li>Uri=&quot; expiry &quot;> </li></ul></ul><ul><ul><li><DisplayTag>Expiration Date</DisplayTag> </li></ul></ul><ul><ul><li></SupportedClaimType> </li></ul></ul><ul><ul><li><SupportedClaimType </li></ul></ul><ul><ul><li>Uri=&quot; trandata? &quot;> </li></ul></ul><ul><ul><li><DisplayTag>Transaction Details</DisplayTag> </li></ul></ul><ul><ul><li></SupportedClaimType> </li></ul></ul><ul><li></SupportedClaimTypeList> </li></ul>
  17. 17. What changes are required to the protocol? <ul><li>Variable data in claims </li></ul><ul><ul><li>Identity Selector: Match claims only up through the question mark in the claim URL </li></ul></ul><ul><ul><li>Information Card: </li></ul></ul><ul><ul><li>Merchant: </li></ul></ul><ul><li>Allow multiple issuers in the WS-SecurityPolicy element </li></ul><ul><ul><li>So that merchant can indicate which payment types are accepted at their store </li></ul></ul><ul><li>Kim and Mike @ MFST are aware of this and plan to include it in “version 2” </li></ul>
  18. 18. How does this rate, privacy-wise? <ul><li>The consumer no longer has to enter billing address and phone number </li></ul><ul><li>The issuer can return a one-time use pseudo card number to the merchant </li></ul><ul><ul><li>The routing prefix gets it to the issuer </li></ul></ul><ul><ul><li>This range not allowed on plastic </li></ul></ul><ul><li>All the consumer has revealed is what issuer they use </li></ul><ul><li>Identity theft is thwarted </li></ul><ul><li>This is a Bob Blakley Identity Oracle </li></ul><ul><ul><li>Q: Is the customer good for the money? </li></ul></ul><ul><ul><li>A: Yes, show me this token and you’ll get paid </li></ul></ul>
  19. 19. Why is this better than 3D-Secure? <ul><ul><li>More secure </li></ul></ul><ul><ul><li>Easier </li></ul></ul><ul><ul><li>Lower fees; lower risk </li></ul></ul><ul><ul><li>More transactions! </li></ul></ul><ul><ul><li>Shorter click path </li></ul></ul><ul><ul><li>No storage of live card numbers (PCI DSS 3.4 Data Storage) </li></ul></ul><ul><ul><li>Lower fraud </li></ul></ul><ul><ul><li>Brand awareness </li></ul></ul><ul><ul><li>More transactions! </li></ul></ul>
  20. 20. Anything else you’d like to say? <ul><li>This would work well in mobile and set-top boxes </li></ul><ul><ul><li>Information Cards reduce the number of UI gestures </li></ul></ul><ul><ul><li>Cards should be replicated among devices </li></ul></ul><ul><li>Payment Information Cards for authentication with liability </li></ul><ul><ul><li>A new transaction type could be defined for the PCI networks </li></ul></ul><ul><ul><li>Card Verify with a specified risk liability (Best Effort, $50, $5000, $50000) </li></ul></ul><ul><ul><li>The IdP (the Bank) guarantees the authentication, up to the liability amount </li></ul></ul><ul><ul><li>The more the risk, the higher the fee </li></ul></ul><ul><ul><li>This is an idea of another day... </li></ul></ul>
  21. 21. Is there an identity metasystem here? IdP RP
  22. 22. Can you show me this live? <ul><li>ACI partnered with Ping Identity to construct a demo, a proof of concept for the show (See it in booth #404!, 5:45 pm & 8 am) </li></ul><ul><ul><li>Ping Identity did the Information Card parts </li></ul></ul><ul><ul><li>ACI did the banking part </li></ul></ul><ul><li>We validated Kim’s vision – there is a very clean separation between the application and the mechanics </li></ul><ul><ul><li>ACI: issuer, claims, token data </li></ul></ul><ul><ul><li>Ping Identity: endpoints, token types, crypto </li></ul></ul><ul><ul><li>Neither needs to know anything about the other </li></ul></ul><ul><li>Our big disappointment – it looks too simple! :O) </li></ul><ul><ul><li>Request a card from ACIBank </li></ul></ul><ul><ul><li>Shop at Starbuzz Web Coffee and pay with your card </li></ul></ul>
  23. 23. What does it take to make this happen? <ul><li>Adoption of Information Cards </li></ul><ul><ul><li>Will consumers adopt it for authentication? </li></ul></ul><ul><ul><li>Will it catch on in non-Windows contexts? (Mac, Linux, Mobile, Set-top) </li></ul></ul><ul><li>Small change to the identity selectors </li></ul><ul><ul><li>Multiple issuers & variable claims </li></ul></ul><ul><li>Adoption by the payment providers (PCI, PayPal, BillMeLater, ClickToBuy, NACHA) and issuers (30,000) </li></ul><ul><ul><li>Standards, branding, contracts, marketing, fees </li></ul></ul><ul><li>Adoption by merchants (1 million) </li></ul><ul><ul><li>What is it? What’s in it for me? </li></ul></ul><ul><li>Adoption by consumers (1 billion) </li></ul><ul><ul><li>What is it? What’s in it for me? </li></ul></ul>Deputy Dawg
  24. 24. How do I find out more? <ul><li>See it! </li></ul><ul><ul><li>Ping Identity, Booth #404 </li></ul></ul><ul><li>Read about it! </li></ul><ul><ul><li> </li></ul></ul><ul><li>Talk to me! </li></ul><ul><ul><li>[email_address] </li></ul></ul>