Check out my article from PaymentsNews reviewing Best Practices for Global outgoing payments

1. global e-commerce
A passport to better
cross-border payments
Global e-commerce merchants face a number of challenges
when it comes to paying providers in other countries. This
handy primer highlights some of the most common areas that
need to be addressed. By Dana nino
Over the last five years there cost payments is a constant given the opportunity, will confusing as it relates to the
has been explosive growth reminder to merchants that the choose to have their payments exchange rate component and
in global e-commerce. The competition in their vertical delivered in their local currency. there tends to be a lack of
process of moving and is fierce and their ability to For funds delivered in CAD or transparent breakdown within
converting money from provide recipients the best USD, exchange local banking the pricing structure. When
one currency to another experience possible is a critical fees can vary greatly based on researching global payments
has become a vital part of component to their success. whether or not the currency is providers, merchants should
conducting business. With This being the case, merchants major, minor or exotic. look for those who offer
the increased global nature are often wary of expanding Because of such fees, most real-time or contracted tiered
of online businesses and globally too quickly as the merchants and their recipients rates, detailed reporting and
demand for international payment options for foreign prefer to settle outgoing direct access to an account
payments comes the necessity disbursements do not always payments in local currency. representative, whether trading
for improved means of deliver the results that are In doing so, beneficiaries online or not.
streamlining international promised, and the recipients ultimately receive more money, It’s your right as a merchant
money transfer and the entire are the ones that suffers. are less inconvenienced, and to know how your payments
foreign currency payment When evaluating global their payments are delivered are broken down and paid out.
process. payments providers, there are in a more timely manner as
An important growth area several things to consider: money moves directly into Compliance & regulatory
for global payments is the vast · Need for efficient, cost- their bank account rather requirements
number of digital/social media effective foreign payment than sitting in an FX account Merchants involved in
merchants making transactions methods waiting to be converted. For international money
through micro payments · Need for transparency on the merchant, local currency movement need to keep
(high volume, lower dollar pricing and reporting payments also result in lower abreast of constantly changing
amount payments). The types · Compliance and regulatory reversals and fewer customer compliance and regulatory
of e-commerce merchants requirements service complaints. requirements. One area of
that fall into these categories · Operational issues, errors, Another benefit of delivering key concern around foreign
include content providers, web reversals and limited online payments in local currency transactions is the potential for
merchants, gaming & app functionality is the potential to add a money laundering.
developers, contractors, and new revenue stream. Many Respected foreign exchange
stock photography firms, to Speed and cost- e-commerce merchants are and global payments
name but a few. effectiveness able to lower the costs and businesses all have a strong
There is a need in this For merchants sending headaches for their recipients, focus on the prevention
vertical for the large-scale payments in Canadian or US ultimately enabling them of money laundering as
disbursement of global dollars, one area of particular to start earning net new regulated by the Government
payments to a variety of concern is the exorbitant revenue on their outgoing of Canada and as monitored
service providers, such as foreign exchange costs and global payments. For larger by its financial intelligence
app developers, contractors, associated banking fees placed volume merchants this revenue unit, the Financial Transactions
hosted merchant sites, affiliate on recipients. When a foreign can be a substantial part and Reports Analysis Centre
marketers, etc. Merchants recipient converts a CAD of operational budgeting of Canada (FINTRAC). These
typically decide early on if payment to their local currency & planning and serve as a providers ensure compliance
they will disburse payments in the fees can vary greatly. The strategic component for with regulatory requirements
Canadian dollars, US dollars fees and reduced settlement comparative analysis when that include corporate or
or the local currency of their amounts are continually a choosing a payment provider. individual client identification,
provider. source of recipient concern. retention of records for at least
The demand by recipients Most foreign recipients, when Transparency five years, training of staff
for timely, accurate and low- Many merchants find pricing with respect to their reporting
34 PAYMENTSBUSINESS July /August 2011

2. From the
editor
obligations, and recognizing suspicious activity
and reporting suspicious transactions.
Operational issues
There are several important operational
PIN Pad Theft! Pads
factors that should also be evaluated when
considering a provider for global payment
disbursements. Typical areas of concern
include:
· Accuracy: “Bad data in – bad data out”
seems to be a popular catch phrase for
Local business finds tampered PIN
merchants with growing frustration over used to steal your banking information!
the high number of reversals, inquiries, Shoppers told to
check bank
investigations (and associated fees), and the statements...
resulting recipient complaints. Ensuring a
payment provider scrubs beneficiary data
for errors and accuracy as part of the set-up
process and on an ongoing basis is critical
to ensuring timely and accurate payment
processing. This process can be facilitated
efficiently with a bank look-up tool provided
by the payments firm.
· Bundling: The consolidation of payment
types (including support for wires, drafts,
domestic and international ACH, spot and
scheduled payments) in a single file format
is an important element in streamlining
Stop PIN Pad Theft!
the payment file process and reducing
operational steps. All currencies should be
remittable in one file as well.
· Online capability: The ability to add, edit,
change, and delete beneficiary information
in an easily accessible online environment
Halo Metrics has been working with merchants across the coun-
as well as provide tracking information to try to stop this crime and to protect the banking data of shoppers
recipients, such as Swift messages, is a from being compromised. The general public is aware if this
critical component for delivering superior
service to your recipients
problem and are looking to merchants to help protect their data.
· Auditing controls: Customizable payment
approval hierarchies enable a merchant
Halo Metrics has put together several resources to help to
to set controls based on current business combat this criminal activity. See our extensive line of security
procedures. Look for the ability to have solutions & visit our website halometrics.com/pinpad for the
one person enter payments, with another
designated employee being required to
following information:
1
review and approve the payment run prior
to submission Learn about your vulnerability score to see what your risk
Global payment providers are continually level is for a PIN Pad theft attack.
updating, customizing and creating solutions
tailored to the evolving needs of their
sophisticated e-commerce clients. Customized
solutions can be tailored to the size and scope 2 Request your FREE PIN Pad theft prevention tool kit. Your kit
includes a set of FREE tamper proof labels and many more tools
of their business as well as the profile and
location of their recipients. to get your prevention program started.
Dana Nino is Director of Global Ecommerce,
Cambridge Mercantile Group, a full service payments
3 Browse our security solutions for PIN Pads
organization that provides foreign exchange and global which include tamper labels, security posts
payment services, allowing merchants to send and & alarms with sensors.
receive payments around the globe. She can be reached
at dnino@cambridgefx.com.
July /August 2011 PAYMENTSBUSINESS 35