The document discusses various payment options for e-business including prepaid cards, direct debit, credit cards, and debit cards. It outlines the setup costs, transaction fees, and maintenance requirements for each option. It also describes how different payment methods like direct debit, credit/debit cards, and 3-D Secure work. The document provides tips for e-businesses to reduce payment and fraud risks, including understanding the perspective of criminals, using fraud assessment tools, and verifying transactions. It suggests establishing direct payment with customers can help e-businesses overcome payment hurdles.

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