The document discusses 5 notable e-commerce trends: 1) Mobile commerce is expected to continue growing with new technologies. 2) PCI requirements apply to all merchants and non-compliance can result in fines. 3) While fraud prevention tools like AVS help, all merchants should use advanced fraud solutions. 4) International markets offer growth opportunities but require support for cross-border transactions. 5) Digital wallets will combine online, in-store, and mobile payments and see increased adoption.

1. Five Notable e-Commerce Trends
Alex Burgin
Manager, Business Development
Authorize.Net
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3. Mobile Commerce
• Despite the ubiquity of smartphones, the
U.S. market still lags well behind
international markets.
• Authorize.Net Mobile App launched Q4-2011
and was quickly adopted by a wide range of
merchants.
• We expect mobile commerce to continue to
grow with new technologies introduced
including near-field communications and
digital wallets.
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

4. PCI
PCI Requirements Quiz
Which of these is the fake requirement?
1. Assign a unique ID to each person with computer access
2. Regularly test security systems and processes
3. Always use vendor-supplied defaults for
system passwords
4. Maintain a policy that addresses information security
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

5. PCI DSS
• PCI requirements have always been applicable to “level 4”
merchants, they were just not enforced.
• You must validate your PCI DSS compliance!
• Acquirers are starting to levy fines against merchants, who
have not validated their PCI DSS compliance. We believe fines
will become more common as a way of encouraging PCI
compliance.
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

6. Fraud
Q: How many people in this room have auto
insurance?
Q: How many people in this room have some
sort of advanced fraud solution?
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

7. Fraud
• Revenue lost due to online fraud continues to trend
downward since 2003, but still accounts for $2.7B in losses
(Source: www.cybersource.com/fraudreport).
• Smaller merchants reported an increase in fraud losses and all
merchants reported an increase in order rejections.
• While AVS and CCV are important tools, they are not the end
all, be all. We believe all merchants should be using some sort
of advanced fraud tool.
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

8. CyberSource Fraud Report
Fraud rates for both merchant
segments in 2011 were 2.8%.
n=143 n=169
8
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

9. Globalization
• Merchants should view international markets as a key
channel for long-term growth.
• Domestic infrastructures are often adequate for businesses
with modest international business (e.g. English is the
language of business.)
• Startups are helping to solve the international shipping
problem for small merchants.
• Merchants interested in expanding their business
internationally should validate that their providers support
cross-border and cross-currency transactions.
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

10. Digital Wallets
• Digital wallets will combine the ecommerce, retail and mobile
experience into a seamless one-click interface.
• Merchant adoption will be driven by higher conversion rates,
access to high-quality consumer data and security. Consumer
adoption will be driven by convenience and a broader move
to digital technologies.
• Wallets will have capabilities beyond simply payments, for
example real-time incentives sent via text message.
• Adoption of cross-channel digital wallets will accelerate over
the coming months and years and will become ubiquitous in
time.
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

11. Thank you!
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.