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Fraud and security concern, how it applies in e-Commerce and banking financial


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Fraud and security concern, how it applies in e-Commerce and banking financial

  1. 1. The right payment gateway provider andpayment options can provide your business the competitive edge
  2. 2. E-Commerce Flow Fulfillment Payment Status Payment Approval Purchase Payment Seeking ApprovalOnline Buyers / Payment Banks/]members Travel Portal Gateway Financial Insitutions
  3. 3. Critical Points when considering a payment gateway provider 1) State of the art FRAUD System . Flexible and it is a rule based system . Extensive domestic, regional and global database . Years of Experience and proven track record . Pre trade/transaction attempted fraud and post trade . Have critical fraud tools . Many more! 2) Comprehensive connectivity to all major shopping carts 3) Many payment options and direct connectivity to the banks 4) Provide Multi currencies 5) Provider of the gateway must be registered and notified by Bank Negara under the “system payment act 2003” and must be well established and proven in the market. 6) Leading Payment gateway in South East Asia (SEA). Choose ipay88 and you have all the above and beyond
  4. 4. About iPay88 / Mobile88• Founded in Apr 2000• obtained MSC Status in 2003• Founded iPay88 in year 2006• iPay88 obtained MSC status in 2007• iPay88 notified under “System Payment Act 2003” by Bank Negara in 2007
  5. 5. What is iPay88 ? “iPay88 is an Online Payment Service offered to sellers (or e-merchants) which allows sellers to be paid by their customers via online, anytime and anywhere by using the various payment channels:”
  6. 6. iPay88 – Comprehensive Payment Options (local)
  7. 7. iPay88 Payment Network / Cloud – First in Asia
  8. 8. How iPay88 help merchants on regional e-Commerce• Credit Card penetration is still low in most of South East Asia countries. - Need to educate the industry such as merchants and the users.• Appointed by Mdec to be part of Digital Malaysia initiative and also to assist MSC status companies to expand to overseas markets.• iPay88 supports local payment options • Cover non-Card customer such as online banking, e wallets, payment over ATM, payment over the counter and payment over the Digital Kiosk.• One Stop Regional Payment Gateway Service Provider – save time & cost• iPay88 is an established award winning regional payment gateway in South East Asia – Full operational offices in Malaysia, Indonesia, Philippines, Singapore and Thailand.• Soon will be Vietnam, Myanmar and Lao.
  9. 9. iPay88 Products Functions & Features
  10. 10. Company Background iPay88 - Achievement “ Most Outstanding Merchant 2009” Platinum Partner APICTA 2010 Malaysia – Best of Financial Applications Compliant with Payment System Act 2003 (notified by Bank Negara) since 2006Fraud rate below 0.05%
  11. 11. PRODUCT & SERVICES Cash Management Gateway Online Payment Gateway (Payout) Coming SoonComprehensive Payment Methods : Payout Channels : • Credit Card • Bank TT • Online Banking • Remittance Channels • E-wallet • Local Banks Transfer • Counter Payment (walk-in)
  12. 12. Online Payment Direct Link Email Payment Virtual Link Auto-Debit Multi-Pay(online payment Virtual Terminal (Request for (Virtual Shopping (Scheduled (0% Installment) gateway) Money) Cart+Payment) Collections) Mobile-Pay Escrow Service (Pay using E-Wallet (C2C) Mobile Phone)
  13. 13. PRODUCT & SERVICESPayOut (Cash Management) Payout (Payment to 3rd party) Local Banks Oversea Cheque Telegraphy Cash Remittance (Issue & mail) Transfer Management
  14. 14. Mobile88 Group of Companies Malaysia Oversea 100% owned100% owned PT. Dinamik Mobile Mobile88 Sdn Bhd (Indonesia)100% owned 100% owned RubyMax Sdn Bhd IPay88 International Limited (U.K.)100% owned 2011 Trnx amount: US$54mil IPay88 Sdn Bhd Net Profit: US$250,000 Positive Reliance 40% owned IPay88 Philippines Sdn Bhd Inc. Initial Paid-up Capital: PHP250,
  15. 15. PRESENTATIONOnline Payment Switching Gateway Security and Fraud Control
  16. 16. FAMSFraud Administration & Monitoring System (FAMS)
  17. 17. CURRENT PROCESSCurrent Process ‣ All transaction flow through Kasikorn Bank credit card processing gateway ‣ Fraud only get notified by Kasikorn Bank credit card processing gateway when customers file their disputes ‣ Only able to manage post-transaction risks monitoring - high risks for dispute rates
  18. 18. NEW PROCESSNew Process ‣ Deploy IPay88 FAMS into Kasikorn Bank’s Credit Card Processing system ‣ All transactions flow through Kasikorn Bank’s Credit Card Processing system will filter by the IPay88 FAMS ‣ Able to conduct Pre-transaction and During-transaction risks assessment and filtering, reduce at least 80% of the frauds
  19. 19. NEW PROCESS New Processstage one: pre-transaction fraud filtering ‣ Pre-transaction Filtering: ‣ filter by email ‣ filter by black list IP ‣ filter by black list country ‣ filter by white-list IP/country ‣ filter by white-list email/name
  20. 20. NEW PROCESSstage two: during-transaction fraud filtering ‣ During-transaction Filtering: ‣ filter by black-list credit card number ‣ filter by Bin-number ‣ filter by issue bank ‣ filter by Verified by Visa/Master ‣ filter by white-list credit card number ‣ filter by white-list Bin-number
  21. 21. NEW PROCESS New Processstage three: post-transaction fraud filtering ‣ Post-transaction Filtering: ‣ Velocity check ‣ Historical pattern check ‣ Product risk filtering ‣ Fraud statistical trending
  22. 22. NEW PROCESS New Processon-going : merchant monitoring ‣ Merchant Monitoring: ‣ Web crawler for webpage indexing ‣ Risks profile management ‣ Fraud level monitoring ‣ Merchant risks management base on industry and category
  23. 23. System Security Data Communication via HTTPS (SSL) SHA1 Digital Signature verification Pre-determined Source & Target URLs Merchant re-query PCI DSS Certified
  24. 24. Detail Transaction Log
  25. 25. FRAUD CONTROL• Transaction limit • Transaction value • Within certain time frame • By IP address, email, credit card …etc• Merchant limit • Limit set by monthly, or daily • Maximum amount per transaction
  26. 26. FRAUD CONTROL• Frequency Check • Number of attempt • Number of card used • By matrix (using same email, IP Address, Contact, name…..)• IP Filtering • Reject or highlight transaction from high-risk country• Bin bank filtering• Fraud score from 3 Party (Fraud Labs) rd• Accept only 3D Products) card for high risk category (Exp: Gadget, Virtual compliant
  29. 29. FRAUD CONTROL• Blacklist Database • Credit Card • IP Address • Email • Update credit card list from hacker forums • White list • Pre-register credit card • Eg: Apply to high risk merchant – virtual products
  31. 31. FRAUD CONTROL• Eye-Balling to track potential fraud • IP location and Card Issued location (system highlight) • Customer name and Card Issued location • Website Auditing • Random check every quarterly (focus on high risk category). • Automated website audit (3 levels web pages) • To track possible changes of products / services by merchants (to sell other illegal products)
  32. 32. FRAUD CONTROL Foreign issued Credit Card will be highlighted.
  33. 33. RULES BASEFRAUD FILTERING• Customizable transaction filters (rules) • By merchant • By category • Any other conditions (base on database parameters)
  36. 36. Achievement & Portfolio
  37. 37. Some of iPay88 Clients (for reference)Telco & Bank:Media & Portal :Groups Buy :Fashion :Event :Ticketing:Jobs :Classifieds:
  38. 38. Some of iPay88 Clients (for reference)E-Mall:Gift & Flowers:NGO & Charity :IT Services :Games:Foods & Glocery:Govertment :Investment:
  39. 39. Largest Regional Payment NetworkConnected to more than 250 banks in Asia & Europe CHINA : Philippines : Thailand : Australia & NZ : Malaysia : Europe : Indonesia : Saudi Arab :
  40. 40. Thank you