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Online fraud spikes 137% despite new chip-based security measures, study says

Fierce Retail – BRP’s Perry Kramer reveals that EMV processing is not enough protection against e-commerce fraud. According to a new white paper from BRP, The Payment Security Update: What’s New After EMV,” fraudsters have become more sophisticated and retailers need to adapt to protect customers’ payment cards and personal data.

According to BRP, EMV—which stands for Europay, Mastercard and Visa and is a global standard for chip cards—doesn’t offer enough data security and retailers need to be looking at end-to-end encryption (E2EE) and tokenization options.

In another recent survey by BRP, 68% of retailers reported implementing E2EE and 48% have implemented tokenization of payment data.

So why are more retailers not implementing these security strategies? The white paper states that the challenge is to deploy the best security, while at the same time maintaining corporate advances in omnichannel commerce initiatives. In other words, developing a synergistic payment and security strategy.

“While EMV has received most of the attention in the last few years, there are several other critical security strategies that play a much greater role in protecting sensitive payment card and personal information,” said Perry Kramer, vice president and practice lead at BRP. “It is imperative that retailers have the right strategies and controls in place to thwart the ever-increasing advances made by fraudsters.”

So why aren’t more retailers implementing these extra security measures?

Kramer explains that there are two large obstacles for retailers when they attempt to implement payment security strategies. The first is the ability to align the vision of a customer journey with the security and IT teams’ requirements and resources.

“In many cases, the business has not taken the time to step back and clearly define what they want the customer journey and experience to be,” he told FierceRetail. “This makes it impossible for the IT and security teams to create the environment that achieves the right customer experience and appropriate level of security.”

Read Full Article: Online fraud spikes 137% despite new chip-based security measures, study says

Online Fraud has increased 137% post-EMV – Are you Protected?

Online Fraud has increased 137% post-EMV – Are you Protected?

According to a new white paper from BRP, fraudsters have become more sophisticated and retailers need to adapt new security tactics to protect their customers’ payment card and personal data. The Payment Security Update: What’s Next After EMV white paper provides retailers practical tips on how to improve payment and data security across all channels.

“While EMV has received most of the attention in the last few years, there are several other critical security strategies that play a much greater role in protecting sensitive payment card and personal information,” said Perry Kramer, vice president and practice lead at BRP. “It is imperative that retailers have the right strategies and controls in place to thwart the ever-increasing advances made by fraudsters.”

EMV doesn’t really offer data security functionality, for that, retailers need to look to end-to-end encryption (E2EE) and tokenization. BRP’s 2017 POS/Customer Engagement Survey recently found that 68% of retailers have implemented E2EE and 48% have implemented tokenization of payment data. Increasingly, retailers realize that simply meeting PCI compliance standards is no longer sufficient to protect customer data.

“Hackers are becoming increasingly sophisticated, requiring organizations to re-analyze and revamp their current security protocols to adequately protect their customers’ payment and personal data,” said Ryan Grogman, vice president at BRP. “Retailers who have not implemented these technologies are at high risk, as the likelihood of being targeted by hackers increases every day.”

This white paper provides insights on the following topics:

  • Baseline Payment Security Measures
  • A Multi-Tiered Security Approach
  • The Rapid Growth of Omni-Channel Transactions’ Impact on Tokens
  • The Shift to Online Fraud
  • Increased Mobile Transactions Create Additional Security Complexities
  • Quick Wins to Beat Online Fraud
  • Quick Hit Protective Tactics

I encourage you to download and read the complete white paper:

Payment Security Update: What’s Next After EMV?

I appreciate your opinions and insights on this topic.  Please share your comments below.

Is the rocky road to EMV retail adoption getting smoother?

CIO – There was plenty of confusion to go around in October 2015, with only a small percentage of retailers ready to roll when the deadline passed for them to become EMV-compliant by installing new EMV-capable credit card readers and acquiring certifications from various payment networks.

Now that over a year, and two holiday seasons, have passed by, the question is: Where does retail stand with EMV? The answer, says experts, is that it’s been a rocky road, but there have been improvements in adoption and an ongoing evolution in implementation.

The good news is, consumers are starting to adapt to the new normal — their first instinct now is to insert a chip, not swipe. In addition, Visa and Mastercard implemented new quick-chip technology last summer, to make the processing time faster for consumers.

“One of the biggest complaints off the bat was that EMV was too slow, taking 10-15 seconds,” says Perry Kramer, vice president and practice lead at Boston Retail Partners. “Now the EMV transactions have really gone back to the same speed as what it used to be with swipe transaction — from the consumer point of view, it has sped up dramatically.”

Retailers, on the other hand, have struggled to get up to speed with EMV and have dealt with a variety of challenges, particularly due to vendor delays and the liability shift that has left them on the hook for chargebacks. “Those that weren’t ready really got thrown into panic mode,” Kramer says. “The amount of chargebacks, in terms of dollars and quantity, far exceeded anyone’s expectations.”
Read Full Article: Is the rocky road to EMV retail adoption getting smoother?

Apple Pay most popular mobile payment service among US retailers, survey finds

NFC World – Apple Pay has the largest percentage of supporting US merchants with 36% accepting the mobile payment service today, up from 16% last year, research released by Boston Retail Partners (BRP) reveals. Some 22% of retailers are planning to accept Apple Pay in the next 12 months and 11% plan to do so within the next one to three years, while 31% are adopting a “wait and see” approach.

PayPal falls in second place with a 34% acceptance rate, followed by Mastercard PayPass (25%), Android Pay (24%), Visa Checkout (20%), Samsung Pay (18%), Chase Pay (11%) and private label mobile wallets with 4%, the 18th annual edition of the POS/Customer Engagement Survey shows.

18% of more than 500 top North American retailers surveyed are planning to accept Android Pay within the next 12 months, with 13% planning to accept it within the next one to three years, while 11% are planning to accept Samsung Pay in the next 12 months, with 7% planning to accept it within the next one to three years.

Only 11% of the retailers have “no plans to implement” mobile payment acceptance within the store environment, while 24% of overall respondents have already done so and say the system is “working well.” 9% are offering mobile coupons, specials and promotions, while 7% are offering mobile loyalty programs.

“One of the critical factors for any mobile payment success going forward is education. We have found repeatedly that not only are consumers unsure of how and when mobile payments can be used but, even more telling, associates are unsure,” BRP adds.

“For mobile payments or mobile wallets to succeed, there must be further education at the point of sale to ensure that a transaction using a mobile device is not longer or more complicated than traditional payments methods for either the customer or associate.”

Read Full Article: Apple Pay most popular mobile payment service among US retailers, survey finds

Report: Mobility driving unified commerce

Chain Store Age – Retailers finally understand that the always-connected consumer expects a personalized, seamless experience wherever, whenever and however she shops.

This, coupled with the proliferation of mobile devices, are the catalysts driving the new retail paradigm called unified commerce, according to “2017 POS/Customer Engagement Benchmarking Survey,” from Boston Retail Partners (BRP).

A concept that goes beyond omnichannel, “unified commerce puts the customer experience first, breaking down the walls between internal channel silos and leveraging a common commerce platform,” said Brian Brunk, principal at BRP. “Retailers are moving in this direction, with 71% planning to have a unified commerce platform within three years.”

There are four key pillars that define the required customer experience in unified commerce:

Personal. Today’s informed consumer researches products and shops anywhere and anytime, and she expects a personalized experience wherever she shops. That’s why 75% of companies plan to use Wi-Fi to identify customers with their mobile devices in the store by the end of 2019. Meanwhile, 80% will suggestive sell based on previous purchases within three years, the report said.

Mobile. Having a constant, virtually unlimited array of information available through mobile devices has changed the shopping experience and elevated customer expectations for customer service. That said, 89% will offer mobile solutions for associates within three years, and 84% of companies will use mobile POS within three years, data revealed.

Seamless. Real-time retail is the ability to deliver a seamless and person-alized experience to the customer whenever, wherever and however she chooses to shop. To achieve this goal, 71% of retailers plan to have a uni-fied commerce platform by the end of 2019, and 60% plan to have centralized POS within two years, data showed.

Secure. Today’s retail environment requires security beyond retailers’ current focus on payments and networks. Thus, 96% of merchants will have end-to-end encryption (E2EE) by the end of 2019, and 73% will of-fer a single token solution across the enterprise within three years, the report said.

Read Full Article: Report: Mobility driving unified commerce

Mobile Payments in the C-Store

PMAA Journal – Americans don’t mind paying for the things they want, but they are increasingly insisting on deciding how they pay for them.

There are two underlying criteria c-store retailers want in a payment system: first, something that is convenient for both the customers and retailer; second, a payment method that does not unfairly add cost to the retailers,” explained Steven J. Montgomery, president of b2b Solutions, LLC in Lake Forest, Illinois.

Retailers don’t mind paying credit card and debit card fees, Montgomery has found. “They mind the fact the fees are seen as too high. The only reason the noise regarding this has calmed down some recently is because the cost of fuel has dropped and margins have increased. It is still a big issue for the industry.”

“A convenient and frictionless mobile payment experience is going to be a differentiator with increased significance in the c-store and petroleum space over the next two to three years,” said Perry Kramer, vice president and practice lead for Boston Retail Partners. “In this highly competitive space, Apple Pay, Android Pay, Chase Pay, Samsung Pay and the many other emerging mobile wallets are going to significantly continue to grow in usage and reach a tipping point for customers in a space were margins are tight and price is often differentiated by 2 to 3 cents.”

The importance of speed, ease of payment, and convenience at the pump and in the store are going to increase in the c-store area faster than many other retail formats. Much of this, Kramer explained, is driven by the significant number of under-35-year-old customers in this retail segment. “This demographic is on the go, and in almost all cases, the fuel purchase is a mandatory purchase, not a discretionary one. This consumer demographic expects convenienceand rewards for their loyalty.”

Any time one of these mobile wallets can be tied to a cash-back or loyalty program, while remaining frictionless, it significantly increases the chance that the consumer will remain loyal to that brand, he noted further. “Once we get them hooked with faster checkout and compelling rewards, they are more likely to increase both the number of visits and the spend per visit.”

Read Full Article: Mobile Payments in the C-Store

In Pursuit Of The Perfect Payments-As-A-Service Pairing

PYMNTS.com – When it comes to full-service payments, one size does not fit all. With more options available than ever before, PYMNTS spoke with Perry Kramer, vice president of Boston Retail Partners, about how his team helps retailers adopt new payments solutions. You can find that, plus the latest headlines and a directory of 75 global players, inside the October Payments as a Service Tracker™.

To find out how companies can choose the best solutions for their needs, PYMNTS recent caught up with Perry Kramer, vice president of Boston Retail Partners, to talk about the state of the full-service payments industry, the method his team uses when helping retailers find and adopt new payments solutions and what he sees coming down the pike.

Here’s a preview:

The glut of full-service features and solutions in the marketplace is having an effect not only on the modern merchant but also on the modern consumer.

As more retailers roll out experiences designed to improve their customer in-store experience, consumers are beginning to expect merchants to cater to their various whims. That may include faster or mobile checkout processes, loyalty programs, targeted promotions or many other perks or benefits.

Kramer noted that many merchants come to him and his team looking to solve this challenge by upgrading their payment systems so that they can offer their customers some of these features.

“Everything right now is centered around understanding the customer and being more in touch with them,” Kramer said. “It’s about identifying … what they want and finding out how we give them a personalized experience and, on the payments side, a frictionless experience.”
Read full article: In Pursuit Of The Perfect Payments-As-A-Service Pairing

Mobile Payments Has a Ways to Go, Say Retailers

Payment Week – It likely won’t come as a surprise, but even as the still comparatively young mobile payments technology gains ground, retailers are eager for even faster growth. A new study from Astound Commerce shows the difference between reality and retailers’ hopes, and the two are somewhat separated, though maybe not for much longer.

Right now, smartphone users are a little under two out of three people in the United States, and by 2020, that number is projected to hit almost three out of four. That means mobile commerce sales are up, as there are more mobile users overall, so any growth is exacerbated by the increased user pool. Plus, mobile commerce is expected to account for one dollar in three of all eCommerce sales by the end of this year, and that’s up from 26 percent for 2015.

Sounds like impressive growth, but a study from Boston Retail Partners shows that business isn’t exactly seeing the results they’d like. A part of that seems to be of their own doing, as 58 percent of respondents noted starting a mobile-specific site, but almost half of them believed that the site needed improvement. Another 25 percent said that they’d be putting a mobile site online within the next two years.

Read full article: Mobile Payments Has a Ways to Go, Say Retailers

Half of Retailers to Offer Consumers “Start Anywhere, Finish Anywhere” Capabilities Within Five Years

Sourcing Journal – Consumers are increasingly fickle, so rather than guess where they might spend their money, retailers are choosing to cover all bases by offering the ability to shop whenever, wherever and however.

According to a recent report from Boston Retail Partners (BRP), 56 percent of retailers said their top digital priority is to create a consistent experience across all channels. Moreover, 50 percent will offer people a “start anywhere, finish anywhere” option within five years, following the customer’s journey as she shops across and among channels.

“Today’s unified commerce imperative moves the heart of the transaction to a centralized platform,” stated Jeffrey Neville, vice president at BRP. “This allows retailers to become more innovative and agile with their digital commerce offerings to further enable a personalized customer experience. It is promising to see that retailers are laser-focused on delivering the seamless, cross-channel experience consumers expect.”

BRP surveyed more than 500 North American retailers in June and July (29 percent of which sell apparel, accessories and footwear), asking about their digital commerce plans, priorities and future trends.

Personalization was a top digital priority for less than half of those surveyed (40 percent), while 50 percent said they want to have customer-identifying technology within stores in two years and a further 58 percent are hoping to use geolocation by then.

Read Full Article: Half of Retailers to Offer Consumers “Start Anywhere, Finish Anywhere” Capabilities Within Five Years

The Chip-Card Ninjas Weaning America Off Swiping

Bloomberg News – Getting the U.S. off magnetic stripes isn’t easy and could take years. There are long waitlists of merchants trying to get their terminals certified, and the hardware and software—as well as communication hand-offs to processors and banks—don’t always work perfectly together. Almost a year after the official switch to chip cards, only a third of U.S. merchant locations accept them, according to MasterCard Inc. An additional third are somewhere in the process of switching over, according to payment expert Crone Consulting LLC. Thousands of stores around the U.S. currently have their terminals’ chip-card slot taped up as they try to achieve certification.

For smaller merchants, it’s easier to outsource the process. That’s where Creditcall, and other companies like it, come in.

There are now dozens of such firms, part of a huge new consulting industry that has grown up around helping companies implement EMV. Boston Retail Partners, for example, sends teams of consultants to retailers’ headquarters to assist their sales operations and training departments. Companies, such as Accenture PLC, help banks get their customers and merchants to use chip cards. And others, such as Creditcall, are helping merchants’ technology vendors get hold of pre-certified gear to accept chip cards.

Altogether, consultants and various helpers are booking $2.6 billion a year from helping merchants get EMV up and running, according to Crone Consulting. At Boston Retail Partners alone, EMV-related business has been doubling or tripling annually for the last two years, Perry Kramer, vice president and practice lead, said in an interview.

“It’s become a big business for a lot of firms. Because you really need expertise—because it’s very complicated—the rules are continuing to change, the vendors and banks are still figuring it out,” Kramer said. “It’s a full-time job, and merchants’ associates already have full-time jobs.”

Read full article: The Chip-Card Ninjas Weaning America Off Swiping