1. Internet Retailing Jump Start Fraud and Payments Richard Parker – Head of Sales

2. CyberSource Strengths
Single source for eCommerce payment solutions
Payment Acceptance
Global Acquiring w/Multiple Payment Types
Order Screening
Fraud Screening & Export Compliance
Payment System Security (PCI)
Blue chip customer base
295,000 customers
50% of the Dow Jones Industrial companies
Great reputation
High reliability (4 x 9s uptime)
Processing 2.5 Billion Transactions annually
Processed $120 Billion in flow in 2009
Strong security
Global reach and infrastructure

3. Global Operations Europe USA Asia UK presence since 1997
Engineering centre: Belfast
USA
Founded: 1994, Public 1999
HQ: Mountain View, CA
Asia
CyberSource K.K. established 2000
CyberSource Singapore established 2009

4. Top Tier Customers
Retail & eRetail
Manufacturing
Travel

5. What Retailers Tell Us... The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence
Encourage more to shop online
Minimising Costs and Optimising Profits
Reduce fraud
Use the right anti-fraud tools for your business
Optimise manual review process
Minimise exposure to data theft
Single integration
Reporting and reconciliation

6. Payment Management
The active management of payment operations, throughout the order lifecycle, to optimise business results

7. Respondent Profile

8. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Buying experience – minimising drop out
New Markets – payment types, fraud issues, tax considerations, revenue repatriation, general complexities
Consumer confidence (security etc) in you and your site...
Reasons why people DON’T shop online...
Minimising Costs and Optimising Profits
Reducing Fraud
Number of Fraud tools (average)
Audit of fraud tools/ROI. Fraud tool management
Manual Review
Minimising exposure to PCI
Single Integration
Reporting and Reconciliation

9. CyberSource is a Payment Hub Supporting Payment Preferences Around the World

10. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New Markets – payment types, fraud issues, tax considerations, revenue repatriation, general complexities
Consumer confidence (security etc) in you and your site...
Reasons why people DON’T shop online...
Minimising Costs and Optimising Profits
Reducing Fraud
Number of Fraud tools (average)
Audit of fraud tools/ROI. Fraud tool management
Manual Review
Minimising exposure to PCI
Single Integration
Reporting and Reconciliation

11. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence (security etc) in you and your site...
Reasons why people DON’T shop online...
Minimising Costs and Optimising Profits
Reducing Fraud
Number of Fraud tools (average)
Audit of fraud tools/ROI. Fraud tool management
Manual Review
Minimising exposure to PCI
Single Integration
Reporting and Reconciliation

12. Growth in online consumer spend 2008 - 2014
Emerging Markets
Growth in online consumer spend
Source: Forrester 2009

13. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence
Reasons why people DON’T shop online...
Minimising Costs and Optimising Profits
Reducing Fraud
Number of Fraud tools (average)
Audit of fraud tools/ROI. Fraud tool management
Manual Review
Minimising exposure to PCI
Single Integration
Reporting and Reconciliation

14. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence
Encourage more to shop online
Minimising Costs and Optimising Profits
Reducing Fraud
Number of Fraud tools (average)
Audit of fraud tools/ROI. Fraud tool management
Manual Review
Minimising exposure to PCI
Single Integration
Reporting and Reconciliation

15. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence
Encourage more to shop online
Minimising Costs and Optimising Profits
Reduce fraud
Number of Fraud tools (average)
Audit of fraud tools/ROI. Fraud tool management
Manual Review
Minimising exposure to PCI
Single Integration
Reporting and Reconciliation

16. Greatest Business Threats

17. Accepted Orders: Later Resulted in Fraud

18. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence
Encourage more to shop online
Minimising Costs and Optimising Profits
Reduce fraud
Use the right anti-fraud tools for your business
Manual Review
Minimising exposure to PCI
Single Integration
Reporting and Reconciliation

19. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence
Encourage more to shop online
Minimising Costs and Optimising Profits
Reduce fraud
Use the right anti-fraud tools for your business
Optimise manual review process
Minimising exposure to PCI
Single Integration
Reporting and Reconciliation

20. Post Manual Review Acceptance Rates
8% of the survey base responded ‘Don’t know’

21. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence
Encourage more to shop online
Minimising Costs and Optimising Profits
Reduce fraud
Use the right anti-fraud tools for your business
Optimise manual review process
Minimise exposure to data theft
Single Integration
Reporting and Reconciliation

22. Customer Payment Data: Access

23. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence
Encourage more to shop online
Minimising Costs and Optimising Profits
Reduce fraud
Use the right anti-fraud tools for your business
Optimise manual review process
Minimise exposure to data theft
Single integration
Reporting and Reconciliation

24. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence
Encourage more to shop online
Minimising Costs and Optimising Profits
Reduce fraud
Use the right anti-fraud tools for your business
Optimise manual review process
Minimise exposure to data theft
Single integration
Reporting and reconciliation

25. Keys to Success in Retail
The Revenue Opportunity
Accept multiple payment options
Minimise drop out
New markets
Consumer confidence
Encourage more to shop online
Minimising Costs and Optimising Profits
Reduce fraud
Use the right anti-fraud tools for your business
Optimise manual review process
Minimise exposure to data theft
Single integration
Reporting and reconciliation

26. Orders Rejected: Suspicion of Fraud
7% of the survey base responded ‘Don’t know’

27. Profit Optimisation Point (least profit loss)
High
Rejected Orders
(Oppty Cost)
Fraud Loss
Adverse profit impact
Fraud loss +
Rejected good orders
Cost to review orders
Adverse Profit Impact
Low
Profit Optimisation Point (least profit loss)
Low
Accepted Fraud Rate
High

28. Global Payment Acceptance
Payment System Security
MAXIMUM
RETAINED
REVENUE
Reporting &
Reconciliation
Global Payment
Acceptance
Order
Screening
Processing
Management 1
ORDER
Online
Call Centre
Mail Order
IVR
Kiosk
ERP
Global Payment Acceptance
Pinless debit
Global cards
Credit, debit
Corporate
Direct debit & bank transfers
Dynamic currency conversion (US/Canada)
Local cards
Additional
Worldwide tax calculation
eCheque (US/Canada)
Secure payment acceptance
(Hosted forms/pages)
Pay
Subscription payments

29. Global Fraud Screening Solution
Payment System Security
MAXIMUM
RETAINED
REVENUE
Reporting &
Reconciliation
Global Payment
Acceptance
Order
Screening
Processing
Management 2
ORDER
Online
Call Centre
Mail Order
IVR
Kiosk
ERP
The Most Comprehensive Fraud Management Solution
Over 200 global validation checks and services
- Same-merchant purchase history
- Global multi-merchant transaction histories
- Device fingerprinting and location identification
- Global validation services
Powerful rule management console
Automated case management
Managed by CyberSource
or you
Managed Services
Screening Management
Managed Services
Performance Monitoring
Global Fraud Management Portal Decision Manager
Card Validation Services
AVS CVN

30. Processing Management
Payment System Security
MAXIMUM
RETAINED
REVENUE
Reporting &
Reconciliation
Global Payment
Acceptance
Order
Screening
Processing
Management 3
ORDER
Online
Call Centre
Mail Order
IVR
Kiosk
ERP
Secure, Reliable Processing Infrastructure
On-demand connections to multiple worldwide acquiring banks and processors
High Availability
99.9+% processing uptime
Currently processing > 5.9 million txns daily
Current architecture operating at ~30% capacity
Easily scalable
PCI Certified Processing Centres
Visa Europe/Asia – AIS certified
Visa USA – CISP certified
MasterCard – SDP certified
24/7 physical security
Multiple processing centres on three continents

31. PCI-DSS Payment Security
Payment System Security
MAXIMUM
RETAINED
REVENUE
Reporting &
Reconciliation
Global Payment
Acceptance
Order
Screening
Processing
Management 4
ORDER
Online
Call Centre
Mail Order
IVR
Kiosk
ERP
Payment System Security
Payment Data Management
Hosted payment page/frame
Secure data storage
Secure Processing Infrastructure
PCI certified processing centres
User-level access controls
PCI Compliance/Remediation Services
Vulnerability scanning & monitoring
Compliance planning & remediation
Certification management
Pay

32. The UK Fraud Report

33. Many Thanks Any Questions? Richard Parker – Head of Sales
Chris Andrew – Retail Strategic Market Consultant