Payments in 2015: Is it Time to Change Software?

Payments Leader

Posted on March 12, 2015

Paying with credit card


We all know that 2014 was the “year of the breach.” An unimaginable amount of sensitive data was stolen from JP Morgan, EBay and Home Depot to name just a few. Some experts blame the uptick in security breaches on increased EMV/Chip usage as it is a card-present fraud prevention tool and thus has no effect on card-not-present fraud. However, whether or not EMV drives some thieves to attempt new forms of fraud, the most important thing to keep payments secure going forward will be the quality of payments software. With 2015 primed to be a big year for change, the biggest question financial institutions may need to ask themselves may be “Is our payment software ready?”

Moving Forward in 2015

Introspection is common at the new year. Companies and their leadership should review whether their partners are keeping up with their technology changes. The technology landscape is changing quickly and the payments industry is not immune to the effects. Mobile wallets, alternative payment methods and other emerging payment technologies are pushing the boundaries in transactions and will continue to make waves beyond 2015.

These alternative payments such as Apple Pay, MCX CurrentC, Bluetooth Low Energy and even biometric payments require certain technological capabilities to accept the transaction. Is your company equipped with the payment software needed? With EMV on the horizon too, the other question that should be asked is “Will my organization be EMV compliant come October 2015?” After the liability shift passes, any fraudulent charges will be the responsibility of the issuer who is not chip card compliant.

Remember that the implementation of software to issue and process the transactions as well as the hardware upgrade is no overnight gig. This is a very biginvestment and expense and, above all, cardholder data security must be held to the highest standard. The issue then becomes two-fold: organizations need the payment software to be secure, compliant and flexible; on the other hand, they don’t necessarily want to or may not have the resources to manage it themselves and ultimately be responsible for a potential breach. There are companies equipped to handle these issues and deliver trusted, proven solutions. When it comes to the payment software that processes transactions and is expected to keep data secure, how much should be spent in security investments? FIS alone has invested $100 million dollars in security infrastructure, including secure solutions, over the past three years. With new technologies changing the game and security breaches on high alert, it’s important to make sure the software processing your payments is up-to-date and offers top security.

Things to Consider When Choosing a Payment Software Provider

Deciding who should update your software and technology can be a daunting task. There are many things to consider when it comes to making a huge investment in your vendor and software technology choice:

  • Adaptability – Are their products proven and built for the ever-changing landscape of the payments ecosystem?
  • Support Transactions – A startup vendor may claim that their technology is the next great new shiny object that consumers have to have, but is it designed to support a payment transaction as well?
  • Security – Does the security run end-to-end?
  • Integration – Does it integrate into other solutions like loyalty rewards or offer fraud-fighting enhancements?
  • Proven Solutions – New products and features have spawned a plethora of startup vendors offering the “newest technology,” but are they trustworthy and financially stable?

These are just a few things to consider with new payment software providers. Ultimately, you should choose a company with a solid track-record, that is committed to operational excellence and client satisfaction, that is financially stable and, perhaps most importantly, a company that is ”Secure by Design.”

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Payments Leader

Payments Leader from FIS provides insights on credit, loyalty, fraud and emerging payments strategies through blog posts from our industry experienced authors.