Bitcoin, JCB And UnionPay Threaten To End Mastercard, American Express And Visa's Stranglehold On Payment Processing
Credit Card Security Is Broken. Here’s How Bitcoin Could Help Fix It.
A couple was planning a trip to Asia in January, and so they've been making hotel and airplane reservations. In the process, they've had first-hand experience with the dysfunctional state of international credit card payments. They've had three transactions declined on spurious security concerns, and each incident has required a call to their bank to correct the problem.
A common criticism of Bitcoin holds that the Internet-based payment network isn't actually useful. Sure, Bitcoin allows people to transmit value electronically, they say, but conventional payment networks like MasterCard already do that.
But the clumsiness of international credit card transactions, not to mention Target's recent security woes, provide good illustrations of how better payment technologies could be beneficial. As we'll see, a Bitcoin-based alternative to conventional credit card networks could be significantly more secure and, as a result, more convenient and affordable for everyone.
But getting there would be tricky. Fees in the credit card network are paid by merchants, whereas the Bitcoin-based payment scheme I describe here would have consumers paying by default. The Bitcoin community will have to figure out how to shift fees back onto merchants if it wants to attract enough users to make Bitcoin-based payments mainstream.
A 20th-Century Payment Network
The couples efforts to buy Asian plane tickets went like this: They went to an airline's Web site to make a purchase. The bank that issued their credit card flagged the transaction as suspicious and refused to honor it, leading to a cryptic error message on the airline's Web site.
They called their bank. After verifying their identity by asking them some not-very-secure "security questions," the bank representative told them the bank had denied the transaction as a security precaution. The couple assured the bank that the purchase was legit. The bank cleared the hold on their account and asked them to resubmit the transaction.
In the last week, they've gone through this process not once, but three times. Each time they've called the bank, they've asked them to update their account to make sure their transactions with Asian hotels and airlines don't get blocked. They haven't been able to do it, forcing the couple to make multiple, time-consuming phone calls.
In The Age Of The Internet, This Is A Crazy Way To Run A Payment System.
Chicken And Egg
The fundamental problem with conventional payment networks (this was a MasterCard, but other credit card networks work similarly) is that they try to detect fraudulent payments without the active participation of the card holder. If the credit card network wants to know if a payment from my account is legitimate, the best way to find out would be to ask the customer.
When the credit card was created decades ago, there was no practical way to do that. So, instead, credit card companies try to guess which transactions are legitimate using characteristics of the transaction, such as the country it was made in and the size of the purchase. That's an inherently error-change process.
Happily, the world has changed. Today, most people have Internet-connected smartphones in their pockets. In principle, it shouldn't be difficult for users to confirm payments at the time of sale, nipping most credit card fraud in the bud.
Indeed, there are products like Safepay that do just that. But they face a huge collective action problem: They only work if both merchants and customers adopt them. Safepay requires merchants to sign up with a $15 per month account. And it requires customers to download the Safepay app so they can confirm transactions.
As long as few merchants are Safepay users, there isn't much incentive for customers to download the app. And with few customers using Safepay, there's little reason for merchants to adopt the system. So far, no Safepay-like product has become widely adopted.
That's one example of a general problem with credit card security: Responsibility for credit card fraud is divided among merchants, card-issuing banks, the credit card network itself and users. That diffusion of responsibility, as well as the complexity of the credit card networks' rules (Mastercard has hundreds of pages of regulations governing transaction disputes), make the system hard to improve.
Chicken And Egg
The fundamental problem with conventional payment networks (this was a MasterCard, but other credit card networks work similarly) is that they try to detect fraudulent payments without the active participation of the card holder. If the credit card network wants to know if a payment from my account is legitimate, the best way to find out would be to ask the customer.
When the credit card was created decades ago, there was no practical way to do that. So, instead, credit card companies try to guess which transactions are legitimate using characteristics of the transaction, such as the country it was made in and the size of the purchase. That's an inherently error-change process.
Happily, the world has changed. Today, most people have Internet-connected smartphones in their pockets. In principle, it shouldn't be difficult for users to confirm payments at the time of sale, nipping most credit card fraud in the bud.
Indeed, there are products like Safepay that do just that. But they face a huge collective action problem: They only work if both merchants and customers adopt them. Safepay requires merchants to sign up with a $15 per month account. And it requires customers to download the Safepay app so they can confirm transactions.
As long as few merchants are Safepay users, there isn't much incentive for customers to download the app. And with few customers using Safepay, there's little reason for merchants to adopt the system. So far, no Safepay-like product has become widely adopted.
That's one example of a general problem with credit card security: Responsibility for credit card fraud is divided among merchants, card-issuing banks, the credit card network itself and users. That diffusion of responsibility, as well as the complexity of the credit card networks' rules (Mastercard has hundreds of pages of regulations governing transaction disputes), make the system hard to improve.
The Bitcoin network operates differently from conventional payment networks, and those differences could allow the Bitcoin community to develop more effective anti-fraud techniques. Conventional payment networks place most of the liability for fraudulent transactions on the merchant, allowing customers to challenge and reverse suspicious payments. Bitcoin, however, puts all of the liability on the payer. If you get tricked into sending a payment to the wrong person or hackers steal your Bitcoins, you have no recourse.
That allows for much simpler rules for the Bitcoin network compared with conventional credit card networks. Many of the regulations that govern Visa and Mastercard are designed to prevent misuse of the network and to protect consumers. Bitcoin operates on a buyer-beware basis. That might not be good for consumers (we'll get to that in a minute), but it makes the Bitcoin network much more hospitable to innovation.
It's obvious why merchants would be drawn to this kind of system. Accepting Bitcoin payments means lower fees, fewer regulations and no worry about liability for fraudulent transactions. Bitcoin transactions are irreversible. Once you've received a Bitcoin payment, you don't have to worry about it being challenged and reversed. Bitcoin's merchant-friendly approach may explain why the number of Bitcoin merchants has been soaring.
What about customers? At first blush, shifting liability to the customer isn't a consumer-friendly move. And the bare Bitcoin network isn't at all hospitable to ordinary users. Securing a Bitcoin wallet is tricky, and people who store their wealth in bitcoins risk having the value of the currency suddenly plunge.
But Bitcoin is an open platform that others can build on. Just as companies like Bitpay and Coinbase help merchants accept bitcoins with minimal hassle, so consumer-oriented startups may be able to help users spend bitcoins securely. Just as Bitpay and Coinbase allow merchants to immediately convert Bitcoins back to conventional currencies to protect against the risk of Bitcoin's volatility, so a customer-focused Bitcoin payment service could hold customers' cash in conventional currencies and convert them to Bitcoin at the time of payment. They should also be able to offer the same liability protection as banks and credit cards: that the company, not the customer, will be liable for the costs of hacking, fraud and other security issues.
Who should pay?
Of course, these services won't be free. But they could be pretty affordable. One of the biggest expenses of this type of consumer-facing Bitcoin payment service would be reimbursing customers for fraudulent transactions. That means that the fees a Bitcoin payment service would need to charge would depend primarily on how secure it is.
Bitcoin-based payment services would have both the authority and incentive to improve the security of their apps and pass those savings on to customers. For example, one of the best ways to boost the security of a payment app is to use an authentication token, a keychain-sized device that provides a "second password" that changes every minute or so. Users typically resist carrying such a device, but some might change their tune if a payment service offered them a significant discount for doing so.
A well-designed payment app could be cheap enough that customers with unusual needs would be willing to pay for them. International travelers, for example, might be willing to pay a modest fee to never have to worry about their transactions being declined or getting hit by unexpected fees. At the opposite end of the spectrum, some consumers who lack credit card and bank accounts are forced to pay their utility bills in cash. They might find Bitcoin-based payment services a convenient alternative.
Of course, to be truly mainstream, Bitcoin-based payment systems would need to match the zero-fee principle of the conventional payment network. Bitcoin is such a good deal for merchants — they save the roughly 2 percent credit card fee, and they don't have to worry about charge-backs — that it might make business sense for them to offer customers a discount of 1, 2 or even 3 percent if they paid with bitcoins and still come out ahead compared with the cost of accepting credit cards.
The open payment network
Obviously, I'm doing a lot of hand-waving here. Much of the infrastructure I'm describing doesn't exist, and my specific predictions will probably prove to be wrong. But the market structure I'm describing illustrates an important strength of Bitcoin. Conventional payment systems are monolithic. Everyone is required to use the same procedures, limiting experimentation. But Bitcoin gives users, and the firms that send and receive payments on their behalf, a lot more flexibility. Over time, we should expect that freedom to foster greater experimentation and quicken the pace of innovation.
Something similar happened in the telecommunications industry. Since the mid-19th Century, the world's telecommunications infrastructure had been managed by the International Telecommunications Union. The international body ensured that communications networks could interoperate by requiring them to adopt shared standards.
By the 1970s, this system had produced a sophisticated system of phone and telegraph networks, but it was also beginning to show its age. New telecommunications services required buy-in from national telecommunications monopolies, which meant that progress was slow. Fees for long-distance communications were high.
The Internet upended that system by adopting a much simpler set of rules. Rather than trying to specify which features Internet-based networks must provide to their customers, the Internet's core protocols simply provided a basic ability to transmit data and left individual users the freedom to build more sophisticated services using that basic communications capacity. Initially, the Internet was dramatically inferior to conventional communications networks, but over time Internet applications became increasingly sophisticated. Today, the Internet's capabilities are much greater than those of the conventional services overseen by the ITU.
Bitcoin applies the same philosophy to payment networks. Rather than trying to build every feature into the core protocol, the creator of Bitcoin defined a simple, flexible way to transmit money. The system leaves it to others, like Bitpay, Coinbase and firms that haven't been founded yet, to build secure, user-friendly payment applications on top of that basic infrastructure. It's impossible to predict what those services will look like or whether consumers will prefer them to conventional payment networks. But history suggests that Visa and Mastercard shouldn't get too comfortable.
Russia Soon To Launch An Alternative Nationwide Payments System As Visa/MasterCard Competitor
Russia has floated developing such a system for years although few steps have ever been taken. But the idea resurfaced after the international payment providers stopped servicing four banks last week when Russia came up against a broader round of sanctions.
Thursday marked the first time the idea received presidential backing. "Why do we not do this? This definitely should be done and we will do this," Mr. Putin said in a meeting with members of Russia's upper house of parliament. "We need to protect our interests, and we will do it."
He pointed to similar national systems in Asia which he said should be used as models for creating Russia's own network.
"These systems work, and work very successfully in such countries as Japan and China. They originally started as exclusively national [systems] confined to their own market and territory and their own population, but have gradually become more and more popular," he said, noting that Japan's JCB system is now accepted in nearly 200 countries.
A new Russian competitor would represent another emerging-market threat to Visa and Mastercard, who already have a much bigger threat to worry about: China’s UnionPay, a state-backed payments network, is now accepted in 141 countries and was used for $3.3 trillion in purchases in 2012. That’s less than the $5.7 trillion that went through Visa-branded cards, but more than MasterCard’s $2.7 trillion.
JCB: Japan Credit Bureau
JCB stands for Japan Credit Bureau and has some 60 million cardholders worldwide, in 200 countries and regions including the U.S., China, Taiwan, the Philippines, Korea, Singapore, Australia, England and Germany. The cardholders of this Japanese credit card have above-average purchasing power, making them a very attractive target group. To provide an indication, with an average transaction amount of $ 250, JCB has surpassed American Express in the U.S., the latter having an average transaction amount of $ 125. Visa/MasterCard follow with $ 60 per transaction. In total, approximately 63 billion dollars in purchases are charged on these cards worldwide each year.
Advantages And Possibilities
On average, JCB cardholders have an income that is above average, and their average transaction amount is at least twice as high as that for other credit cards. By offering payments using JCB in your webshop, you will be able to reach a target group in the higher segment of the market, thus enabling you to increase your turnover considerably.
The Advantages of JCB For Your Website:
* Reach Consumers In 190 Countries;
* Significant Reach In The United States;
* Reach A Target Group Of Consumers With Very High Purchasing Power And Increase * Turnover;
* Option For Protection From Fraud Using 3-D Secure.
* Recurring Payments For Jcb Available.
Online JCB Transactions: How It Works For Customers:
If you would like to include JCB as one of the payment methods you offer in your webshop, you must complete the general application procedure for Credit Cards (VISA/MasterCard) with ICEPAY. This application procedure takes at least two weeks, yet can sometimes take even longer. This is due to the requirements the credit card companies set for their providers.
For Your Customers, Paying Using The JCB Card Is Easy.
(1). All Your Customer Has To Do Is:
(2). Choose A Product In Your Webshop;
(3). Choose Jcb As The Payment Method;
(4). Execute The Payment And Approve It Via The Secure Jcb Environment;
And: The Payment Is Complete.
China UnionPay Overtakes Mastercard And Visa To Become The World's Most Used Payment Card
Purchases for goods and services from merchants worldwide in 2013 grew by $2.786 trillion or 22.0% to $15.422 trillion*. The most popular payment method based on purchase volume were UnionPay debit cards, which for the first time surpassed Visa credit cards and Visa debit cards, according to the annual report, Global Cards, published in the current issue of The Nilson Report, the top trade newsletter covering the card and mobile payment industries. UnionPay, established in 2002, is the national bankcard association in China.
When comparing credit card purchase volume only, Visa's market share of 39.22% was down 262 basis points. MasterCard's share dropped 158 basis points to 26.08%. UnionPay's share grew by 534 basis points to 20.39%. American Express's share fell 109 basis points to 11.79%. JCB's share improved by 3 basis points to 2.21%, and Diners Club's share declined 8 basis points to 0.32%.
When comparing debit card purchase volume only, UnionPay's share increased 738 basis points to 47.19%. This gain made UnionPay the largest general purpose debit card issuer based on purchase volume. Visa's share fell 605 basis points to 40.62%, and MasterCard's share declined by 133 basis points to 12.20%.
UnionPay, established in 2002, is the national bankcard association in China. With its pivotal role in China’s bankcard industry, UnionPay is responsible for operating the unified inter-bank clearing and settlement system in China and developing the international acceptance network for UnionPay cards. By collaborating with various parties of the Bandcard industry, UnionPay has greatly boosted the development of China’s bankcard industry.
To date, the total number of UnionPay cards issued worldwide has exceeded 2.1 billion; in 2009, the number of UnionPay card inter-bank transactions reached 7 billion totaling USD 1.1 trillion; the number of merchants, POS terminals and ATMs reached 2.13 million, 2.88 million and 930 thousand respectively. UnionPay has also established partnerships with around 400 financial institutions all over the world.
As of now, UnionPay card international acceptance network covers all of China, and also extended to more than 90 countries and regions in 5 continents. Over 10 of them, including Japan, Korea, Singapore, Russia andMongolia have issued UnionPay cards.
Relying on China, the world’s most vibrant emerging economy and the world’s largest cardholder group, UnionPay not only provides quality, secure and efficient payment services for hundreds of millions of cardholders all over the world, but also brings brand new payment choices and values to partners as well as energy and opportunities for the global bankcard industry!
UnionPay will further enhance international cooperation in the future, work hand in hand with partners to achieve mutual development and success,to build UnionPay into a major international bankcard brand with global influence, and to make a greater contribution to the overall prosperity of the global bankcard industry.
UnionPay, Serving Cardholders all around the world!
Payment Methods In Select Countries
Global Payment Options
It’s no easy feat to expand to new markets abroad. In addition to considering country-specific rules and regulations, there’s localization—including payment practices.
Companies are eager to get best practices advice and insight related to their expansion plans. How large is the market in that country?
How much do shoppers spend online? And importantly, what are the payment methods accepted?
One of the most important aspects to consider when entering new markets is payment acceptance. By taking consumer online payment preference into consideration, you may see a dramatic lift in sales.
We’ve taken snapshots of the countries we’re asked most often about, and have provided some of the insights organizations like yours are finding useful as they expand into new markets. The snapshots include data on eCommerce activity, online payment preferences, as well as commentary on specific nuances in each country as it relates to payments.
Currency:
Brazilian Real
Repatriation:
Not Difficult
Number of Online Shoppers:
~23 million online shoppers in 2013
eCommerce Sales Volume:
R$26.8 billion (~$16.8 billion USD) in 2013
Average Annual Sales per Online Shopper:
R$1,165 (~$731 USD) in 2013
eCommerce Growth Rate:
35% growth in 2013
~30% of the cards in Brazil can only transact in-country.
You should establish domicile if business needs warrant.
Credit card installment payments are popular due to
low credit limits. You can be paid up front by the card
associations, but you’ll incur interest on the installment
payments. Banks typically fund in 31 days, and there may
be chargebacks, credits, deferred/delayed settlements in
the interim. Also, you’ll need to manually pull statements
from each bank, all of which have different formats.
PLEASE NOTE: Brazilian authorizations have a lifetime
of 5 days only. Captures submitted after 5 days will fail.
Nearly 15% of online payments are boleto bancarios,
which are offline bank transfers with expiration dates
(customer must pay within a certain timeframe or the
order can be cancelled). Boletos are popular because they
help preserve the customer’s open to buy on credit cards.
The customer can go to any bank or use online banking
to authorize bank transfers. Boletos are settled/funded
2-3 days after funds transfer. Refunds for boletos are not
connected to the original payment, and are done manually
by issuing a check or bank wire to the customer.
• Use a domestic acquirer in order to accept most
Brazilian issued credit cards.
• Regular credit card payments fund in 31 days after
settlement OR you can pay higher discount fee and get funding within 3 days.
• Up to 12 installment payments are available for Visa, MasterCard, American Express; up to 14 installments for Hipercard. You are paid 31 days after installment due date.
Currency:
Canadian Dollar
Repatriation:
Not Difficult
Number of Online Shoppers:
~ 10 million online shoppers in 2013
eCommerce Sales Volume:
C$ 8.5 billion in 2013
Average Annual Sales per Online Shopper:
C$1,651 (~$1,501 USD) in 2013
eCommerce Growth Rate:
9.4% in 2013
Until 11/08, Canadian law prohibited banks from offering merchant accounts for both MasterCard and Visa. Banks are now able to offer a single merchant account that covers both brands.
According to the Nielsen Company, Canadians primarily used credit cards to pay for online purchases (79%), followed by PayPal (47%). PayPal claims that Canadians make over 1,200 cross-border transactions per hour, and that they purchase $2B CAD online annually. Nearly all online retail purchases are paid with credit cards, due to some limitations with debit card functionality in Canada (primarily used as ATM cards, where consumers input PIN). Interac is the incumbent debit network in Canada. However, Visa and MasterCard debit cards have recently entered the Canadian market, which may change the payments landscape.
As there are 69.7 million Visa and MasterCard cards in circulation as of October 2009, we believe that nearly 100% of the addressable market would be able to purchase online. Across all channels, 55% of consumer payments are on cards; of card payments, 40% are Visa- branded, 35% are Interac (debit card brand; only used at retail POS using PIN), 20% are MasterCard, and 5% are American Express.
Currency:
Chinese Yuan (Renminbi)
Repatriation:
Very Difficult
Number of Online Shoppers:
180 million online shoppers in 2013
eCommerce Sales Volume:
651.1 billion RMB (~ $95.2 billion USD) in 2013
Average Annual Sales per Online Shopper:
4,340 RMB (~$635 USD) in 2013
eCommerce Growth Rate:
75% growth in 2013
eCommerce customers predominately use COD or Chinese debit cards (which are used like online bank transfers). Credit cards are not widely available but growing rapidly.
Certain Chinese debit accounts have daily spending limits, sometimes as low as 300 RMB (~$44). Savvy eCommerce merchants, particularly those with foreign registry, do not offer COD. Since Chinese customers prefer to inspect goods prior to purchase, some merchants have had about 30% of their merchandise returned without payment, in many cases damaged or spoiled. Also, merchants must bond the COD courier. Rather than offer COD, these merchants offer liberal return policies instead.
Each bank issues its own debit cards, so you would need to connect to each of the 20+ local banks for maximum market coverage. Or, you can form an acquiring relationship with payment intermediaries that have relationships with all of the major Chinese banks, enabling you to provide online bank transfers to your customers while offering consolidated funding reports to you.
You should be domiciled in China and have Internet Content Provider and business licenses; the payment intermediaries can help you transact in their country. Merchants can repatriate, however, transfer amount(s) are limited to a certain amount per month. We recommend that you consult with legal experts on doing business in China, as regulations and laws regarding eCommerce in China are evolving.
Currency:
Danish Kroner
Repatriation:
Not Difficult
Number of Online Shoppers:
~3 million
eCommerce Sales Volume:
€4.1 billion (US$5.7 billion) in 2013
Average Annual Sales per Online Shopper:
€1,367 (~US$1,300) in 2013
eCommerce Growth Rate:
30% CAGR 2006-2013
Credit and debit cards are used for the vast majority of online payments in Denmark. Most of these are via the Danish national debit card Dankort that can be used offline, at points of sale, as well as online.
In Q1 2013, online transactions made by Danish online buyers with their credit cards reached almost 10.49 million for the second quarter in a row. In the previous quarter, the number of Internet transactions via credit cards reached 10.40 million, while on a year-on-year basis, the number of such transactions for Q1 rose by 11.5%.
Nordic consumers decide on the online payment method according to ease of use, security and price. Thus, credit and debit cards rank highest in terms of their preferences, as a whole, followed by online bank transfers and invoices.
In spite of differences in terms of consumer habits and shopping patterns in the Nordic region, the distance selling market is showing sustained growth because of the popularity of online commerce, the wide range of products and services enabled by the Internet and significant customer demand.
Currency:
Euro
Repatriation:
Not Difficult
Number of Online Shoppers:
~2.5 million
eCommerce Sales Volume:
€3.4 billion (US$4.8 billion) in 2013
Average Annual Sales per Online Shopper:
€1,360 (~US$1,920) in 2013
In Finland, online bank transfers are frequently used to pay online. The services are offered by individual banks such as Nordea, Sampo, OKO and Aktia. This is followed by cards, invoices, cash on delivery, e-wallets and mobile payments.
Nordic consumers decide on the online payment method according to ease of use, security and price. Thus, credit and debit cards rank highest in terms of their preferences, as a whole, followed by online bank transfers and invoices.
In spite of differences in terms of consumer habits and shopping patterns in the Nordic region, the distance selling market is showing sustained growth because of the popularity of online commerce, the wide range of products and services enabled by the Internet and significant customer demand.
Currency:
Euro
Repatriation:
Not Difficult
Number of Online Shoppers:
~ 22 million online shoppers in 2013
eCommerce Sales Volume:
€16.9 billion (~$21.4B USD) in 2013
Average Annual Sales per Online Shopper:
€ 768 ($972) in 2013
eCommerce Growth Rate:
9% growth in 2013
The French have traditionally preferred to pay by check, but for online purchases, they use bank cards (including Carte Bleue), as well as private cards or store cards and checks. Domicile is not required for credit cards, but if you offer Carte Bleue, you will need to either establish a French entity or use a payment service provider.
There is a six-day authorization lifetime — the transaction must settle within six days of the authorization, or it can no longer be settled. We recommend that you settle no later than the 5th day to be conservative, OR authorize and settle in one call. However, if attempting the latter, please note that you are still subject to rules put forth by acquirer and card association. All authorization requests MUST include the CVN value.
The majority of payment methods in France are card- based. As there were 57.4 million cards in 2012, we believe that nearly 100% of the addressable market would be able to pay online using a credit or debit card. Also, there are over 8 million PayPal accounts in France, which would encompass over 35% of the addressable market.
Online Payments in Germany
Currency:
Euro
Repatriation:
Not Difficult
Number of Online Shoppers:
~ 32.5 million online shoppers in 2013
eCommerce Sales Volume:
€21.7 billion ($27.6 billion USD) in 2013
Average Annual Sales per Online Shopper:
€668 (~$825 USD) in 2013
eCommerce Growth Rate:
13% growth in 2013
In Germany, debit and cash-based transactions dominate
the payments landscape, with debit cards outnumbering
credit cards by nearly 5:1. Debit cards are primarily issued
by savings banks, which run payments over the electronic
cash network, and NOT the card association networks.
Therefore we believe that there is a sizeable opportunity in
offering non-credit card payment methods in Germany.
Germany has nearly 91 million deposit accounts, of which
35.3 million are Internet accounts. This is significant, as
Germans have a strong tradition of paying by bank transfer
or direct debit. Offering bank transfer and direct debit
payment methods enables a greater percentage of the
addressable market to pay online.
PayPal reports that there are over 10 million PayPal accounts
in Germany, about 1/3 of the addressable market. In
addition, giropay, introduced in 2011, is essentially the online
bank transfer mechanism for PostBank and 90% of German
savings and cooperative banks. This enables nearly 17
million online bank account holders to pay for goods online,
encompassing nearly 55% of the addressable market.
With credit cards, there is a seven-day authorization
lifetime — the transaction must settle within seven days
of the authorization, or it can no longer be settled. We
recommend that you settle NO LATER than the 6th day
to be conservative, OR authorize and settle in one call.
However, if attempting the latter, please note that you are
subject to rules put forth by acquirer and card association.
Online Payments in Japan
Currency:
Yen
Repatriation:
Not Difficult
Number of Online Shoppers:
~ 93 million online shoppers in 2013
eCommerce Sales Volume:
¥4.9 trillion ($61.5 billion USD)
Average Annual Sales per Online Shopper:
¥52,872 ($659 USD) in 2013
eCommerce Growth Rate:
13.5% growth in 2013
Although the Japanese have traditionally preferred to pay with cash, they use credit cards, COD, and bank transfers for online purchases. EDY, a stored value instrument, is also popular. With bank transfers, settlement occurs within 1-4 business days, but funding can take up to 30 days.
In Japan, credit card companies serve as both issuers AND acquirers; credit card companies are NOT banks. Typically, a Japanese merchant enters into a merchant account agreement with EACH credit card brand. So, to accept Visa, MasterCard, American Express/JCB and Diners, you would enter into separate merchant account agreements, unless you use a payment service provider.
Card-based payments occupy the highest market share in Japan. Because of the high penetration of cards in Japan (6.2 cards per capita), we believe that nearly 100% of the addressable market would be able to pay online using a credit or debit card.
JCB claims to have the highest market share in Japan, with 56 million JCB cards in circulation. JCB cards are also co- branded with MasterCard and Visa. Saison Card, with 27.6 million cardholders, claims to be the third-largest credit card issuer behind JCB and Visa Japan. Saison also co- brands with Visa, American Express, JCB and MasterCard.
Currency:
Peso
Repatriation:
Difficult
Number of Online Shoppers:
~22 million online shoppers in 2013
eCommerce Sales Volume:
$2.6 Billion USD in 2013
Average Annual Sales per Online Shopper:
$141 USD in 2013
eCommerce Growth Rate:
31% growth in 2013
Mexicans prefer to use bank cards, with a very high percentage consisting of POS-only cards requiring a PIN. One-third of e-commerce sales are international. We recommend having a local presence and a local banking relationship (for funds authorization and settlement) to accept customer payments, due to the strong prevalence of local bank cards. Mexico now requires CVN for all eCommerce transactions except those from merchants that initiate recurring transactions.
As there are 76.1 million cards in circulation, we believe that nearly 100% of the addressable market would be able to pay online using a credit or debit card. Also, as overall payment transactions (across channels) in Mexico are still overwhelmingly cash or debit based, offline bank transfers are frequently used.
The percent of eCommerce transactions made using a specific payment method are as follows: 73% of online transactions are card-based*, 8% are COD, with another 8% being bank transfer.
Currency:
Norwegian Kroner
Repatriation:
Not Difficult
Number of Online Shoppers:
~2.9 million
eCommerce Sales Volume:
€4.6 billion (US$6.4 billion) in 2013
Average Annual Sales per Online Shopper:
€1,586 (~US$2,207) in 2013
eCommerce Growth Rate:
21% CAGR 2006-2013
In Norway, cards are the most common way to pay online. Online bank transfers, such as through the multi-bank service BankAxess, as well as invoices, are also used to pay online. Cash on delivery and e-wallets are much less popular.
Nordic consumers decide on the online payment method according to ease of use, security and price. Thus, credit and debit cards rank highest in terms of their preferences, as a whole, followed by online bank transfers and invoices.
In spite of differences in terms of consumer habits and shopping patterns in the Nordic region, the distance selling market is showing sustained growth because of the popularity of online commerce, the wide range of products and services enabled by the Internet and significant customer demand.
Online Payments in Sweden
Currency:
Krona
Repatriation:
Not Difficult
Number of Online Shoppers:
~4.8 million
eCommerce Sales Volume:
€7.7 billion (US$10.8 billion) in 2013
Average Annual Sales per Online Shopper:
€1,604 (~US$2,248) in 2013
eCommerce Growth Rate:
26% CAGR 2006-2013
In Sweden, cards, online bank transfers and invoices have a roughly equal share, and together represent over 90% of the online payments market.
Cards used in Sweden are the international card brands. Online bank payments are offered by individual banks such as Nordea, Handelsbanken, SEB and Sedbank.
Nordic consumers decide on the online payment method according to ease of use, security and price. Thus, credit and debit cards rank highest in terms of their preferences, as a whole, followed by online bank transfers and invoices.
In spite of differences in terms of consumer habits and shopping patterns in the Nordic region, the distance selling market is showing sustained growth because of the popularity of online commerce, the wide range of products and services enabled by the Internet and significant customer demand.
Currency:
Pound Sterling
Repatriation:
Not Difficult
Number of Online Shoppers:
~ 30 million online shoppers in 2013
eCommerce Sales Volume:
£42.7 billion ($61.5 billion USD)
Average Annual Sales per Online Shopper:
£ 1,545 (~$2,226 USD) in 2013
The majority of payment methods in the UK are card- based. Because of the high penetration of cards used in the UK (2.4 cards per capita), we believe that nearly 100% of the addressable market would be able to pay using a credit or debit card. Furthermore, there are 23 million PayPal accounts in the UK, which would cover approximately 75% of the addressable market.
Domicile is not required for credit cards, but to accept local debit cards you will need to establish a European entity or go through a payment service provider that can provide the local banking relationship.
The UK has many of the same fraud tools that are available in the United States, however, public records availability is more limited. Card verification tools, such as AVS, CVV, and payer authentication are all used. MasterCard has mandated that all merchants must support SecureCode for Maestro transactions.
The percent of eCommerce transactions made using a specific payment method are as follows; 76% of online purchases are card-based, with the remainder being PayPal and other payment methods.
Monty Henry, Owner
Next-Generation Bug / Microwave / ELF / Spy Phone / GSM And Camera Detectors (Buy, Rent, Layaway) tinyurl.com/2eo8mlz Open...
— Spy Store Rentals (@MontyHenry1)
Nanny IP (Internet) Cameras, GPS Trackers, Bug Detectors and Listening Devices, etc, (Buy / Rent / Layaway): tinyurl.com/396jlw6...
— Spy Store Rentals (@MontyHenry1)
NOW, look in on your home, second home, lake house or office anytime, anywhere from any internet connected PC/Lap-top or Internet active cell phone, including iphone or PDA.
Watch your child's caregiver while sitting at a traffic light or lunch meeting, or check on your business security from the other side of the world. Our built-in hidden video features all digital transmissions providing a crystal clear image with zero interference. With the IP receiver stream your video over the internet through your router, and view on either a PC or smart phone. Designed exclusively for DPL-Surveillance-Equipment, these IP hidden wireless cameras come with multiple features to make the user's experience hassle-free.
NOW, look in on your home, second home, lake house or office anytime, anywhere from any internet connected PC/Lap-top or Internet active cell phone, including iphone or PDA: http://www.dpl-surveillance-equipment.com/wireless_hidden_cameras.html
Watch your child's caregiver while sitting at a traffic light or lunch meeting, or check on your business security from the other side of the world. Our built-in hidden video features all digital transmissions providing a crystal clear image with zero interference. With the IP receiver stream your video over the internet through your router, and view on either a PC or smart phone. Designed exclusively for DPL-Surveillance-Equipment, these IP hidden wireless cameras come with multiple features to make the user's experience hassle-free.
• Remote Video Access
• Video is Recorded Locally To An Installed SD Card (2GB SD Card included)
• Email Notifications (Motion Alerts, Camera Failure, IP Address Change, SD Card Full)
• Live Monitoring, Recording And Event Playback Via Internet
• Back-up SD Storage Up To 32GB (SD Not Included)
• Digital Wireless Transmission (No Camera Interference)
• View LIVE On Your SmartPhone!
Includes:
* Nanny Cameras w/ Remote View
* Wireless IP Receiver
* Remote Control
* A/C Adaptor
* 2GB SD Card
* USB Receiver
FACT SHEET: HIDDEN NANNY-SPY (VIEW VIA THE INTERNET) CAMERAS
Specifications:
Receiver Specs:
* Transmission Range of 500 ft Line Of Sight
* Uses 53 Channels Resulting In No Interference
* 12V Power Consumption
* RCA Output
* Supports up to 32gig SD
Camera Specs:
* 640x480 / 320x240 up to 30fps
* Image Sensor: 1/4" Micron Sensor
* Resolution: 720x480 Pixels
* S/N Ratio: 45 db
* Sensitivity: 11.5V/lux-s @ 550nm
* Video System: NTSC
* White Balance: Auto Tracking
• Video is Recorded Locally To An Installed SD Card (2GB SD Card included)
• Email Notifications (Motion Alerts, Camera Failure, IP Address Change, SD Card Full)
• Live Monitoring, Recording And Event Playback Via Internet
• Back-up SD Storage Up To 32GB (SD Not Included)
• Digital Wireless Transmission (No Camera Interference)
• View LIVE On Your SmartPhone!
Includes:
* Nanny Cameras w/ Remote View
* Wireless IP Receiver
* Remote Control
* A/C Adaptor
* 2GB SD Card
* USB Receiver
FACT SHEET: HIDDEN NANNY-SPY (VIEW VIA THE INTERNET) CAMERAS
Specifications:
Receiver Specs:
* Transmission Range of 500 ft Line Of Sight
* Uses 53 Channels Resulting In No Interference
* 12V Power Consumption
* RCA Output
* Supports up to 32gig SD
Camera Specs:
* 640x480 / 320x240 up to 30fps
* Image Sensor: 1/4" Micron Sensor
* Resolution: 720x480 Pixels
* S/N Ratio: 45 db
* Sensitivity: 11.5V/lux-s @ 550nm
* Video System: NTSC
* White Balance: Auto Tracking
Make Your Own Nanny Cameras: Make Tons Of Money In A Booming, Nearly Recession-Proof Industry!
Your Primary Customers Include But Are Not Limited To Anyone In The Private Investigator, Government, Law Enforcement And/Or Intelligence Agencies Fields!
* You Buy Our DVR Boards And We'll Build Your Products! (Optional)
* You Buy Our DVR Boards And We'll Build Your Products! (Optional)
Our New Layaway Plan Adds Convenience For Online Shoppers
DPL-Surveillance-Equipment's
layaway plan makes it easy for you to buy the products and services
that you want by paying for them through manageable monthly payments
that you set. Our intuitive calculator allows you to break down your
order's purchase price into smaller payment amounts. Payments can be
automatically deducted from your bank account or made in cash using
MoneyGram® ExpressPayment® Services and you will receive your order once
it's paid in full. Use it to plan and budget for holiday purchases,
anniversaries, birthdays, vacations and more!
DPL-Surveillance-Equipment's
Customers can now use the convenience of layaway online to help them
get through these tough economic times.
We all shop now
and then just to face a hard reality -- big credit card bills. However,
our latest financing innovation can help you avoid that. Find out why
more and more shoppers are checking out DPL-Surveillance-Equipment's
e-layaway plan.
If you're drooling over a new nanny
camera, longing for a GPS tracker, or wishing for that spy watch, but
you're strapped for cash and can't afford to do credit, do what Jennie
Kheen did. She bought her iPod docking station (hidden camera
w/motion-activated DVR) online using our convenient lay-away plan.
Our
online layaway plan works like the old-fashioned service stores used to
offer. But, in Kheen's case, she went to
DPL-Surveillance-Equipment.com, found the iPod docking station (hidden
camera w/motion-activated DVR), then set up a payment plan.
"It's automatically drawn from my account," she said. "I have a budget, $208.00 a month.
In
three months, Kheen had paid off the $650.00 iPod docking station. She
paid another 3.9 percent service fee, which amounted to about $25.35
(plus $12.00 for shipping) for a total of $687.35.
"You
pay a little bit each month," Kheen said. "It's paid off when you get
it and you don't have it lingering over your head. It's great."
Flexible
payment terms and automated payments make our layaway plan an
affordable and fiscally responsible alternative to credit cards.
1. Register:
It's quick, easy and FREE! No credit check required!
2. Shop:
Select
the items or service you want and choose "e-layaway" as your payment
option. Our payment calculator makes it easy for you to set up your
payment terms.
3. Make Payments:
Payments are made on the schedule YOU set. Check your order status or adjust your payments online in a secure environment.
4. Receive Products:
Receive the product shortly after your last payment. The best part, it's paid in full... NO DEBT.
More Buying Power:
*
Our lay-away plan offers a safe and affordable payment alternative
without tying up your credit or subjecting the purchase to high-interest
credit card fees.
No Credit Checks or Special Qualifications:
* Anyone 18 years old or older can join. All you need is an active bank account.
Freedom From Credit Cards:
*
If you are near or beyond your credit limit or simply want to avoid
high interest credit card fees, our e-layaway is the smart choice for
you.
Flexible Payment Schedules:
*
Similar to traditional layaway, e-layaway lets you make regular payments
towards merchandise, with delivery upon payment in full. Payments are
automatically deducted from your bank account or made in cash using
MoneyGram® ExpressPayment®
A Tool for Planning Ahead:
*
Our e-layaway makes it easy for smart shoppers like you to plan ahead
and buy items such as bug detectors, nanny cameras, audio bugs, gps
trackers, and more!
No Hidden Charges or Mounting Interest:
Our
e-layaway makes shopping painless by eliminating hidden charges and
monthly interest fees. Our customers pay a flat transaction fee on the
initial purchase price.
NO RISK:
* You have the right to cancel any purchase and will receive a refund less a cancellation fee. See website for details.
Security and Identity Protection:
DPL-Surveillance-Equipment
has partnered with trusted experts like McAfee and IDology to ensure
the security and integrity of every transaction. Identity verification
measures are integrated into our e-layaway system to prevent fraudulent
purchases.
Note: Simply Choose e-Lay-Away as a "Payment Option" in The Shopping Cart
DPL-Surveillance-Equipment.com
is a world leader in providing surveillance and security products and
services to Government, Law Enforcement, Private Investigators, small
and large companies worldwide. We have one of the largest varieties of
state-of-the-art surveillance and counter-surveillance equipment
including Personal Protection
and Bug Detection Products.
Buy, rent or lease the same
state-of-the-art surveillance and security equipment Detectives, PI's,
the CIA and FBI use. Take back control!
DPL-Surveillance-Equipment.com
Phone: (1888) 344-3742 Toll Free USA
Local: (818) 344-3742
Fax (775) 249-9320
Monty@DPL-Surveillance-Equipment.com
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Alternate Email Address
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Phone: (1888) 344-3742 Toll Free USA
Local: (818) 344-3742
Fax (775) 249-9320
Monty@DPL-Surveillance-Equipment.com
Google+ and Gmail
DPLSURVE
DPLSURVE
MSN
Monty@DPL-Surveillance-Equipment.com
AOL Instant Messenger
DPLSURVE32
Skype
Montyl32
Yahoo Instant Messenger
Montyi32
Alternate Email Address
montyi32@yahoo.com
Join my Yahoo Group!
My RSS Feed
posted by DPL-Surveillance-Equipment | 9:58 AM
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