New Platform Offers Solution to Secure Online and Mobile Payments

5/13/2013
Alaric, a global supplier of fraud prevention and payments solutions, has announced that it is now offering the innovative myPinPad™ product. This proprietary solution enables cardholders to securely control the authorization of payments via the entry of their PIN on touch-screen payment terminals, smart phones, tablets and online. The combination of myPinPad and Alaric’s Authentic ™ solution for transaction processing delivers an end-to-end platform for mobile and online payments, with EMV-level security.

myPinPad enables the secure processing of mag-stripe or chip cards. It addresses the challenges of securely authorizing card payments through its highly-scalable virtual EFTPOS and ATM platform, which presents the cardholder with a one-time virtual PIN pad - effectively moving the security elements of the transaction from the device and into the cloud. Via myPinPad, the cardholder can enter his/her PIN securely. All data relating to the transaction authorization is effectively invisible until it is authorized at the secure server.

The integrated Authentic and myPinPad solution seamlessly enables the processing of the entire transaction as a traditional card payment, irrespective of where it originated. For acquirers and issuers, no system changes are required. Transactions will continue to be processed the same as any other card transaction. The key differentiator is that the PIN is verified online with the issuing bank, as opposed to offline via the card and terminal.

The solution has significant benefit to the entire payments ecosystem:
  • Improving risk and fraud protection
  • Converting card not present (CNP) to card present with PIN transactions, with the consequence of reducing fees and  the possibility of chargebacks to merchants and PSPs
  • Reducing terminal costs for card acceptance as standard smart phones or tablets are used
  • Enabling acquirers and PSPs to expand the number of merchants who can accept card payments 
This new business solution from Alaric and myPinPad will help banks, card schemes, acquirers and payment service providers to increase transaction volumes simply and securely, move into new markets, develop new products, and increase cardholder trust throughout the payment ecosystem.

To initiate a transaction, a secure virtual PIN Entry Device (PED) is created which integrates with all of today’s current and emerging payments technologies. PEDs can be created on almost all mobile, tablet and browser platforms, delivering PIN verified transactions without investment in EMV-capable POS terminals.

This cloud-based virtual architecture has also facilitated development of an ultra-low cost traditional EFTPOS terminal, supporting all traditional payment methods including Swipe/Chip and NFC. It can be integrated with next generation online wallet technology, allowing customers to pay in store simply with their mobile number or username.

In countries where online PIN isn’t supported at the point of sale, myPinPad provides an alternative solution for banks and processors, utilizing current banking systems/protocols. This online architecture is required by banks to deliver effective next generation wallet payment systems.
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