Looking Beyond EMV

Source: First American Payment Systems
Bill Lodes

EMV has been in place for nearly six months, but ISVs can’t afford to rest. There are new payment security issues to be concerned with, but which ones needs immediate attention? In this exclusive interview, Bill Lodes, SVP of business development & strategy at First American Payment Systems, explains what’s on the horizon for ISVs, what needs to be done to properly address payments security, and where time will best be spent the rest of the year.

BSM: What payment security issues, apart from EMV, should ISVs have on their radar?

Lodes: Payment security can be a complicated task for ISVs to undertake. Many ISVs are not aware of the best ways to minimize security issues, nor do they necessarily have the right solutions in place for protection. Beyond EMV, there are several other security issues ISVs should be on the lookout for this year.

EMV, along with several other security products such as tokenization and end-to-end encryption, have helped decrease fraud for card-present transactions and has shown to be a valued solution for many merchants. However, due to the heightened security in stores, most hackers are now moving to online fraud. Since chip card technology does not apply to online purchases, online payments are a focus for fraudsters to capture personal payment information.

ISVs need to protect themselves and their customers by ensuring they have the most comprehensive security solutions in place. As I mentioned, things like tokenization and encryption will help protect them from data breaches, fraud, and other payment security issues they might encounter. In addition, it’s imperative that ISVs ensure they are PCI compliant. We advise ISVs on this as PCI guidelines change every year.

At the end of the day, ISVs need a robust set of payment security solutions to minimize any security risks. There isn’t one magic bullet — it’s a combination of many security products that will protect ISVs and their customers.

BSM: Payments security is a constantly moving target. What advice do you have for ISVs concerning how to affordably and adequately address security?

Lodes: ISVs should work with a trusted payments provider who can help combat incidences of online fraud, breaches, and other payment security issues. ISVs spend the majority of their time focused on the value of their software and ensuring customer satisfaction. They aren’t always thinking about payment security, and that’s where we come in. We monitor changes and security trends in payments and ensure our partners are covered. A valued payments provider can give ISVs the support, guidance, and products needed to combat security problems and help them seamlessly integrate security solutions.

BSM: How do NFC-based payments fit into the near-term future of payments?

Lodes: As contactless payments continue to gain attention, many business owners are beginning to deploy NFC capable terminals for their business. NFC offers an array of security solutions and has begun breaking ground with the popularity of mobile wallets. Many consumers are opting to utilize their smartphones to make purchases over standard cash or credit card and this trend will continue to grow in the future. NFC will simplify and bring convenience to our lives as our world continues to become more digitally influenced.

BSM: ISVs have limited time and resources to devote to payment integration. What is the best use of their payments development time in 2016?

Lodes: If they haven’t started thinking about integrating EMV, now is the time. This will be a big year for EMV as well as the continued adoption of mobile payments. The sooner ISVs start EMV integration, the better.  We are confident 2016 will be a key year for payments and we are excited to assist our ISV partners in taking advantage of EMV and many other payment options for their customers.