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2017

Customers expect their payment data to be protected when used online. As they make a conscious decision when their cardholder data into a website, if the checkout page doesn’t resonate with a sense of trust, they will abandon their cart. 

 

Cart abandonment can be anywhere from 55% and 75% and of those consumers who dropped out of a purchase, 17% mentioned “concerns about payment security” as a reason as they didn’t enter their credit card information into a site[1].” 

For face to face transactions, the indication of the chip embedded in their credit card is obvious. While chip cards were designed specifically to reduce fraud at the POS, customers recognize the difference from dipping their card into a POS device versus swiping, which was an experience change the US market had to overcome.  The challenge with eCommerce in the chip card era is that there has not been a customer experience change, so cardholders are unable tell the difference from a secure or non-secure experience. This means that customers have to rely on their personal intuition, rather than facts, in order to proceed or drop out.

 

 

The Perception of Trust

 

If cardholders are only relying on perception, then how do they know when ecommerce retailers have invested significant resources and money in adequately protecting their sites? In some surveys, as many as 61% of participants said they had decided not to purchase a product because it was missing a security badge.

 

A trust badge, or trust seal, is a symbol placed on websites that ensure the customer that site is legitimate
and that all their personal data is collected securely through trusted third-party service providers.  Such examples are visual padlocks and or shield marker strategically placed by the payment forms to encapsulate the payment fields from the rest of the page.

 

The most common badges used are SSL (secure socket layer) seals, symbolizing a secure connection for credit card data to be transmitted for processing. While these badges establish customer data protection through use of cryptography, SSL doesn’t actually prevent attackers from stealing payment  data to be used for fraudulent transactions, which is ultimately what customers care about most.

 

Customer Perception is Vital

 

Cardholder perception is more important than actual implemented security, and the absence of visual cues of confidence like a trust badge can lead to customer skepticism, and may be willing to switch to a different site where they feel more secure.  

 

What’s even more interesting is that some findings state that placing any type trust badge on a site helps establish credibility with consumers – even if the customer doesn’t really understand what the badge embodies, or who the third-party service provider is.

 

More concerning is that retailers can purchase trust badges at online marketplaces, creating a false sense of security without implementing actual security to stay abreast with the ‘me too’ philosophy. In the fast-paced paced eCommerce
environment, do customer’s dedicate the attention and time or possess the technical experience to differentiate from the two badges below?

 

If customers don’t have the technical expertise to identify legitimate sites from imposters, what are their requirements beyond personal feelings, and who is enforcing misuse of their confidence?

 

A Shift Beyond Perceived Security

 

Turkish ecommerce is already moving in this direction through the Communique on Trust Seal in Electronic Commerce, established this year to foster more trustworthy environments by regulating security standards for obtaining a trust seal for eCommerce websites. The Communique aims for better adoption of legitimate trust seals by ensuring that providers
meet certain security standards, best practices, and punishing those that abuse.
[2]

 

While the deployment of legitimate trust badges like McAfee and VeriSign have been deployed in US  ecommerce environments, the breadth of third-party badges has created dilution, resulting in customers having to interpret who these organizations are and if they can even be trusted.  Though the saturation of badges has resulted in fragmentation, this has proven to be an effective means to establish trust, but given the anticipated growth of US ecommerce over the next several years, this model won’t scale.

 

Universality is Needed

 

In order to scale beyond perception, the payments industry needs an interoperable CNP icon that represents these characteristics much like the chip card has embodied security for card present transactions. While there are global security standards for the web like W3C and OWASP, cardholders wouldn’t recognize these bands as they are
aimed at protecting for data for financial institutions with protecting data, rather than end customers.

 

Given this consumer obstacle, while it makes sense the payment networks like Visa and MasterCard develop a graphical element that possesses credibility, it would also be more beneficial for the payments industry to build awareness through a totally new archetypal icon that embodies technical security and trust the market has yet to see.

 

 


[1] https://monetizepros.com/ecommerce/5-trust-badges-that-can-increase-your-conversion-rate/

[2] http://www.mondaq.com/turkey/x/634844/Consumer+Law/Trust+Seal+In+ECommerce

Kevin Eksterowicz is a Talent Acquisition Leader at Vantiv. I asked him about the new hiring approach that Vantiv rolled out this year (and that my team has used to great success). Here's what he had to say:

 

One of the most impactful exercises a company executes is its selection of new employees.  And when you’re growing as rapidly as Vantiv, the stakes are especially high.  In 2016 alone, we filled almost 1,400 jobs! 

 

However, when we scanned the organization late last year, a few things stuck out like a sore thumb:

  • Our interview and selection process lacked consistency and structure.
  • Interview training and tools were not on any of our curriculum.
  • Feedback on candidate experience was often lackluster at best.
  • Turnover within the first 12 months of hire was 23%, 75% of which took place within the first six months. 

 

We stopped in our tracks and realized that we had a huge opportunity in front of us to deliver value and impact to this growing organization.

 

After months of planning, developing and piloting, we launched Vantiv’s SELECT! program on July 31st. SELECT! is an approach to interviewing and selection that embraces a set structure and strategy for all roles in the organization, ideally with just one on-site visit limited to four interview sessions.  These sessions are tied directly to Vantiv’s leadership model and evaluate a candidate not just on experience and job titles, but through deep focus on the competencies required for success. 

 

We call these sessions our interview focus areas: 

 

  • Role Fit
  • Business Impact
  • Leadership/Self-Leadership
  • Culture & Values. 

 

Focus areas remain consistent across all levels of the organization, yet the competencies and suggested interview questions vary by level.  The outcome is a well-rounded candidate evaluation and a candidate experience that feels robust, streamlined and smooth. 

SELECT with text.png

 

Our Talent Management and Talent Acquisition teams worked hand-in-hand to develop this program complete with:

  • Interactive, online, level-based interview guides with recommended behavior-based interview questions
  • An interactive feedback mechanism to capture candidate-specific scores and notes for each focus area
  • Mandatory comprehensive eLearning courses:  one for people leaders, one for individual contributor interview panelists
  • Half-day classroom training
  • People Leader and Interviewer job aids
  • An Interview Checklist
  • Custom approaches for nuanced groups:  sales (remote), executive, front-line operations

 

Just three months in, almost every people leader (740+) and over 300 interviewers have completed the eLearning. New hire Michael Rose was one of the first candidates to go through the new hiring process. He said, "As I interviewed with potential new employers, Vantiv’s interview process stood out above the pack. Vantiv sent a clear message to me during the interview process… a well-organized and focused approach to finding the best candidate while providing an excellent candidate experience for me. The detailed/thoughtful interview process was a large factor for me choosing Vantiv!  Even the follow-up call from my new Leader after I had accepted the offer reassured me I had definitely made the right choice.”

 

Early feedback on the SELECT! process is very positive and by this time next year, we target marked improvement in early attrition, candidate experience feedback, time to fill metrics and hiring manager satisfaction feedback. Hiring Manager Shannon Reichart said of SELECT!, “this team approach has not only helped me as a hiring manager to make an informed decision regarding new hires, but I believe that it is creating a positive experience for our candidates, providing them with greater insights into Vantiv from other perspectives. Select will give us the foundation that we need as a leadership team to recruit, develop, and retain great people here at Vantiv!”

Apple will launch Face ID with their Apple X (pronounced Ten) to be released in November. Along with its many new features, it will introduce a new biometric-based technology for customers to authenticate themselves when using Apple Pay, the mobile payment and digital wallet service that lets users make payments using an eligible Apple device. With the introduction of Face ID comes the removal the home button that’s been traditionally used for Apple’s
Touch ID, the forensic fingerprinting technology to unlock the phone and process Apple Pay transactions. Apple reports the new Face ID technology creates more unpredictability than the legacy Touch ID technology, utilizing
millions of data points to recognize facial expressions and changes to hair color, grow facial hear, glasses, and outerwear using machine learning. Prior studies reported the chance a random person could use a fingerprint to unlock an iPhone is about 1 in 50, 000 whereas studies have shown the probability to unlock Face ID is closer one and a million.

 

Is Smart Tech Good Enough?

Additional compensating controls have been implemented to detect spoofing and misuse, using an alert detection to ensure the owner’s eyes are open.  To counter, equally elegant spoofing technologies will be developed and implemented, especially with the social media and facial images over the open internet could present an obstacle to prevent against attacks, such as an attacker who can use the same machine learning recognition can identify photos of your face, family or friends who have posted pictures on Facebook or Twitter.  As with any new technology
introduced into the market, its largest obstacle to success is to achieve consumer credibility. Juniper Research has released the results of a new survey that finds that over 40 percent of iOS users in the U.S. are unlikely to use Face ID as payment security technology, and would rather use voice recognition or fingerprint scanning for mobile payments authentication measures. Given Face ID’s unproven credibility in the market, its adopters will tread cautiously as stolen stored credentials, whether they are stored on the device or hosted in the cloud, has a tendency for customers to be skeptical with its use. While Apple systems have never been breached, Apple customers can be at risk of having their devices attacked if they use the same passwords across multiple sites including their iCloud password.

 

The Market Will Tell

Apple has an enormous obstacle to tackle – increasing the security of payments without scaring away customers through the unnerving process of pointing a device at their face, which could prove to be awkward in public places. Through all its initial reservations, if Face ID is proven to reduce the payment processing friction without introducing other impacts, and lives up to its value proposition to its customers that its faster and simpler, it will gain adoption in the market over prior consumer authentication measures.

 

Would you use Face ID for payments?

Would you be willing to use the new facial recognition technology for payment acceptance or would you be resistance to new and unproven technologies? Would you have privacy concerns with facial recognition due to a lack of trust with solution providers? Do you think it may take too long to authenticate a transaction or would the experience be awkward?

 

 

Let us know your thoughts in the comments!

I don’t like to start arguments, but I'll go toe-to-toe when I feel it's necessary. I did that recently during a discussion about resellers and software developers in the POS channel. “They have to change,” my colleague said, to which I quickly responded, “No, they don't. You're allowed to become irrelevant. You're allowed to lose money and close your doors. They don’t have to do anything.”

 

Obviously, I want all Vantiv’s partners in the point of sale channel to adapt and thrive. For them I strongly recommend Dual Transformation, one of the most powerful business strategy books I’ve ever read. I heard about the book while listening to a Harvard Business Review podcast recently and bought it immediately because it addresses what I think is the biggest challenge facing our channel and our individual businesses.

 

Dual Transformation talks about disruption and how to reposition your company for the future. Being part of the IT and publishing industries since 1993, I’ve seen my share of transformations, and the authors are spot-on about how to identify disruption and how to lead the transformation of your business. When you read “The 7 Warning Signs of Industry Disruption” with the POS channel in mind, you’ll be nodding your head in agreement – guaranteed.

 

I’ll share some of my favorite quotes and concepts below, but I strongly encourage you to buy the book and use it as a guide to transform your ISV business.

 

  1. The series Game of Thrones has a saying: winter is coming. It isn't winter that's coming to your boardroom. It is disruption. Disruption is coming. And it is coming at an unprecedented pace and scale.
  2. Creating a new business from scratch is hard, but executives of incumbents have the dual challenge of creating new businesses while simultaneously staving off never-ending attacks on existing operations.
  3. The time when leaders need to be most prepared for a change is right at the moment when they feel they're at the very top of their game.
  4. We call the process a dual transformation because it requires two transformations and not one. In response to a disruptive shock, executives must simultaneously reposition their traditional core organization while leading a separate and focused team on a separate and distinct march up a new hill. It's the greatest opportunity a leadership team will ever face.
  5. Four key leadership mindsets you need to succeed:
    1. The courage to choose before your platform burns.
    2. The clarity to focus on a select few moonshots.
    3. The curiosity to explore even if the probable outcome is failure.
    4. The conviction to persevere in the face of predictable crises.
  6. Companies that successfully execute dual transformation can own the future instead of being disrupted by it.
  7. Answer these five questions:
    1. Why have people historically bought from us?
    2. What do we provide that they really care about?
    3. What is the disruptive shift in our market?
    4. What used to matter to them but doesn't really anymore?
    5. What do they wish we could do that we don’t?
  8. As the world changes, what is critical to the customer also changes.
  9. In a quickly changing world, playing an old game better is insufficient.
  10. The simplest way to understand whether you're truly transforming your core business is to ask, “How have our metrics changed?”
  11. History teaches us, again and again, that disruption is the greatest growth opportunity a company will ever see.
  12. It is critical to discover this path by action and not by analysis. Every idea to create new growth is partially right and partially wrong. The problem is that you don't know which part is which.
  13. No business plan survives first contact with the marketplace.
  14. Successful innovators smartly manage risk through disciplined experimentation. Before the Wright Brothers built a plane, they flew a kite.
  15. DEFT: Document, Evaluate, Focus, and Test.
  16. Seek a stepping-stone strategy: look for a starting point where you can keep a foot in today's world as you venture into a new space.
  17. “Running a start-up is like being punched in the face repeatedly, but working for a large company is like being waterboarded.”
  18. It's never been easier to start a business, but that means it also has never been easier to replicate one.
  19. The more significant the new project and the shift is, the more the CEO should be driving it.
  20. The fundamental challenge for leaders is that the data showing disruption underway is always opaque. By the time it is crystal clear, it is too late to do anything about the disruption.
  21. Decisions can't be guided purely by historical data, because if data drives you, you can only go backwards.
  22. The 7 Warning Signs of Industry Disruption
    1. Decreases in customer loyalty, driven by overshooting. Overshooting: Providing a given market tier performance it can't use. An entrant can gain traction with a simpler, cheaper solution.
    2. Significant and lasting investments by venture capitalists.
    3. Policy changes open the door to new entrants. When governments change the rules, it can accelerate the pace of industry change.
    4. Entrants emerge at the low end or market fringes with inferior-seeming solutions. The innovator uses this foothold to improve the product and service so that it meets the needs of broader customer groups. When upstarts following this game-changing strategy begin to emerge, it's time to stand up and take notice.
    5. Customer habits and preferences show signs of shifting.
    6. A viable competitor fine-tunes a disruptive business model.
    7. Slowing revenue growth is coupled with increased profit margins as leaders exit volume tiers and cut costs. When incumbents begin to feel the pain from disruption, it doesn't always feel very painful. The slowing growth feels like the natural result of an industry maturing. Emerging disruptors grow in a seemingly disconnected market, and, if they pick off customers, often they are ones the incumbent doesn't care much about anyway.
  23. Anything that is growing rapidly bears attention.
  24. Involve outsiders. It can be hard to identify your own problems.
  25. Most companies do a fairly good job of monitoring their direct competitors, but they underinvest in monitoring and interpreting telltale signs of future threats from substitutes and existing or yet-to-be-born disruptors.
  26. You are under no legal requirement to hold to your initial goals and boundaries. As the world changes and you see what works and what doesn't work, you can and should go back and revise the rules of the game.
  27. Adopt a “future-back” mindset. Companies tend to follow “present-forward” approaches to strategy. They start by detailing today's business, then project what next year will look like, then look at the year after that, and so on.
  28. Be willing to wave goodbye to the past.
  29. Your strategy isn't what you say you do; it is what you actually do.
  30. “What is possible?” can't be answered purely by gathering data and building intricate spreadsheets. Instead, it requires intuition and judgment.
  31. If you demand that every idea succeed, you will be consigned to work on incremental improvements within the confines of your current business.
  32. Exposing half-baked ideas early generates useful, usable feedback. It also has positive spillover effects as people in other corners of the organization can take fragments of an idea in new directions.
  33. Whenever you innovate, two good things can happen. Of course, you can create value. But you also can learn something that opens future avenues to create value.
  34. “A desk is a dangerous place from which to view the world.” – John le Carre
  35. The great sucking sounds of yesterday can subtly but importantly pull an organization back to what it was trying to get away from.
  36. Failing to build systems around the new organization creates dependency on a small number of individuals, which doesn't scale and creates conditions for failure.
  37. Defining and reinforcing a shared sense of mission become central functions for senior leaders driving a dual transformation.
  38. Transforming a company is indeed a journey, one that is both unpredictable and perpetual.
  39. Leaders who catch the disruptive changes early and respond appropriately will have the ability to thrive in the years to come. Those who don't, well, Darwin has a way of taking care of them.

 

If you’d like to talk more about Dual Transformation and how to improve your ISV business, please reach out to me. My job as a Reseller & ISV Business Advisor for Vantiv’s PaymentsEdge Advisory Services is to work with Vantiv partners to help them with hiring right, developing staff professional development programs, improving customer service, and more.

 

 

For more On the Edge content, please visit the Vantiv Partner Advantage website.

 

Jim Roddy is a Reseller & ISV Business Advisor for Vantiv’s PaymentsEdge Advisory Services. He has been active in the POS channel since 1998, including 11 years as the President of Business Solutions Magazine, six years as a Retail Solutions Providers Association (RSPA) board member, and one term as RSPA Chairman of the Board. Jim is regularly requested to speak at industry conferences and he is author of the book Hire Like You Just Beat Cancer.

 

daniperea

3 Blogs Coders Love

Posted by daniperea Oct 5, 2017

If you're looking to level up in your developer knowledge or to commiserate with other coders, we recommend giving one of these blogs a read. Do you have a favorite coder blog? Let us know in the comments!

 

1) CSS-Tricks

CSS-Tricks is a blog on all things web design and development, and true to their roots, it also provides many helpful tips and tricks on Cascading Style Sheets. It's run and written by Chris Coyier and a merry team of CSS enthusiasts.  I love it because of its readability, the sense of play in every post and because of the copious walkthroughs with code examples.  Plus it's so frequently updated, there's often new content a few times a day.

Favorite Post: Turning Text into a Tweetstorm

 

2) Women Who Code

Women who Code is a nonprofit with over 100,000 members who are tech professionals. You don't have to be a member to access their awesome blog, which is full of profiles of women developers and organizations advancing opportunities for women in tech; hackathon invites and meet-ups; career tips from advocating for your rights at work to becoming a better public speaker; conference recaps; and of course, coding advice. Their team of writers is fantastic and this might be one of the few places on the internet where reading the comments is a worthwhile endeavor. Come for the content, stay for the community.

Favorite Post: Protecting Your Rights at Work (this is actually a series: here's part 1 and part 3.)

 

3) Coding Horror

Coding Horror is both extremely hilarious and highly informative look at both code and coders.  The half-personal/half tech blog is written by Stack Overflow co-founder Jeff Atwood. With 13 years of posts accumulated on the blog, you'll find everything from well-researched and pithy posts on programming, to tips for both newbies and experts, to personal musings. One downside: Jeff is so busy, that months can go by without an update.

Favorite Post:  Password Rules are [Horse Puckey]