1. Five Notable e-Commerce Trends
Alex Burgin
Manager, Business Development
Authorize.Net
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

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© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

3. Mobile Commerce
• Despite the ubiquity of smartphones, the
U.S. market still lags well behind
international markets.
• Authorize.Net Mobile App launched Q4-2011
and was quickly adopted by a wide range of
merchants.
• We expect mobile commerce to continue to
grow with new technologies introduced
including near-field communications and
digital wallets.
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

4. PCI
PCI Requirements Quiz
Which of these is the fake requirement?
1. Assign a unique ID to each person with computer access
2. Regularly test security systems and processes
3. Always use vendor-supplied defaults for
system passwords
4. Maintain a policy that addresses information security
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

5. PCI DSS
• PCI requirements have always been applicable to “level 4”
merchants, they were just not enforced.
• You must validate your PCI DSS compliance!
• Acquirers are starting to levy fines against merchants, who
have not validated their PCI DSS compliance. We believe fines
will become more common as a way of encouraging PCI
compliance.
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

6. Fraud
Q: How many people in this room have auto
insurance?
Q: How many people in this room have some
sort of advanced fraud solution?
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

7. Fraud
• Revenue lost due to online fraud continues to trend
downward since 2003, but still accounts for $2.7B in losses
(Source: www.cybersource.com/fraudreport).
• Smaller merchants reported an increase in fraud losses and all
merchants reported an increase in order rejections.
• While AVS and CCV are important tools, they are not the end
all, be all. We believe all merchants should be using some sort
of advanced fraud tool.
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

8. CyberSource Fraud Report
Fraud rates for both merchant
segments in 2011 were 2.8%.
n=143 n=169
8
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

9. Globalization
• Merchants should view international markets as a key
channel for long-term growth.
• Domestic infrastructures are often adequate for businesses
with modest international business (e.g. English is the
language of business.)
• Startups are helping to solve the international shipping
problem for small merchants.
• Merchants interested in expanding their business
internationally should validate that their providers support
cross-border and cross-currency transactions.
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

10. Digital Wallets
• Digital wallets will combine the ecommerce, retail and mobile
experience into a seamless one-click interface.
• Merchant adoption will be driven by higher conversion rates,
access to high-quality consumer data and security. Consumer
adoption will be driven by convenience and a broader move
to digital technologies.
• Wallets will have capabilities beyond simply payments, for
example real-time incentives sent via text message.
• Adoption of cross-channel digital wallets will accelerate over
the coming months and years and will become ubiquitous in
time.
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.

11. Thank you!
© 2012. Authorize.Net is a registered trademark of CyberSource, a Visa company. All rights reserved.