Eftpos New Zealand, the Eftpos network company owned by the ANZ Bank, is planning an internet payment gateway to rival the other banks’ ETSL solution.
Eftpos NZ's eGate product, which has been running in Australia for two years, will have Verified by Visa as an optional feature on its release in New Zealand during the fourth quarter of this year.
ANZ merchant customers, meanwhile, have been using the gateway offered by hosting company Direct Payment Solutions (DPS).
“It would be fair to say all gateways are to a large extent similar products,” says Eftpos NZ business development manager John Collins. “Our point of differentiation will be in the back-end capabilities we can offer the merchant.” For example, tailored reports. There will also be the appeal of ANZ and its wholly-owned subsidiary providing a “one-stop shop” for payment processing and related support.
Support resources for eGate will be dedicated to ANZ users, Collins says. If a third-party supplier such as DPS is handling a major upgrade for one bank, customers of another may experience delay in support and enhancements, he suggests.
Why has Eftpos NZ not brought its independent internet payment gateway to New Zealand before? “Internet payment is an emerging market [in New Zealand],” Collins says. In the meantime, there is a fully supported ANZ-certified solution in the form of the DPS offering. Merchants are free to continue using DPS after the eGate release if they wish, he says. “We won’t prevent them from doing so. We have signalled our intention to DPS and will continue to work with them.”
Verified by Visa, accompanied in ANZ’s case by the chip-equipped Zed Card, “is a very positive step towards reducing risk for the merchant”, Collins says. If merchants enable themselves for the service than in the case of a disputed transaction where the customer has entered the right password, “the chargeback rights shift from the acquiring institution [the merchant] to the issuing institution [the bank or other institution that issued the card]”.
The confidence of the customer will also be raised. “The majority of people who hesitate to purchase over the internet are worried about their security of their cardholder data and [fear] that if it gets into the wrong hands it will be used again and again [for fraudulent transactions].” With Verified by Visa the customer can confidently say "That wasn’t me", he says.
But a customer usually gets the money back anyway if there is any doubt at all over the transaction. Why should the customer be worried whether the burden of compensation falls on the bank or the merchant?
“Over time, and all things being equal,” the increased confidence of the merchant at not wearing the cost of fraud may mean more goods and services becoming available online. “And they may actually become cheaper in the real world as well as the virtual world. That’s with all things being equal."