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Thank you for visiting the Payments Puzzle Box - weekly musings on all things related to commercial billing and payments.
As of April 19, future postings for this blog can be found by visiting the Multi Service Commercial Payments Blog.
Thanks for your continued interest. We look forward to future discussions on the new site!
Martha and Jenny
Monday, May 10, 2010
Monday, April 12, 2010
Inherent Fraud Protection
Last month, convicted TJX hacker Albert Gonzalez, the world’s largest credit card hacker, was sentenced to 20 years in prison. His breaches involved the first known decryptions of PIN codes, “the holy grail of bankcard security”, according to Wired. The song is nothing new: As criminals become more devious, law enforcement and security work to get ahead of the curve.
Purchasing controls such as PIN codes and maximum per transaction limits are used to minimize the risk of fraud for universally-accepted credit cards and private label (or closed loop) payment cards alike. But by their very nature, private label payment cards are inherently more secure than universal credit cards. Private label cards can only be used within a single network of merchants. For instance, a Super Mart private label card, say, would be accepted only at Super Mart-branded stores, making the cards inherently less appealing to fraudsters.
And private label cards don’t have to rely on an infrastructure shared by millions. As a result, purchasing controls can be customized to address the needs of a particular merchant network and industry, like requiring purchase order numbers that match individual customer PO format rules, restricting purchases to specific goods and services, or even requiring industry-specific information to ensure the validity of a transaction.
Purchasing controls such as PIN codes and maximum per transaction limits are used to minimize the risk of fraud for universally-accepted credit cards and private label (or closed loop) payment cards alike. But by their very nature, private label payment cards are inherently more secure than universal credit cards. Private label cards can only be used within a single network of merchants. For instance, a Super Mart private label card, say, would be accepted only at Super Mart-branded stores, making the cards inherently less appealing to fraudsters.
And private label cards don’t have to rely on an infrastructure shared by millions. As a result, purchasing controls can be customized to address the needs of a particular merchant network and industry, like requiring purchase order numbers that match individual customer PO format rules, restricting purchases to specific goods and services, or even requiring industry-specific information to ensure the validity of a transaction.
Monday, April 5, 2010
Simplicity in Payments Innovation
Last week, I attended Commercial Payments International’s (CPI’s) Global Summit in New York City. Conferences like this offer the opportunity to meet, network and brainstorm with other payments professionals, but they also offer several “big thoughts” to chew on during the plane ride home. This year’s CPI Summit had a few of those “big thoughts”, and so (fair warning) you will probably be hearing a lot about the conference for the next month or so from me.
This week’s topic is the idea of Simplicity in Innovation. In the opening session, one of the speakers said something that resonated and set the tone for the rest of my conference: If your new innovation requires a user’s manual, you’ve likely defeated the purpose of innovation.
I think this is an easy concept to lose perspective of when you are developing custom applications. All too often, individuals can get lost in the intricacies of a problem or various red-herrings that arise to distract you from a very basic problem-solution, and as I thought about this, my mind went straight to the iPhone in my hand.
I’ve been an iPhone user for all of a month now. It’s been a much easier transition from my Blackberry than I had expected. The iPhone is intuitive, and it solves for problems I hadn’t realized I had. Yes, I knew that I needed to access email and attachments from my phone, but I hadn’t anticipated the business advantages that I would gain with such easy access to my LinkedIn account or how useful it would become in other situations. And, all of these, without even opening a manual! I am sure the iPhone entails a lot of complicated code behind the scenes, but for the user: I just tap, and I get what I need.
Simplicity in innovation, my new mantra!
This week’s topic is the idea of Simplicity in Innovation. In the opening session, one of the speakers said something that resonated and set the tone for the rest of my conference: If your new innovation requires a user’s manual, you’ve likely defeated the purpose of innovation.
I think this is an easy concept to lose perspective of when you are developing custom applications. All too often, individuals can get lost in the intricacies of a problem or various red-herrings that arise to distract you from a very basic problem-solution, and as I thought about this, my mind went straight to the iPhone in my hand.
I’ve been an iPhone user for all of a month now. It’s been a much easier transition from my Blackberry than I had expected. The iPhone is intuitive, and it solves for problems I hadn’t realized I had. Yes, I knew that I needed to access email and attachments from my phone, but I hadn’t anticipated the business advantages that I would gain with such easy access to my LinkedIn account or how useful it would become in other situations. And, all of these, without even opening a manual! I am sure the iPhone entails a lot of complicated code behind the scenes, but for the user: I just tap, and I get what I need.
Simplicity in innovation, my new mantra!
Monday, March 29, 2010
The Mid-America Truck Show
Every year, industry professionals gather in Louisville for the Mid-America Trucking Show (MATS). MATS stands apart from other industry events for many reasons, perhaps the most obvious of which is its sheer size (900+ exhibitors and more than 30,000 attendees!). For me, the magic of MATS lies not in its numbers, but in its ability to bring together representatives from all sectors of the industry – from owner operators to OEs.
While I’m a service provider to the trucking industry, I spend the majority of my work days behind a stationary desk at a stationary office. I see the industry from the limited perspective my office affords me. The elements in my work world are part numbers, labor codes, invoice numbers, and payment amounts. But each spring, I have the opportunity to travel to Louisville to experience the trucking industry from the exhibit floor at MATS. I can climb in the cabs, walk inside the trailers, marvel at the intricacies of engines and APUs, and interact with the drivers who master these epic machines. And each spring, I’m reminded that the trucking industry isn’t about part numbers, labor codes, invoice numbers, or payment amounts; it’s about the individuals – from the owner operators to the OEs – who make transportation of the goods we rely on possible.
While I’m a service provider to the trucking industry, I spend the majority of my work days behind a stationary desk at a stationary office. I see the industry from the limited perspective my office affords me. The elements in my work world are part numbers, labor codes, invoice numbers, and payment amounts. But each spring, I have the opportunity to travel to Louisville to experience the trucking industry from the exhibit floor at MATS. I can climb in the cabs, walk inside the trailers, marvel at the intricacies of engines and APUs, and interact with the drivers who master these epic machines. And each spring, I’m reminded that the trucking industry isn’t about part numbers, labor codes, invoice numbers, or payment amounts; it’s about the individuals – from the owner operators to the OEs – who make transportation of the goods we rely on possible.
Monday, March 22, 2010
Program Growth Begins at Negotiation
Even before I start talking specifics with a prospective customer, I can usually identify how successful a future program will be based upon the initial conversations. The first interactions start with very basic information about sales and customer needs. Eventually, we begin to hear questions like, “I’m not sure that this solution will work for X segment of customers, because Y. Is there another way to achieve Z?”
That’s when the process starts getting exciting.
Great programs are lead by individuals that ask this question and that are willing to engage us to brainstorm on solutions to their needs. I’ll break down why:
• “Because Y” invites us into their thoughtful rational.
• “Is there another way” invites discussion and partnership.
• “I’m not sure that this solution will work for X segment of customers” displays a genuine interest in their own customers’ interests and the potential growth of the program.
And as those letter-variables start adding up, the strength and transparency of the partnership between the client and the vendor becomes increasingly important to ensure program growth.
That’s when the process starts getting exciting.
Great programs are lead by individuals that ask this question and that are willing to engage us to brainstorm on solutions to their needs. I’ll break down why:
• “Because Y” invites us into their thoughtful rational.
• “Is there another way” invites discussion and partnership.
• “I’m not sure that this solution will work for X segment of customers” displays a genuine interest in their own customers’ interests and the potential growth of the program.
And as those letter-variables start adding up, the strength and transparency of the partnership between the client and the vendor becomes increasingly important to ensure program growth.
Monday, March 15, 2010
Net Pay: The Pay of the Future
A colleague recently shared with me an article from the Wall Street Journal entitled "Tamer Charge Cards for These Tougher Times." I was immediately reminded of an SNL skit that pretty much sums up my personal philosophy toward money: “Don’t Buy Stuff You Can’t Afford.”
It probably helps explain why I am so passionate about my job. I think net pay cards – for personal or commercial use – are the only way to go. A payment instrument (cash, check, embossed plastic) shouldn’t provide access to money an individual or organization doesn’t really have in the first place. A payment instrument should offer convenience.
For consumers, the convenience may simply be an electronic from of payment and consolidated billing instead of cash, check, and receipt tracking. For commercial customers, convenience is provided through an electronic form of payment as well, but with the added benefit to manage multiple users under a consolidated account utilizing purchasing controls and account management tools.
More and more, I see financial products offering consumers the benefits that commercial payment vehicles have provided for businesses for years. Take, for instance, prepaid cards that parents give to their children. These cards provide parents with the ability to control the amounts their children spend, much like not-to-exceed spend thresholds commercial customers can assign to individual cards assigned to employees.
It probably helps explain why I am so passionate about my job. I think net pay cards – for personal or commercial use – are the only way to go. A payment instrument (cash, check, embossed plastic) shouldn’t provide access to money an individual or organization doesn’t really have in the first place. A payment instrument should offer convenience.
For consumers, the convenience may simply be an electronic from of payment and consolidated billing instead of cash, check, and receipt tracking. For commercial customers, convenience is provided through an electronic form of payment as well, but with the added benefit to manage multiple users under a consolidated account utilizing purchasing controls and account management tools.
More and more, I see financial products offering consumers the benefits that commercial payment vehicles have provided for businesses for years. Take, for instance, prepaid cards that parents give to their children. These cards provide parents with the ability to control the amounts their children spend, much like not-to-exceed spend thresholds commercial customers can assign to individual cards assigned to employees.
Monday, March 8, 2010
Commercial Customers: Innate Consumers of “Thick Value.”
In his Harvard Business Review blog, Umair Haque coined the terms Thick Value and Thin Value to describe standard product offerings. Thin value, according to Haque, leaves the consumer no better off for having done business with you. Thick value, just the opposite.
While Haque’s post illustrates thick and thin value primarily through B2C terms, it’s clear to me that the thick value has historically been in highest demand among commercial customers. Purchasing (or Procurement) is considered a cost-center in most operations – a necessary evil, a standard cost of business. The easier you make it to do business with your company, however, the more efficient and less costly their procurement process becomes.
Commercial customers want to know how doing business with your company has better positioned their business for the long-term. And so do you, because when you can illustrate Thick Value to your commercial customers, you will simultaneously chart their increasing value to your business.
How thick is your value?
While Haque’s post illustrates thick and thin value primarily through B2C terms, it’s clear to me that the thick value has historically been in highest demand among commercial customers. Purchasing (or Procurement) is considered a cost-center in most operations – a necessary evil, a standard cost of business. The easier you make it to do business with your company, however, the more efficient and less costly their procurement process becomes.
Commercial customers want to know how doing business with your company has better positioned their business for the long-term. And so do you, because when you can illustrate Thick Value to your commercial customers, you will simultaneously chart their increasing value to your business.
How thick is your value?
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