Ingenico SA on Jan. 7 joined its peers in the payment terminal-manufacturing industry in offering merchants enhanced data-security support throughout the transaction process.
For merchants “it is difficult and complicated and confusing to sort through the plethora of products and try to stitch a variety of disparate [products and services] together and to actually meet the PCI requirements,” says Deborah Dixson, Ingenico senior vice president of security solutions for North America. France-based Ingenico’s security strategy enables the company to engage with merchants at varying levels of security and compliance. “We are able to do an assessment on what they already have and how they work with that,” with the goal being to craft an overall security plan, she says.
As part of its security strategy for merchants, Ingenico will encrypt data at the point of card acceptance with no per-terminal or per-transaction fees and include its On-Guard Card Acceptance encryption technology in new Ingenico payment devices deployed in North America.
Merchants purchase a secure device “for the specific purpose of capturing [transactions] securely,” says Dixson. “To charge another fee on top of it when [merchants] already have bought a device doesn’t make a lot of sense,” she says.
The manufacturer also will provide card- and transaction-tokenization to reduce the storage of sensitive card data and provide Payment Card Industry Data Security Standard-related services to support merchants in gaining and keeping in compliance with the standard.
Ingenico says it intends to work with yet-unnamed partners to offer a full range of security products and services to merchants.
With the unveiling of its security strategy, Ingenico catches up with competitors Hypercom Corp. and VeriFone Holdings Inc. in offering complete card-data protection. Scottsdale, Ariz.-based Hypercom and San Jose, Calif.-based VeriFone this fall both announced encryption and security initiatives for merchants intended to combat threats to security.
“The offerings from the three top terminal providers are comparable, but [I] would give a slight edge to VeriFone, which has been working on these products longer than the other two,” says Gil B. Luria, vice president of equity research and transaction processors at Los Angeles-based Wedbush Morgan Securities. Overall, the terminal manufacturers’ security offerings “are valuable to merchants,” which “need more and more help protecting their customer payment information” from fraudsters, he says.