EFT Syetms and Device Considerations

Tuesday, August 5th, 2008 @ 11:37 am | Banking and EFTPoS, Security

EFT devices and systems differ depending on hardware vendor, country and bank / payment aggregator.
Below is a list of things you may like to consider. This list is off the top of my head so it is probably not complete.

Looking at the products and relationships us usually a good start.

Things to consider:

Card skimming methods
Some EFT POS devices restrict the connection of a skimmer
Review levels of associated fraud
Review devices and EFT methods
Review terminal identification (merchant and customer)
Manual processing. (internal and external)
eCommerce products
PC based software
Dedicated server services (Nobil, etc.)
Web based engine (Custom objects, Web pop-ups, etc)
Authorisation / identification methods (Merchant and customer)
TCPIP session hijacking / session spoofing
Direct Debit as well as Credit Cards.
Swift (methods and controls)
Telegraphic transfer (methods and controls)
Payment aggregator relationships (eg. Payment Tech, manual processing, cheque scanning, etc.)
Internet banking facilities (attack / penetration, Certificate registration / management, ISP SLA’s, etc.)
Implementation of Smart Card and / or alternative customer recognition devices.
Outsourcing and associated risks / service level agreements
Payment processing
Payment clearance
Payment switching
Reporting (segregation of merchant / customers / aggregators / partners / local / international)
Fraud detection and reporting
3rd party acquiring risks
Single merchant ID many businesses
Allows moneys to be laundered if the payment aggregator does not place appropriate controls on the merchant.
Encryption used
Internet / trusted partner / inter-bank / extranet
Private and / or public certificates
Single use certificates
Client side certificates
Remittance advice processes and controls.
EFT disaster recovery and manual fall back procedures (associated security and reconciliation risks)
Trusted partner relationships, SLA’s, liabilities and risks.
EFT regulatory / legal requirements (inter-bank and government)
Refund processing / authorisation. (policies, procedures, controls, etc.)
CVV, CVV-2 / CVC-2 processing and management. (http://www.atlanticpayment.com/CVV.htm)
Fraud detection mechanism (neural networks, inter-bank / department customer checks, etc)
Supported card schemes (AMEX/Visa/Mastercard/Discover/etc )
Review EFT floor limits (corporate and SME merchants)
Review the ability to withhold merchant settlement until the presence of fraud has been determined.
Review customer identification details. Such as (This varies around the world depending on local regulations / privacy laws)
Review real-time and batched processing methods and controls (sequence numbers, access to raw data, etc.)
Review processing with and without expiry dates. (exception controls and policies)
Review exception / fraud reports.
Review payment store and forward policies and procedures.
Review Pre-Auth and Completion controls.
Token based payment (eCash, etc)
Merchant reconciliation, reporting methods and controls (paper, Internet, email, PDF, Fax, etc.) and associated security.
Real time gross settlement policies, procedures and controls. (IT and amounts)
Card issuing policies and procedures. (customer ID checks, etc)
Banking infrastructure (ingress / egress) controls and security. (Web, partner, payment switches, outsourced infrastructure, monitoring / reporting.)
Use of Internet technologies for inter-bank transfers and remote equipment.
Physical security and controls of devices, ATM,s, line encryptors, etc.