News from the Wire

Mako predicts card-present payment shift to IP broadband

Friday, February 10, 2012 — 12:01:33 (EST)

London, Feb. 10, 2012 - Mako Networks, a global cloud-based network management and security company, predicts that transitioning onto secure IP broadband in card-present payment transactions will become a widespread necessity for retailers in 2012.

As more merchants ditch dial-up for the faster transaction speeds and reduced costs of broadband, they must concurrently be cognisant of both their security and Payment Card Industry Data Security Standard (PCI DSS) compliance obligations.

Bill Farmer, CEO at Mako Networks, explains: “Despite evolving retail and EPOS technology, some merchant payment systems still connect to banks using dial-up, much the same as was used in homes 10 years ago to get online. With the deployment of EMV chip and PIN cards in the UK, merchants are encountering delays for transaction authorisations due to the larger data exchange these cards require. It’s too slow a system that can lead to long queues and frustrated customers.

But recently and now into 2012, that’s starting to change. Most of us have been using an ADSL or broadband Internet connection at home for years, and payment networks are finally catching up. Broadband connections operate at far higher speed and carry much more data, consistently reducing EMV transaction time to only a second or two. As payments can be processed faster, queue times are cut and more customers make it through checkouts.”

Moreover, dial-up connections require a separate phone line for each terminal, with each incurring a monthly charge. Broadband can consolidate terminals into one shared Internet connection, reducing costs for retailers while also offering a faster, always-on alternative.

However, Mako warns, in connecting to broadband merchants are also connecting to the potential security risks of the wider Internet.

All connections need to be secured using a layered approach with no single line of defence, starting with robust firewalls to keep out unwanted traffic. But payment security needs to go several steps farther, especially for merchants that process, store or transmit credit card data. These merchants are required to meet a special set of criteria, known as the PCI DSS.

Using a PCI DSS-compliant and accredited partner, acquirers can assist in transitioning merchants from dial-up onto a secure IP broadband connection, whilst helping them ensure they are compliant.

Mr. Farmer concludes, “In 2012 we anticipate more collaboration between vendors in the payment space to ensure the full PCI DSS ‘loop’ is closed. This will ensure retailers can adopt new technology safe in the knowledge it is keeping them secure and helping maintain PCI DSS compliance. At Mako, we will continue building partnerships with other service providers in the payments and security space, making network security and PCI DSS compliance even simpler for merchants in 2012.”

About Mako Networks

Mako Networks is a cloud-based network management and security company that connects businesses to the Internet and protect them from the threats it contains. Mako Networks helps businesses comply with the stringent Payment Card Industry Data Security Standards (PCI DSS) for merchants that process, transmit or store cardholder data, and holds the world’s first PCI DSS certification for network management. Mako exports to markets in the United States, UK, Middle East and Australia.

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Source: Company press release.