Action on Age verification online

IMRG, the membership community for the e-retail industry that helps to maximise the commercial potential of online shopping has launched a long overdue action plan on age verification for internet transactions.

Traditional means of age verification do not work online because the internet is changing the way that consumers shop and retailers trade, says IMRG.

This change is bringing new structural requirements, and one of these is the need for a mechanism that will enable retailers to verify the age-associated eligibility of online customers to buy certain products, in order to protect both minors and themselves.

Online shopping is an international marketplace and a new age verification solution is required that is inclusive, widely available, easy and quick to use, cost efficient, provides a high degree of surety without blocking legitimate customers, and is capable of operating across national borders.

Providers of consumer payment mechanisms, such as credit and debit cards, generally capture the information necessary to verify age, but they currently do not provide retailers with any means of qualifying their age-sensitive transactions against this information. An obvious and inclusive solution to the problem would be for the payments industry to provide a verification service that bridges the gap.

IMRG and its members are very aware of the political implications and social responsibilities of age-restricted sales online. With this in mind, the IMRG community has been working hard to facilitate usable age-verification solutions. While some progress has been made using the currently available tools, such as the several commercially available databases, none of these are ideal or comprehensive.

IMRG welcomes the Government's stated aims of financial and digital inclusion, but flags the outstanding need for usable mechanisms, such as age verification, that will enable retailers and parents to meet their social and legal responsibilities while at the same time protecting the rights of consumers to legitimately purchase products and services.

ACTION PLAN

IMRG retail members and IMRG member, Bond Pearce LLP, have formed an 'Age Verification Online' working party that has set itself this action plan:

1.Collectively address the area of age verification as a 'non-competitive' issue

2. Seek and co-ordinate collaboration between relevant parties to formulate a universal Age Verification Standard and a cost effective solution

3. Formulate and provide guidance on compliance with online age verification requirements for minors of any regulated age, e.g. for 5, 12, 15, 16 and 18-year-olds.

"Consumer says no" - Oracle Study Suggests current security technologies impede online commerce

Oracle in the UK has launched “Online Security: A Human Perspective” a report based on research suggesting that consumers appeared to have contradictory attitudes towards online security, with perceptions very much 'press-led' and fuelled by assumptions of the potential threats and expectations about their rights.

The research argues that consumers continue to list predictable threats, such as malware, spyware, identity theft and 30% said they do not trust central or local Government with their personal data.

Yet when questioned more closely respondents revealed a distinct contradiction between their attitudes and their understanding of the issues. For example, almost a third of survey respondents (30%) do not trust online security measures. The research also revealed consumers showed no desire to understand the mechanics of IT security in more detail and had high expectations about their rights if affected by a security threat.

However, consumers go on to suggest they would not respond favourably to stricter security. Despite two thirds (66%) stating they would be more confident online if websites imposed additional security measures, they were unlikely to accept these measures if it meant the transaction process increased in either time or complexity. In fact, 26% reported that such measures would drive them onto competitors' sites.

This creates a dilemma for less recognised brands to reassure prospective customers and for larger brands that have been hit by a security issue. How does a company engender trust, which can lead to customer loyalty and potential revenue growth if consumers offer such mixed messages about current security technology?

Cracking the code:

The answer seems to be that online retailers with an online presence need to demonstrate a greater understanding of instinctive human responses to security. Customers want reassurance, demonstrating this with their buying preference for trusted brands, but they do not want it at the expense of convenience.

Respondents to the research and focus group participants cited a number of frustrations that have led to them abandon online transactions, including being perplexed by username and password selection rules, being forced to wait for an email password reminder and being flummoxed by password reminder questions.

The survey also produced some worrying statistics:

• 72% of respondents have had at least one problem in the past three months alone
• The number one reason for discontinuing a transaction was the process taking too long (48%)
• 38.9% said that a purchase process with too many steps is a barrier to online shopping
• For survey participants that had abandoned a purchase in the last 12 months 16% did so because the transaction took them to another website, such as 3D Secure Way
• Stricter security policies also lead to less secure consumer practices
• 25% of those questioned in the survey admitted to keeping written lists of their online usernames and passwords
• In one focus group a participant admitted to writing passwords on every account statement

The dangers to online vendors are obvious as consumers are quite prepared to complain to others about their frustrations to others. Eight examples were raised over the course of the focus groups with participants very quick to name the brand. 31% of people surveyed were likely to use a site less frequently if they encountered login problems.

This makes it extremely difficult for online retailers (and for that matter any organisation wishing to interact with its stakeholders via the Internet) to balance security needs against providing a fast and efficient service. For example, there was a point blank refusal to accept the extension of 2-factor security beyond the banking sector on the grounds transactions, which involved smaller sums should not require this technology.

The report offers some guidance with respondents and focus group participants suggesting that they look for 'trust signals' from an online brand, which could include:

• 3rd party certification logos
• Security and privacy policies
• Customer reviews / ratings
• Confirmation page / confirmation email
• Terms & conditions

"It's time to stop viewing IT security as a castle and moat, companies need to take a more sophisticated approach and that requires a shift in mindset," explains Des Powley, Director Security, Oracle UK and Ireland. "Done well security can be an enabler of online activity, whether that is retail eCommerce or engagement with public services. Organisations must remember that security is an emotive subject that understandably triggers very primitive instincts for consumers and citizens. It's time to be more strategic, which includes using technologies such as adaptive authentication and single-sign-on all delivered seamlessly with the service."

Checkpoint Systems Announces Merchandise Visibility Implementation for Charles Vögele

Checkpoint Systems has implemented its Merchandise Visibility solution for the $1.3 billion, 851-store Swiss-based international apparel retailer Charles Vögele. This implementation provides a comprehensive, source-to-store solution across the retailer's entire supply chain-from point of manufacture to point of sale.

The solution implemented for Charles Vögele combines the strengths of Checkpoint's capabilities in shrink management and merchandise visibility including hardware, services, tags and Checkpoint's Check-Net global ticketing service. It enables retailers to streamline their supply chains by applying smart tags to apparel merchandise at point of manufacture, and reading the tags throughout the logistics operations and into the store. Once at the store, retailers can improve operations and increase shelf availability by tracking item-level merchandise throughout the facility into the back room, on the shop floor, in fitting rooms, and at point of sale. This visibility enables retailers to optimise their inventory replenishment, reducing out-of-stocks and on-hand inventory, while improving sales.

For Charles Vögele, this means the right merchandise reaches the right store shelves at the right time. With over 70 million garments sourced annually from more than 400 suppliers and distributed to 34 consolidation hubs throughout Asia and Europe, Charles Vögele's supply chain operations present a logistical challenge for the retailer.

"Our adoption of RFID has transformed and improved our operations from source to store. We have begun streamlining our operations and supporting our sales in ways that simply were not possible before; in many ways this marks the beginning of a retail revolution," commented Thomas Beckmann, VP of Supply Chain, Charles Vögele Group.

Charles Vögele can now track and trace individual garments along its entire supply chain, gaining unprecedented real-time visibility. This capability enables retailers to reduce logistics errors automatically, eliminating exceptions such as packing errors and inaccurate shipments.

The benefits of the Merchandise Visibility also extend throughout Charles Vögele's stores, enabling store associates to gain an accurate view of merchandise on the sales floor and in the back room, and re-stock faster and more efficiently than the previous manual process.

"As economic uncertainty erodes consumer spending, retailers must have the right merchandise available when the consumer is ready to buy. RFID provides the visibility to ensure it is there," said Rob van der Merwe, Chairman, President and CEO, Checkpoint Systems.

"Retailers also face much higher capital costs and need to reduce inventory levels while maintaining shelf availability. RFID enables them to achieve both these objectives."

"Charles Vögele recognises the value of RFID and has moved aggressively to implement a solution that will improve its top- and bottom-line performance while enhancing the shopper's in-store experience," continued van der Merwe.

Charles Vögele's Beckmann added: "Our adoption of RFID is transforming our business and ensuring that our customers find what they are looking for. In the fast-moving fashion industry, responding to the expectations of customers is the difference between success and failure."

After successfully deploying the solution at its Slovenian stores, Charles Vögele is now planning to implement the solution more broadly across its global supply chain and stores throughout Europe.

Debenhams Direct Using CyberSource for Online Payment Fraud Management

CyberSource has announced that it is working with Debenhams Direct to help the company secure processing and management of its online transactions. Debenhams Direct is the eCommerce arm of one of the leading retail groups in the UK and Ireland; visited by over three million online customers each month. The site processes over 2,500 orders on an average day and offers products and services that are available in Debenhams' stores.

CyberSource's payment management services allows Debenhams to securely and reliably process multiple payment types through a global payment processing network that has been certified as compliant with the Payment Card Industry Data Security Standard. Through a single connection to CyberSource, Debenhams can also utilise additional cardholder verification programs such as Verified by Visa and MasterCard SecureCode, providing Debenhams' customers with greater protection from fraud and reducing chargeback risk for Debenhams.

Debenhams turned to CyberSource's flexible risk management solutions as part of the retailer's overall eCommerce focus. CyberSource's Decision Manager accesses over 150 global validation tests to screen for fraud, enabling Debenhams to determine in real-time whether transactions should be accepted, rejected, or marked for further review. This has allowed Debenhams greater flexibility in the management of its fraud screening rules, allowing it to evolve and develop, in real-time, the strategies it deploys against fraudsters.

Anthony Leach, Senior Operations Manager, Debenhams Direct, said: "We are keen to stay ahead of the curve and selected CyberSource based on its functionality and the partnership we have already developed. The intelligence to which we have access will help us identify and manage higher risk orders appropriately whilst supporting legitimate customers within our secure website. Our continued focus is on providing a secure platform for our online customers whilst managing commercial risks and having clear and flexible processes."

Simon Stokes, Managing Director, CyberSource Ltd., commented: "Debenhams is a great example of a traditional high street retailer that has embraced the online environment and increased its investment in this area. By consolidating and streamlining its multi-channel operations, Debenhams is better able to provide its customers with a secure and convenient online shopping experience."

For more information on CyberSource risk management solutions, see: http://cybersource.co.uk/products_services/risk_management/

Retail Fraud "On The Road"
7 October 2009
Walkers Stadium, Leicester
Website

Retail Fraud Conference
20 April 2010
Novotel London West
Website

To advertise your vacancy please contact:
Paul Bessant on +44 (0) 207 903 5177
paul@retail-knowledge.com

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