Visa, startup iZettle settle mobile payments issue
To start accepting Visa payments in the Nordic countries, iZettle had to introduce a third payment method
IDG News Service - Mobile card payments startup iZettle has settled its payments dispute with Visa Europe and can now accept Visa payments in Norway, Finland and Denmark, the company announced on Tuesday.
To accept Visa, iZettle had to add a new method for mobile payments to its service.
iZettle is a Swedish mobile payments startup that wants to help small merchants like plumbers, gardeners and housekeepers start accepting card payments with their smartphones. While announcing its official out-of-beta release in the Nordic countries, iZettle also announced it could start accepting Visa payments again.
"Visa acceptance in Denmark, Finland and Norway has been restored, as it was shut down by Visa Europe in August 2012 due to a policy decision," said iZettle spokeswoman Wilhelmina Douglas in an email. The Visa Europe spokesman did not respond to questions when asked if security issues were involved in Visa's decision to clock services to iZettle.
To accept Visa payments in the Nordics, iZettle had to introduce a third payment option. Instead of using a chip-based card reader, Visa customers enter their phone number in the iZettle app on the merchants' phone and will then, via a text message, be directed to a secure site on their own smartphone where they can input their card details in a form. The customer gets an onscreen confirmation if the payment is accepted and the merchant receives a notification in the app that the sale has gone through.
"It's not our preferred solution, but it is compliant with all Visa Europe's regulations, so that's the way we have to do it to enable users to accept Visa cards," said Douglas, adding that the Visa-approved method of paying in Denmark, Finland and Norway is "not as easy as a regular payment with iZettle."
In a regular iZettle payment, customers slide their card into a card reader that plugs into the merchant's smartphone, after which they tap "pay" and sign for the transaction on the smartphone screen. Alternatively, if the merchant does not have a card reader, he can choose a manual card payment where the customer's card number, validity and cvc number have to be entered.
Visa Europe has issued its own guidelines for transactions in certain countries, Douglas said, adding that branches of the company are less strict in other countries. "We've always had a positive dialogue with Visa Sweden and they have decided to approve our service for use here," she said.
"We are continuing to work with iZettle to develop a fully Visa Europe compliant mobile point of sale solution," a Visa Europe spokesperson said in an email. "In the meantime iZettle merchants can support Visa card acceptance through an e-commerce transaction on the cardholder's phone."
- Big Data, Big Mess: Sound Risk Intelligence Through Complete Context This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- Using Cyber Insurance and Cybercrime Data to Limit Your Business Risk This paper examines the challenges of understanding cyber risks, the importance of having the right cyber risk intelligence, and how to use this...
- 5 Tips to Secure Small Business Backdoors in the Enterprise Supply Chain This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- Confront consumerization with convergence Virtualization expert Elias Khnaser spotlights the security, compliance, and governance issues that arise when enterprise users "consumerize" with shadow IT and public cloud...
- NSS Labs & Cisco Present: Evaluating Leading Breach Detection Systems Today's constantly evolving advanced malware and APTs can evade point-in-time defenses to penetrate networks. Security professionals must evolve their strategy in lockstep to...
- Will the Real Endpoint Threat Detection and Response Please Stand Up? This webinar explores new technologies & process for protecting endpoints from advanced attackers as well as the innovations that are pushing the envelope... All Mobile Payments White Papers | Webcasts
Our new weekly Consumerization of IT newsletter covers a wide range of trends including BYOD, smartphones, tablets, MDM, cloud, social and what it all means for IT. Subscribe now and stay up to date!