GPWA Times Magazine - Issue 32 - June 2015

What's the most prevalent form of fraud you're seeing? I would divide it into two types. First, there are the fraudsters who are inten- tionally coming and trying to cheat the merchants. The second one is what we call friendly fraud — people who really deposit money into the casino, then lose money and get angry about losing so they call the credit card company and say, "We did not make this deposit, we don't know who it is," and they completely deny the transaction. This is very hard to predict, since the intention at the beginning was to have a genuine deposit. So your two biggest risks — from a risk- management standpoint — are profes- sional fraudsters and chargebacks? Not really. Professional fraudsters do chargebacks at some point (as well). Sometimes they will deposit a small amount of money so we gain confidence in them. Then they deposit a big amount of money and then they charge back. When operators are speaking to you and looking at your technology and look- ing at you as a possible solution, is risk management the big selling point for you? What are they looking for out of you? Why are they choosing SafeCharge? They are looking at a wide range of considerations. First, there is our diver- sity of payment options — we provide multiple solutions under one umbrella. Conversions are a very important factor when choosing a payment services pro- vider. This business of online gaming is becoming more and more competitive, and (operators) are fighting to get more con- versions. And we're helping them with sophisticated technology. Risk man- agement is also an important part. Un- focused risk management could kill their entire business. How does country-by-country regula- tion work from a compliance stand- point? How tricky is it for you to handle? From our perspective it's very simple — our clients have to be fully regulated and work according to the regulations in the country they work (in). We adhere to the payment regulations, which are differ- ent. We are not regulated by the gaming industry, so we adhere to our regulations and we expect our clients to strictly ad- here to their regulations. And in countries where online gaming is forbidden, we close the deposit options in our system. It's very simple. One of the tricky things about serving people in different markets is they expect different things from the payment end. Some countries are under banked, and you don't have many credit card trans- actions. Others have different local ways of paying. 13 Executive's Corner: Putting a charge in payment processing