n theory, a retail transaction is straightforward. The consumer selects items to purchase, the merchant tallies up the cost and the consumer pays the merchant. However, as with many things, theory and practice are two very different animals.

And, when transactions take place online, the rules change. Merchants have to ensure transaction legitimacy without the benefit of in-person identification. They also need to operate within all applicable laws and regulatory requirements, no matter where their customers are located.

Additionally, accepting payments can be expensive - in terms of money and time. If merchants are not careful, they may suffer extensive losses. Therefore, it is vital that they use competent, trustworthy processors.

Enter ChronoPay B.V., a European Internet payment service provider (IPSP) focused on helping merchants decrease the risks of online payment acceptance.

The company does more than provide online bankcard processing solutions. It also researches all existing and pending rules, regulations and laws so that merchants accepting payments online and across borders are within the law, up-to-date on regulations and in compliance with requirements.

Global reach, local service

Founded in 2003, ChronoPay began with two offices: the headquarters in Amsterdam, The Netherlands, and a software development hub in Moscow. Recently, it opened an office in Barcelona, Spain, and another in Riga, Latvia.

In its short existence, ChronoPay has secured an impressive client list. High profile customers include the WWF (formerly the World Wildlife Fund), one of the world's largest independent conservation organizations, and TemplateMonster, a leading supplier of Web site templates.

Ido Schiferli, Marketing Manager for ChronoPay Europe, noted the company's growth in the last three years is due to the quality of its 100 employees. "ChronoPay's achievements are a direct result of the hard work and dedication of the people on our team," he said. "The secret to consistently outstanding performance lies in the integrity and effectiveness of both our processes and our people."

ChronoPay's offices are overseas, but it processes transactions worldwide, including in the United States. This means U.S.-based businesses wishing to process transactions worldwide now have the means to do so. The company also belongs to the Electronic Transactions Association.

"For some business models this forms an excellent solution for U.S.-based merchants," Schiferli said. "When they open a company in Europe they can profit from our industry-lowest fees. A significant amount of our processed turnover originates from the U.S."

Relationships to relish

ChronoPay is a registered payment service provider for a number of acquirers in the European Union and Eastern Europe. This enables ChronoPay to provide merchants with access to a variety of acquirers. These relationships mean merchants can get the best deal possible, in terms of fees and quality of service.

"Most acquiring banks provide merchant accounts to businesses that specialize in industries the bank has come to understand and feel comfortable with," Schiferli said. "They often provide [fewer] restrictions, better fees and faster approvals for merchants in those industries.

"Because ChronoPay is associated with many acquirers and its network of banking relationships is continuously growing, we are often able to pass on these same favorable terms to the merchants we serve."

While ChronoPay's growth has been significant, the company is not ready to rest on its laurels. Schiferli said his company's mission is "to become a true gear of e-commerce worldwide by ensuring that all e-commerce financial transactions flow in a secure, stable and reliable environment.

"At ChronoPay, our daily focus revolves around our commitment to develop and nurture a single system that can fulfill the processing requirements of any e-commerce business worldwide, providing our merchants with true peace of mind, while allowing them to concentrate their own efforts on their critical business functions."

Juicy ISO/MLS offerings

Merchants in the United States and worldwide can obtain ChronoPay's services through the ISO/merchant level salesperson (MLS) channel. Typically, the company offers MLSs a minimum buy rate. Then, each basis point on top of the buy rate is split evenly between the MLS and ChronoPay.

However, Schiferli stressed that his company's compensation structures are adjustable. Factors such as merchant types can influence compensation.

"MLSs will enjoy many benefits, because we are not only very flexible in offering payment solutions due to our extensive network of acquiring banks, but also in the commission structure as it is being offered to the MLS," he said.

ChronoPay offers ISOs and MLSs additional features, including a fully automated ISO administration utility. This enables ISOs to track new merchant applications and monitor the activity of existing merchants, automatically. Reports can be sorted by payment type, risk type, card type or even time zone.

ChronoPay provides advanced processing services while striving to make enrollment and use of the service easy for clients.

"ChronoPay's payment processing infrastructure is technically sophisticated," Schiferli said.

"However, we provide merchants with an easy, user-friendly enrollment procedure, enabling them to quickly set up our smart and reliable payment solution."

ISOs can also use this application process to quickly apply to become a ChronoPay sales agent.

Another benefit to ISOs and MLSs who choose to work with ChronoPay is the ability to offer flexible options to merchants. Retailers can choose to get their own Internet merchant account and process all major credit and debit cards.

Or, they can opt for ChronoPay's IPSP solution. With this avenue, merchants can accept payments on their own Web sites within 24 hours of signing up. Merchants who choose the IPSP solution do not need to apply for a merchant account.

The deal is in the details

ChronoPay also provides detailed reporting to acquirers and ISOs. Schiferli described the benefit: "We are aware that many acquirers and processors initially developed their software for use in traditional card-present processing environments.

"As a result, these applications are often incapable of identifying and storing the data required for advanced risk management and merchant support. ChronoPay provides its acquirers with relevant transaction data and statistics."

ChronoPay provides complete information, including customer details, Internet-protocol address, and details on a per-URL and per-risk-group basis. Another unique ChronoPay feature is its ability to disable processing when an urgent need arises. If merchants or acquirers suspect fraud, for example, they can halt processing to help mitigate the risk.

Some ISOs and MLSs may be concerned that practical issues such as geographic distance and time zone differences may make working with ChronoPay difficult. However, the company provides strong support to its clients' customers: Representatives are available 24/7/365 via phone or e-mail.

Any merchant with a company registered in Europe can process transactions through ChronoPay, including transactions from high-risk merchants. The company can accept high-risk merchants because of its robust security measures.

Fearless fraud busting

ChronoPay is a member of the Merchant Risk Council and a partner of Trusted Shops, which providesa seal of approval for online retailers to reassure consumers of the safety of doing business with these merchants.

The company is also Payment Card Industry Data Security Standard-compliant and holds HackerSafe certification. This certification means ChronoPay's Web site and services are checked daily for risk and vulnerabilities.

"Security is of paramount concern to ChronoPay, and we take our responsibilities very seriously," Schiferli said. "ChronoPay delivers real value to its clients by keeping abreast of card-industry and bank-mandated requirements and in maintaining its network security to the highest standards required in the industry."

ChronoPay uses its expertise to fight fraud. It knows the acceptable risk levels associated with each merchant type. It also knows what types of revenues are standard for an industry. Therefore, if a certain business activity is out of normal range, ChronoPay alerts the merchant involved to the anomaly.

The company also maintains and continually updates a database that lists fraudulent agents, affiliates and merchants. This further protects ChronoPay, its merchants and acquirers.

ChronoPay also developed the ChronoMethod BS System to track fraudulent transactions as they go through processing. The unique feature of the system is that when a suspicious transaction is detected, the system does not decline it. Instead, it mimics a successful authorization, giving the impression that the transaction has been approved and processed.

This technique accomplishes two goals: First, it provides additional information to increase the likelihood that fraudsters will be caught and prosecuted. Second, it allows ChronoPay to limit the amount of information a fraudster can infer about ChronoPay's fraud detection systems.

Once a security system or anti-fraud device debuts, hackers, thieves and pranksters immediately get to work on breaking into the system. ChronoMethod BS allows the company to prevent fraud without sharing any information about its fraud screening systems.

Fraud does not occur in a vacuum. Therefore, in addition to its proprietary systems, ChronoPay employs outside sources to fight fraud.

For merchants and the ISOs and MLSs who serve them, doing business over the Internet can be intimidating. ChronoPay specializes in making e-commerce secure and easy to implement. It also knows how to leverage the Web to help merchants and MLSs generate significant revenue.