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ECT News Community   »   E-Commerce Times Talkback   »   Re: An E-Commerce Proverb: If You Snooze, You Flooz

Re: An E-Commerce Proverb: If You Snooze, You Flooz
Posted by: Paul A. Greenberg 2001-08-29 19:59:32
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The ever-expanding dot-com graveyard added a new name to its roster over the weekend.
Flooz.com, the company that dealt in Internet-based
currency and electronic gift certificates, quietly closed its
virtual doors. Among its other difficulties, Flooz was, according to early reports, a
victim of massive credit card fraud of at least US$300,000.

When one of the biggest hurdles facing e-commerce is consumer trust and secure payment
options, the unceremonious bilking of Flooz and its ultimate collapse do not bode well
for online credibility.

Re: An E-Commerce Proverb: If You Snooze, You Flooz
Posted by: Asha Pancho 2001-09-24 11:39:10 In reply to: Paul A. Greenberg

Just read one of your articles on the flooz story. I had no idea they had gone down and have money invested in them. Could anyone tell me a way of contacting the corporate office so I can get in touch with them.

Thank you for your help.

Re: An E-Commerce Proverb: If You Snooze, You Flooz
Posted by: Randy Smith 2001-08-30 14:02:46 In reply to: Paul A. Greenberg
Man can not live on Smooze alone and apparently not Flooz either.

The pitfalls of online payments are Fraud and a lack of security. Authentication of the user is the root of these problems. So what is the best solution to credit card fraud? It's more simple than you might believe.

First of all a personal identification number (PIN) needs to be used for all credit or debit card payments, just like when you use your ATM card.
Secondly a Thumb or Index finger Biometric should be used in combination to a) activate the card and/or b) to authorize the purchase. There are other security and authentication features that could increase the security such as Smart Chip or 'MSN Passport'. Adding any of these security features may be a very simple addition if one knows the right people and has the implementation knowledge.

So beyond security, how could an online currency succeed? Flooz, Beenz and others like them all face the challenge of competing with VISA and other Internet payment solutions soon coming to market via FI's. The bottom line for a successful alternate payment solution is to charge less than the big boys and offer twice the services. The Online payment solution must also be partnered with the retailers in a revenue-sharing fashion as well. The alternate payment company of the future must also have its roots not only on the Internet, but in the 'Real World'. It is possible to build out an independent payment network over the existing POS terminal platform, via partnerships outside the major credit card's ownership. The payment solution of the future must also provide loyalty and revenue-sharing features as value-adding services for their merchants.

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