New Rules for E-commerce – A SPN Exclusive Article Part 3

spn_exclusiveWhen the Internet was conceived, it was developed as an ‘information highway.’ It has evolved into an e-commerce solution that is a mandatory component for every business. However, the Rules of E-commerce have changed.

In this article we introduce the new rules and how they impact shopping cart developers.

• In Part 1, we discussed how the new rules impact consumers.
• In Part 2 we discussed how the new rules impact online merchants.
• In Part 4 we will discuss how the new rules impact smart phone application developers.
• In Part 5 we will discuss how the new rules impact smart phone application developers.
• In Part 6 we will discuss how the new rules impact smart phone banking applications.

How the PPOS Operates

The new PPOS is not a storage device, but rather a payment application. None of the data entered on the application is saved or stored within the application. All saved and stored data resides in a cloud computing service, which is usually owned and operated by the bank or the company that issued the credit cards.

Consumers concerned about identity theft need to know that the new digital wallets equipped with a PPOS are guaranteed to protect your identity. The safest place to store your credit card details is with the bank or institution that issues your credit card. The second safest place to store your profile and card data is in one of the cloud computing services designed specifically for that purpose. After all, they already have this information.

When the PPOS is initially launched, you are presented with data collection forms to create your profile and enter your card details. The submit function uploads the profile to the gateway server that encrypts the data, returns an unlock key, and then stores the encrypted file with the appropriate cloud. The returned unlock key is stored within the PPOS, along with a description of the card, but not the card details. For example, the stored description might read Capital One MC Platinum.
Shopping Cart Developers

The introduction of this new technology means that shopping cart developers will need to revise their applications. The new model of shopping carts provides merchants with an enhanced level of security. We have developed a complete set of API’s to satisfy all vendors. In summary, here is an overview of how the PPOS processes online purchases.

When the consumer selects the CQRpay button:

1. The shopping cart software generates and uploads to the processing gateway a file containing the merchant identification as well as the invoice details.
2. The shopping cart software receives confirmation from the gateway that the transaction was received, displays a transaction number, and then closes the invoice.

At this point the merchant has an open unpaid invoice with no knowledge of the consumer’s identity.

3. The consumer then opens the PPOS and retrieves the transaction number.
4. The PPOS displays the identity of the merchant, the invoice number and the invoice details as well as a number of payment options.
5. The consumer selects the payment option and processes the payment.

Once the transaction is processed:

6. The PPOS will display the authorization number and save a record of the transaction.
7. The gateway then sends the authorization to the merchant to complete the transaction.
8. The merchant then sends an e-mail confirmation to the consumer.

The same file, passed to the transaction processor, can also be read by smartphone applications specific to the needs of the merchant. The invoice file passed to the consumer at the time of purchase can include a variety of additional information, including the ability to alert the consumer of up coming events, specials, coupon offers, etc.

If you would like a copy of the developer’s API for shopping carts, click Cart Developers.

Other Requirements

As the PPOS gains acceptance, there will be a heavy demand from merchants for specific smartphone applications, which will allow merchants more detailed communication with the consumer. Interactive smartphone applications will become the norm.

The same file can then be tied to smartphone applications specific to the needs of the merchant. We believe the shopping cart suppliers will be the ideal developers of these new applications, and as such we have a separate API that may be built into these new applications.
Income Opportunities

Once we launch our PPOS application, shopping cart developers who install our API will have about a one year window of exclusivity before their competitors launch a competitive product.


The digital wallet will protect the cardholder’s identity and will provide a new and convenient way to make purchases, both online and on multiple hardware platforms.

The PPOS digital wallet will be a welcome solution for merchants who wish to save costs on card-not-present sales, chargebacks and fraud attempts. With its ease of implementation for merchants and the inherent acceptance by consumers, merchants will benefit by using CQRPay.

The CQRPay PPOS digital wallet will become the distinct leader and will set the standard in digital wallet technology by meeting the security needs of cardholders, merchants, and card issuers.

Victor Arcuri is a Canadian businessman who, for greater than 10 years, has operated CQRPAY, Inc., a secure gateway for credit card processing for Internet-based merchants. Our independent gateway service is unique in that it is the only application that connects to every merchant account provider and every bank in Canada and the USA.

Our platform enables merchants to use the service regardless of any affiliation they may enjoy with a merchant account provider, bank, POS device supplier or shopping cart software developer.

We invite your questions by phone 403-234-0844 or e-mail.

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About the author


Victor Arcuri