ERA and Electronic Retailer were on the road last week attending Internet Retailer, DM Days, Mobile Marketing Forum and the INPEX show. We also managed to have an awesome reception in Times Square at the offices of Manatt, Phelps & Phillips, LLP. ERA would like to thank its reception sponsors: Manatt, Litle & Co., O’Currance Teleservices, Dream Team Direct Inc. and Media Funding Corporation. Below are some photos from the various events. Enjoy!

ERA’s Katie White awaits the guests…

InfoTech’s Cole Van Heel, Dream Team’s Mike Moreau and SF Video’s Steve Feinberg

The goods…

ERA’s Robin Greenspan with Andrea Rose

Networking…

Power Direct’s Bret Butterfield, Liquid Focus’ Ken Osborn and MFLS’s Scott Swanson

INPEX took place at Pittsburgh’s David L. Lawrence Convention Center- the largest green building in the world.

Inventors were able to pitch their products for possible inclusion on “The Tonight Show with Jay Leno”

Electronic Retailer’s Pat Cauley with PurBlu’s Eva Lorini

C Spot Run Productions’ Wendi Cooper with Product Strategies’ Michael Planit

Save the date: ERA Santa Monica reception on July 16th! Email Katie White at kwhite@retailing.org for more information!

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Amazon says it is advertising when it compensates New York-based websites for posting links that refer customers to Amazon.com. New York says it’s soliciting business. The distinction means all the difference in the world for sales taxes, for Amazon, and possibly even print media, television and radio.

Amazon.com sued New York State earlier this month, challenging a newly enacted law that has serious implications for online advertisements. In April, the New York legislature passed a law designed to increase sales tax revenue from Internet sales. The law is known as the “Amazon tax” because of the way it broadens the sales tax law to apply to Amazon’s Associates Program, thereby achieving the necessary legal nexus for New York to force Amazon (and other Internet retailers) to collect and remit taxes on all sales to N.Y. residents.

A little bit of history helps put this law into context. The Supreme Court has held that a state can only impose sales or use tax-collection obligations on an out-of-state retailer if the retailer has a “substantial nexus” with the state (the Quill decision). Nexus occurs from a sufficient physical presence, which can be an office or warehouse, but physical presence can also derive from soliciting a state’s consumers via sales representatives located in the state. However, it can’t be just any sales rep, according to another Supreme Court case—in-state representatives must be “significantly associated with the taxpayer’s ability to establish and maintain a market in the state,” according to Tyler Pipe v. Wash. Dept. of Rev.

Amazon doesn’t have an office, warehouse or other physical presence in New York, but it has thousands of New York-based members of its Advertising Associates program. Per the Quill decision, advertising alone is insufficient to establish a substantial nexus. So New York has changed the definition of what it means to be a sales representative to capture these in-state associates that Amazon says merely hosts its ads. Under the new law, New York has changed the presumption of what it means to be “soliciting business” in the state. (more…)

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Breaking it down, I will try to provide a brief explanation on what all this talk concerning credit card compliance is about and what it means to direct marketing companies, now and in the future, and most importantly, how you can tell who is and who isn’t compliant.

First, the acronym PCI DSS stands for Payment Card Industry Data Security Standard. The standards inherent are set and endorsed by Visa, American Express, Discover Financial Services, JCB and MasterCard Worldwide. In other words, ALL OF THE MAJOR CREDIT CARD COMPANIES.

The simple goal is to safeguard consumer credit card information and personal data by developing rigorous security standards for all LEVEL 1 processing companies. What is the definition of a LEVEL 1 processing company? Boiled down, it is any company that handles and stores your credit card data. So, your fulfillment company, your telemarketing company and any database company that falls within that definition needs to be certified. The company needs to be LEVEL 1 certified, 3rd Party assessed. Being self-assessed does not make a company compliant. Go to Visa website www.visa.com/cisp to see if your vendors are compliant.

It is your obligation to ensure your vendors are LEVEL 1 compliant, certified and on the list. If not, you’re exposing your company to BIG $$$ FINES. Any breach by any of your non-compliant vendors will cost you and in the future, all non-compliant companies will be levied hefty fines. Call your merchant processor and check your merchant agreement for details. All compliant companies must be validated by Trustwave Trusted Commerce or a PCI-approved auditing firm. Once validated, they will prominently display the validation seal on their website and other media.

George Fanolis is vice president of business development for Fosdick Fulfillment

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Pat- Thank you for your post. We at Quova enjoyed reading it and were glad to see that you appreciated the spirit behind our Valentine’s Day package. While the gift was clearly the attention-grabber, we did have a serious intent—to demonstrate the very real threat of card not present fraud, a critical security issue for online retailers. After all, online fraudsters worldwide weren’t joking around when they unlawfully carried off $3.1 billion in goods from e-commerce sites in 2006.

But there was another clue in our mailer as well. Pinpointing the physical origination point of an order on the Internet and comparing it to the bill-to and ship-to address is one of the most effective tools in combating online fraud.

Many online retailers already use some type of fraud risk scoring method. They may look at whether the buyer is a new or repeat customer, the nature of the purchase, especially a very expensive one, the type of shipping request, credit card security codes and more. But one item frequently overlooked is reviewing a customer’s location when they place an order online. By adding just this one step of comparing the customer’s billing address to his IP address location to the transaction, one Quova e-commerce customer was able to detect an additional 70 percent of his online fraud.

Think about it—nearly every business decision is affected by geography: language, currency, shipping, taxes, licenses, government regulations and more. When a customer walks into a brick-and-mortar store you can tell a number of things about them right away: age, gender, what they’re shopping for, whether they’re return customers. But when a customer visits your retail website, you know exactly none of these things…where they are, what they want, what brought them in, or how likely they are to be crooks. It’s an anonymous process. Knowing the geographic location of your web visitor can provide the same sort of data for an online transaction. So the fact that Tom isn’t actually based in your office was an indicator that something may have been amiss with the package.

Quova does this with a technology called IP Geolocation, which can tell you where your online customers are and how they connect to the Internet as soon as they visit your site (through their IP address). There’s no need to ask for further information or store cookies in their browsers. The service is offered on a subscription model and is easily deployed with an API to your web application.

So while we see we sparked some humorous discussion around your office last Thursday, we also hope that we spark some more meaningful discussion among your readers about the best practices in geolocation technology, and the role it can play as part of a comprehensive online fraud prevention strategy for retailers.

Kerry Langstaff is vice president of marketing for Quova, Inc.

Do you think Quova’s marketing tactic was successful?

As multichannel retailers, how do you help secure your customer’s data?

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Before the holidays, the FTC invited a small group of industry representatives to preview their tutorial for ways businesses can protect the personal information that they collect. Frankly, I didn’t look forward to attending what I thought would be yet another boring presentation on data security. Boy was I wrong! The FTC actually produced a video that even our industry would be proud of. It’s interactive, it’s fun, and it was developed with the intended audience in mind.

Click here to view the FTC video!

I strongly encourage you to share it with your fellow employees—it’s the least painful way to learn the five basic principles to protecting your customers’ information: take stock, scale down, lock it, pitch it and plan ahead. I could be wrong, but perhaps the FTC has learned a thing or two from the direct response industry—and that’s knowing your audience. The only thing this video missed was the CTA…let’s keep that one a secret!

Barbara Tulipane, ERA president and CEO

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As a merchant account provider, there’s nothing more heartbreaking than seeing a high-potential campaign coming to an untimely death. Anyone who’s survived managing a successful DR campaign can offer some sage advice about running the next one. Most of these lessons learned involve some variation of an “If I’d only…” story. Since there are no “do-overs” in DR, you better make the best of each and every opportunity. The trick then is learning what to look for when the next one presents itself. To that end, I’d like to share one of the more common pitfalls encountered by untested DR marketers in hopes of helping others avoid similar fates.

Imagine you just launched a homerun direct response campaign. You’re getting a 4:1 MER (media efficiency ratio). You have thousands of units flying out of your fulfillment house. You’ve just spent a million dollars for more media and are getting ready to order more units. Everything’s running perfectly. STOP. Your local business bank, which you’ve banked with for years and gave you a great deal on your merchant account, just notified you that it placed a hold on that transaction because you have exceeded your merchant account limit and it is uncomfortable with your recent merchant processing activity. WHAT?! (more…)

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