[kictanet] How secure is mpesa

Mon Jul 4 14:16:44 EAT 2011

Robert,

Thank you for your feedback.

We would like to take this opportunity to provide clarity on the reversal
process and the steps we taken to ensure the integrity of the system and
process while securing subscriber’s cash.

Safaricom does not initiate the reversal but in our effort to assist
customers who make genuine mistakes, we contact the PayBill partner with a
request that they reverse the entry, which they are expected to do after
establishing, on their side, that it is indeed a genuine error.

Where a customer contacts us that they have paid to the wrong number, we
follow the below process;

1.       The customer is given the contact numbers for the partner they paid
in error to request for a reversal since as Safaricom, we cannot tell if the
customer genuinely paid to the wrong client.

2.       If the customer is referred back to Safaricom, we contact the
partner through an e-mail requesting for assistance.

3.       The PayBill partner then reverses the transaction by sending the
money back to the customer.

4.       If the PayBill partner is unable to reverse the transaction, we
reverse it back on their behalf after we receive the instructions from them.

The challenge that PayBill partners have been facing is that the charges
incurred by them after the reversal to the customer is not reversible.
However, we recognize the inconvenience this may pose and our Product
Development team is looking into this with a view to come up with a
long-term solution. In the meantime, we request our partners to invoice for
the value after which we refund them.

On a wider scale, we are carrying out the BIG SIM (phone look-up) education
to encourage subscribers to save PayBill numbers on their SIMs to avoid such
errors.  We have also introduced  a service that allows our subscribers, on
dialing *234#, to look up and verify PayBill account numbers. All this is
actively done in keeping with our promise to give the best experience to our
customers in all facets of our operations.

We are happy to be part of this discussion and appreciate the feedback we
are getting. We reiterate our commitment to continue reviewing our processes
to improve service offerings.

Regards,

__________________________________________________

Wachira Kang’aru

Public Relations Manager | Safaricom |

Telephone: +254 722 003973 |

Mobile: +254 722 574424

On 4 July 2011 09:13, robert yawe <robertyawe at yahoo.co.uk> wrote:

> Hi,
>
> I am writing this post with a heavy heart as it will likely reverse gains
> that have been made in the ecommerce and ebanking/mbanking environment.
>
> A client of mine, who shall remain unnamed for now in typical Kenya
> fashion, runs a site that accepts payments using the mpesa paybill system.
>  Due to the close similarity in various paybill number there has been a
> tendency for people to send money to the account erroneously.
>
> As the errors have grown over time the client has had to come up with a way
> to manage the reversals so us to reduce the impact on their operations.
>  Last week Safaricom accessed the paybill number's account and initiated
> reversals without notifying them.
>
> How sure is Safaricom that the person who indicated that they had sent the
> money to the wrong number had not already consumed services?  As the post
> master general in waiting I am concerned that such action would have
> negative effect on ecommerce as reversal of a transaction based on the
> request of one party will definitely harm the other.
>
> The reversed transaction still incurs the owner of the paybill number a
> cost that is not reversed, this issue was previously raised with the former
> MD of Safaricom Mr. Michael Joseph who instructed one of the managers to
> look into and resolve.  It has been over 2 years and the issue is yet to be
> concluded.
>
> This action also indicates the issue of Safaricom mistreating SME
> organisations, if the error was made with the KPLC or Co-Op Bank accounts
> would the staff have the audacity to make direct reversals on the system?
>
> I believe the term for such action is blatant impunity that can only
> be practised by a  monopolistic player in an industry.
>
> With a heavy heart I send this post hoping that it will act as a wake up
> call both to Safaricom and the regulators (CCK & Central Bank) that we need
> better control and monitoring of the money transfer market otherwise we
> stand to scare the public which would result in its slow down.
>
> Regards
>
> Robert Yawe
> KAY System Technologies Ltd
> Phoenix House, 6th Floor
> P O Box 55806 Nairobi, 00200
> Kenya
>
> Tel: +254722511225, +254202010696
>
>
>
>  ------------------------------
>
> *From:* Eugene Lidede (Synergy) [mailto: eugene at synergy.co.ke ]
> *Sent:* 04 July 2011 09:05
> *To:* robertyawe at synergy.co.ke
> *Subject:* M-PESA irregularities
>
>
>
> Robert,
>
>
>
> As we spoke;
>
> i)        Safaricom is now directly manipulating transactions in our
> M-PESA account without our consent or any manner of reference to us. Is this
> proper? (see red circle in picture below)
>
> ii)      They never refund monies deducted from us resulting from the said
> reversals despite the fact that we are not party to initiating the “wrong
> payments” (see blue circle). These are wrong payments intended for co-op
> bank’s 400200 but instead sent to our 400100.
>
> iii)    This issue has been outstanding since October last year during
> Michael Josephs days. Safaricom has refused to sort it out. Several emails
> to their M-PESA department regarding this issue have gone unanswered even
> those specifically addressed to the referenced Caroline lady.
>
> iv)    With the deteriorating relationship, it might be time we considered
> PesaPal, ZAP and Orange money seriously as a payment platform for our retail
> subscribers
>
>
>
>
>
>
>
>
>
>
>
> Regards
>
>
>
>
>
> *Eugene Lidede | *Chief Technology Officer | Synergy Systems Limited**
>
> 6th Floor, Phoenix House, Kenyatta Ave. | Cell: +254 721 289497/476367 |
> Tel: +254 20 2113163
>
> live.mystocks.co.ke | www.propertykenya.com | www.mystocks.co.ke
>
> *Outstanding Online Investment Content Provider 2009* – Computer Society
> of Kenya
>
>
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> Unsubscribe or change your options at
> http://lists.kictanet.or.ke/mailman/options/kictanet/wkangaru%40gmail.com
>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for
> people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>

-- 

It is impossible to defeat an ignorant man in argument. - William G. McAdoo
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20110704/02e7afb4/attachment.htm>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 74574 bytes
Desc: not available
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20110704/02e7afb4/attachment.jpg>