Over the years, merchants have been adapting and utilizing payment acceptance technologies in dynamic ways. Since most businesses rely on credit card processing to handle the details of accepting credit and debit cards, payment processing is a critical service. It provides customers with a quick and easy checkout process.
Payments are increasingly being viewed as something that should be built into the system instead of added-on. However, setting up a secure payment process can be challenging because it requires continuous monitoring and improvement.
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What Is A Payment Processor?
A payment processor is a third-party company that enables other businesses to accept credit and debit card payments. They can handle all or most payment situations, such as when the customer is at a store using a POS (Point of Sale) terminal, paying online via a web browser or using their mobile app to submit the payment. Different payment processors have different capabilities.
What Challenges Might You Face And How Do You Solve Them?
Payment Fraud
As the shift to digital and mobile customer platforms accelerates, vulnerabilities in payments services have increased. Payments transactions are being executed faster, leaving banks and processors with less time to identify, counteract, and recover the underlying funds when necessary. The sophistication of fraud has increased, in part through greater collaboration among bad actors, including the exchange of stolen data, expertise and new techniques on the dark web.
Solution: Use payment fraud detection and prevention.
Fraud detection systems can detect and prevent online fraud in the following ways:
- Real-time suspicious event monitoring. This includes card-present, card-not-present, transaction reversal fraud, account takeovers, BOT-related DDoS attacks, and payment outlier detection.
- Real-time detection of “man-in-the-middle” malware, jackpotting, cash-out attacks, internal fraud attacks and improved security of the payments switch.
- Real-time transaction risk scoring, machine learning and the blocking of fraudulent transactions at the firewall port or network level.
Credit Card Data Theft
Credit card fraud aims to steal money from someone else’s credit account, or to purchase goods without paying.
Solution: Take the proper precautions.
- Use end-to-end encryption with SSL certificates.
- Use a secure third-party payment gateway.
- Make your business Payment Cards Industry (PCI) compliant.
Chargeback
Chargebacks can appear to be very similar to traditional refunds. However, rather than contact the business for a refund, the consumer is asking the bank to forcibly take money from the business’s account. If the bank feels the cardholder’s request is valid, funds are removed from the merchant’s account and returned to the consumer; the consumer, on the other hand, is under no obligation to return any purchases.
Solutions: Respond to queries and offer excellent customer service.
Customers are impatient and want their orders as soon as possible. By creating an automated list of emails or by providing them with an order tracking system, customers are briefed about the whereabouts of the product. As a result, they will be less inclined to charge back and will become more loyal to the brand.
Multi-Currency Payment Methods
Managing cross-border transactions may require store owners to open a new bank account. There are also regulatory authorities involved that can create hurdles for store operation in a new country. These can be restrictions on payment processing, insufficient government support, and sometimes the inability to expand services.
Solution: Use a multi-currency merchant account.
The easiest way to increase your international sales is by accepting multiple currencies as payment. Multi-currency merchant accounts allow you to display prices in the same currency as where the buyer is located and receive your processing settlements in any major currency.