Card acquiring forms a critical part of the back-end infrastructure that facilitates consumer card payments whilst credit card processing is a complex service involving multiple moving parts, emerging technologies, payment networks, regulatory bodies and financial institutions.
In that regard, almost every business relies on credit card processing to handle the details of accepting credit and debit cards as merchants adopt and utilize them in new ways. For these businesses, payment processing is crucial. This simplifies the checkout process for customers.
What Exactly Is A Payment Processor?
Payments are increasingly being viewed as something that should be integrated into the system rather than added on. However, in essence, a payment processor is a third-party company that adds credit and debit card processing capabilities to other businesses.
Payments can be made in many ways, such as in-person using a POS (Point of Sales) terminal, online using a browser, or via a mobile app. Secure payment processes, although important, can be challenging because they need continuous improvement and monitoring.
Challenges And Solutions For What You May Encounter
- Payment Fraud
As payments services move to digital and mobile platforms, vulnerabilities have increased. Payments transactions are being executed faster, reducing banks’ and processors’ time for identifying, countering, and recovering the underlying funds.
Fraud has also become more sophisticated, partly as a result of improved collaboration among bad actors, including the exchange of stolen data, expertise, and new techniques on the dark web. For this, preventing and detecting payment fraud is the solution, As such, here are a few ways in which fraud detection systems can detect and prevent online fraud:
- Suspicious event monitoring in real-time. Detection of card-present and card-not-present fraud, as well as account takeovers, BOT-related DDoS attacks, and payment outliers, are included.
- Real-time detection of “man-in-the-middle” malware, jackpotting, cash-out attacks, and internal fraud attacks, as well as improved security of the payments switch.
- Transaction risk scoring in real-time, machine learning and fraud blocking at the firewall port or network level.
- Chargeback
Chargebacks can seem very similar to traditional refunds at first glance. But, rather than contacting the business for a refund, the consumer will need the bank to take money from the business’s bank account.
When the bank considers the cardholder’s request valid, funds are removed from the merchant’s account and returned to the consumer. The consumer, however, is not required to return purchases.
Providing excellent customer service and responding to queries are the solutions. Customer expectations are high and orders need to be delivered quickly. By sending an automated list of emails or providing them with an order tracking system, customers are kept informed on where their order is. Thus, they will be less likely to charge back and will become more loyal to the brand.
- Multi-Currency Payment Methods
Opening a new bank account might be necessary for store owners to manage cross-border transactions. Additionally, regulatory authorities can create hurdles for store operations in a new country. The limitations can be related to payment processing, insufficient government support, or even the inability to expand services.
Create a multi-currency merchant account to solve the problem. Accepting multiple currencies as payment is the easiest way to increase your international sales. With multi-currency merchant accounts, you can display prices in the same currency as the buyer and receive settlements in any major currency.
To Conclude
The right payment processing method can elevate customer expectations, streamline operations, and steer clear of these common online payment problems. This, in turn, could ultimately result in increased revenue.
