Since credit card transactions are the most common ones attacked by fraudsters. Therefore it is necessary to keep the payment processing systems secure and leave no vulnerable points. Also, when it comes to cybersecurity merchants should undertake every step in their power by ;
Compliance with PCI
PCI stands for Payment Card Industry. PCI compliance is technical and operational standards to which a business should adhere. It is a universal manual of standards of how to use, store and process card details. These standards help a business secure and protect information provided by customers during a credit card transaction. Non – compliance with these frameworks can put you in jeopardy where you are exposed to threats that you don’t wish for.
EMV (Europay, MasterCard, and Visa) enables accepting secured payment transactions. It includes a card with a metallic chip that holds cardholder information. Metallic chip cards possess better secure transactions than long stripe credit and debit cards. Special readers can only authenticate these cards. It is a security technology standard used everywhere for payments via credit card or debit card.
In this method, it is made sure that the data remains enclosed from its origin until it reaches the destination, it ensures the path is not breached. During the journey, the information is transformed into code using encryption algorithms. It prevents any third party from accessing vital information.
This method of securing the data is not as such stored in the system. In tokenization, the sensitive information is translated to randomly generated strings of characters and stores mapping in the database, access to this info is privileged to only authorised personnel. Payment Gateway providing tokenization can remarkably reduce the risk of fraud.
Secure Sockets Layer
SSL acts as an additional wall of security that assists against hacking attacks. During the transfer of sensitive information, the browser switches to secure mode, provided an SSL certificate is installed on the server.
This generation’s habits of shopping have shifted to online shopping. It is not in the hands of customers to select a Payment Processor but in the hands of the Merchant. Radiant Pay is the trusted and leading reliable Payment Solutions provider in London helping Merchants to identify a suitable solution.
Chargeback is a dispute raised by a cardholder directly from their bank for the return of payment or reversal of a credit card transaction. It is very different from that of return of sale as this comes directly from the cardholder’s bank and is processed via the Payment Gateway to the merchant.
Chargebacks were brought into the picture to protect the buyer from businesses selling subpar products or services or performing unethical activities.
Difference between a Chargeback and Refund.
Although from the customer’s point of view it seems to be the same. But from a merchant’s point of view, the chargeback comes with the additional fee along with the product or service cost amount. In refund, a merchant directly refunds the amount to the customer using his merchant account, whereas in chargeback the issuing bank presses the administrative charges.
3 Types of Chargebacks / Fraud
Under this category, unauthorized transactions take place. The cardholder is completely unaware that the card is used to benefit products or services, this means theft has occurred. Here when the cardholder files a chargeback it results in discontinuation of the credit card number first and a new card with a new number is issued.
In this case, the cardholder is encouraged to approach their bank first rather than getting in touch with the merchant to resolve the issue.
Here the cardholder is a deceitful customer having ill intent. He is trying to get away with that, which is by not paying for a product or a service that they have truly ordered or purchased. The cardholder’s ill intent is the reason behind the chargeback.
Even though the business has rightfully delivered the products or catered the services as described, the consumer will file a chargeback dispute so that he/she can avail of it for free and not pay for it. Business owners have to then play defense by proving their case in the process. This in reality is daunting because the cardholder is unethically trying to take advantage of the protection policy and going against the very nature or reason behind bringing this policy into existence. The policy is supposed to provide protection but they’re abusing it.
The cardholder issues a chargeback due to an honest mistake. The cardholder issues chargeback with no malicious intent. It could be due to common, honest mistakes or errors like forgetfulness, being unclear of what they purchased, not recognizing a charge, delays in shipping, or the consumer not receiving a product along with many other scenarios, here’s a quick shortlist of why chargebacks could occur.
Not receiving the item
Received incomplete/partial item.
Damaged item or not in compliance with description
They thought they were billed the incorrect amount
Child making purchase on parents credit card without their knowledge
Forgot about the purchase or someone else was authorized to use their credit but didn’t tell them.
Friendly fraud is mainly related to miscommunication or misinformation on either or both parties.
The chargeback process is made to favor the customer so you should necessarily know the process and best equip yourself before keeping your side safe and winning a dispute when you are caught in a chargeback situation. Presenting basic documents is enough and can help you win, additionally, you must gather as much information about the customer as possible at the point of purchase to prevent and protect yourself in future chargeback situations. By doing this step you are ensuring that you gather proofs if required to present.
The cardholder calls their bank
The customer calls their bank to initiate and file the chargeback and states their reason for doing so. And while filing they attach their evidence to support their claim.
In this step, the bank reviews the application submitted and verifies its legitimacy and depending upon the results approves or rejects the issues disputed as an invalid disputes.
Credit of amount
The cardholder bank on approval gives credit to the consumer on their credit card immediately.
Issuing chargeback to the card network
The fourth step includes formally issuing chargeback to the credit-card networks and a fee is also charged.
The merchant account processor (acquirer) receives the chargeback and notifies the business via Payment Gateway and other dedicated communication channels. It requests the merchant to display the proof of purchase. This is the right place where a business owner can submit his records as evidence of purchase. Here’s a list of proof you can provide,
Transaction details from merchant’s portal
Stamp verifying date and time of purchase.
Signature of cardholder
Choice of business owner
Here the business sometimes just lets go of the chargeback, the process ends but also at the same time the business owner is found at fault.
If the owner chooses to reply then will be required to provide proof of purchase to fight against the chargeback
Submission of documents
The business owner or the merchant then provides the documents displaying proof of purchase to the card-issuing bank.
Upon the result of a dispute in whose favor it is either cardholder or merchant, either party can file a chargeback if not satisfied with the results, only if you have strong supporting documents otherwise it will result in a huge penalty.
The robust, effective payment gateway can help any business to prevent chargeback to a considerable amount along with the smooth functioning of payment transfers. Radiant Pay is a leading Payment Solution Service Provider that understands your needs according to the type of business you deal in and offers you suitable services.
The only thing constant in this world is change, and with the rapid technological changes happening and the requirement to go digital has become the need of the hour. You can be a novice or an old timer merchant in your industry, to sustain we have to adapt to the changes.
This is the place where we Radiant Pay step in, we provide our clients with up to date services by keeping up with the new technological advancement. Before selecting any processing service provider you should know what you are getting into. Below are the different fees or charges which come into the pictures that a merchant should be aware of:
Merchant Discount Rate
A merchant is charged to process debit or credit card payment transactions. One shouldn’t not consider this charge because you compulsorily have to comply with those and can affect the end profit margin. These rates typically range between 1% – 3%.
This fee is paid to the card issuing bank by a merchant with every credit and debit card transaction.The rate at which fees are supposed to be paid is not fixed and revised at regular intervals of time. The rates are different for debit card and credit card and on every financial transaction it is charged respectively.
It is charged depending upon the total number of monthly sale transactions.This fee is paid to the credit card networks. It usually is a small percentage but is affected by factors like your monthly sales volume or risk involved.
Mark up fee/processing fee
As the name suggests, it is the fee charged for covering the cost of processing by credit card processing companies. It changes depending upon the plan chosen.
It is the fee charged by acquiring banks to cover the administrative expenses incurred when processing the chargeback. A credit card chargeback occurs when the cardholder disputes a previous credit card charge and wants to nullify the sales transaction. Essentially the customer asks the card issuing bank to return those funds to the customer’s bank account.
It is the charge which is pressed by acquiring banks to cover administrative expenses which were incurred while processing chargeback.
It might seem chaotic but Radiant Pay has a wide range of solutions and services for seamless operation and will add value to your business
In this hard economic crisis time, a huge number of business owners are gearing toward online businesses. And why not? Starting an online business gives you many opportunities to grow business and at the same time one can expand the business at International level. Online business not only saves up the payment space but it can cut down the overhead startup cost of the business.
You also save up on insurance and utility costs. Many business owners are setting up the idea to establish their own system, and after some period this system will be entirely online based. If you set up an online based business-be it large-scale or small-scale, most of your services payments will be done through credit cards. If you do not start taking or accept card transactions, then you will lose a huge number of sales. Nowadays, many customers are looking for online payment mode which is reliable and convenient, and if you do not accept the online payment method, they might move to another website, which will offer the best mode of payment. A recent study indicates that the businesses who do not accept credit card payments have lost sales upto 400% higher than the one who owns the online payment mode.
\Setting up the system to accept card payment is so easy and convenient. For the set up, you have two options. You could apply for the Traditional merchant account. With this option, you will have to pay the set up fees and an extra charge every month. The second option is to go for an online card processing company, which gives you the best card processing services, without charging any setup fees. Finding a reliable card processing company for a business is just a step ahead, you will find a huge number of companies online or service providers that give you best rates. At first, you will not be able to foresee how many transactions you will undertake per month. Therefore, avert going for the lower transaction fee-higher monthly payment. Until you are certain of the number of transactions in a month, you should go for the higher transaction-lower monthly pay fee. With the latter option, you will pay for each transaction and about $10 per month.
With the proper research and scrutiny of the online card processing providers an online merchant account will ensure that you sign up with the right company. One should [pay attention to the extra cost to any company that offers bonuses and application fees. You should opt for a company that will be able to alert you, through your phone or mail, of any credit card payments and transactions. It will cost you somewhat less if you accept a $70 credit card payment than creating, printing and mailing an invoice to the client.
Whether you are establishing a small online business or extending your already successful business, accepting card payment will definitely decrease debts. This will increase the overall cash flow hence increasing profits for the business. Constantly making high profits will ensure the prosperity of your business.
All in all, you should be familiar with the overall credit card processing procedure. It is essential to know what your business needs or requires and how you can make it happen. Accepting cash payment is one of the tough task for online businesses, hence, considering online payment method with credit card processing is best, where everything is handled and seen by banks which gives you less stress, and you can concentrate on sales and expanding the business.
Don’t you want to escape the fraud credit Card transactions?
What if the Banking information of your client is not secured?
There are many new challenges and loopholes in the online payment systems, which are to be considered as you chose for a payment solution and software gateways.
In 2014 the Credit Card losses were around $10 billion, where card issuers were held responsible.
If you are looking to have the best, and out-of-the-box Payment solution for your ecommerce business, then you should be at your toes, should be in the hunt, and customize the search. The ecommerce community is looking at the digital solutions agency to cater to the best and easy payment solutions that are fast and fruitful for substantial growth,the bulk of sales, volume of faretransactions, and easy platform to gather the fund without any headache.
What are the new improvements in Online Payments?
Radiant Pay is always a leading Online Payment solution based in London, the Hub of commercial businesses in the UK, and European Nations.
Since its foundation, Our Flagship is known for its dedicated approach towards giving excellentpayment solutions for many small and large ecommerce businesses, as giving superb products and services like Internet & Ecommerce, Credit Card & Check processing services,Online Banking &Payment Gateways, Merchant Cash Advance & Gift n Loyalty Cards for our beloved clients. You can view more of these services at www.radiantpay.com/merchant.php
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