Why is the credit card processing system so complicated?
E-commerce businesses changed the trend of replacing paper cash with electronic payments, and that drives the credit card processing system to the forefront of B2B commerce.
E-commerce businesses changed the trend of replacing paper cash with electronic payments, and that drives the credit card processing system to the forefront of B2B commerce.. With many advantages of accepting payments online via credit cards. Many challenges must be focused on when your business starts accepting credit card payments.
So, let us look towards some major complications of the credit card processing system.
A big challenge determined is the actual price of the credit card processing system. It can be tricky to know the actual cost of online payments. By complicated pricing structure. For example, interchange pricing charges, a qualified rate, a non-qualified rate, and all they applied to the same transaction. Calculation of costs with this structure is quite typical and time-consuming. Interchange plus fees reflect a more transparent pricing structure because interchange plus fees charge a simple mark-up amount over the base cost set by credit card companies (Visa, MasterCard, etc.). It can also allow a pricing structure to compare a payment processor to others.
Yet, there are more than 300 base rates for credit cards in Canada, over 3,000 in the U.S., and 50 different types of fees. So, businesses must spend a great deal of time. If they want to sort out all the pricing complications of the credit card processing system, one approach is to contact some payment processors. Then know about mobile options, time-saving integrating opportunities, and pricing structures. And use what you learn from them to negotiate with them.
There is a practical option, considering the challenges of the industry. And that is to use a payment broker that reflects various payment processors because an experienced broker can analyze your business requirements under the light of their extensive knowledge. You can also discuss with payment processors to provide you with the best deals for your business with the most affordable pricing.
Another challenge of the credit card processing system is software integration. So you can use ERP software as the origin of payment processing. And it can tackle all your business’s integration issues. But if your ERP software doesn’t integrate with your payment gateway, you will require some extra redundant data entry. You will have to investigate more about software integration so you will become aware of what you know. And you will get the necessary expertise from your ERP technical support team.
This is one of the serious issues that can occur in any type of online payment because of the credit card processing system. It is necessary to secure a wireless connection to prevent any user from reading & downloading credit card data and using that data to steal the cardholder’s identity.
The issue of data breaches should not be underestimated. Payment processors are using many ways to protect businesses from this critical issue. Your payment processor should offer some security features for customers’ card details that can also reduce the risk of data breaching, and protects cardholders’ data. Human intelligence and artificial intelligence should constantly work to identify ways to let good transactions process while keeping away fraudulent transactions to process. So, you must ask about security when communicating with credit card processors.
Maintenance of the credit card processing system requires compliance with PCI DSS mandates. Any online business that accepts credit card payments should operate with these mandates. The efforts and costs involved with PCI DSS compliance depend on the size and type of the business. And for huge online businesses, it is crucial to understand. That does your processor follow PCI standards. So, HighRisk Gateways provide robust solutions with credit card data security. And it is also PCI DSS compliance.
Optimize | Credit Card Processing System
Bringing your customer to the point of payment is a task. And only a great checkout can make it easy for the customer to complete the payment. It will also help you in closing the sale. So these following ways can assure that your online credit card processing system is working decently.
Make your checkout easy
With the help of these optimizers, you can boost your website speed during the checkout process
- Mobile-friendly and responsive design.
- Alternate payment modes from credit cards to eWallets.
- No redirecting will make your customers stay connected to your website.
- Perfectly displayed security logos.
Block Fraudsters only, not genuine customers
Risk management plays a vital role in the credit card processing system. If your risk manager has more data factors, you will get a more accurate response. And it has information like IP, email address, phone number, and postcode. Moreover, a risk manager can run various checks on its platform, identify patterns, and stop frauds before it happens.
Credit Card Processing System Complications in e-Commerce Businesses
What does your eCommerce business need to succeed? And how can you cut down the risks in processing an online payment? We, at HighRisk Gateways, provide you with various online payment solutions and resources.
There is a lot to be excited about in the payment industry. New technologies and security features have made the credit card processing system easier. But some new challenges come with new advanced technologies. Especially, when it comes to the eCommerce business, there are some serious online processing challenges you should consider.
A decent online customer experience will help in ensuring a completed transaction. You do not only have to offer payment methods as per the customer’s expectations but you will also need to reassure them that their credit card payment information is completely safe with you.. You must display security logos to provide customers peace of mind before entering the card details.
The shopping cart experience plays a vital role, so, you must allow customers the choice to register or check out as a guest. And registration makes shopping easy for customers who want to breeze through checkout. If finding discount codes, shipping rates, and product details are simple, then it will also help to ensure a completed order.
Chargebacks are one of the biggest challenges that online business owners are facing, which can add extra charges and break customer trust. A lot of chargebacks and a business might cease to exist. So you must consider using tools provided by your payment processors, that can identify transactions that may result in a chargeback. So, if you can put these transactions in the bin before they are processed. You can limit your chargebacks.
Nowadays, Credit card frauds are speeding up worldwide. In the United States, fraud losses reached $8 billion last year. And that is most common in card-not-present transactions. But there are many advanced technologies to analyze this factor and reduce fraud. So businesses need to be active in securing information. Also, build up new security solutions to keep their customers safe.
You can do one thing that can help you to secure your online payment processing. And that is to perform a complete audit of your credit card processing system. You can hire an expert to analyze your current security measures. Or you can also work with a payment service provider to understand security measures. And you can take them against any fraud possibilities.
Some businesses serve online card payments as an ordinary feature of a business. That is a technology required to accept online payments. But, it is a pretty complex procedure and should be managed properly. Even with the well-integration of online payment processing, the charges can be higher for many small business owners who want to accept online payments. So, look for a payment service provider that built an API that your business can use for the integration.
HighRisk Gateways’s expert team is working in the world of finance and payments for many years. We are dealing with the existing issues that lead to payments getting stuck, blocked, or lost. So we decided to build a brand new system with advanced technologies that took care of the credit card processing system completely and not only credit card processing. But also local payment methods like online banking, eWallets, etc will help.
The HighRisk Gateways payments platform manages the complete payment process from the initial stage when a customer clicks pay to the point the money settles in your bank. We do not work with third parties and there are no patched-in systems, even the whole online store stops with us.
Let us talk to a HighRisk Gateways Expert
Your business needs to consider all these challenges and start working with a payment service provider. And never leaves you in trouble and is ready to help you to face any challenge that you may be facing as your business grows.
Start your business with HighRisk Gateways. This payment processor provides a wide range of services and solutions with top-notch security to fit your business requirements. Just reach out to us and get what is available for you.
Source: Why is the credit card processing system so complicated?