The use of credit card to as a mode of payment has been widespread and is a common thing nowadays. More and more customers prefer to pay by card than in cash. Paying in cash and in checks is continually becoming less and less common. Online payments together with credit and debit card payments have gained popularity. With these, merchant even small ones are obliged to get the best credit card merchant account services to allow them to accept card payments.
What are credit card merchant account services?
How do a credit card merchant account services work?
1. In order to purchase an item or a service, a customer needs to enter his credit card information into the website’s payment page.
2. After entering the necessary information and submit the order, the website will send the transaction request from the merchant’s website server to the acquiring bank’s payment gateway, thus opening a payment page that can only be accessed from a web browser with an internet connection.
3. The payment gateway will enable the merchant to accept and process the credit card transaction online by forwarding the transaction request of the customer to the credit card issuing bank.
4. The issuing bank will process the transaction and return the result to both the merchant and the customer.
If approved, the issuing bank will notify the merchant and the customer then transfer the approved funds from the credit card to the credit card merchant account.
If the transaction is declined, the merchant and customer will be advised and provides an explanation as to why it is declined.
5. The final steps to be taken if the process is approved are the settlement and payout. The acquiring bank will send the merchant of the approved funds to the merchant’s business bank account. The payout, however, will be dependent o the payout schedule given by the acquiring bank.
The same process happens to an in-store credit card processing except that the card must be swiped with a card terminal or a portable card reader or even a virtual terminal to initiate the transaction.
Card payments are a common form of payment nowadays. Even high risk businesses need to be able to accept credit card payments and getting a high risk merchant account provider can help them with that. But getting a credit card merchant account services is not easy especially for those businesses in the high risk industry. There are several reasons as to why a business can be categorized as a high risk.
- Businesses with high chargeback rates
- Online businesses or Card Not Present businesses which have a higher risk for fraud instances.
- Industry or product reputation such as gambling, adult content and even CBD products.
Credit card merchant account services can be very helpful in helping the merchant to open up the business to many opportunities such as growing the business worldwide and adding value to the company.
What are the benefits of having a credit card merchant account services?
1. Ability to accept credit card payments which have continued its growth on a preference among customers.
2. Direct impact on increasing sales. It has been found in studies that customers tend to spend more when given the option to use the credit card as a mode of payment over cash.
3. Helps in managing and forecasting cash flow.
4. Avoids the hassle and cost associated with bounced checks.
5. Provides customer convenience which can translate to happy and returning customers.
Managing merchant account services are not without problems and issues. There are credit cards processing problems that almost all merchants experience.
What are the common credit card processing problems that may hinder payment processing on the merchant account?
1. Fraudulent transactions are detected. When this happens, the acquiring bank will automatically reject the payment of the customer. There can be a number of reasons for a declined transaction such as:
- The card used is already expired.
- The credit limit has been reached.
- The card used was reported as lost or stolen.
- A criminal is attempting to use the card for fraudulent transactions.
2. The merchant account is newly set-up and needs to adjust the settings.
3. The bank is having technical difficulties or experiencing bugs and technical glitches and may not be able to process transactions for the moment.
4. The merchant account has been suspended or terminated by the provider.
5. The monthly volume limit of transactions has been reached.
Credit card transactions are often targeted by criminals and more fraud are being committed day by day. That is why it is very important for business and merchant account providers to take the necessary precautions in fraud prevention especially for online credit card processing where the card is not present and the credit card owner cannot be physically identified.
The fraudster uses financial pretexting to gain access to the needed financial information or may use email phishing attacks to possibly get the said information. Other take advantage of data breaches to merchants who depend on credit card merchant services by stealing the personal and card information of the customers.
That is why it is necessary to have a credit card merchant account that has built-in fraud prevention and secure payment gateway to avoid breaches on data records that can pave the way in fraudulent transactions.
The merchants must also follow the necessary safety measures to ensure a secure payment system to prevent fraud.
1. The online store’s website where the customers’ shop must be secured with SSL certificate. This is essential to encrypt the information being transmitted in the website particularly on the payment page protecting the cardholder’s card details and other sensitive data.
2. The use of a captcha code verifier or an additional verifier field in the login, forgot password and transaction page helps in preventing hackers in using SQL injection which is one of the most common easy to hack the web.
3. When applicable, a 3D secure authentication should be used. 3DS is an additional security layer known as Payer Authentication service that helps prevent fraud in both debit and credit card transactions.
4. A regular test and audit must be done with the entire website regularly to be able to determine if the page is running smoothly with no broken link. Also to check if the SSL certificate is installed and running properly
Cybercrimes are committed daily resulting in fraudulent transactions. The merchant is responsible to make sure that all online transactions done on their company’s website are all secured.
To find out about iPayTotal’s merchant services for a credit card processing merchant account, speak with a live representative directly at +44 800 776 5988 or get in touch with us through our website.