- October 8, 2020
- Posted by: Claudio Milo
- Categories: Chargebacks, Fraud Prevention, high risk offshore credit card processing, Mobile Credit Card Processing, online payments, online store, reduce online fraud
Online business is a fast-growing industry, making purchases and payments for online merchants and customers easier and convenient.
According to statistics recently released by Finance Online, by 2022, only 17% of customers will use cash for purchases. This means that most people will be using some form of online payment method to purchase goods. Wallets are taking a steady lead, according to this research, by reaching 28% of the online payment pie, with debit cards still leading by 30%.
However, there is always the risk of breaching security measures. These are what the industry terms as challenges. Indeed, there are challenges with online payments for merchants using online payment gateways. — Such challenges include fraud and chargebacks as being the two most disrupting factors that impact businesses of all sizes, globally.
Online merchant and consumer experience in cross-border transactions do not always meet expectations because such transactions are often slow, expensive and can create unnecessary challenges when it comes to language barriers, foreign banking regulations, currency exchange as well as technological standards.
However, this cross-border transaction is necessary for global trade because the selling of products internationally increases a merchant’s customer base. Therefore, in order to meet customer expectations, your online merchant account needs to open offshore banking accounts and safe payment gateways, all of which have to adhere to international taxes, tariffs and regulations.
- Governments will begin to regulate payments and fees
- Trans-national systems will lower dependence on corresponding networks
- Payment systems will oversee costs, credit risk and liquidity more effectively
- Multinationals will accomplish economies of scale, with a side advantage of consolidating credit risk
- Outsourcing will increase processing productivity and lower expenses.
Card data security
Card brands such as Visa and Mastercard require online payment merchant accounts to follow all legal guidelines consistently and ensure that they are PCI DSS-compliant. Such compliancy or certification must be renewed yearly with a passing score, depending on certain, rather strict, criteria.
PCI DSS standards require merchants and processors to meet 12 criteria across six security fields:
- Build and maintain a protected system and frameworks
- Ensure cardholder information
- Maintain a vulnerability management programme
- Execute strong access control measures
- Regularly monitor and test networks
- Maintain an information security policy.
Finally, preventing online payment security issues is an absolute necessity for all online merchant accounts.
Fraud and chargebacks
All transactions online require “card not present’ transactions, which increases the chances for fraud.
If your merchant account acknowledges a fraudulent or fake online purchase, your business could end up being charged for the loss. Even the smallest indication of a security breach or cyber-attack can indeed severely affect your reputation and, as a result, you may lose your online customers.
iPayTotal offers special anti-fraud software for your online high-risk merchant account, which will counter such fraudulent occurrences.
Chargebacks protect customers against unusual transactions, but they can also have serious financial repercussions for e-commerce merchants. In many cases, chargebacks can have long-lasting effects on an e-commerce merchant’s reputation and credit score. To add, a large number of chargebacks can cause your merchant account to be closed, effectively ending all online transactions for your business.
iPayTotal has a vast understanding of how chargebacks work and has many ways for your merchant account to reduce chargebacks.
The solution for online merchants and their challenges
Merchant Account and Payment gateways are the two key measures that allow businesses to transact online payments. Once a customer submits his or her payment at the check-out, the payment gateway authorises the transfer of funds between the customer and the merchant.
In order to have this facility on your website, you will require a merchant account.
A payment processor that provides your merchant account with an acquiring bank and credit/debit card facilities, are absolutely necessary in order to accept online payments.
Give us a call on +44 800 776 5988 or get in touch with us through our website.