Paynetsecure Blog

Payment processing security is important to all businesses to guard against breaches and safeguard payment processing operations.  Here are the top 10 best practices list to secure payment processing:

1. Perform background checks on new employees and contractors before hiring.  This is simply common sense.  Yet, it’s amazing how many companies fail to perform the most basic background checks, creating serious vulnerabilities in internal security.
2. Maintain internal and external software-security training and certification.  Keeping software up to date and constantly updating security training for all employees is vital to safe payment processing.
3. Keep a common software-development life cycle across payment applications and make sure all new software versions are PA-DSS compliant.
4. Continually conduct vulnerability detection tests and code reviews against common weaknesses.  If you are not identifying weaknesses, you can be sure cybercriminals will do it for it.
5. Be sure to not store payment processing card data unless absolutely necessary.  If necessary, you must comply with the PCI regulations.  Most companies find it more cost-efficient simply offload this burden to PCI certified payment gateways and processors using tokenization and other encryption methods.
6. If a payment processing breach does occur, notify all affected customers in a timely fashion.
7. Implement an installer, integrator and training and certification program that enforces adequate data-security processes.

For more information on payment processing security, contact info@paynetsecure.net

For years utility companies did not accept credit cards for payments of bills.  The biggest issue was that it was too expensive for them to accept cards as payments.  That’s changing as card associations, hungry for new business, are marketing to the utiltiy market with aggressive interchange rates

Electronic bill presentment and payment (EBPP) is expanding rapidly as more utility companies have started taking advantage of special low discount rates.  Consumers and utility companies can both benefit.

Consumers want to pay by credit cards for many reasons.  Some simply do not have money to pay the bills at the end of the month.  Paying by credit card gives them a way to literally keep the lights on.  Of course, it’s an expensive way to pay the bills, considering the exorbitant rates some issuing banks charge as interest.

Consumers are used to using debit cards for all purchases.   Customerswith and without bank accounts can use the cards to conveniently pay utility bills without the need to write a check or get a money order.

For utility companies, EBPP provides significant savings on traditional printing, mailing, and remittance processing.  Business processes are streamlined and productivity increases.

Visit paynetsecure.net for more information.

Peer-to-peer (P2P) file-networks are a popular way of sharing files, software, and other applications between individuals.  But, P2P networks are increasingly be used for identity theft and fraud.

P2P networks make it easy for criminals to remotely access the computers of anyone that is hooked in to the network.  Once the computer is accessed, it’s a snap to grab tax returns, credit reports, bank statements and other information. Criminals use the stolen information to create fake credit card accounts and fraudulently purchase thousands of dollars worth of products and services from unsuspecting merchants.

Innocent victims never suspect that the information on their computers has been compromised through a P2P network.  Hackers can quickly gain access to the network and so vast amounts of damage within minutes.

If you are using a P2P file sharing network, it’s smart to have a separate computer for the application.  Keep the computer on a different system, including different routers and servers.  Use different passwords and login names and make sure to keep no personal info on the computer used for P2P file sharing.

Visit paynetsecure.net for information on secure payment processing.

Every country in the world has experienced an increase of electronic payment processing within the last few years.  Credit and debit cards continue to charge forward rapidly as the preferred method of consumer payment.

Several controversies surround credit and debit interchange fees.  Over the past few years, discussions about interchange have heated up.  In some countries, such as the US, interchange has increased.  In Australia, interchange has decreased.  Debates over interchange continue to rage in countries throughout the world.

For acquiring banks interchange is a cost of providing services to merchants.  For issuing banks interchange is a fee obtained for providing their services to cardholders

An increase in the interchange fees means an increase in the fee issuers receive for every card transaction their customers undertake.  An increase in the interchange fee leads to an increase in acquirers’ costs for every card transaction processed.  Therefore, acquirers ultimately respond to an increase in the interchange fee by increasing their merchant fees.   The merchants, of course, pass the cost on to buyers in the form of increased price of goods.

If interchange decreases, issuing banks receive less money.  Issuers seek to make up lost revenues through other means.  For example, an issuing bank may reduce card holder benefits associated with a card.  Or, the bank may begin to charge cardholders additional fees.

No matter which way interchange goes, banks make money.  And consumers pay the costs.

Visit paynetsecure.net for payment processing solutions.

Online giving is the fastest growing channel for donations for non-profits and charities.  Here’s a few tips for getting more money from online donations.

1. Get your own merchant account.  A direct merchant account will always save you money on payment processing.  And give you control over your money.
2. Accept both cards and electronic checks.  Electronic checks are much less costly to accept than cards.  But, offering both are important to maximize donations.
3. Offer recurring donations.  You’ll be surprised at the number of people who want to donate on a regular basis.  It’s a great way to stabilize cash flow from donations.
4. Make it easy for people to donate.  Use a “donate now” button.  Don’t make people register before donating.  Simply take them to the payment page.  The fewer the number of “clicks” to donate, the more money you’ll receive.
5. Use the name of your cause as the name the donor sees on their card or bank statement.  This helps the donor remember what the payment is for and gives them another opportunity to feel good about their contribution.  It also reduces cancellations for recurring billing.
6. Reassure your donors that their privacy will be protected and that the donation process is completely secure.  Display privacy and security policies prominently on your site.
7. Payment processing systems can be directed to send a customized email upon receipt upon payment.  Thank the giver for the donation on the site.  And use the email feature to thank them once again with their receipt.
8. Integrate your payment processing with your in-house systems.  It’s easy to do and will streamline operations and increase productivity.

The vast majority of payment processing card transactions combine 2 elements:  authorization and capture.  Once the card information is received, authorization of the amount of the purchase is obtained from the issuing bank, and, if approved, the card is charged.  The transaction is automatically set for settlement to the merchant.

Sometimes a transaction is submitted for authorization only.  A common use of authorization only is if a merchant wants to verify the availably of funds on a buyer’s card before finalizing the order.  It is also used by merchants if they don’t have an item in stock or they want to review orders before shipping.

A capture only transaction is used to complete an authorization only transaction.  The previously authorized amount is captured (the amount is charged to the buyer), and the transaction is sent for settlement to the merchant.

An authorization only transaction and a capture only transaction together are considered one complete transaction

A credit transaction is used to refund customers for payments that were previously processed and successfully settled to the merchant.

A descriptor is identifying information about a merchant which appears on buyers’ credit card statements.  Descriptors remind cardholders of the details of the purchase and give buyers a way to contact the merchant.   It is advantageous to both buyers and merchants to use clear descriptors.

There are two major categories of descriptors: static and dynamic. Static descriptors, sometimes called hard descriptors, assign a single description and customer service number to all products and services.  Some merchant account providers allow only a single static descriptor to be used with each merchant identification number (MID).

Dynamic descriptors, also called soft descriptors, allow merchants to associate a distinct description and phone number with different products or services.  Dynamic descriptors give companies the option to use the name  of the product or service as the descriptor on the customer’s credit card statement.  This significantly reduces customer disputes and chargebacks.

Many companies offer a variety of products or services.   If a company name appears as the descriptor on customers’ card statement rather than the name of the product or service, the customer may not recognize the charge.   As a result, customer disputes/chargebacks occur because customers may not identify the company name with the specific product or service which was purchased.

This happens even if a company clearly advises the customer at the time of purchase of the name which will appear on the customer’s credit card statement.   Another common reason this happens is when the spouse who did not make the purchase handles the family finances.  The spouse may not recognize the name of company but would recognize the name of a product or service that was purchased.

Dynamic descriptors and phone numbers can help reduce the occurrence of customer disputes and chargebacks by clearly identifying the product or service on customers’ credit card statements.

For more information on payment processing visit paynetsecure.net

Electronic payment processing is an important part of streamlining business operations.  But, to get the most bang for the buck, organizations should integrate payment processing with internal systems.    Integration with accounting, enterprise resource planning (ERP), and other financial systems is necessary to realize the true benefits of electronic payment processing.

Integration with back office systems can be done directly to the processor or through integration with a payment gateway.  Integration at the processor level can be beneficial in obtaining some unique services variable only at the processor level.  Direct processor integration ties the company tightly to that processor so companies must be certain the processor is one that the company wants for the long-term.

Integration to a payment gateway extends the flexibility of processing.  Merchant accounts can be obtained through various processors instead of a single processor which helps mitigate payment processing risk long-term.

Integration of payment processing with back-office software improves cash flow and forecasting.  It eliminates manual data entry, increases productivity and minimizes  the risk of human errors. Integrating  accounting and ERP solutions, on both the AR and AP sides, with payment processing for credit and debit cards, electronic checks, ACH, and alternative payments is the smart way to do business.  Companies discover it provides exponential value with fast ROI and long-term savings.

These days everyone is using plastic to pay.  And that “everybody” includes corporations.  More and more corporations are making purchases on corporate or purchasing cards.  It’s a wise decision for the company since record keeping and account reconciliation is a breeze.

Corporate cards provide an additional level of data to the purchasing business, allowing them avoid the costly administrative process of creating purchase orders, while still providing the data they need to reconcile, control and track expenses for smaller ticket items.

Any merchant with corporate clients will find that accepting corporate credit cards is essential to satisfying the payment needs of corporate clients.  Merchants accepting cards save the cost of invoicing and get better control DSO (Days Sales Outstanding).  Contingent liabilities are minimized, collections are easy and invoicing procedures are shortened or eliminated all together.

Corporate cards require a payment processor accept as Level II and Level III cards.  The extra levels refer to the additional amount of data captured from the cards known as Level II and Level III data.

Visit paynetsecure.net for more information on payment processing.

A merchant said he had a sales rep approach him, show him the card not present rate on on interchange table and told him that’s what he would be charged for all internet transactions.  It looked like a pretty good deal to him.  What the sales agent didn’t tell the merchant is that there are over 90 interchange rates.

And, the sales agent didn’t reveal to the merchant that interchange is based in large part on the type of card that is used to make a purchase.  That is, what card the buyer is using.  There are endless types of cards that people use to make payments online.  Lots of people use rewards cards.  A rewards card is lined to accruing airline miles, cash back, or other types of rewards that the issuing bank offers in order to encourage buyers to use a particular card.  And the interchange rates for rewards cards are much higher than cards that are not linked to any reward.   In addition, corporate cards are also assessed higher interchange fees.

One of the complaints merchants have been griping about for years is that the card brands and banks are essentially subsidizing card reward programs through the use of higher interchange rates.  And there is certainly validity to that argument.

Instead of looking at interchange rates, merchants should look at the effective rate of processing.  This simple mathmatical calculation yields a much more useful number in determining how much is really be charged for processing.

Visit paynetsecure.net for more information on payment processing.