How to Protect Your Customers By Securing Payments

Online sales have been growing exponentially. With the rise of online shopping and mobile services, more money is spent digitally than ever before. In fact, a number of experts have predicted the death of cash by 2030.

Perhaps it’s time to assess the risks of a cashless society as we hurtle towards it.

Online security has always been an abiding concern. It seems instances of online fraud and data theft have grown alongside the volume of online transactions. With high-profile attacks on Target and Apple, CIOs at multinational firms are more concerned than ever about the safety of client data.

But online payment fraud is an even bigger concern for small and medium sized businesses. Data thieves find it a lot easier to fish for credit card details and passwords from smaller firms. Some estimates suggest that 70% of online attacks are on small businesses.

This is why your business needs to urgently reassess the way customer data is handled and invest in tools to protect online payments.

Here’s what you can do to boost security for your clients:

Authenticate Accounts

One of the most common threats online is a so-called phishing scam. The attacker fools the customer into handing over account login and password details. A lot of customers fall for this common scam and end up losing data stored on your servers.

Businesses assume the responsibility of securing client accounts. Which is why investing in tools like two-factor verification ensures that only the customer can get into the account they have with you. Authenticated accounts can only be accessed by the client.

Encrypt Data

When hackers attacked Ebay in 2014, they got access to 145 million account passwords. Luckily for Ebay users, all the passwords were encrypted and no one lost money in the ordeal.

This goes to show how important it is to encrypt client data. Shop around for an online security software vendor and find one you can trust.  The more sophisticated the encryption software, the stronger it is and the investment is surely worth it.

One of the easiest ways to encrypt payment processing data is through a high risk payment gateway The gateway encrypts card data to protect your customers.  And keeps you safe in the case of a data breach.  Since the gateway stores the encrypted card info, your business is not exposed to the risk of stolen card data.  

The gateway is designed for  high risk merchants.  Yet merchants in non high risk categories can enjoy the same benefits.

For example, extensive fraud protection tools are easily customized to meet the exact requirements of your business and the targeted markets in which you operate. Cascading rules and comprehensive filtering options provide you virtually unlimited ability to optimize the security of your payment processing and keep your customers safe.  

SSL encryption

SSL encryption takes care of the data been transmitted between the server and the browser. According to Google, only 77% of the websites online are SSL encrypted. The rest are at risk of losing every bit of information passed from server to browser.

Regardless of the size of your company, a large online insurance company, SSL encryption is a necessary expense. A lot of browsers simply block websites that don’t have it. This means customers could be prevented from visiting your site if you lack this encryption. Although the encryption certificate isn’t expensive, there could also be ways to get this certificate for free.

Offer ACH & Echecks as Alternative Payments

In the US, echecks are the most popular alternative payment methods.  Echecks can be processed through the ACH Network or through bank to bank image transfer.  ACH and bank-to-bank financial services networks are one of the safest ways in the world to send & receive money.  

Millions of Americans regularly pay for goods and services with electronic checks. It is a trusted and familiar alternative payment method for US shoppers.

The growth of electronic checks has been driven by bill payment companies who encourage consumers to pay electronically to stabilize recurring income.  The rapid rise of online bill pay has translated to consumer demand for echecks as a payment option for all ecommerce transactions.

One time & recurring electronic check payments are now becoming the norm for businesses selling online.  More than 30% of internet retail sites already offer checks online as a alternative payment method at checkout.  

Echecks offer extensive security measures such as account validation, fraud detection system, age verification and identity verification protocol.

The more ways your customers have to pay you, the more sales you will make.  Adding echecks to card processing is one of the fastest (and secure) ways to protect your business.  

Conclusion

Online commerce is going to keep growing. Regardless of the nature of your business, customers will prefer cashless online payments in the future. These payments are convenient but subject to risk of attack. Protecting customer data is your responsibility. 

• Invest in heavy encryption
• Utilize the full potential of your payment gateway
• Use identity verification and transaction protection services
• Provide alternative payment methods  

All these measures protect your customers online.

How secure is your payment processing?

Contact info@paynetsecure.net today

 

Introduction

The growth of the internet means that more businesses than ever are classified as high risk processing by acquiring banks.  Card not present transactions have more risk for chargebacks & fraud.  As a result, ecommerce sites in many different industries are now considered high risk regardless of the product or service being offered.

This is in addition to the many businesses that classified as high risk due to an industry MCC associated with a business.  Certain industries are classified as high risk because companies within that industry have historically greater higher risk of fraud & chargebacks.  

The world is also changing.  Globalization of business, easy movement of people from one part of the world to another part, easy and fast quality communication techniques, and exposure to different cultures are spurring the growth of global ecommece.  

As the world becomes one big marketplace, the exposure to risk for online transactions continues to rise.  If you are targeting an international market, your company may be classified as high risk even if you’re selling a product that is not traditionally high risk.  

Characteristics of high risk merchant accounts

Regardless of size, all high risk merchant accounts have the two risks to acquiring banks.  These are:

• Statistically greater than average risk of chargebacks
• More exposure to fraudulent transactions

Processors & banks ultimately hold the financial risk for their merchants.  If you become unable to cover losses for chargebacks & fraud, the processors and banks are obligated to do so.  This is the reason high risk merchants are carefully vetted prior to account approval.  

Issues Faced by High Risk Merchants

High risk merchants find it hard to get quality credit card processors due to inherent risks associated with their business.  Many large merchant account providers do not want exposure to the contingent liabilities for chargebacks and fraud associated with high risk processing.  

This narrows down the options available to the high risk merchants.  You have to make a choice for the best terms from a limited number of merchant account providers, many of which are presenting your files to the same few banks that process for high risk merchants.

Therefore, education, patience and due diligence are important when deciding on a high risk processor.  If possible, take your time, and check out all the variables you can.  And high volume merchants are smart to consider more than one merchant account to avoid dependence on a single acquiring bank.  

Once you have your high risk processing in place, there is a need for continuous review of all of your processors to assess their performance.  And to stay current with fast changing legal and banking regulations.

Factors to Consider for High Risk Processing     

 Some of the important factors to be considered in selection of your merchant account providers are:

• Significant experience of working with high risk merchants.

• Good reputation 

• Fair rates

• No hidden prices

• Quality customer support.

• Offer online payment gateway with a wide range of processing facilities including mobile, ecommerce, and MOTO

• Multiple banking relationships to mitigate risk

Conclusion

With the changing social values and attitudes world-wide, many new high risk business are emerging. Before deciding on a high risk processor, you are wise to take your time to determine which solution is best for your business. 

Are you looking for a high risk merchant account for your business?

Contact info@paynetsecure.net today