Issues in credit card processing are the reason many merchants around the world face payment problems. Moreover, frauds are pretty common with credit card transactions. On other other hand, credit cards are the very basis of chargebacks.
The Processing of Credit Card is a crucial part of online payments. However, credit cards are not just a boon, but sometimes they can be a bane for both consumers and the merchant. Therefore, Amald is here to touch on the issue and provide some solutions for your business.
Credit Card Processing Issue 1: Frauds
Online Card Payments are increasing every day with credit cards. Though debit cards are also consumers’ preference, credit cards remain on top of the tree. However, the online mode of transaction attracts a massive amount of fraud.
“Card-not-present fraud is rising and is tied to 65% of all losses to frauds.” (Nilson Report)
A merchant must keep anti-fraud systems in hand to tackle all credit card frauds. However, many merchant and payment service providers tend to keep fraud prevention tools away from the merchants. However, a merchant must get all the tools ready to tackle fraud and keep the scammers away from the website.
1. AVS
Address Verification System is a cutting-edge fraud detection tool. It filters out suspicious activities from a credit card and instantly flags the payment. Therefore, AVS is the initial tool for blocking fraudsters and scammers on a website.
However, AVS needs its supporting brothers and sisters to keep the ecosystem fraud-free. CVV Checker, Device ID, Fraud Scoring, and Geolocation Tracking are some tools that provide an edge to the Address Verification System.
2. CVV Validation
It is a primary step for Credit Card Payment in a Card-Not-Present environment. It checks the CVV of the credit card and cross-checks it with the card issuer for authentication.
Moreover, it is one of the supporting tools of the AVS as it authenticates the billing address and consumer’s issued address. Therefore, it keeps the fraud security standards higher than others.
3. Device IDentification
Identification of a device through an IP Address allows financial institutions to ensure that the IP address is valid. There are two initial steps for the same authentication of the payment process. First is the notification to the buyer about the new IP Address, and the second is to ask for permission from the consumer to add the new device as a safety device.
It works with the AVS tool to provide seamless payment processing through credit cards on the payment gateway.
4. Geolocations
Some geographical locations are infamous for frauds and scams. Therefore, the Fraud Prevention Tools must flag those areas. Moreover, a secure eye is necessary to keep the safety standards high.
Therefore, consumer addresses belonging to these high-risk fraud-prone locations can be a massive issue for a business. Credit Card Processing with active tools secures the payments from fraudsters and scammers.
Lastly, a Merchant should keep all the security standards upto date. PCI Compliance, SSL Security, a 3D Secure Payment Gateway, Tokenization, End-To-End Encryption are some of the security standards and compliances that keep the payment processing secure.
Credit Card Processing Issue 1: Chargebacks
Secondly, Chargebacks are not just annoying but cause multi-angular damage to a Firm.
“eCommerce merchants are on track to lose $20 billion in 2021 because of criminal activity.” (Shift Processing)
There are two ways to counter the chargebacks towards a company. You can either reinforce your payment processing capabilities with more power to consumers or get a firm chargeback management system from the Payment Service Provider.
1. Refund Policy
Offering refund policies to the consumer deplete the chargeback cases for a business. It allows the consumer to reach the merchant first before going into the legal terms. Therefore, enabling the consumers to reach out to the merchant for a query is a great practice.
It will keep the company’s standards high concerning the brand image and payment experiences. Consumer’s experience with a company plays a vital role in the development of the company. Therefore, providing convenience to the consumers builds a firm infrastructure for your business.
2. 24 x 7 Customer Service Helpline
The Post-Sales Service forms a friendlier bond between a merchant and a consumer. Therefore, if your business offers 24 x 7 consumer support, chances are there will be lower chargebacks. However, one needs to attend to the worries of the consumers.
A Helpline means a dedicated customer support team available at the disposal of any consumer at any point. Therefore, a company needs to keep a keen eye on the consumer’s payments and refunds.
3. Chargeback Alerts
Chargeback alerts are a chargeback management technique. A Payment Service Provider may offer you chargeback alerts as a tool for you to witness any chargeback issued for your business.
Therefore, it is a handy tool, but you need to be aware of the service providers. Moreover, make sure that all of the alerts comply with the security protocols. If there is a breach in compliance, there can be a huge setback to your business.
4. Complete Chargeback Protection
Complete Chargeback protection is a master card for you. If a Payment Service Provider offers Complete Chargeback Protection for Credit Card Processing, it means that the PSP is one of the best in the FinTech industry.
A Complete Chargeback tool ensures that the service provider will issue the outstanding amount to the consumer. It takes all the risk management fees for your business to offer the consumer the chargeback fees.
Conclusion
That brings us to the close of the blog. All these tools and supporting features for Credit Card Processing enable precise processing of payments. Moreover, transactions over credit cards are a boon to consumers and merchants. On the other hand, it causes multiple problems for the merchants as most fraudsters, scammers, and identity theft concerns Credit Cards.
A keynote for you as a merchant is to keep firm after-sales support. It ensures that your business is readily available to the consumers. The Ease of Reach to your business is inversely proportional to the chargeback ratio.
Last but not least, Amald offers all the Anti-Fraud Tools with Chargeback Protection Services for your business. Get in touch with our expert team to know more about the features and benefits of choosing us as your Payment Service Provider.
