The Relationship Between Payment Processing Solutions and Customer Security
Whenever a customer makes a purchase using their credit card, the transaction has to go through a payment processor. This ensures that the payment is legitimate and has a low risk of fraud. Once the purchase is considered secure, the merchant is able to receive payments into their bank accounts from the customer’s bank.
Ensuring that the payment process is quick and secure also builds trust between a merchant and their customers. In fact, according to research conducted by GlobalSign, 85% of people who do online shopping would not make a purchase if there is any doubt that an online store is not secure. Adding to this, a report by Trustpilot on what brand reputation means to online shoppers and businesses found that about 66.2% of the shoppers want a secure payment process when dealing with unfamiliar stores. In an Oberlo study, about 1.92 billion consumers bought products online in 2019. The forecast for 2021 is estimated to reach about 2.14 billion, which emphasizes the growth of e-commerce.
These are the reasons why there are various ways to ensure that online transactions are secure. One solution is for merchants to encrypt customer credit card information by using an SSL protocol while also having a secure HTTPS website. These encryptions ensure that information to and from different parties is protected from theft, fraud, and hacking.
Another reason to have one’s website be in HTTPS is that it helps with appearing on Google, since the search engine uses HTTPS as a ranking signal. Merchants whose websites are already in HTTPS can put their level of security to the test using the Qualys Lab tool.
Secure online payments can also be made by using 3D Secure, which is a transaction authentication protocol. Merchants who use 3D Secure get an extra layer of security for customers who make online debit and credit card payments. Verified by Visa, American Express SafeKey, and Mastercard SecureCode are outcomes of the increase in secure online transactions.
For Mastercard SecureCode, an online shopper can get an additional layer of security by being asked for a code before making a purchase. This code can be retrieved through text via the customer’s mobile phone. The transaction will be accepted once the code is entered correctly into the shopping website by the customer.
As for Verified by Visa and American Express SafeKey, they rely on 3D Secure for customer authentication. When an online shopper is ready to make a payment, they are directed to their card provider’s 3D Secure website. The customer is then asked for either a password that they have set up or a code that they received through text on their mobile phone. The transaction will be approved by the credit card provider after either the password or code is entered correctly.
Customer Security Compliance Tools for Merchants
With the proliferation of touchless transactions made through mobile phones and tablets, there is also the need for payment processors to comply with the latest security standards. The regulations set out by the Payment Card Industry Security Standards Council (PCI SSC) is called the PCI Data Security Standard (PCI DSS).
The PCI DSS does not have a fixed checklist due to the need to evolve and change with the digital landscape, however. An example of this is a new set of PCI SSC regulations that came into effect on December 4, 2019. The target of the new standard was customers who prefer to use a contactless payment method. The shift toward this method is on the rise at a global level for customers. In turn, merchants must fulfill customer expectations of fast, easy, and secure payments using the latest technology whenever possible.
According to Troy Leach, who is the senior vice-president at PCI SSC, in order to help merchants with this shift, there is the option to work with validated solutions that do not require additional hardware for the sake of contactless payments.
In a study conducted by Visa, the use of EMV chip technology has also contributed to the increase in secure online transactions. In fact, merchants who agreed to an upgrade on their chip technology saw a 76% decrease in counterfeit fraud.
With the rate at which the number of online shoppers is increasing, fraud is becoming more prevalent. According to a study by LexisNexis, merchants had a 1.32% loss in revenue in 2015 due to fraud and the costs related to dealing with it. Not only is the bottom line negatively affected by fraud, but customer information gets stolen in the process, thereby eroding customer trust. In fact, Javelin LLC’s research found that customer identity fraud was responsible for a total stolen sum of about $112 billion that year.
Finding the right payment processor to suit the needs of one’s business can be a challenge due to the plethora of available options. Thorough research must also be conducted in order to find a trustworthy and transparent payment processing company that is compliant with the regulations set out by the PCI SSC.
How Merchant Broker Helps With Payment Processor Evaluations
What is unique about Merchant Broker is that it works with top payment processing solutions on a global scale. With a database of information at the ready, experts at Merchant Broker are able to provide clients with information about various payment processing rates and fees, negotiate better rates, as well as educate clients on the entire process from start to finish.
This is in addition to helping clients get a thorough understanding of merchant statements and the calculations, rates, and fees on them. Merchant Broker understands the need to analyze statements in order to take advantage of trends and improve on the bottom line of one’s business. The company’s team of professionals is also familiar with industry standards and works to ensure that clients are getting the best rates possible. Merchant Broker can help clients understand the significance of the effective rate on a statement in addition to other fees in order to ensure transparency and reduce costs. In terms of assessment fees, they are charged by credit card networks such as Visa, American Express, and Mastercard. This particular fee is how these networks can make their earnings. As for interchange fees, they refer to the cost of the transaction between a merchant’s bank and a customer’s bank whenever there is a credit card purchase.
Merchant Broker’s goal is to work closely with its clients in order to save them time and money. Equipped with the latest news and industry knowledge thanks to several years of experience, the Merchant Broker team can provide clients with answers, insights, and business advice. Each member of the roster is prideful of their ability to be confidential and committed to ethical conduct when dealing with clients.
For merchants who are interested in finding the best payment processor rates and are in need of a professional point of view, they may contact either firstname.lastname@example.org or 1-888-668-0733.