Running a successful business is a daunting task. Dealing with the inconveniences and losses caused by credit card fraud makes it much more so. Credit card fraud can occur through many ways especially by acquiring the cardholder’s personal information. However, merchants incur losses through credit card fraud when they lose the value of their goods or services and chargeback fees from the financial institution.

 

The two types of fraud affecting merchants adversely are face-to-face credit card fraud and the internet, mail and telephone fraud. In addition to fraudsters who use cards acquired fraudulently to make purchases, there are legitimate cardholders who use their cards to pay for goods and services then initiate chargeback afterward leaving the merchant to dispute this. This article outlines the various measures that merchants can take to protect themselves from credit card fraud.

 

  1. Train Your Staff to Detect Suspicious Behavior

A fraudster will rarely be at ease when using an unauthorized card. Suspicious customer behavior includes nervousness, haste, random selection of products that are expensive and signatures that don’t match. These behaviors can help your staff be more cautious and investigate further to find out if the customer is the genuine cardholder.

 

  1. 2. Verify Card Features to Detect Counterfeit Cards

Confirming features such as the hologram, valid date, account number, signature and embossing among others can go a long way in detecting whether the card is genuine or counterfeit. If you suspect it is counterfeit, contact the card company or a relevant authority immediately and keep the card if you can do so without endangering yourself.

 

  1. Make Sure you are PCI Compliant

PCI compliance refers to the fulfillment of the PCI DSS- Payment Card Industry Data Security Standards’ requirements. The PCI DSS sets technical and operating standards for credit card data processing, transmission and storage. This keeps the data secure. Other additional processing procedures include using equipment designed for fraud detection and proper regular maintenance of your card reader. In case of a suspicious transaction, the Code 10 prompt enables you to inform the authorities without alerting the customer, in the US.

 

  1. Use EMV Point of Sale (POS) Systems

Using EMV POS systems that are provided by reliable credit card processors is a great way to incorporate fraud prevention measures such as tokenization and encryption. These systems accept EMV payments which are effective against card-present fraud and in detecting counterfeit credit cards.

 

  1. Data Breach Protection Techniques

Data breach techniques are imperative when operating an e-commerce business online. They offer a secure way of processing credit card transactions and protect you from online transaction fraud. There are wide ranges of techniques which may be basic or advanced. The former deals with the installation of firewalls and anti-viruses while the latter involves an advanced method of monitoring information before their delivery.

Did you know that the EMV are more convenient to use than the magnetic stripe cards? Well to understand this, try to swipe the magnetic -card in the opposite direction after a successful transaction. If you try this, you will understand that you have to master the quick, fluid card swipe direction to process your transactions.  However with the EMV chip-card, you will not be required to master the right direction to insert or swipe the card. The card reading and processing do not depend on the side that they are inserted into the card reader.

How are the transaction made

Just like the magnetic-stripe credit card, the EMV transactions are processed in two steps. The first process is the card reading.  The reading starts after you ‘dip’ your card into the terminal slot of the card reader.  After dipping/ inserting the card into the slot, you wait for the terminal to reading the card information.

After the card is dipped, data flows between your card and the card issuing financial institution. The process verifies the card legitimacy and then creates a unique transaction code.  Note that the process is not as quick as that of the magnetic-stripe card swiping. However, the advantage of this is that it eliminates some significant chances of fraud.  There are a couple of reasons that justifies why the EMV chip-card takes a bit longer than the Magnetic- stripe card. The main reason for this is that the chips contain up to 64 kilobytes of storage capacity. Their counterpart traditional magnetic stripe have 62 kilobytes available.  This makes it easier for one to embed the customer’s PIN in the credit card chip and enable POS verification.  The US FICO whitepaper also confirms how easy it is for one to embed the PIN code in the magnetic stripe card and access the holder’s account information.  The magnetic stripe card the card is meant to self-authenticate and authorize a transaction process without a connection to a separate authorization system.

The EMV transaction process takes a little bit longer for the data transmission to happen and allows communication between financial institutions and the chip card.  So, if one just inserts the card and immediately pulls it out the transaction will be denied.  The transactions require the EMV chip- card to remain intact in the payment card reader for some time until the transaction is fully complete. The lag time gives the merchant’s system time to update the chip on the EMV card with the transaction data.

Pin and signing before the transaction are complete

To complete the transaction, the reader will require you to initiate the process by either entering the pin code or signing.

Why most U.S banks did advocated and issued the EMV chip-cards?

Before the Liability shift, or otherwise before October 1st, 2015, the banks were accountable for fraudulent purchase with the understanding that the banks would have done something to prevent the identity crimes. Since the banks were losing their funds as a result of compensation, the banks had to look for alternative strategies to curb the fraudulent transactions. Adjusting to what most Europe countries had already adopted decades ago became very sensitive to most U.S banks. Therefore, most banks took the incentive of advocating for EMV cards to verify the cardholder`s identity before any transaction. The other logic behind the shift to EMV chip-card is the since the merchant were less accountable to the identity crimes advanced through the magnetic stripe cards the merchant were reluctant and less concerned with the possibility of fraud transaction. It is at this point that the credit cards frauds became a national issue, and the government was partially involved. Though the government was involved at some point, one should understand that the initial steps were instated by the banks as well as the other prevailing networks that process payments (such as the MasterCard, Visa).

Evidence that the federal government did not mandate the EMV shift

Though the U.S. government has the power to step in and force the adoption of the EMV technology, as a way of preventing fraudulent use of credit cards in transactions in case a stolen credit card is present at a merchant’s terminal, the government did not initiate or drive the shift. Probably the reason behind the relaxation of the Federal government was a way of protecting the magnetic stripe-card institution. However the government cannot be blamed for this since one of its obligation is to safeguard the right of business.

Banks and the networks that process payments also prefer to avoid regulations in order to prosper in the economic world. Therefore, they decided to initiate the shifting to EMV technology for their financial gain.

Also, if the Federal government had mandated the shift, it could have backed it up with tax penalties and fines. There are no fines or tax penalties that merchants incur in case the liability is shifted to them.

It is only after the banks and payment networks initiated the process that Obama administration issued the executive order to for the federal employees to migrate to the EMV chip-pin credit cards.

Are you a business that is not confined to a physical location? Do you mostly operate in the field or online? If so, going for mobile credit card processing is a smart business decision. A business that is mobile requires a mobile solution, and the advantages are numerous. Mobile payment options for credit card processing are popular options for businesses since they offer more leeway. They involve a smartphone, a mobile card reader which you connect to the tablet or smartphone through its audio jack, and a card reading app.

Benefits

Mobile credit card processing enables you to accept or pay for purchase from any location provided your smartphone/tablet receives signal. They are also a great choice for a new business that has no idea yet of the revenues it will earn due to its pay as you go or month-to-month payment options.  Again, mobile credit card processing requires fewer upfront fees, and most card processors offer a free basic card reader or one at a very low cost. Therefore, if you have a smartphone or tablet already, there are no or little additional costs. Finally, mobile credit card processing is a great additional payment system that can help reduce checkout lines with the advantage that most credit card processing companies do not charge termination fees in case you suddenly want to abandon it or upgrade.

What are the Advancements in Mobile Payment Options

You must be wondering whether the mobile card processing is keeping up with their counterparts especially since the EMV chip technology was rolled out. New card readers that are EMV capable are already in the market to help you upgrade to a more secure payment technology. Additionally, there are better card reading apps and most mobile card processing system also have added features such an inventory system and email invoice.

How to Choose a Mobile Payment Option for Card Processing

The first thing is to ensure that the quality apps you would like to use are compatible with your mobile device. Popular software includes Gopayment, Square, Payanywhere, Roampay and Paypal Here among others. Your merchant account also factors in when you are selecting a service. For instance, if you are sponsored under master merchant accounts such as Paypal, then Paypal Here would be your best bet. However, if you want to have your own merchant account, looking for merchant service providers and direct processors will work best for you. Choosing the most suitable mobile credit card processor also depends on the transaction fees (which are expressed as a percentage of the transaction), the amount of money you are processing, whether you mainly operate online, or you prefer printed invoices instead of sending via email. Investing in mobile card processing is a great idea for your business as you don’t get many defaulters or missed business opportunities but rather, you get even more money in your account. The trick is to weigh your options carefully and pick the mobile credit card processor best suited for your business model.

Are you a business that is not confined to a physical location? Do you mostly operate in the field or online? If so, going for mobile credit card processing is a smart business decision. A business that is mobile requires a mobile solution, and the advantages are numerous. Mobile payment options for credit card processing are popular options for businesses since they offer more leeway. They involve a smartphone, a mobile card reader which you connect to the tablet or smartphone through its audio jack, and a card reading app.

Benefits

Mobile credit card processing enables you to accept or pay for purchase from any location provided your smartphone/tablet receives signal. They are also a great choice for a new business that has no idea yet of the revenues it will earn due to its pay as you go or month-to-month payment options.  Again, mobile credit card processing requires fewer upfront fees, and most card processors offer a free basic card reader or one at a very low cost. Therefore, if you have a smartphone or tablet already, there are no or little additional costs. Finally, mobile credit card processing is a great additional payment system that can help reduce checkout lines with the advantage that most credit card processing companies do not charge termination fees in case you suddenly want to abandon it or upgrade.

What are the Advancements in Mobile Payment Options

You must be wondering whether the mobile card processing is keeping up with their counterparts especially since the EMV chip technology was rolled out. New card readers that are EMV capable are already in the market to help you upgrade to a more secure payment technology. Additionally, there are better card reading apps and most mobile card processing system also have added features such an inventory system and email invoice.

 

How to Choose a Mobile Payment Option for Card Processing?

The first thing is to ensure that the quality apps you would like to use are compatible with your mobile device. Popular software includes Gopayment, Square, Payanywhere, Roampay and Paypal Here among others. Your merchant account also factors in when you are selecting a service. For instance, if you are sponsored under master merchant accounts such as Paypal, then Paypal Here would be your best bet. However, if you want to have your own merchant account, looking for merchant service providers and direct processors will work best for you. Choosing the most suitable mobile credit card processor also depends on the transaction fees (which are expressed as a percentage of the transaction), the amount of money you are processing, whether you mainly operate online, or you prefer printed invoices instead of sending via email. Investing in mobile card processing is a great idea for your business as you don’t get many defaulters or missed business opportunities but rather, you get even more money in your account. The trick is to weigh your options carefully and pick the mobile credit card processor best suited for your business model.

As the U.S. continues to expand its nationwide migration to EMV chip technology, it is still a process that is a bit complicated to merchants and customers alike. What is EMV chip technology? What is required of merchants and customers in the switch to EMV chip technology? Allow us to walk you through the basics. EMV chip technology is one of the best payment technology used to protect against card fraud in offline transactions. In fact, it has been used around the world with France being the first to use it in 1992 and the U.S. being one of the last developed countries to implement it.

Remember the recent wave of data breaches and credit card fraud that swept country in 2014 that affected Target and other retailers? That increase in fraud cost merchants, financial institutions and credit card companies millions in terms of wasted time, resources and money and prompted credit card companies to accelerate their plan of rolling out the EMV chip technology. The EMV chip technology is a payment technology that was first developed by Europay, Mastercard and Visa and was later adopted by companies such as China Unionpay, Discover and American Express through the EMVco. It involves the use of microprocessor chips that are embedded on debit and credit cards.

Benefits of the EMV Chip Technology
With the rate of Credit card fraud having doubled in the last 7 years, the EMV chip technology is expected to reduce fraud by making it almost impossible to copy information or produce counterfeit cards hence reducing Card Present fraud. Secondly, we all need peace of mind. The technology provides this by improving security therefore protecting the customer and inspiring confidence to use credit cards without fear. It also enables the credit card company to program fraud prevention measures. For example, if you lose your card and report this, the company can use the EMV chip technology to disable the card and minimize losses. Finally, the technology secures cards to enable the addition of future value-added applications.

What the Switch Means For Merchants and Customers
Merchants and financial institutions will require switching their hardware and software to new payment processing systems. Indeed, those who have not yet invested in EMV compatible systems will be held liable for any card present fraud. Merchants who have already made the switch however are not held liable for card present fraud and instead, the company shoulders this responsibility. On the other hand, customers will be expected to activate the new chip cards they are issued with and familiarize themselves with the payment process.
Unfortunately, EMV does not affect internet, telephone and mail order transactions and therefore, card not present fraud is expected to increase. On overall however, they are a great start in the fight against credit card fraud.

Credit card safety

Credit card safety

Credit card safety is the drive for all changes in the US market since October of 2015. No one is safe in the United States, which is a crazy statement to make. But…Computer hackers have stolen information, including Social Security numbers, from Target, Epsilon, Sony, Global Payment Systems, Zappos, and even the IRS. Thieves who have stolen this information, now have the best tool available to make fake Credit Cards. Cards with legitimate names, addresses, and social security numbers, with credit limits that are real and usable.

Credit card safety

Credit card safety

How does this affect you, the merchant? If you are using the new dip technology, making sure your customers do not swipe, then you are protected from these fraudulent stolen cards. In a recent survey, however, only 39% of merchants across the country are using the new technology correctly. This means, if you, for example, are an auto repair shop, where tickets can range from several hundred dollars to thousands of dollars and you swipe a card instead of using the chip technology, you will be held responsible for the charges, not the bank if you dispute them. Not many business can afford to absorb hundreds of dollars’ worth of fraud, let alone thousands more than once without it completely affecting its business.

Our advice, train your employees, start using the chip technology. And if you have not converted, then convert at once. Your bottom line is at stake.

Credit cards being the most recent in mode of payment have created a radical new convention in the business world. Today, both the clients and traders are ensuring that they cash on the credit card handling. Just like credit card processing make an extraordinary effect in large business likewise applies on small business. Indeed, even a little entrepreneur can enjoy the extravagance and advantages offered by Credit cards.

Credit card processing has large number of advantages for dealer and uniquely the small business merchants. While a large business uses charge card handling to add to its notoriety and status, a little business can likewise do the same. Below are benefits of credit card processing for small business.

1.In the long run, you will profit by accepting credit card processing than you will pay in processing expenses. Studies affirm that when individuals can pay with a credit card, their requests will be bigger than if they paid with money. Clients – online and in store fronts – need to have the capacity to pay with a credit and they will remunerate your offers for the benefit.

Traders and clients will experience real-time processing. Transactions are finished consequently and in a flash. If time is critical to your business, this can be a genuine aid. The transaction is done and the item and administration (or the receipt for item or administration) is delivered within minutes. If, on the other hand, your business is offline meaning you don’t deliver item or administrations over the Internet – you may prefer conceded processing. This permits you to survey orders for exactness before charging the Visa and dispatching. Furthermore, if your online system goes down, a conceded system won’t hold up deals as the client wasn’t web sitting tight for affirmation.

3.Credit cards are not only a comfort for clients. They are additionally an accommodation for the dealer who can in fact stay open for business 24 hours a day, seven days a week. In the event that you work your business far from your customer, a customer does not have to sit tight for long to submit an order.

Credit card processing can mean less excursions to the bank for deposits or to determine bounced checks. You no more need to hold up to check whether the check will clear as your payment is normally ensured by the credit card company.

Enlarge your client base by adding an online segment to your business – one that gets payments through credit cards. Regardless of the possibility that yours is a local shop, you should have an online vicinity. With the right label words, your site may be the first to appear with the stock looked for by somebody the nation over. That client does not need to go to your store to get and pay for the item – and you, the dealer, have quite recently broadened your client base.

With the right item or administration, even the little business can tackle his rivals and win. However in order to contend with the enormous business, the small entrepreneur should have the capacity to offer clients the same accommodations different vendors are putting forth. One of the greatest comforts you can offer your clients is credit card payments.

Credit card processing administrations have steadily grasped e-business. With the gigantic inclination for credit cards by customers, entrepreneurs are after these administrations so that the whole transaction procedure can be completed smoothly. With online merchant accounts you can start with online credit card processing. These accounts are set up to get online credit card payments. The day’s payments dwell in merchants accounts and afterward are naturally transacted to the bank account of the business organization.

Benefiting of trader account services is required in the contemporary scene for e-business so that credit card processing can be performed with extraordinary rate. Without these administrations, online organizations will miss out on some critical benefits mentioned below.

Online charge card processing is safe and secure
Security and unwavering quality are connected to credit card processing of payment. 24×7 accessibility and no stress of failure. These administrations support the business with convenience advantages. The administrations incorporating high level innovation make it troublesome for hackers to steal data and clients have all the security in the world.

Merchant account administrations for matching rate with transactions
Clients can without much of a stretch make the transaction with the account services. The way they make their online buy should in like manner be possible in only a couple clicks. With Visa, MasterCard and so forth with trader account administrations, handling online can be performed effortlessly. Also, the clients can settle every one of their questions with respect to the transactions through support benefits that are prepared to explain a wide range of issues.

Online vendor accounts offer Global access
Regardless of where in the world your clients are, merchant accounts can be accessed from anyplace on the planet. You can audit, outline and screen transactions, and this all under online credit card processing.

Trader account administrations for simple transactions in distinctive monetary standards
With account administrations you can likewise have the simplicity of conversion of currency alternative. This administration makes the business operation smooth and perfect. You can likewise profit of the detailed data about the clients alongside the important data sought for business purposes.

All in all, online credit card processing have supported organizations in a powerful and effective approach, as sales have augmented to an awesome level – courtesy of the straightforwardness and accommodation connected with the transactions. Clients make use of ongoing Internet conveniences to pay for the online transactions.

Financially savvy, preferred and protected, online card processing administrations are comforts that are portrayed to benefit both entrepreneurs and clients.

If you have an online store or if you possess an online e-business site, you might require online credit card processing. By taking the assistance of a credit card payment entryway and an online vendor account, you can give your clients a distinct option for purchase merchandise and administrations with only a single tick of mouse, 24×7. If you are readied to take your little business site to a raised level and build up a retail part, it is extremely noteworthy that you discover a reliable and financially savvy credit card processing passage.

When a lot of people compare credit card merchant accounts, they often only look at the fees they will be charged per transaction. However, there is much more to looking the best-priced merchant processing services than that. In fact, there are other fees and charges involved that can turn the most affordable provider into among the most expensive. If you are looking for a processing provider, here are a few of the things you’ll need to consider.

Not all credit card merchant accounts can connect directly to your shopping cart software. Therefore, you need a payment gateway to connect your merchant processing services to your shopping cart order page. This allows it to relay information between your merchant processing services account and your site. While they don’t come with additional services, you’ll notice payment gateways do include several features. If you’re looking for a payment gateway, here are a few things for you to consider.

Expenses Associated With Payment Gateways For The Credit Card Merchant Accounts

Every installment portal supplier charges distinctive expenses and offers diverse bundles. In this manner, ensure you analyze each of them deliberately before choosing which one to purchase. For example, some providers will charge a large setup fee while others have none. Then, you’ll likely need to pay a monthly fee and a small transaction fee in addition to any features you’ve decided to add to it.

You’ll need to be cautious here because price doesn’t always represent the quality of the service. Look for one that offers a good service for a decent price. Don’t be taken in by bargain basement prices or ‘premium’ services without researching them carefully first.

Security Features
Since installment passages transmit the customer’s touchy budgetary data to and from your charge card shipper account while lodging your own information, they are prime focuses for programmers. This makes security a flat out must and not something you need to take softly.

Therefore, go with a provider who has a good reputation and uses nothing but the best security systems and data centers to ensure your merchant processing services information and your client’s financial information remain private and secure. Also, look for Payment Card Industry (PCI) compliance as this will help ensure the security of their services.

Extra Payment Gateway Features

You should know about what your site has and does not need to forestall paying for one simple thing twice over. Subsequently, when you ask about installment passages, make certain to ask what accompanies it. This could incorporate a virtual terminal, repeating charging alternatives, misrepresentation and efforts to establish safety, combination choices, and checks.

Before you settle on your official choice, consider your needs first. On the off chance that you needn’t bother with repeating charging, for instance, and you pay additional to get it, you’re basically squandering cash. Ensure you recognize what highlights you require before settling on a choice so you can make sure to get all that you need.

When searching for a payment gateway for your credit card merchant account, you’ll want to match each service to these points to see how each of them stacks up. Then, you’ll also want to consider reliability, company reputation, customer service, and your overall impression of the company. Simply by taking the time to choose a payment gateway provider now, you’ll be able to save yourself numerous headaches and money after it is hooked up to your merchant processing services and Web site.