2024 is here, and small businesses are gearing up to make use of exciting credit card processing trends. These advances are going to save untold time and money for business owners. At the same time, businesses can use these trends and innovations to fend off fraud and protect their reputation.
This article is easy to scan, so you can quickly grab the most vital information on credit card processing updates headed your way this year.
3 Quick Takeaways: Credit Card Processing in 2024
#1 Buy Now, Pay Later is on the minds of millions of shoppers
#2 Credit card fraud continues to spread, but EMV chip advances will combat criminal activity
#3 Wearable paytech is trending (paying via wearable devices connected to credit/debit cards)
Now is the time to look to the future of credit card processing in 2024. Because times and technology are evolving at breakneck speeds. Let’s look closer.
Credit Card Processing Trends For SMBs Offering Buy Now, Pay Later (BNPL)
The buzzword over the past year for many businesses was what? BNPL. Ok, buzz-acronym, but buy now, pay later is not a fleeting trend. Consumers have latched onto this new way to pay, often for higher ticket items. So make sure you don’t miss out on this BNPL opportunity.
Don’t worry. No need to offer this payment option directly for your business to see more sales from it. We’ll see why in one moment. First, here is what buy now, pay later is:
A loan that allows consumers to purchase items and pay for them in fixed installments over time.
A few benefits to shoppers:
- BNPL plans often charge no interest
- Consumer choice in payment schedule/number of installments
- Often, no minimum payment every single month
Different plans have varying features, of course. So be sure to check details when promoting such plans to your customers, who have likely heard all the BNPL buzz. Just a mention of it could be the nudge they need to make a larger purchase from you. But will it work alongside credit card processing?
Yes. The trend took off like a moonshot, as major companies such as Mastercard and American Express jumped on the bandwagon. Mastercard offers ‘Mastercard Installments.’ American Express’s program is called ‘Pay It Plan It.’ Those two credit card giants are not alone:
- ‘Apple Pay Later’: For financing Apple products
- Citibank: Offers ‘Citi Flex Pay’
- Chase: Provides ‘My Chase Plan’
With major brands going all in on BNPL, it could be a trend with staying power.
Moving on now to fraud-fighting EMV chip credit card processing advancements for businesses.
EMV Chips Versus Criminals
Just in case we have new merchants peeking in on this article…
EMV chip technology is an improved payment security standard. It’s named for the developers: Europay, Mastercard, and Visa. Credit card processing security is increased by utilizing this metallic chip instead of the old technology, a magnetic stripe.
We know the chip provides more robust security than the stripe when it comes to customers’ sensitive information. By the way, every byte of your customer’s information should be treated as sensitive because criminals are crafty at using tiny fragments of data to steal from innocent people.
The future of credit card processing in 2024 with EMV chips.
Contactless payments don’t mean chip-less. Expect these two technologies to advance in unison to protect consumers and businesses from fraudulent tactics in 2024.
EMV chips will also be playing nice with wearable technology, which we dig into in a bit.
Don’t forget digital wallets. Mobile phones are more common than purses and physical wallets these days, so it’s logical that EMV chips work seamlessly with payment options stored on phones.
Dual interface EMV cards will make those above trends possible. This technology benefits shoppers by making checkouts quicker. Plus, it provides multiple options for paying should one part of a card malfunction. In other words, the transaction isn’t solely reliant on a magnetic stripe, chip, or RFID antenna.
Now, we will dig into our third major innovation. We are pretty excited about it!
How Wearable Paytech Will Affect Credit Card Processing’s Future In 2024
Have you heard of RingPay 2? It’s a super-cool credit card processing innovation that could spread like wildfire. Time will tell, but with contactless payments now cemented in consumers’ minds, it seems probable.
So, the RingPay 2 can be connected to shoppers’ Visa or Mastercard by using a simple app. A Fintech article notes the maker, McLEAR, promotes the RingPay 2 as a wearable payment option where you don’t even need a smartphone with you to make purchases. Since the ring is waterproof, it can also be worn anywhere. The most creative feature, though?
No battery is needed. No charging is required either. This wearable paytech device gets energized by the payment terminal. Neat!
New to wearable devices used alongside credit card processing?
Here is a breakdown on wearable paytech for merchants just finding out about this trend:
- Wearable devices are basically digital wallets
- They store the user’s payment information
- Utilize NFC or RFID tech to communicate with POS terminals
- Security measures on these devices include passcode or biometric authentication
- Some wearables do require smartphone synchronization
These innovations are promising. But they also make it imperative for business owners to stay tuned into what shoppers are using to pay for goods and services. You can never offer too many payment options if it enhances customer experience.
Credit Card Processing Advancements For Businesses (Not Fading Trends)
We have highlighted three payment processing trends we believe will resonate in 2024 and beyond. Still, we want to be clear about these advancements being more than trends that might disappear.
In today’s environment, you need every innovative tool available to keep customers and clients coming back to your business. The payment options you give buyers are part of that tool kit, along with payment data to bolster marketing efforts.
Yet, many business owners don’t take advantage of these tools that are included in the newest point-of-sale systems.
*If your provider lacks innovative tools, check out National Processing’s POS systems*
Also, your business reputation is at stake, with fraud threats creeping around every corner. You don’t want your customers harmed by credit card fraud. Nor do you want your funds stolen by bad actors or your processing rates increased due to fraud or chargebacks.
National Processing has innovative solutions for your credit card processing needs.
Now, we leave you with a few frequently asked questions merchants have about credit card processing.
Is fraud on the rise with credit card processing in the retail world?
Considering returns abuse and fraud cost US retailers $101 billion in 2023, according to the National Retail Federation, the answer is yes.
Are there downsides to Buy Now, Pay Later versus customers using traditional credit card processing?
While there are advantages to BNPL over traditional credit cards, experts are concerned that consumers can get overwhelmed by debt. Also, building up your credit score is more likely to happen by paying credit card payments monthly versus BNPL installment payments.
What are three things making credit card processing a positive customer experience in 2024?
1) Fast checkouts. 2) Backup connections to the internet in case of outages so as to limit hassles of transactions not completing. 3) Easy & obvious tipping options on-screen, plus multiple customer receipt options (paper, text, email, or none)
