While increased buying power is the major benefit of credit transactions for both merchants and customers, there are some differences in perspective about this form of payment. Credit cards have seen varied stages of popularity since they were introduced a means of making purchases, and in the digital age they have become the most popular means of completing a transaction. This is not only true for sales in brick and mortar businesses, but also for online commerce, as it provides a secure and safe way to access products and services regardless of proximity.
However, for both in-person purchases and online transactions, fraud can be a great concern. While consumers have their own leeriness regarding this possibility, many people forget that merchants can also be negatively affected by this type of fraud. Sellers can sometimes be held liable for false charges, and in cases where credit has lapsed and the credit card payment has already been accepted, a business may end up absorbing the loss.
Another concern that affects both consumers and companies is the possibility of a mistake. Digital data, whether processed by a card reader or through manual entry online, is not infallible. Glitches or human error can cause numbers to be transposed, and while most times this will result in an invalid account, it is statistically possible that such a transaction can be approved, although not on the account of the person who is actually making the purchase. While this occurs without any malicious intent, the company is still the one who may take the hit in such an event.
Not having the capability to take credit card payments is simply no longer an option for most businesses. This is especially true in online commerce, but even in-person transactions rely heavily on this form of payment in order to grow a business and even retain customers. One of the things that National Processing has found is that merchant accounts which are more protective and tailored to a specific business will benefit not only the enterprise but will also lead to greater consumer trust.
Many merchant accounts have forms of insurance and fail safes that can protect customers and companies. This can include multiple authorization channels to verify account numbers, and mini-credit checks which authenticate the good standing of an account. Different fee rates that are charged for running a credit card will also offer businesses the protection that is necessary should a fraudulent card be accepted, or should a data error occur. By choosing the right merchant account, a company will not only be able to accommodate more customers, but also be able to do so in a manner that is safe for all parties involved.
Posted in credit card processing on Jun 24, 2014