A standard in-person credit card transaction typically takes a few seconds. However, a lot goes on behind the scenes that you may not be aware of. While you do not need to know every step of the process, understanding the basics of credit card processing enables you to shop and design the correct payment environment for your company.
Here are some useful credit card processing tips that can create the best shopping experience while protecting your customers and generating more sales.
Pick the Right Payment Processor
One of the most crucial credit card processing tips for a small business involves choosing the right provider for your payment needs. The reason for this is simple. All the support, features, and data security required to get started will ultimately come from your payment processor. It is technically impossible to work with numerous providers. Instead, it’s best to stick with one merchant services provider. Not only will you face fewer issues, but should a problem occur, there is only one support team to ring.
Just make sure to pick a payment processor that is PCI compliant and understands the importance of data security. In an ideal world, your provider will offer advanced fraud management tools, like P2PE (point-to-point encryption). They should also support several payment types as your company expands. These include contactless payments. Your payment processor should also provide payment integration. When this functionality is used, you won’t have to record incoming transactions by hand. Instead, these sales are reported automatically in the accounting and bookkeeping software you already use. You can check out Nadapayments, which explains how to get the lowest credit card processing fees. Their unique processing solution is available in 46 states and counting.
Establish a Clear Refund Policy
Some companies may display their refund policies in their terms and conditions. Unfortunately, doing this is a big mistake. This is because customers may have difficulty locating them. Making returns and refunds difficult can open your company up to chargebacks. These are like refunds; in a sense, you lose the sale and give the money back to the customer. Should a customer try to return an item and you don’t authorize a refund because it doesn’t meet your return policy criteria, the customer can initiate a chargeback without your permission.
As you try and dispute the chargeback, you may face many weeks or months of calls, paperwork, and emails. The chance of losing the battle is quite high too. Should your chargebacks pile up on your record, your payment provider may downgrade your service or increase its credit card processing fees, which is something you definitely don’t want to endure. The best approach to take is to publish a return policy that’s easy to find and understand.
Know How to Manage Fraud
Choosing a reputable payment processor can help in reducing your fraud exposure. As a merchant, it’s your duty to safeguard any consumer data that comes into your company. Also, you should leverage extra safety measures, like an AVS (address verification service). This helps make certain the billing address that an online customer gives matches the address the individual’s card-issuing bank has on file.
Another security measure you can have in place is CVV (card verification value) codes. These are 3-to-4-digit numbers on the back of most credit cards. You can implement a two-factor authentication also. This requires customers and employees to give an additional security code or type of identifying information when logging in with their usernames and passwords. While these additional verification steps may seem like a hassle, they can deter criminals. Unfortunately, cyber-attacks can and do occur, so doing what you can to protect your business and consumer data is paramount.
Promote Your Payment Capabilities
Once you’re set up for credit card processing, you need to let your customers know about your expanded payment acceptance methods. For brick-and-mortar merchants, this may mean adding credit card details to your storefront window. Make sure to display this on your cash registers too.
For eCommerce merchants, make sure to add Mastercard, Visa, American Express, and other credit card provider logos to your online shopping cart. Finally, do not forget to send out emails to any past customers, letting them know about your new and improved payment services.
No one wants their credit card processing fees to eat into their profit margin. Credit card processing can be incredibly expensive. However, nearly every company needs to be able to accept debit and credit card payments. For small businesses, in particular, opting out of offering this service can prove financially crippling.
Reading the above will help you get to grips with what credit card processing is, the role it plays in your company, and what steps you should take to find the right company to handle this side of the business.
