Online Payment Trends to Watch Out in 2020

The phenomenal transformation in the payment landscape as a whole cannot be ignored, and it will continue to disrupt the way things are done in this competitive market.

In the past few decades alone, we have seen tremendous changes in the payment revolution with the rise of mobile transactions, eCommerce, and many more advanced innovations that have revolutionized the way companies process payments. Bank and credit unions, for instance, are now focusing on digital payment trends that could keep them at par with the future of eCommerce as well as satisfy the ever-changing needs and demands of modern customers. This is a trend that is expected to continue in 2020 and beyond.

The big takeaway is, payment methods are becoming prevalent – and this represents a huge opportunity for businesses and platforms. Here, we reveal some of the most influential payment trends to watch in 2020.

Modernized, Seamless Customer Experience

Customer satisfaction is a major factor in payments. A study by Accenture shows that as the payment landscape changes, customer experience becomes the main focus as a way to stand out from the competition.

Brands are in stiff competition to make the customer experience as seamless as possible with frictionless payments. For decades, the trends have been going to a store to get what you need or shopping online by entering your basic information on a checkout form. Today, with invisible, frictionless payments, these experiences are slowly blending. Millennials and Generation Z are expected to make up two-thirds of the entire population by 2020, which provides a valuable opportunity for brands that want to target a tech-savvy, digital-first generation that is looking for information online to fulfill their banking choices and decisions. They have time to compare offers and have a connection with financial brands that demonstrate they can cater to their needs and financial well-being.

Most companies will have advanced payment options such that customers won’t have to input their basic information to pay. The payment can be automatically done through eWallets. For instance, Uber focuses on getting a ride for the customer – not paying for it – by storing the customer’s information on their database and charging them automatically. In 2020, we expect to see more of these and even greater payment experiences as companies compete to remain relevant and provide the best customer experience out there.

FinTechs and Banks, Coming Together

There is no doubt that the payment sphere has already been disrupted by fintech companies. In fact, it’s predicted that banks and traditional financial providers, may not survive the ever-growing customer demands of Millennials without joining forces with fintechs.

The partnerships between banks and fintechs will see note-worth improvement because of the transformative cutting-edge technologies involved. According to a recent report by PWC, banks are planning to increase their collaboration with fintech companies over the next three to five years. From this partnership, they expect an average ROI of 20%. The partnership has several other benefits for both parties: traditional providers have solid infrastructure, industrial knowledge, brand recognition, and a wide customer base, but they fall short of flexibility and low-risk tolerance. Meanwhile, fintech counterparts, are agile innovators with disruptive digital technologies, but well-established. Investors are now thinking about investing in more partnerships like these ones. A quick look at what is trending shows that fintech and bank partnerships are already in the payment industry. And we expect to see more of it in 2020.

The Rise of Biometric Authentication

What was once a futuristic idea showcased in some popular sci-fi movies such as The Fifth Element in 1997, has become a real-life scene with greater improvement thanks to cutting-edge technology.

Biometric authentication that is responsible for identifying your true identity with the help of their biological features, is expected to rise in the next couple of years with the discovery of advanced technologies such as finger scans, facial recognition, voice identification, retina scans, vein mapping, iris recognition, and heartbeat analysis.

With mobile apps such as Apple Pay and Android Pay being the first adopters of biometric authentication, it’s clear that this trend will continue in 2020. Already, some businesses are including upgraded software in their system to support biometric authentication as a payment option. China has been integrating facial recognition throughout its self-service checkouts and chain stores, and soon the rest of the world will follow.

Unlike traditional payment methods, biometric authentication is set to improve security, efficiency, and accuracy. In some years to come, manual data entry and physical cards will no longer be relevant, fingerprint or facial recognition will take over completely.

Increased use of Mobile Payments

As more advanced payment methods for mobile phones continue to hit the market, more customers are ditching credit cards and loyalty cards to embrace the rise of mobile payment technologies.

Projections show that the global mobile payment is expected to over $4.5 billion by 2023, with an annual growth rate of about 33.8% between 2017 and 2023. Similarly, Accenture indicates that a staggering 64% of users plan to use a mobile wallet in the coming year alone.

A lot of focus is going into improving customer experience and making the payment methods more accurate, flexible, and instant. Banks and financial providers are also investing in mobile payment and making it the center of their marketing campaign. Users are making it possible for this trend to thrive as they crave for mobile wallets that provide them with a holistic view of their finances instead of using a separate app for each service. We also expect to witness more of social media integration and advanced loyalty and reward systems in the mobile payment landscape.

Smarter Fraud Prevention with Artificial Intelligence

Cybercrime and fraud threats are on the rise for retailers and businesses that accept digital payments and banks are not being spared either. As a result, security is becoming a major concern in testing the practicability of any payment system. Most digital businesses are increasingly turning to artificial intelligence to help build a robust security system that enables better decisions making, especially in making the right transactions and rejecting the fraudulent ones.

Fraud is becoming more prevalent and relying on machine learning can help deal with the security breach menace. According to Accenture, the banking industry is projected to have lost about $31.3billion globally as a result of card losses in 2018. This figure has been increasing by 18% since 2013. This, thus, calls for cutting-edge digital payment methods that will prevent fraudulent activities from happening.  AI can be easily integrated into the payment gateways to help the merchant catch fraud quick and early. A smarter technology to include for this case would be the use of advanced biometric security features to authenticate user’s payments.

Shift from Rewards Cards to QR Codes

A few years ago, a series of unique numbers on a card was used to identify a customer’s bank account. But, with the arrival of sophisticated technology such as EMV, more secure and advanced techniques are being introduced.

For example, China leads the pack in adopting mobile payment technology with the help of QR codes. Although the QR codes saw a slow adoption rate in the western countries, China has taken full advantage of this payment method with over 65% of the total population using it.

In the coming years, the use of QR codes will likely surpass credit cards as more users especially Generation Z continue to look for more flexible and secure payment systems. As the codes are cheap and easy to acquire, it’s likely that even the small stores will be using them to accept payment come next year. This will also shape how payments are handled by advanced technologies such as the Internet of Things (IoT), blockchain, and augmented reality.

Alternative Payment Methods like Contactless and Wearables

Contactless payment is one of the modern ways of payment that involves purchasing products with credit, debit, or smartcard powered by FRID technology to complete a transaction. Some payment methods such as swiping cards are now considered slow, while users highlight the ease of using the money as the main reason for now switching to digital payment methods.

Alternative payment options such as wearables and contactless are expected to change the way transactions are done in the future. The widespread use of mobile phones, mobile payment applications, and wearables have made it easier to access these methods on the go. Users can now use contactless payment methods for daily purchases, particularly for small transactions, quickly and safely. These methods help improve the customer experience as they facilitate faster and more seamless transactions. This trend is expected to continue in 2020 and the future is even more promising.

Wrapping Up

We are at a point where technology is driving most industries and the payment sphere is no exception. In a span of five years, consumer interest and expectations have changed the way we make and receive payments. Unlike before when users had to ask some questions before making a payment, now they can pay when, where, and how they want.

The change in behaviour has resulted in new payment methods entering the market at a rate that has never seen before. What we are sure of is that innovations and new trends will not stop there, but will be even more advanced next year with new technologies. Make sure your part of the big shift.

 

7 trends for the future of online payment

The population of Millennial and Gen Z has been growing immensely, and the need to redefine online payments is becoming complex by the day. The race to innovate is already into overdrive, and the speed is not letting up any soon. Because of this, payments companies and merchants must forestall and constantly flex to remain at peace with the budding needs of today’s consumer.

If you have been selling online, you already know that the e-commerce industry never stands stills. It’s a turbulent niche that rewards agility, generously, buts it doesn’t forgive inaction. In this spirit, all merchants must remain on their toes to deliver seamless customer experiences and satisfy the needs of the knowledgeable generation.

As a global payment processing company, Aretosystems works relentlessly to boost consumer experience in online payments and digital marketing. We are always looking ahead, and our desire to provide solutions that benefit merchants, now and in future, is unrivalled. We have explored the online payment scope to unearthed trends that we believe hold the key for the future of online payments.

These trends will change the way consumers pay, how merchants accept payments, and how payment processors facilitate payments in the future.

Mobile Wallets

Approximately 46% of consumers today use mobile wallets. The number is estimated to grow to 64% by 2020, which represents a 39% increase in usership. Studies have also shown that 23% of consumers, today, are willing to give up their mobile banking app for a mobile wallet. Additionally, it is reported that in 2016 mobile wallet payments accounted for 75 billion dollars, and the number is expected to reach 503 billion dollars by 2020.

From this data, it’s clear that mobile wallet is one of the fastest growing trends and is poised to become a monumental shift in the fintech industry. Mobile wallets enable industry players to deliver seamless, consumer-focused payment experiences with proactive balanced alerts, immediate rewards, security, convenience, and speed.

It’s predicted that mobile wallets will continue to gain traction as payments players focus on bringing more value-added services. With the addition of new features such as a single view of account, robust user authentication, and other security features, the mobile wallet is undeniably one of the trends to watch out for in the online payment universe. Here are some of the things to do to remain at peace with this trend:

  • Being innovative with the utilization of online payment incentives
  • Optimize bill pay within the mobile platform
  • Integrate Person-to-Person into mobile app
  • Have your organization’s card “top of the mobile ”

Gen Z is rising

According to Accenture 2017 North America Consumer Payments Pulse Survey, 68% of Gen Z consumers fancy P2P payments. Besides, 33% of this age group want to share their payments on Facebook, Twitter, SnapChat, and other social media platforms. It is good to note that 70% of this generation in the United States use mobile banking apps daily. It is also predicted that the population of Gen Z will make up to 40% of all consumers by 2020.

It’s clear that Gen Z is the new kid on the block. Their growing population is giving innovators something to think about. Their needs are unique, and satisfying them is a top priority for online payments innovators. There is no doubt that this will shape online payments and banking trends.

Customer Experience (UX)

As Accenture notes, customer experience is the new gold. Customer experience (UX) is rapidly becoming the principal competitive differentiator in the online payment universe. Unique payment methods developed by nonbanking organizations such as Aretopay, Apple Pay, Google Pay, and Samsung Pay have taken the bar a notch higher, by redefining the way customers experience online payments.

Let’s face it: attracting new customers to a business is one thing and retaining them is another. The glue that holds these facets together is customer experience. It’s true; the most successful e-commerce entrepreneurs are present in the moments that matter most to their customers. They hold the customer’s hand throughout the payment journey, across all touch points to deliver seamless digital experiences.

In the same sense, online payments have moved way beyond the transaction. There is a growing recognition of the need to deliver experiences that align not only with how customers pay, but also with the aspects of life that affects them. As a result, industry Players are creating payment experiences around the human needs to power exceptional, digital commerce experiences.

Blockchain technology

According to a report by Capgemini, the global digital payments volumes are projected to reach approximately 726 billion transactions by 2020. Besides that, it’s predicted that over the next 5 years.  Blockchain technology will reduce compliance costs by 30-50% and the cost of account reconciliation by 70%.

Blockchain technology is an ingenious recordkeeping invention behind bitcoin. The technology is predicted to play a significant role in the future of online payment processing solutions. Even though the traditional banks and the financial world has been skeptical, every industry player is aware of the benefits the technology delivers.

With secure real-time verification, encrypted distributed ledgers, and fast payment processing, blockchain technology is proving to be the real deal. The technology is here to stay and is expected to lead more financial inventions in the future.

Omnichannel payments

As technology continues to evolve, new online payment methods continue to emerge. The plethora of payment methods gives consumers the freedom to use whichever payment method or channel that suits them. Because of this, today’s consumers are no longer bound to a single payment method.

The proliferation of payment processing channels online, at the point of sale, and on the go, is a highlight of modern commerce. Payment methods that were once location-specific are now device enabled. It is just like that, every device is now becoming a payment acceptance device.

Even better, payments are being added to disruptive technologies such as IoT devices and voice assistants. As predicted by Gartner, by 2020 there will be 20.8 billion devices connected to IoT. Joining the dots, it’s easy to see that technology will continue to define how payments are accepted, where and by how.

Reward revolution

Consumers never get enough rewards. Research by Accenture found that 48% of the modern consumer would switch the reward cards, to derive more value out of every purchase. 42% of consumers are willing to change cards to receive huge signup bonuses. Furthermore, 66% of today’s consumers buy from businesses that allow them to redeem rewards/bonuses at the POS or POP.

It’s vivid the reward revolution is here, and it’s hitting new levels. As a result, time is ripe for industry players to alter the nature of rewards and eliminate the untenable friction between rewards and the exchange fee. It’s time to invent new reward playbook that will provide more value for consumers. Technologies such as Google Smart Tap Technology are pioneering innovative ways to redeem and pay loyalty card instantly.

Also, there is an increased need to personalize rewards, since this what consumers crave. There are tremendous opportunities for online payment players to create groundbreaking rewards. It also predicted tomorrow’s rewards would not be based around payments. The rewards will be more experience-centric with digitized offers and coupons that reflect the consumers’ lifestyle needs.

Voice Commerce

Speech is gradually becoming the new invisible computer interface. If everything goes to plan, in the next 10 years, 50% of computer interactions will be done through voice.

Voice-enabled assistants have caused a buzz among consumers with industry giants such as Amazon, Apple, and Google launching AI-infused applications that function via conversational voice interfaces. Globally, there has been a 29.4% compound annual growth rate of customers using voice assistants. The number of people using voice-enabled devices is expected to reach 1.83 billion by 2021.

Therefore applications such as Google Assistant and Alexa, are an integral part of the day-to-day life of millennial and Gen Z. From checking weather, shopping, and setting up reminders, these applications handle most operations and influence the mobile-tech experience.

The biggest beneficiary of these incredible inventions has been the financial services. Clearly, the voice-enabled devices are the next cutting-edge frontier in online payment space. The devices were initially designed as a means of interacting with customers, but have grown beyond customer service to online payment services.

It no secret that voice commerce is on the rise and is destined to change how customers pay. Though it is still at the juvenile stage, the trend holds the potential to renovate the entire online payment scope. As it stands, 8% of consumers use voice-enabled devices to buy product/services online or to transfer money. The trend will continue to grow, and it is expected by 2022, 31% of consumers will be using voice-assistants to buy product or services online.

Conclusion

From mobile wallets and the rise of a new generation to customer experience and voice commerce, it’s clear the online payment is a universe staring at a new future. The future look bright with plenty of trends that promise to change the game in this scope. There are great opportunities for online payment players, but to reap the benefits, proper action is demanded.

The scope is changing rapidly, but entrepreneurs who will evolve their business strategies, systems, culture, and operating models will remain buoyant.  Even when the ride gets tough.

Best Techniques to Stop eCommerce Fraud

Arm Your Business with this 10 Practice to Stop Ecommerce Fraud in Its Tracks

Fraud costs online businesses at least three billion dollars every year. The number seems to be increasing in the recent times. This means that companies should focus on protecting themselves at all costs. Here are some practices that will help prevent fraud in your online store and will help you to stop eCommerce fraud.

 Choose the right e-commerce platform

If you are a newbie in the industry, it is crucial to understand that there are several online platforms. They offer the business functionality you are looking for. Before choosing the platform to use, conduct some research. Select the best.  Do not only consider the monthly costs or the transaction rates in the platform.  Look deeply into the features of the platform in question. Some of the platforms offer the best and favourable rates to clients. Unfortunately, they do not perform well in the fraud protection area.

As a businessperson, the best online platform is the one that provides top risk management support. Whenever you are a victim of fraud transactions.

 Maintain PCI Compliance at all times

The Payment Card Industry Data Security Standard is a set of requirements. They are developed to ensure that businesses that store, process or even submit credit card information maintain a secure environment at all times.  Any businessman who has a Merchant ID should comply with these set of guidelines.

These set or requirements are designed to protect customer data. Any data that is associated with the card owner such as the account number, name, expiration date, social security number or address. It is considered to be confidential.  The guidelines were established in 2006. They apply to all merchants and organisations regardless of the number of transaction or size.

 Check the sanity of your website security

After identifying the perfect and safest payment processing platform for your online store and are already in compliance with the PCI guidelines. It crucial to take some considerations to make sure that any personal or financial data from the business, client or bank are safe and secure. Remember the following:

  • During the checkout process, ensure that the URL remains in https.
  • Always update all your passwords in the web server control panel. This should only be done on a regular basis in every business.
  • Hiring a security auditor is paramount for the e-commerce business. These professionals will be able to detect any weaknesses in the site.
  • Several programs have been developed to offer additional protection from hackers and frauds. These programs will work correctly for credit card firms and security software companies.  Conduct some research on these programs and select the one that suits your businesses.

 

 Set up special alerts to screen any suspicious activities

The software platform you are using for your business should automatically alert you whenever a suspicious activity takes places.  You should receive an alert in the following instances:

  • The same person uses different credit cards to place multiple orders.
  • Phone numbers that are not matching the area code in the billing address.
  • Big spenders choose to order large quantities of products of the same product and even pay for an extra amount of amount so that you can ship the items quickly. They might be using a stolen credit card to acquire the products then resell the goods at a profit.
  • Any order where the card holder name is not similar to the recipients. This should be considered when there is a foreign address. Some people ship a product to a different destination so that the fraudulent customer can pick a product without the fear of being attacked.

Use Credit Card Security Codes

The three or four digit number found on the back of the credit card is considered to be the credit card security code.  When this is used during the transaction process, it is a sign that the card holder is using a valid card. The security system is usually not printed on the receipts, and this helps in ensuring that the customer credit card information is confidential. The code ensures that your products are safe from any fraud.

When the transaction is being processed, the cardholder is supposed to answer with a code, confirming or rejecting the validity of the number. The number has different names by various credit cards. For Visa, it is known as CVV2, while for MasterCard, it is referred to as CVC2. Always employ the credit card security codes so that you are sure of secure transactions for you and your clients.

 Never Store Sensitive Customer or Transaction Information

In most businesses, the PCI guidelines forbid the business owners from storing information concerning credit card numbers, CVV2 codes, and expiry date. However, if you need to store this information for a specific use, get rid of it immediately. Only keep the least amount of data possible. The information should be enough for chargebacks or refunds.

 Use tracking numbers for your transactions

Tracking numbers for all the orders are the best way to protect your e-commerce business from chargeback frauds.  This type of fraud is mostly referred to as friendly fraud, and it applies when a customer demands the return of products from the merchant. A bank forcibly initiates the procedure.  These type of fraud holds the merchant in question accountable for the charges, regardless of the measures they had taken to verify the order. The business owners are forced to pay any transaction expenses incurred. Such as the fees for the removal of fraudulent funds.

Demand for strong passwords from clients

When you are requesting your customers to open an account with your online business, ensure that they create very strong passwords. This measure will make it difficult for the hackers to access the accounts. Always require a minimum of characters, numbers, symbols or capital letters from customers.  A complicated password means that the hackers will not reach the client information or even perform fraudulent activities from the other end.

Some clients refuse to open a special account just because they want to make a purchase. If you want to prevent losing clients due to this crucial security issue, ensure that the account creation is only available when the client places an order.  This will be the perfect way to retain the clients and protect yourself from fraud activities.

 Educate your staff on different security and fraud Protocols

There are several safety measures that all business owners must take for the sake of their businesses. However, their other measures that the employees can comply with to ensure that your online business is free from fraud activities.

All the passwords used by your staff to access your payment options or the business records must be governed by very strict rules.  Educate them how they can monitor the transactions so that you can prevent any fraudulent purchases and attacks.

 Maintain a file of the fraudulent transactions or attempts

If your business system is hacked or even compromised, it is important to keep a record of all the details in a special file. Record the unfortunate incidences so that you and your future employees can learn and also prevent the activity from happening again.  The file can be used to compare the future transactions. Use the knowledge to deny or even approve transactions.

In most cases, business owners will notice patterns in the fraudulent activities. Some of them might come from:

  • The unusually big orders
  • Certain geographic regions or countries
  • Some shipping addresses that do not match the billing address you are using.

Security Tips to prevent your eCommerce Business Being Hacked

The hottest topic online is security breaches in eCommerce Businesses. Always keep an eye for hackers and implement some of our security tips to secure your eCommerce online business from hackers. The likeliness is if you have an open source platform, cyber theft can happen. Hackers are always busy trying to find new methods to steal important information from your clients, especially their account numbers to personal information.

Have you ever shopped online and thought to yourself, “How safe is this eCommerce website you are using?” We all have and the same applies to your own online shop. You want to keep your customers happy. Further, you want your clients to return and this happens when you keep their sensitive data safe.

You need to protect your business information and vulnerable data of customers. Therefore, what can you do to prevent being hacked in your online shopping platform online? Sit back relax, we are here to help you with securing your e-commerce business online with the following security tips.

Securing Your Data Starts with the Platform

Whether or not you already have an e-commerce business, online or starting out you need to choose a secure e-commerce platform. Make sure you are using sophisticated technology to keep your website safe. The best online shopping platforms administration panel needs to be inaccessible and a secondary authentication for users help.

Did you know the majority of attacks take place with employee login credentials via phishing, social engineering, malware and more? Hackers use harmful software to capture passwords and usernames giving them access to important information stored with you online. Using a two-factor authentication will help prevent hacking and keep data safe.

Educate your employees:

How many times have you received an email with links and attachments? Many times and how often have you happily opened it- numerous times? Well, the same counts for your employees. They open emails, links, and attachments. It only takes one click to activate software sent from hackers.

This is why it is important to educate your employees, keeping them up to date with the different methods used by a cybercriminal. Here the best training is to create a realistic scenario to test your employees. Further, this helps you to determine common mistakes and improving them in the process.

Another way to help with prevention is to call in a third-party social engineer to help you understand your security policies and programs to prevent outsiders from gaining access to sensitive information. They will facilitate a breach exercise to make sure all your important policies are in place.

Make sure your employees change their password on a regular basis and make sure they use a strong password. Remind them not to store the passwords where someone can see or find it.

Does your hosting company back you?                                                      

Make sure you are using a trusted hosting company taking security seriously. Here you can look at the following security features to ensure you are using the correct hosting company backing you no matter what happens online:

  • If your web hosting company uses pre-installed RAID – this is a special system protecting your data and keeps files safe even if a server crashes. They may not include it with the different plans but offer it extra with an added fee.
  • Downtime on a web-hosting server is bad for business, especially if the downtime happens frequently. Here you can find out if the web hosting service you use offer reimbursements for downtimes.
  • Look if your current web host offers you some form of backup and best if you can use manual backups on a daily basis. Further, make sure what backup limit your hosting service offers. Read all the information related to the backup conditions before buying a hosting plan.

Use the SSL service

Have you done online banking before – you have what is the first thing you see when accessing Internet Banking? The website has a lock with https protocol in place giving you a secure connection.

Using an SSL Certificate on your website is a great way to keep your information safe. This service is necessary for any eCommerce business. The program includes small data files that bind a cryptographic key digitally and keeps the detail organised.

Further, it keeps credit card transactions, logins, and data transfer secure. Even the social media sites these days are using SSL Certification.

Implement PCI-DSS

Put the PCI-DSS on your e-commerce site. This is a helpful security standard and known as the Payment Card Industry Data Security Standard. Why is this so important? If you deal with the leading credit card brands from the major card schemes this policy increases the control related to a client’s data and helps to reduce the risk of credit card frauds.

Read more about PCI-DSS in our previous article PCI-DSS Compliance: A Basic Guide.

Prevent storing delicate data:

You do not need to store millions of data on your client. Prevent storing the information related to their credit card such as the:

  • Credit card number
  • Card Verification Value code (CVV2)
  • Expiration date

Use an AVS system:

You want to keep your client’s information protected when they use your payment service online. However, have you thought of yourself when a client pays their goods? You can become a victim of fraud as you send out the product bought without receiving the money.

This is where the Address Verification System known as AVS is handy. The system verifies addresses against their credit card information. This helps to verify credit card data, such as the clients billing address and Zip code against their account billing information.

In turn, this protects you from fraud why – because if the information does not tie up with the information provided to the credit card the transactions declined.

Keeping your site secure

For protecting your e-commerce brand online, utilise a WAF (Web Application Firewall.) This protects your site from different attacks. If you are using a platform such as WordPress make sure to keep the security patches up to date.

All plugins used needs to be the latest version and install a premium security plugin in case something happens to go wrong. Backup your entire site to an off-site storage and can be done automated. No matter if, you use a WordPress or Magento conduct security patch updates regularly.

By adding additional layers of security to login boxes, contact forms and search inquiries help to take measures in preventing a cyber attack. On the other hand, you can implement a Distributed Denial of Service (DDoS.) With this handy feature, it keeps track of frequent attacks happening. Turn to a cloud-based one and a DNS service as this helps with bringing down operational costs.

A DNS hosting site can help you with improving your Internet-based system as it supports transactions and communicates online.

Keep Track of Orders

Although hacking methods have changed, you can still find old school frauds taking place, especially with credit cards. Use a tracking system to keep track of orders shipped as this helps you to avoid chargeback frauds when clients submit a false claim of no-shipment.

With a good tracking system and a proof of receipt, it helps prevent criminals from taking advantage of your online business. Further, restrict third-party advertisements and links. This can harm your business as it may lead your clients to unsavoury online practices. This keeps you safe from malicious processes or codes other companies may be using.

Final Thoughts

You may feel your e-commerce business does not stand a chance against hackers online. Wrong the important thing to remember is that vulnerabilities vary from one company to another and depends on its size. If you own a small or medium sized business with a relatively small to medium sized client base, you can prevent attacks from happening with these simple steps.

Always stay ahead with the latest security measures and take precaution to prevent this from ever happening to your business. Choose the correct technology as this has a direct impact on your business, as your commerce requirement is different to another and be safe.

Check out our other articles on security section.

Go global and start accepting global payments

Utilising the Internet to expand sales and offer new customer services is almost common sense today. However, setting up a reliable system is still easier said than done. An efficient credit card merchant account should accept all major credit cards as a first step. Accepting credit card payments over the Internet, mobile phone, or even through mail payments opens a business to a wider audience. Linking mobile devices with credit cards can offer another avenue of payment. Just as many gas stations now utilise a key fob for pay-at-the-pump convenience. With well-implemented mobile and Internet payment portals, any salesperson can execute their own sales while on the road.  So start accepting global payments should be the first step for small online business on the journey to go global.

Beyond accepting credit card payment and all global payments, online services can be expanded to provide customer account management tools. Allowing clients to view orders resolve invoices, and request paperwork and receipts at any time of the day or night without the need to spend manpower is crucial. Recurring orders can be established for efficient business-to-business transactions and for supply chain management.

Compared to larger companies, smaller businesses will better benefit from credit card processing as it gives them a way to level the field with their counterparts. Whether operating from a store or online. In e-commerce, everyone is on the same plane, and your small business has the same chance of getting customers as much as the more established ones. With a number of potential clients lured in by this technology, before you know it, your “small” business will not be so small anymore.

Selling online is like having a 24 X 7 shop that sells across the world. There is no timeline, no currency issues, and no need for staff. The entire transaction can be processed on a web portal. However, a business requires an online payment method for selling products or services on a website.

This method of making online payments is often referred as a payment gateway. It facilitates a financial transaction between the buyer and the seller. It is extremely safe and secure. There is no scope of fraud or misuse. The entire transaction is processed within minutes.

Advantage of using Global Payment System

Accessibility

With no restriction on operating hours of your online business, customers are able to go to the website and make payments 24/7. This essentially benefits businesses greatly as it attracts business worldwide.

An increase in customer sales

Today, most of the customers rely on plastic cash, rather than carrying hard cash every time. With 6 out of 10 customers preferring credit card payment over cash payments, it becomes crucial for any business unit to accept plastic payments if it wishes to increase its sales. A retail merchant account setup allows a business unit to accept the credit/debit card payments and thereby boost their customer sales significantly.

Global audience

It enables businesses to offer online and global payment solutions. With an increased target audience, products and services can be offered across the continents, dealing with an array of currencies. Accepting global payments will help small business to grow.

A retail merchant account also allows any retail business unit to accept credit card payments and all such related categories of payments including wireless, electronic payments, etc. Such an account empowers a retailer with the tools to make his life easier at the professional front. Just imagine, how bad it can be if an entrepreneur has to turn down his customer only because he cannot accept their preferred mode of payment.

The best about using these accounts is that the customer would not have to be redirected to another website to make the payment. He or she could make all payments on your website since you accept all sorts of payments. This would improve your customer satisfaction as well as improve your customer base.

An excellent merchant account company offers an all-in-one package for you at the lowest rates and provides protection for your business against fraud. They can also accomplish reports and give management tools without additional cost. These experts will guide you through your application for online payment and help tailor solutions for your company based on your requirements. They guarantee that you will receive the utmost customer satisfaction, no matter if you have a small or large business.

In Conclusion

A good payment gateway ensures that transactions are processed smoothly without any disruptions. Errors like run-time errors or downtime errors can affect the business. Customers are very impatient. They may leave the site if there are any technical errors in the application. Choose a reliable and efficient payment gateway interface for the website.

Using Areto Systems processing to accept online payments is a simple, secure way for merchants to accept online payments. It helps businesses reduce spending associated with billing and streamlines the payment process. By automating the payment process, Areto Systems processing allows your organisation to offer customers a convenient method for managing their payments online. Plus, it is a great green initiative for organisations since it naturally reduces paper and ink waste.  Through Areto Systems credit card processing you can conduct your business in the least amount of time. You can save time because transactions are made easily. You do not need to look and calculate for change since only the full amount is credited. It is convenient and allows you to get payments from your customers anywhere. Even in their own place of business.

Areto Systems credit card processing allows you to transact business in any part of the world. Payment from your customers goes through right away. It saves you from waiting for many days if not even months just to receive payment.

Using their services is a dream for buyers and sellers alike. Their checkout system allows for a quick and seamless online transaction that simply processes a payment with the click of a button. Your customers can even pay you from their mobile phone rather than waiting until they get home to their computer. No more waiting for a cheque in the mail. That alone is a good reason why you should use Areto Systems to process your payments.

Take advantage of these benefits and more by opening an Areto Systems processing account today. Start accepting global payments from all major credit cards and help to grow your online business worldwide.

Payments broker vs ISO vs payment processor

I’ve read several articles and posts about the matter relating to various terminologies used in the payments industry. Terminology that covers different types of entities whose ultimate role is to provide merchant accounts to online businesses. A broker, reseller or an agent generally provide the same level of service. They all require a ‘side deal’ or ‘reseller agreement’ in place with a processor in order to provide a merchant account. In the US, a common term used is ISO or MSP – both are the same, as they cover Visa and MasterCard’s use of terms. In Europe, resellers/agents are more commonly used, although they are not the same as an ISO or MSP.

Payments broker vs ISO

The difference between an ISO/MSP and an agent/reseller/payment broker is basically the kind of deal they have in place with the processor, the level of risk and the cost. In some cases, the former is required to take on initial underwriting and at times take some form of risk. This comes at a cost – ISO/MSPs are required to be registered with Visa and MasterCard respectively and comes at a cost of roughly EUR5,000 per year.

None of the above are financial institutions and are not licensed to handle merchants’ funds, therefore, if you work with a reseller who states that funds from your merchant account will be wired from their own, as opposed to being sent directly from the processor or acquirer, beware! They are not licensed to do so.

So why use a ‘middleman’?

In actual fact agents, resellers or brokers are middlemen and they exist to bring new business to processors and to provide a level of service to an online business. In reality, so are processors some form of ‘middle-men’. Processors stand in between merchants (or agents) and their acquiring bank. Although acquiring banks generally don’t provide services directly to merchants, in some cases, for very large accounts they actually might. It is important to note that ‘middle-men’ at times have specific deals in place with their processor or acquirer. This means, that a merchant could potentially be getting a far better deal by utilising a middle-man rather than going directly to a processor. Agents or resellers (or brokers) do not add on to the final merchant rate to make a profit, but instead, they receive a ‘buy rate’ from their respective processors, and sell to merchants at a ‘sell rate’. In most cases, the processor dictates what the final cost must be and the agent merely takes a small cut in the form of commission. In other cases where the reputation and strength of the broker are more significant, the broker has the ability to manage their own pricing.

If a merchant were to go directly to a processor, the processor would still sell it at that same cost or at times even higher. Let’s take an example – a low risk online retail shop called myonlineshoes123.com, sell sports shoes out of the UK. The shop is a small sized business targeting the local market with revenues of GBP 10,000 monthly. A ‘middle-man’ might get a buy rate of approximately 1.5% to 2% from a processor and in turn price the final rate anywhere between 2.4% and 2.8%. If the merchant would go directly to the same processor, the final rate would still be anywhere between 2.4% and 2.8%.

So why go to a middleman? Some strongly placed agents are able to strike good deals with processors since they work in mass by bringing new merchants regularly and therefore bring good value to the processor. When agents tend to send more business to a processor, agents receive better pricing from the processor, which allows agents to price the final rate lower than the processor would do under normal circumstances. Another major benefit is that generally, agents have lower overheads in comparison to processors and therefore wouldn’t mind making less of a profit on a merchant account just to close the deal. On the other hand, when agents bring merchants to the processor, a significant amount of efforts, whether pre-sales or after-sales is done by the agent, therefore minimising the efforts required by the processor. This means that the processor would have more time on their hand to service other merchants.

This whole payments’ ecosystem is created in a way to facilitate the life of a merchant, it adds several layers of entities such as agents, ISOs, processors and acquirers to optimise the entire payments process. Each layer is specialised in specific aspects of the process and this is what makes this ecosystem functional. Unfortunately, not many online businesses are aware of this simple truth, and many believe that heading straight to the source would get a better deal, but, it is not always the case! You will probably not get that personalised service when dealing with a large PSP, and neither the best pricing. So, to all merchants out there, consider using agents rather than processors directly – you would be surprised with the service you might actually get if you pick a good one!

3 things to know about recurring billing

For those that still wonder what is recurring billing, the answer is that recurring billing is a useful feature that is available by most payment getaways in order to automatically collect fees from cardholders or vendors. Recurring billing is recommended for charging fees that need to be applied on a regular basis, such as, subscription payments and memberships. As opposed to one-off sale transactions, where a cardholder generally purchases a one-off product or service.

How does recurring billing work?

Firstly, a customer profile is generally created on a merchant’s website, containing the name of the client, and billing information. The merchant would share information about the schedule of payments, frequency and duration of the payment, generally called, a rebill cycle. Take Dropbox as an example, at the time of writing, a monthly subscription is priced at € 8.25. Once subscribed, Dropbox automatically charges that amount on a monthly basis. When a website offers a subscription based service but requests a cardholder to manually pay the subscription every month, chances are that the payment gateway or payment processor does not support rebills. It is a headache for the cardholder, but it is also safer for both the merchant and the cardholder. We’ll get to that later!

Recurring billing is ideal for those types of transactions that require charging on a regular basis, like membership fees, cable TV bills, magazine subscriptions, software services and a myriad of other services. Once the cardholder initiates their first sale, following rebills are applied automatically without the need to handle the process on the merchant’s website. Although most of the process is automated and supplied by the payment provider, it is suggested you notify your cardholders. Sending notification emails before the rebilled amount is taken from the cardholder reminds the cardholder in question about the payment. This approach radically reduces the chances for any chargebacks or retrieval requests. Each time a ‘rebill’ comes into effect, the merchant is charged as if it were a regular transaction.

What if the payment gateway does not support recurring billing?

If you offer a subscription-based product or service, it is more of a headache to the cardholder, but it also directly affects the running of your business. Recurring billing facilitates payments for membership or subscription based services, but cry not, there is a somewhat of a less effective way to replace recurring billing. Have a notification email sent out to the cardholder a period before the subscription is due if need be, send more than one. True, it is an old-fashioned way of doing things, but it also brings some minor benefits

What are the downsides of recurring billing?

Recurring billing is applied to subscriptions and memberships. One is an increased risk of chargebacks. Why? For non-essential products or services, the cardholder might forget or not realise that they will be charged every month or so. Therefore, when the cardholder sees a transaction on their credit card statement that they do not recognise, they will inquire with their bank. This inquiry may lead to a retrieval request, or even worse, a chargeback. Therefore, it is highly suggested to clearly state the frequency of payments to the cardholder, and if possible, remind the cardholder prior to the payment being made.

Higher fees. Certain businesses are charged more when recurring billing is requested. This is somewhat related to the first point. Since risks could potentially be higher, a payment processor might charge higher fees. This is not a rule, but it is common.

To conclude, not every payment provider supports recurring billing or is willing to grant you recurring billing, therefore, if you have a subscription based business, make sure you ask, or be prepared to implement an alternative.

How can I accept credit card payments?

According to latest surveys, the majority of customers choose credit cards over cash and cheques as their primary means of payment [1]. If you are selling any kind of products or services, you must accept credit card payments! If you are asking how you can accept credit card payments, you should first focus on your preferred way of interaction with customers. There are various ways to accept credit cards and we will now highlight the most popular and reliable ways.

POS System

Small business owners and entrepreneurs can use Point of Sale or POS system for their physical store. If you have many transactions on a daily basis, it would be a great idea to use a POS system. In order to use a system like this, you will need equipment and the pieces of equipment you use depend on the type of POS system: an ordinary, conventional system or a mobile POS system. Before you make your final decision, check the fees involved in the process with your acquirer.

Using a merchant account

In most cases, you will need a business bank account to establish a merchant account. You will also need your corporate documents, so make sure you have all your company documents handy before applying. In case you didn’t know, a merchant account is a specific type of bank account that allows business owners to accept and process different types of electronic payments. Besides credit cards, you will also get a chance to accept debit cards, ACH payments, and gift cards. If you want to open a merchant account to accept credit card payments, you would need to contact a payment service provider.

Relying on a mobile device

This is the perfect solution for those who want to get a chance to accept payments regardless of their location. Businesses that are relatively mobile like repair service providers will definitely benefit from a system like this. These mobile devices accept credit card payments making cash transactions obsolete. Of course, even traditional physical stores can take advantage of this form of credit card payment because salespersons can accept payment in any part of the store. All you need to do in cases like this is to buy the necessary equipment and check the fees!

Accept credit card payments over the Internet

The number of people that are using the Internet to buy things is growing every year, so finding a way to accept credit card payments online is a must. The most important thing for online businesses is to select the best payment gateway that suits their requirements. Payment gateways are providing connections to third party providers, they facilitate payment processing and provide security to buyers and businesses. Once again, don’t forget that there are certain fees associated with online credit card payment solutions, but it is worth every cent!

Now that you know how to accept credit card payments, it is time to choose the right option for you. Don’t forget that you are free to use more than one option.

[1] http://www.paymentsuk.org.uk/sites/default/files/publication-free/UK%20Payment%20Markets%20Summary%202016%20-%20Free%20Download.pdf

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