Posted on Wednesday, 22nd June 2011 by Mark Chambers
From the multi-national corporation to the small home-based business, all sellers can benefit by offering multiple payment options. The days when most transactions were completed with cash have come and gone. Sixty percent of all retail purchases are settled with a credit or debit card. A growing number of these purchases are not made in person.
The popularity of e-commerce is based on its speed and convenience. Shoppers can find just about anything they want or need on the internet. They can also purchase items from their phone. In fact, mobile commerce is growing at a much faster rate than e-commerce in America. The reason for this is simple: more Americans own a phone than own a computer. Many of them actually own two!
While most homes still have a reliable old landline, cell phones are far more popular. Over ninety percent of Americans own a cell phone, according to a recent survey. And more and more of them are using them to shop. What are the advantages?
Just like the internet, selling items over the phone gives the merchant access to people who live in other parts of the country or the world. Let’s say, for example, that you own a small antique shop in Montpelier, Vermont and you want to scare up more business. Listing items on the internet and giving customers the option of paying via phone is a simple and convenient solution. After all, most new mobile phones offer internet access.
Merchant Services Accounts
Every business that accepts credit or debit card payments must have a merchant services account. Offered by banks and other financial institutions, these providers perform a number of vital services. First and most importantly, they either approve or deny all electronic transactions. If the transaction is approved, they will collect the requisite funds and deposit them in the merchant’s bank account. The process is a bit more complicated and costly when the seller does not have physical access to the card.
A card not present transaction (CNP) increases the risk of credit card fraud, since the merchant cannot perform basic security checks. When a stolen credit or debit card is used over the phone or online, the actual cardholder can request a refund or chargeback. If the chargeback is granted by the service provider, the costs will be passed along to the merchant. That is the bad news.
The good news is that merchant services have become increasingly sophisticated in recent years when it comes to combating credit card fraud over the phone. Though internet sellers are still plagued by hackers, telephone sales are much safer. A customer can complete a purchase with any touchtone phone, including cell phones. The merchant receives payment within one to three business days and is charged a single transaction fee.
What to look for?
Every company that processes electronic payment must be PCI DSS compliant. The acronym stands for Payment Card Industry Data Security Standards Council. As you might imagine, this council is responsible for formulating a set of rules that reduce the risk of credit card theft or fraud for both buyers and sellers.
Because the process is no walk in the park, a merchant should look for a service provider that will help him become PCI complaint. Working together as a team, a merchant and his provider can cut down on errors and limit the risk of credit card fraud.
Mobile payment processing is one of the fastest and most affordable ways for both new and established merchants to increase revenues. Consider how mobile payment processing can benefit your business now.
Similar Posts:
- How to Offer Security and Convenience when you Accept Credit Cards
- Finding an Internet Merchant Account that Works for your Business
- How Merchant Services Can Simplify Daily Operations for Your Small Business
- Internet Merchant Accounts Made Simple
- Sell Anything Anywhere With ‘Pay Anywhere’ Free iPhone App & Reader from North American Bancard
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