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sharminaktersss3435
Mar 31, 2022
In General Discussions
Americans love plastic, especially when it comes to shopping. 78% of consumers say they would prefer to buy with a card rather than cash, and doing so often results in larger purchases. Accepting credit card payments is basically a requirement for all businesses today, big and small. In 2016, more than 1 billion credit cards were in use in the U.S. alone, and between the two leading brands, Visa and Mastercard, Americans spent $1.28 trillion. Not accepting this primary payment method would be a costly mistake for SMEs. However, many business owners are wary of the risks associated with credit card processing. Accidental security breaches involving customer payment information can be absolutely devastating for small businesses. The average cost of a data breach is $141 per lost or stolen record. In addition to security, handling credit cards brings some other risks. These include hidden fees, lengthy processing times that reduce cash flow, and many other limitations and complications. So, what should SMEs do? Obviously, omitting the credit card payment option isn't actually feasible in today's market. Therefore, the best strategy for SMEs is to protect themselves from the most common risks associated with credit card transactions. Let's dive into the details. understand the process Most consumers dread industry mailing list card companies, but it can be even worse for business owners who have to deal with multiple processing departments to receive payments. So it's important that you understand exactly how the system works to make things easier and avoid any unpleasant surprises. There are five roles that must be kept correct during a credit card transaction: customers, known as cardholders. The card issuer that provides the card to the customer and provides payment. Card network such as Visa, Mastercard, Discover or American Express. Merchant, that is, yourself as the business owner. Acquiring bank or processor as merchant account provider. Often referred to as ISO (Independent Selling Organization) or MSP (Merchant Service Provider). Typically, the transaction is processed by your business partner, and funds from the customer's credit card should appear in your business account within a few days. However, if there is a problem with the payment, POS system or refund, you will need to contact ISO or MSP Customer Service for assistance. How credit card processing works source By understanding each participant's role in the process, when a problem arises, it's easier to understand where the problem is and the course of action taken to resolve it. Choose the best credit card processor for your business SMBs have many options when it comes to processing credit card ISOs and MSPs. Each has its own set of rules and fees, so trying to choose the right one for your organization can certainly be a confusing process. In order to find the right product for your business, it's important to first identify your goals and customer base. If you sell primarily online, this is an important factor to keep in mind when looking for an MSP. However, if your business is interested in a flexible system, such as a mobile POS for offsite sales or pop-up stores, you may want to use a processor that offers these options. Make sure your processor also keeps up with consumer trends, such as the increasingly popular Apple and Samsung Pay mobile payment options.
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