Adding the capacity for
online credit card payment processing
is an effective way for small and niche merchants to expand their consumer base and increase revenue without adding the
recurring costs of store employees. But for many small merchants that have to contract third party online
credit card merchant services to process credit card payments made through their online merchant portals, the risks of fraud and security breach are higher than normal. It is important for these merchants to take certain concrete steps to protect themselves and their customers from fraudulent activity so they can continue to take advantage of this empowering technology.
The many small merchants on the craft e-tailer website Etsy that have succeeded in delivering their unique items to consumers across North America are a clear testament to the power of online credit card processing for small businesses. However, when a small merchant must coordinate its own website, e-commerce software, online merchant account, transaction processing service, and server-side security, the situation become inherently risky. One of the most likely security breaches is that a thief will find a loophole in the system and be able to use a stolen or fake credit card to make purchases that will never actually be paid for.
To combat this, merchants need an online credit card merchant services provider that offers installation assistance related to setting up the online portal, is willing to work with the website designer, and guarantees it will perform robust credit card checks on every purchase. With the help of the payment processor and the eCommerce software designer, security checks should include using an address verification system, a negative database of risky card numbers, and a credit card verification service that check the IP and other data to create a confidence rating for the card.
The important point is that the merchant must be proactive in getting help from all service providers to ensure a secure system, because most merchants will not be technically capable enough to secure their own online payment gateways, but will have the ability to bargain with providers to be sure they can offer secure online credit card payment processing.