How to Avoid the Risks Associated with Ecommerce Payment Processing?
Ecommerce Payment Processing: Nowadays ecommerce payment processing has become one of the most common things there are. That is because merchants understood that in order to keep their clients and attract new ones they must open themselves up to new technologies and payment options. This is also why more and more merchants try to become PCI certified. This way they can let their customers know that they are to be trusted and can provide a safe and secure environment for sensitive data.
What Is Ecommerce Payment Processing?
Transactions done over the internet are one of the main ways that people nowadays use to get whatever it is they need. From simple shopping to contracting services, everything can be found and done online. But paying for these services can be hard to understand and quite difficult to manage, especially if you are just starting out in the business world. Luckily there are many solutions one can use in order to help him with any and all online payments that need to be done. But understanding how these payments are done can take some time and research in order to get it right.
Ecommerce payment processing is, just as the name suggests, the way that transactions made over the internet are processed. Just as with any other transaction, an ecommerce one needs a payment processor. There are many out there for merchants to choose from, all of them sporting remarkable capabilities. They are usually designed to integrate seamlessly into websites and other platforms in order to make payments safe and easy for clients and merchants alike.
One of these processors is PayPal. This ecommerce payment processing titan has around 200 million active accounts, out of which 22 million are merchant accounts. Due to its flexibility and transparent pricing policies, it has become a household name known the world over. It has helped both merchants and customers establish a strong relationship. One of the great features that sets it apart from other processor is the number of currencies it supports. This is also one of the reasons that it is so widely used by both merchants and customers. Another great feature is the fact that you don’t actually have to have an account in order to use it. This makes it a preferred processor for platforms and shopping sites all over the internet.
Another great processor is Amazon Pay. This one stands out by having a very user friendly interface, which makes it easy to use and easy to adapt to any website. Another great thing about it is that it is part of the Amazon product family. That means that people, both clients and merchants, recognize it and associate it with a world renowned brand. There are some drawbacks to using this processor though. Unlike PayPal, the user has to have an active account in order to perform transactions. Also, if the user is at its first transaction, the system can reserve it for 14 days. That means that settlement can be delayed until further security checks are made.
The Risks Associated with Ecommerce Payment Processing
As anything having to do with processing payments, ecommerce payment processing has some serious risks associated with it. The biggest one is regarding cyber-attacks from hackers and data leeks. Although there are some serious steps being taken towards eradicating this phenomenon, attacks still occur and data is still being leaked occasionally. This means that there are still some chinks in the armour that need tending to. Information leeks can lead to identity thefts and money going missing, not to mention the hit the image of the processor takes, making users to look elsewhere for a services provider. Developers are working tirelessly in order to fix this problem and to make their processors as safe as possible.
Another big risk associated with ecommerce payment processing is the possibility of fraud. Although platforms like Etsy, e-Bay or Amazon constantly filter out the merchants that are most likely to commit fraud, there are still some that slip through the cracks. This is because the algorithms aren’t that finely tuned. This is why some people are skeptical when it comes to using online payment processors. But the problem here isn’t the processor itself as it is the merchant that wants to exploit the system. The downside of this is that processors become unwilling “partners in crime” and can’t really avoid such things from happening.
Why Is Being PCI Certified So Important?
Data breaches and leeks have been a long time concern for the international security community and merchants alike. This is why they have come up with a solution in order to verify if a merchant actually is taking all the required steps in order to promote a strong security climate within its business. And this is how becoming PCI certified became such an important thing for merchants from around the world. For some it may sound just like some fancy way of saying that the merchants recognize each other as being reliable, but it is more than that. There are some concrete benefits to being PCI certified.
Firstly, being PCI certified means that you are taking serious steps in preventing data breaches and information leeks. Nowadays information is one of the most sought after commodity out there. this is why merchant have to take every precaution in order to ensure clients that their data is safe and that they can be entrusted with sensitive information. Being certified doesn’t just mean that some other merchant says that you are. It means that you agree to improving your security policy and implementing new measures in order to upgrade the security climate inside our business.
Another great advantage a PCI certified merchant has is that he avoids fines. Although this isn’t available in all countries, there are some that enforce the rule that any merchant processing credit cards has to be certified. This helps by separating the merchants that can be trusted with sensitive information from those who cannot. Also, it greatly improves the image of the certified merchant, making him more attractive to both customers and other partners.