Fraud and Chargeback
Online transactions are “card-not-present” (CNP) transactions. As the e-commerce sector keeps expanding, opportunities for fraudulent misuse of payment networks and data theft grow right alongside. A PCI-DSS compliant setup along with 3D secure data security is necessary to eradicate fraudulent transactions.
Chargebacks, besides being costly, can damage business reputations. An excessive number of chargebacks can lead to closed merchant accounts, effectively killing the business. While chargebacks do sometimes happen for legitimate reasons, the use of online payment processing would eliminate the risk of non-legitimate chargebacks.
Card Data Security
Payment Card Industry Data Security Standards (PCI DSS) certification is required for every merchant or business accepting credit or debit cards, online or off. PCI DSS standards require merchants and processors to meet 12 criteria across six security arenas:
- Build and maintain a secure network and systems
- Protect cardholder data
- Maintain a vulnerability management program
- Implement strong access control measures
- Regularly monitor and test networks
- Maintain an information security policy
Online payment systems run the proprietary gamut across hardware and software platforms. In true real-time processing, a combination of features, including integrated systems and gateways, addresses liquidity issues and minimizes delays, while preserving online transaction integrity. Creating a seamless system is possible only when the intricate systems are speaking as one single unit. This integration between the payment systems, finance records, OTAs, and product/service details along with customer data is crucial for a successful online payment setup.
Cross-border payments can be slow, inefficient, and expensive, but they play an important role in global trade. Typically, national banking infrastructures can’t handle cross-border payments, resulting in independent and non-uniform development in technologies and software platforms that complicate or stall cross-border transactions.
Multi-currency and Payment Methods
Global e-commerce means accepting a variety of payment methods and currencies. E-wallets, mobile payments, and credit/debit cards help online merchants compete in international markets by allowing their customers to pay in their native currencies. For merchants, multi-currency, cross-border transactions can require new bank accounts, new business entities, and new regulatory hurdles in each national market. A merchant can easily collect payment in one currency and credit the merchant account in its home currency.