Credit Card Processing Best Practices

With cashless transactions on the rise, businesses should take a strategic approach to credit card payments. By carefully considering their payment processing systems and practices, businesses can reduce costs, minimize risks and enhance the customer experience. Businesses that need to create a frictionless, secure and integrated credit card payment system should follow these best practices:

Align your approach to your sales channels

There isn't a one-size-fits-all credit card processing strategy for every use case. For example, a platform business supporting a large number of users that need to accept in-person credit card payments in a number of global markets will have different requirements to an e-commerce retailer that doesn't operate any in-person sales channels. Understanding your specific needs will allow you to uncover the best options for your business.

Implement fraud-prevention measures

Most credit card processing solutions have fraud prevention built in. However, businesses still need to make sure that they are protected against fraud, depending on where and how they conduct transactions. You can use basic tools – such as address verification service (AVS) and card verification value (CVV) checks – in addition to advanced fraud-detection software to minimize the risk of fraudulent transactions.

Monitor and analyse transactions

Review your transaction history on a regular basis to detect unusual patterns, identify potential issues and refine your processing strategy. Make sure that your payment processor offers this type of monitoring.

Create clear and accommodating refund and chargeback policies

Establish transparent and fair refund and chargeback policies to reduce disputes, maintain customer satisfaction and avoid unnecessary fees.

Offer multiple payment options

Cater to a wide range of customer preferences by providing multiple payment options, including credit cards, debit cards, digital wallets and other alternative payment methods. This doesn't mean that you need to accept every payment method. Instead, conduct research into how your customers prefer to pay and which payment methods are most commonly used with the types of products and services that you offer.

Maintain up-to-date hardware and software

Keep your POS systems, payment gateways and other processing components updated to ensure smooth operations, enhanced security and improved customer experiences. Source