Following best practices for processing credit card transactions can help businesses avoid potential fines, protect against payments fraud and improve customer satisfaction...
- Maintain sufficient funds to cover processing fees. Otherwise, an account could be sent to collections, and collections fees would be incurred.
- Reconcile deposits regularly to identify and resolve discrepancies quicker.
- Avoid excessively retrying a declined card. Repeatedly attempting to make a transaction with the same card can lead to authorization issues; instead, instruct staff to request an alternative payment method from the customer.
- Respond promptly to chargebacks. Merchants are given a limited amount of time to respond to chargebacks, and failure to respond in time could result in the merchant losing the case.
- Monitor and analyze transaction history to detect anomalies that might be signs of fraud and identify trends that could inform payment processing strategies.
- Maintain compliance with the Payment Card Industry Data Security Standard (PCI DSS). This worldwide information security standard, defined by the Payment Card Industry Security Standards Council, helps prevent fraud through increased controls of the data held and exchanged by businesses that process card payments. Using a PCI-compliant payment processor can simplify the compliance process.
- Equip POS terminals with EMV chip readers. EMV chip transactions are more secure than transactions using a magnetic stripe, as EMV technology encrypts transaction data.
- Implement point-to-point encryption (P2PE) and tokenization. With P2PE, payment data is encrypted at the point of sale and can be read with the appropriate key. Alternatively, tokenization can be used to minimize data breach risks. Tokenization allows the cardholder to make a payment without providing card or bank account information to the merchant.
- Educate staff on secure processing procedures, including proper handling of card transactions and recognizing signs of fraud.
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