What Is the Most Important Feature of a Credit Card Processing Service?

Posted by Dane Bronson on November 20th, 2020

Why Does Your Company Need Chargeback Defense?

Nowadays, the most popular payment method is a credit card. So, more and more companies must be able to receive payments from credit cards. But credit card processing services are not always the safest form of payment method. And although the chance is low, there is the risk that your company will suffer from a mass attack. And the only method that you can use to reduce the risk to 0, and prevent that possibility from ever happening, is to increase the chargeback defense of your company. 5 types of features will ensure that your defense is top-notch.

• Instant disputes alert. The first thing that you need to check while researching the protection that a payment processor provides to your transactions is the method through which your company will be notified. You should avoid the payment processor that will send paper notifications at all costs. By doing that, you will not have enough time to deal with a higher number of disputes. Emails are a much better alternative, while SMS notification is the perfect one.
• Online dispute management. The second method that can be used to increase the defense of your company is to find a partner that provides you with an online management space. The dispute will be analyzed and solved there. This means that you will be able to save a lot of time by directly sending all the proof and documents needed for the solving of the dispute.
• Fraud protection. The third protection feature that you need is a barrier that will stop any chargeback from going through without the end of the dispute. That means that you can successfully avoid any possible fraud attempts. This will also ensure that your company will never be attacked by many frauds attempts at the same time.
• Authentication tools. The fourth feature that you need is a through cardholder authentication tool. Even if you allow your clients to save their data and make their shopping easier, you should still use authentication tools for credit card processing. And see if the cardholder is the one using the card.
• Assurance. And the last feature is assurance. A reliable payment processing company should have a partner that can assure your transactions. And if you ever lose a dispute, then you can ensure that your company does not suffer any losses. But you need to keep in mind that each transaction will have to go through a clearing process before being assured.

What Benefits Can You Expect from a Strong Chargeback Defense?

So, what are the benefits that your company expects from a strong level of  chargeback  defense and fraud protection? Well, there are 3 of them that will ensure that you will make sure to find the best payment processor that provides strong defensive measures. But you should understand that this is not the only factor that you need to consider while making your decision. There are other features as well that a payment processing partner must be able to provide. So, the benefits that your company will get from a strong fraud defense are:

• Reduced losses. Any company that receives payments through a credit card processing method will suffer a certain degree of losses from fraud attempts. But the difference between the businesses that have defensive measures set in place and those that don’t is very big. So, if your company is one of those with a strong defense, then you can reduce the losses and invest the saved money to grow your company faster.
• Increased trust. You can also make use of your defensive measures in your marketing strategy and make it easier for your potential customers to trust you. How so? Well, they will know that their personal data will be more secured with a company that has defensive measures against fraud attempts. And you can also combine these measures with PCI compliance to increase your security to its maximum potential.
• Saved time. Dealing with a high number of disputes is not only tiring, but it will also cost you a loss of time and resources. But a reliable partner will not only save you time through fast dispute resolutions but also because the number of disputes will be reduced. For this reason, you can use that time for other productive purposes.

Why Should You Consider a Subscription-Based Credit Card Processing Service?

As mentioned above, a strong fraud defense is not the only requirement that you should have from a  credit card processing  service. Another important requirement that you should consider is the subscription-based payment method. Why? Because it will also provide your company with several benefits and advantages.

• Increase billing efficiency. If your clients need your products or services every month, then it is much more efficient to use a subscription-based payment method. There are several reasons for that. Firstly, your clients will not need to always remember about making payments. Secondly, they can save time through the automation of the process. And lastly, you will not have to deal with every payment made every month.
• Reduce costs. You should know that every transaction that your company makes comes with specific costs that you will have to pay to the payment processors of the banks. But if you automate the payment process, you will not pay for the first transaction. The other payments that are made automatically will have much lower or even 0 costs associated with them. And this will allow your company to save more and more money because of the rising number of clients.
• Enhance loyalty. This method is also used as a means to enhance the loyalty of your clients. After they subscribed to your company's services or products, it will be harder for them to give up the convenience after a period. And the more time they remain subscribed, the lower the chances are that they will leave your company for your competitors. And your revenue will also increase due to the long relationships between your company and its clients.

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Dane Bronson

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Dane Bronson
Joined: April 25th, 2020
Articles Posted: 11

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