Managing the risks to processing a credit card payment online

Businesses in the 21st century increasingly find themselves in a post-cash world. Only 5 percent of payments are made in cash worldwide, while 73 percent of purchases are made using debit, credit, eWallets, and prepaid cards.

While there are many advantages to accepting payment cards online, there are some challenges and risks to processing a credit card payment online. Let’s look at some of the biggest risks of online credit card payments.

Identity theft

One of the greatest issues with any type of online purchase lies in the connection security. When processing payments, it’s crucial to secure a wireless connection to prevent an outside user from reading and downloading credit card data and using that data to steal the cardholder’s identity.

The cost of a data breach shouldn't be underestimated. In addition to the negative press for a company that's hit by identity theft, the average cost of a data breach for small businesses in the US is $117,000. There are a variety of ways payment processors are using technology to protect businesses. Your payment processor should provide online card data security protection that minimizes the risks from a data breach and protects both merchants and cardholders. Machine learning and artificial intelligence are constantly at work to identify patterns helping to let good transactions go through while keeping out potentially fraudulent transactions. Always ask about security when speaking with card processors.

Compliance costs

Handling an online credit card payment also requires compliance with PCI mandates. Any business that accepts card payments is subject to these mandates, and non-compliance fees can be hefty.

The effort and cost involved with PCI compliance varies based on the size and scope of a business. Particularly for smaller online businesses, it's critical to understand what your payments provider offers to help you with understanding and complying with PCI standards. Some providers, like Worldpay, offer robust programs that address card data security as well as compliance. Reach out to your payments provider to understand what's available to you.

The user experience

An optimal online customer experience will help ensure a completed transaction. You not only have to offer the payment choices your customers expect; you need to reassure them that their payment information is safe with you. Display security badges to give customers piece of mind before they enter card information.

The shopping cart experience is key and consumers typically like options. Allow shoppers the choice to register or check out as a guest. Registration makes shopping easy for returning customers who want to breeze through checkout while guest checkout gives consumers freedom from having personal information stored with multiple companies. Making it easy to find discount codes, shipping rates, and other information related to their order will also help ensure a completed order.

Solutions and resources

What does your business need to succeed and reduce your risks to processing a credit card payment online? We offer a variety of online payments solutions and resources. Find out how to increase security, manage costs, and maximize conversion using our online payments capabilities.