Ecommerce and Credit Card Processing Risk
Launching your business usually means you will be opening the gates to online payment processing as well. While this is a prospective step towards growth and much success, there are some risks involved here which need to be taken into consideration. Most of the risks involved, if not checked or acted upon can prove to a huge deterrent in the future of your business.
Opening to credit card processing also exposes you to certain risks which are:
Card fraud – There are a number of cyber criminals out there, or one-hit wonders who intend to commit credit card fraud. An assured way of dealing with such offenders is to introduce additional validation measures. Double checking on the details fed by the customers and cross-checking with bank accounts – these are only some of the simpler ways by which regular fact-checking can save you.
Chargebacks – Chargebacks are the pain in every business’ spine. Both low and high risk merchants know that well. A high number of chargebacks means your business will eventually suffer and also bring you some bad press. Chargebacks are customer initiated, on account of failure of service or dissatisfaction. It is therefore essential that the complete business model be customer oriented.
Nature of business – If your business by definition is high-risk, you are liable to certain irregularities in payments. High-risk credit card processing thus requires more security to prevent malicious elements from attacking your established framework.
Rates – One of the risks associated with high-risk credit card processing is that it is aligned to business types where the monthly cap is so unpredictable that it can easily breach either ends of the limit that a merchant sets. Usually, you will be charged extra for such an irregularity; sometimes, even fines are levied.
