Payment processing involves many complex and detailed rules. Everyone — including your acquiring banks, payment processors, card brands, and government officials — is expecting full compliance with these rules.
How Can You Tell What to Do and What Not To?
You should know our best practices when it comes time to comply with payment processing.
Choose Reputable Service Providers
You can manage your business with the help of hundreds of payment service providers. You can use everything from payment processors to enable you to sell products and services, to order management software that helps you keep track of your order history.
Although there are dozens of options in each field of expertise, all service providers do not have the same values. Select your vendors carefully.
It’s a common saying in business that “the customer always has the right to be heard”. You will find many service providers who will say exactly what you want. What you need might not be the same as what you want.
Some payment processors, for example, waive the underwriting procedure so that merchants can start up quickly. The processor may not be clear about the fact that funds are being held until a more thorough risk assessment is completed.
Most often, short-term gains — such as more revenue or instant satisfaction — are not the best strategies for long-term compliance. Most service providers don’t care about what happens downstream.
Avoid tactics that may benefit your business in the short term but could cause problems in the future.
Do Not Try to Conceal Potential Problems
They use a variety of metrics, such as those used by card brands or your payment processor, to assess the risk level in your business. They want to find out if your business could harm that of theirs.
These risk metrics, and the constant monitoring they require, can be intimidating. Bad performance reviews can cause severe damage, including increased fees, penalties, and even the closure of a business.
It Is Tempting to Pretend That Things Are Better Than They Are
Any attempt to conceal issues, misrepresent risks, or artificially increase performance metrics violates numerous regulations and ultimately does more harm than good. This practice may also lead to legal action against your company in addition to financial penalties.
Avoid any strategies intended to mislead your payment processor, card brands, or regulatory authorities. It is best to avoid any vendors or individuals who suggest such practices.
Instead of hiding or concealing risk, address the issue directly. Speak to your provider of merchant accounts if you’re not sure whether a particular strategy falls within the card brand’s regulations.
This post was written by a professional by Exzact Business Solutions. TRANSPARENT | AFFORDABLE | SIMPLE payment processing companies Pinellas Park, Websites, and Social Media Done Right. Exzact Business Solutions are on a mission to educate local businesses to ensure smiles, savings, and solutions. Exzact clients save an average of 30% on their processing alone. No Contracts, Free Equipment, Local Support, No Rate Increases, and More. Exzact Business Solutions goal is to educate the local business community in order to ensure smiles, savings and solutions. Exzact Business Solutions is an Independent Sales Organization with strategic partnerships dedicated to cultivating reliable and trustworthy relationships in the Payment Card Industry, allowing to tailor products and services to the needs of each merchant. Contact EBS and see what a difference having the right advocate can make!
