Security is a vital aspect of any credit card payment, and as a business you expect your merchant services provider to give you the best in security. However, why is there so much emphasis on secure credit card processing? Your credit card processor may seem safe and secure to you, especially if you have a good provider. The following facts will help you understand why you need to get the best security possible.
Credit Card Processing Is Not Secure
This may seem shocking to you but it is the first thing to understand – credit card processing is not exactly a secure process. Your information could be stolen, and there are many cases where this has happened, from almost anywhere you do business. Most people know that online transactions are the least secure form of credit card processing and that is why there are so many people who are afraid to transact using their cards online. Even when data is encrypted, online shoppers are at risk of having their credit card information stolen and used for unauthorized purchases. When information is stored on a company’s servers, it is easily stolen and can be reproduced if the company’s server is breached.
If your company has its own app, you run the risk of exposing customers’ information especially if your app is not secure enough. Even POS terminals are not 100% safe as information could be transmitted across lines where it may be intercepted.
Customers Value Security
Most customers are aware of the need for security and many online shoppers would have probably encountered fraudulent activity on their accounts if they have been using this method for a while. Customers, however, must rely on your business to offer them secure payments every time they shop with you so it is important to build the trust with them. Credit card fraud and identity theft cost US consumers $16 billion in 2016 alone, consumers are becoming more wary and apprehensive. If your company doesn’t seem to offer them the highest possible level of security, they are less likely to shop with you and will find another provider who they feel they can trust. .
Being a service provider, it is so important to keep your customers safe and protect their data. That is another reason that secure credit card processing is such an important feature in any business, no matter where your customers meet you.
Data Breaches Cost You Too
In June 2016, IBM reported that the average consolidated cost of a data breach was a staggering $4 million. That means that using unsecure payment processing is costing your business too. A data breach could cause you to lose customers, as your customers no longer trust you with their details; that can translate into lost sales. Further, you may need to sort out the problem by upgrading your own security or even switch payment processing providers, all of which represents additional costs for your business. The data breach may not have happened on your own company servers or by any fault of yours, but you will still end up paying for the provider’s lack of security as it does affect your company and its reputation.
More security
Your company needs a guide on how to handle sensitive customer information especially their banking details. This could include how and where you store your customers’ information. Some companies choose not to keep their clients details on file and this seems to be a good practice to safeguard your business and the client.
However if you are not happy to do this, you may want to ensure that your provider is PCI compliant. Ask your processor what measures they have in place as well as their procedures and processes. Find out about their policies regarding security breaches and how they will protect you and your customers.