Ecommerce merchants have to offer clients the possibility to pay in several ways, not just at delivery, but also using credit and debit cards. However, sensitive data needs to be secured and protected, otherwise people don’t have the confidence to buy online from a certain business. Being PCI compliant is crucial, to protect financial data and be able to do business online after all. Online payments are complex and require meeting different standards. Businesses have to deal with different situations, including a chargeback.
Why Become PCI Compliant
PCI DSS, which stands for Payment Card Industry Data Security Standard, offers valuable insight on what merchants need to pay attention to and what steps they have to take to manage secure transactions. Considering that nowadays more and more people are buying products and services online, businesses need to offer different payment possibilities, such as prepaid, credit, and debit cards. The main purpose of being PCI compliant is to reduce the risk of data loss, and there are ways to prevent and detect threats. Merchants and cardholders are protected by PCI DSS.
Buyers need to know that websites are secure and their credit, debit card information is safe and will not be exposed to threats. Some wonder if they will face financial loss when buying products and services online, not to mention there is also the issue of identity theft. In recent years, the number of attacks and frauds has grown, and this is a serious concern, so making sure that sensitive data entered on the website is protected is a priority. Attracting more buyers means investing in the business, especially if it is exposed online. The good news is that there are many great measures available to succeed.
What Is a Chargeback
In simple terms, a chargeback is the return of a credit card payment that comes from the bank. Consumers benefit from chargebacks, because it is a protection method against dishonest merchants. However, merchants that have to deal with them find the process frustrating. At first sight, they seem very similar to refunds, but the difference is that a customer asks the bank for a forced refund from the business’s account. Of course, there is an investigation and if the bank finds the arguments valid, then they remove the funds from the account and return them to the customer.
However, clients are not obliged to return what they purchased, so for them there are fewer risks involved and they don’t lose anything. Merchants don’t have anything to say about it, and it is very likely that they don’t even know it occurs, until they go through reports and analyze every transaction. Chargebacks are supposed to make customers feel safe and they make merchants more aware of the quality of services offered and focus more on offering exceptional customer service.
Becoming PCI compliant (https://www.bams.com/pci-compliance/) is a process that needs to be seriously considered by all businesses that plan to expand their activity online and process credit/debit card payments. The auditing procedure involves meeting certain requirements and it is all about the amount of processed transactions within a year. There are four levels, Level 1 is for merchants that process the highest amounts of transactions and level 4 is for those who process the smallest amount. Updates are done regularly and being complaint involves plenty responsibility and being involved in an ongoing process.
Websites have to be updated regularly to make sure they have a strong security strategy and fix all vulnerability issues. Among other requirements for payment processors and merchants it is important knowing how to build and keep a secure network, have a security policy, protect cardholder data, have control measures. Unfortunately, most businesses are targeted by data breaches, no matter how small or large they are. Attackers know all vulnerabilities and are aware that some businesses don’t have the necessary protection and don’t bother to implement security means. Being PCI compliant offers that extra protection because of the requirements.
Although there is information available on how to become PCI compliant, many businesses prefer collaborating with a payment processing company and it is more convenient actually. The company is able to inform businesses at all times and guide them through the process, making sure they offer solutions and systems. Businesses don’t have to deal with data breach and although large corporations might recover at one-point, smaller businesses might not, because they cannot handle the financial damage. The risks are not worth taking and becoming compliant is highly recommended.
When Consumers Use Chargebacks
Nowadays, credit cards are used more than ever, and many consumers can take advantage of a chargeback. However, it is essential to know how to use it and in what situations. For instance, consumers who are victims of identity theft have the right for chargebacks, if someone else purchased products/services on their behalf, using their information. Cardholders need to contact their bank urgently and report the incident to prevent other losses.
It is essential to keep in mind that only in this situation people need to call the bank directly, otherwise they have to get in touch with the merchant and clarify any situation. the situation can be resolved without getting the bank involved and this is the main goal. If the merchant has made a mistake or if the consumer forgot about a purchase, the money will be transferred in his/her account and this works quicker than a chargeback.
For merchants, a chargeback has certain implications. For example, every time one is filed, fees are involved, and they can range based on transaction. If the consumer keeps the merchandise as well, then there is a direct hit on the profit, losing both money and the merchandise. Businesses have the right to dispute illegitimate chargebacks, but opening disputes costs them resources. The good news is that there are some great solutions offered by providers in the field, such as payment processing ones. Merchants receive notifications of incoming disputes, and they can respond faster and deal with all situations, eventually avoiding some of them and not risk losing clients and revenue.