In today’s marketplace, credit cards have become the preferred method of payment by consumers. With benefits such as fraud protection and the ease of tracking expenditures, consumers are relying on credit cards at checkout more than ever. Additionally, as behavior such as online shopping continues to increase, paying for goods and services via credit card will only continue to rise. As a result, merchant account providers are more important than ever to businesses large and small. With so many transactions, merchant account providers have no choice but to rely heavily on technology.
Merchant account providers benefit through the use of technology in these three key areas.
Anyone who has ever used a credit card to pay the plumber or air conditioning repair technician has taken advantage of mobile point of sale terminals. This type of technology allows merchant account providers to process an increased amount of transactions on-the-go while providing convenience to the consumer.
As electronic transactions increased and the Internet began to be heavily used by consumers purchasing goods and services, an increase in fraud developed at the same time. Just as scammers use technology to their benefit, merchant account providers take countermeasures using information technology security programs to protect account holder information. The payment card industry data security standard is what all merchant account providers are held to in protecting business and consumer data. Secure servers are used to transmit encrypted data for the debit and credit card processes.
To protect businesses from chargebacks and retail fraud, merchant account providers use technology to authorize credit card payments. Before goods or services are exchanged with a consumer, the information from the credit card swiped at the point of service is analyzed. The transaction is either approved or declined by the bank that issued the credit card. In online transactions, this is processed through the payment gateway that is often packaged with the checkout feature of the retailer.
Technology is increasing at a faster pace than ever, which means that business owners increasingly need the professional services of merchant account providers. As changes take place in the brick and mortar and online marketplaces, merchant account holders will become more important and essential to the efficient and effective functioning of businesses of all sizes. Financial regulations and reforms that go into effect over the coming years will continue to play a role in the types of technology merchant account providers can use as well.