Card not Present Transaction is a fruitful outcome of technology. Technology has given us so many things that we cannot even imagine. It is actually beyond our imagination. If we see a couple of years ago, credit card transaction using credit card machines and various payment terminals was completely new. But, nowadays, card not present transaction has got a huge popularity. Actually, accepting card payments online or remotely has become as outdated as accepting card present transactions. COVID-19 has changed the ecosystem of the payment industry. Considering the present situation where maintaining a social distance has become very important, it is believed that card not present transactions and many other payment systems like this will be the future.
What Card Not Present Transaction Is
Card not present transaction indicates a situation where the merchant has to accept credit card payments online. In case of card not present transaction. There is no need for a credit card in its physical form as the entire transaction process can be done virtually or remotely. Yes, the merchant just needs to put the required credit card details in a virtual terminal and the rest of the process is done by merchant processor, credit card issuing company and the credit card network. As there is no need for a physical credit card, it is called card not present transaction.
If you are running an online business, a card not present transaction will be an ideal option for you for accepting payments from your customers. But, in case of card not present transaction, you have to pay a slightly higher processing fee that is otherwise known as interchange fee for each transaction. This is because card not present transaction has a higher chance of fraud and therefore, merchant processing solutions provide adds an extra layer of security.
However, this particular aspect does not make it risky. Rather, it is more beneficial and flexible than card present transactions. If you can follow certain tips while making card not present transactions, you can easily get fruitful outcomes. Businesses across all industries are giving preference to online transactions. There are many businesses such as subscription services, online-only stores completely rely on online transactions.
If we talk about the present situation. There are many business owners who are taking their businesses online. And for them making online transactions might be complicated. We at International Payment Solutions understand this concern and therefore, we have come up with certain tips that merchants need to follow while making card not present transactions. So, have a look at the following points:
Things To Do While Processing Card Not Present Transactions
If you are operating contactless transactions, there are certain practices that you need to follow to keep your business devoid of fraudulent activities.
As everything is happening virtually, you have to be careful while putting credit card details. Moreover, you should always ask your customers to share the card number and CVV over the phone as sharing such vital information over email or text messages is not safe. CVV is basically a three-digit code. That lets you know whether the person sharing the card number with you is the actual owner of that card or not. At International Payment Solutions, we always recommend our merchants to ask for the CVV number from the customers. While processing online transactions. Along with it, you can also use Address Verification Service also known as AVS. In such a case, you need to match the shipping address of the customer that is in your record with the address provided by the cardholder over the phone.
Go With Virtual Terminal
A virtual terminal is a web-based payment terminal that lets you accept credit card payments from anywhere. When it comes to processing contactless transactions, nothing can beat virtual terminal. At IPS, we offer advanced virtual terminals that support invoice and billing, real-time reporting and recurring payment. You can easily access your virtual terminal using your mobile phone or laptop from anywhere. Moreover, multiple users can access our virtual terminals simultaneously on different computers. Well, our virtual terminals also allow you to create customer profiles and organize your products flawlessly.
Things You Should Not Do When Processing Card Not Present Transactions
If you accept online transactions, you need to avoid certain things. First of all, you should avoid email or text communications while asking for credit card details. Secondly, you should not store the payment information of your customers improperly. Lastly, if you see a red flag in any particular transaction, you have to forfeit the sale and refund the amount.
Not An IPS Merchant?
Without pairing your business with any merchant processor, you cannot accept online payment securely. Therefore, we recommend you to visit International Payment Solutions that offer advanced payment solutions. Through IPS’s online payment solutions, you can easily take your business to the next level. So, what are you waiting for? Get in touch with IPS today.