When a customer pays for your good or service online, it is what is known as a card-not-present transaction. This requires a more advanced means of authentication than when a customer swipes a card at the register because you must verify that the card actually exists, as well as take safeguards to be sure that it belongs to the customer making the payment. If you are going to accept online payments, follow these tips to help make card-not-present transactions safer and more convenient for you and your customer.

The Card-Not-Present Process

It is important to follow a rigorous process when authorizing an online payment. First, check for authorization of the card number, to be sure that the customer did not enter random digits. If this is verified, then you have to take further steps to prevent fraud. You can check for the presence of the funds and verify an address, which will be compared to the address on file at the bank. Then, the transaction will proceed.

Utilize Two-Factor Authorization

Two-factor authorization is a process that makes online payment processing a lot safer. In order for a card to be verified, the merchant must enter a password and a six-digit verification code. By requiring that businesses verify themselves in two ways, it helps prevent third-party scamming companies from accessing your money.

Work with a Payment Processing Company

The best way to avoid the hard work associated with processing card-not-present transactions, such as during online payments, is to work with a payment processing company, such as Fattmerchant. One of these companies is responsible for processing the payments for you, to help prevent fraud and help ensure the financial well-being of your company.

Choosing a Payment Processing Company

Before you choose a payment processing company to handle your online card-not-present transactions, you should ask the following questions:

• Are they qualified to handle payments? – Before a credit card processor is permitted to handle credit and debit transactions, they must comply with the regulations set by the PCI Security Counsel for data security.
• What is the rate per transaction? – Ask if the company is going to charge a fee for each payment that is processed. Is it a flat rate per transaction, a percentage, or a combination of both?
• Do they have a good reputation? – You have to remember that the company processing your payments can be handling a large amount of your company’s cash. Therefore, it is critical to choose a company that is trustworthy. Consider the opinions of past customers and how reliable they are, and factor this information into your decision.
• What type of security is offered? – You want to be positive that the credit card processing company you choose is going to take your customer’s safety as seriously as you do. Ask what security measures are in place.
• Can you integrate your payment processing? – Chances are, you already have ERP, CRM, or accounting software that you use to do business. You can make your processes more convenient by choosing a payment processor that can integrate your payments into the software that you already use at your place of business.
• Do they include a shopping cart? – While this question is not one that you would typically think of, it is important. A shopping cart help to gather items that are purchased online, so a single order can be calculated with shipping, taxes, and fees, and then be processed as one payment. Some payment processors include this while others do not. Be sure to ask about this before you choose a company and factor it into your decision.

Lautaro Martinez, a freelance writer and business owner understand all the hidden fees to sales and shares his insights into a more cost effective system. If you would like to learn more about Lautaro, you can check out his google+ profile.