The way consumers pay has evolved immensely over the past decade, with many people now opting to use their credit and debit cards rather than cash or checks. While it’s much more convenient to swipe your card at the cash register than to dig through your purse or wallet for loose change, it’s also important to keep in mind how this convenience affects your bottom line as a retailer. Learn how card-not-present transactions impact you as an online merchant and/or as an in-store retailer, and how you can take steps to protect yourself from potential fraudulent activity by taking advantage of preventative measures that are available to you. Why are CNP payments increasing? The popularity of online shopping and eCommerce has risen substantially in recent years. As more customers browse from their computers or mobile devices, retailers need new ways to accept payments without actually handling any goods. One common method is a CNP transaction where consumers enter their credit card details directly into an online form, rather than swiping it through a terminal. However, accepting CNP payments comes with unique risks that many small businesses may not be aware of and can often result in fraud costs equal to or exceeding profit margins. How will this impact retailers? Since online sales continue to grow at a fast pace, it’s not surprising that CNP transactions are increasing as well. But while CNP transactions—those occurring when a consumer doesn’t physically present their card during checkout—are becoming increasingly common, there are still many retailers who don’t accept them or don’t take certain precautions. More than half of all eCommerce sales still occur over a mobile device, so it’s vital for retailers of all sizes to take the steps necessary to safely process these payments. If they fail to do so, they run multiple risks, including the inability to fulfill an order because they lack information about where and how the money will come from their customer. How can retailers adapt? With CNP transactions, a physical credit card is not used at the time of purchase; rather, a virtual account number or virtual payment card number is given by an individual with authority to complete transactions under that account. Cardholder verification is one of several important ways retailers can adapt. The vast majority of stolen card data comes from online transactions, which means retailers will need to start verifying cardholder data more often when a customer uses a credit or debit card in their store. In fact, if you’re going to process online transactions in addition to physical ones, it’s recommended that you take as many steps as possible to validate and verify your customers’ identities when they use their cards in person too. That said, there are different methods and technologies retailers can use for identifying cardholders – you may not have time or resources for all of them. How can banks work with online marketplaces? Online marketplaces have become increasingly popular with consumers as they provide a convenient way to shop and compare prices. These marketplaces are popping up everywhere; Google and Amazon both offer online marketplaces for merchants, while sites like Shopify allow you to create your own marketplace. The proliferation of these marketplaces has presented banks with an opportunity: they can engage directly with merchants in order to expand their reach and boost sales, but there are some risks that should be taken into account. How can mobile wallet providers partner with merchants in-store? Partnering with a mobile wallet provider can help merchants facilitate fast, secure, and easy CNP transactions. Both parties benefit from each transaction, as well. Mobile wallets provide customers with extra convenience for in-store purchases, and merchants get a cut of every sale that’s made using these wallets. If you run an online store or brick-and-mortar business, it’s important that you’re prepared for cashless payments. What are the important security considerations? As increasing numbers of consumers choose eCommerce over retail shopping, businesses must adapt in order to survive. Making your website safe, secure, and cardholder-friendly is crucial. CNP transactions are growing at a rapid pace – with increased risk for retailers that don’t employ proper security measures. Understanding where you fit in when it comes to acquiring funds from customers will help safeguard you against cyber-attacks while fostering trust with your customers. Since CNP transactions do not involve the consumer handing their card over to the retailer in person, opportunities to commit fraud are much easier and more prevalent if there are no security controls in place that monitor and prevent fraudulent transactions. As a retailer, if you accept CNP transactions on your website or through your business, make sure that you are taking the necessary steps to reduce your risk of fraud, including implementing anti-fraud software and training staff on how to identify and prevent fraud. The post Card-Not-Present (CNP) Transactions and What Retailers Should Know About Them appeared first on POP FUEL. from http://clipstrip.com/pop-fuel/card-not-present-cnp-transactions-and-what-retailers-should-know-about-them/
0 Comments
Leave a Reply. |
ABOUT USClip Strip Corp. is the Original Source for POP Display and Merchandising Accessories. ArchivesNo Archives Categories |