Entries tagged with “Payment Security”.


In the world of merchandise processing, there are two different types of transaction processing: swiping and keying. With the constant accessibility to mobile devices such as tablets, smartphones, and laptops more and more merchants are using swiping, but why? In order to fully understand why more merchants are swiping cards versus keying them in, let’s take a look at the difference between swiping and keying credit cards.

Swiping vs. Keying Credit Cards

The difference between swiping credit cards and keying them in is pretty self explanatory, when swiping you have to have the card present and it typically requires either a mobile device with a swipe adapter such as ProPay’s JAK, or a computer/register with an internet connection. Whereas when you key a credit card in, merchants have to hand enter every card number and the credit card doesn’t actually have to be present. So, why are more merchants avoiding keying credit cards? Three reasons: fraud, savings, and convenience.

Fraud Rates

The biggest reason not to key in credit cards is plain and simple: fraud. Because merchants don’t actually have to have the credit card present with keyed payments, the chances of fraudulent transactions are a lot higher. Because most thieves steal credit card numbers instead of the card itself and then make by-phone or online orders, the card itself is never seen. Avoid these types of no-swipe fraudulent transactions altogether and only allow customers to pay for merchandise when they have the card present.

Savings

Because there is a higher fraud rate for credit cards that are being keyed in, credit card processors charge a higher rate for keyed transactions compared to swiped transactions, in order to protect themselves against any false transactions. How much more money do they charge? About .5% more per transaction. For example, credit card processors typically charge around 3.5% for keyed transactions, whereas ProPay only charges 2.29% for keyed transactions.

Convenience

Have you ever had to hand enter someone’s credit card only to realize you misentered one number and you have to start all over? With swiping, you never have to worry about that problem again. Also, you can swipe anywhere, at anytime—giving you the freedom and mobility your business needs in order to stay prevalent in this economy.

To learn more about swiped rates visit ProPay online.

Your payment processor may be outdated – if so, then don’t hesitate to get a new one. The latest merchant trend according to Tech Co, is mobile payment processors. Some of the hottest, up-to-date payment processors offer a very quick and easy process for getting your small business to accept mobile payments. One simply has you sign up online, and you’re mailed a card reader – you then just need to connect your tablet or mobile phone to the card reader and start accepting mobile payments instantly from your customers.

Another popular online payment processor, subsequent to you signing up and linking your tablet/mobile with their card reader, allows you to “track cash, send invoices, [and] check and track payments.”

As smartphones get more and more popular and sophisticated, more and more of the younger demographics will prefer to pay with them. Thus, it’s only reasonable that you get ahead of the game and start offering your consumers the mobile payment option.

ProPay accepts mobile payments and allows you to track and check all of your transactions. We have been in the payment processor business for many decades. Our network includes thousands of merchants and more are joining each day. By allowing mobile payments, you can potentially open up your consumer market to the younger age groups, no matter what products you have. Some people buy things, solely because they are convenient to purchase. If you’d like to learn more about finding the right payment processor for your small business, contact us today!

When choosing a payment processor, there are a few factors that you should prioritize and some things that you’ll want to avoid. In this blog, we’ll talk about three good qualities of payment processors and one that should you shouldn’t have to settle for.

Security

We’ll start with security because it’s the most important factor by far. Unsecured finances are a reason by itself why customers should avoid a business.

You’ve probably heard about the data breach that’s currently ruining Sony’s reputation. If you don’t want to end up like them, then you have to invest in security at every step. In addition to network security, that also means choosing a payment processor that secures financial transactions.

Don’t think of security as an added feature of a payment processor. It’s the bare minimum, and if it’s not provided by a specific brand, then it’s a deal-breaker.

Transaction processing & data integration

The real reason why businesses turn to payment processors is to improve their efficiency. Payment processors can do this on two levels.

First, they can process all financial transactions that occur within your businesses. And on top of that, they can record and organize the data from the transactions. You can use this data to improve your business operations and keep track of your finances better.

Online accessibility

Another popular feature of payment processors is online accessibility. You want to be able to manage and view your transactions from an online platform. In addition, you’ll be able to receive and send out e-invoices.

Avoid: Fees

While the first three characteristics are positive aspects of payment processors, this last one is the opposite. You shouldn’t have to pay a large amount of fees when using a payment processor. This amount is relevant, of course, but if the cost seems too high, it probably is.

To talk more about payment processors, or anything else, please contact us.

Fraud can have disastrous consequences on a small business. Knowing how to identify your risk factors is a key element when it comes to preventing fraud within your enterprise. Because small businesses are more prone to spending less time and money on fraud prevention due to limited assets, the risk is vastly higher than those of huge corporations.

Due to technologies such as mobile devices that can span numerous operating systems, criminals now have even more ways to infiltrate in-house networks to steal your information.

Even though it may sound daunting, small businesses can administer safeguards and procedures that can maximize fraud detection. Consider the following low-cost strategies that can lessen the possibility of fraud for your small business.

-When hiring new employees, be thorough. Call all former employers and always conduct a background check. This can help you to single out potential candidates that may have a criminal background.
-Make sure to implement a standard code of conduct and share it with all of your employees. Make sure that they are aware of any repercussions for not following appropriate protocols.
-Keep close track of all of your bank statements. Be aware of how much is coming in and going out at all times. Being detail-oriented and watching out for inconsistencies is crucial when it comes to taking control of your finances.
-Use firewalls and anti-malware software. Protect your network by using unique passwords that have random upper and lower case letters and numbers.

Sadly, no business is free of the threat of fraudulent behavior. Being diligent when it comes to identifying your risk factors can greatly diminish the chance of being a victim. If you would like more information on fraud prevention, please contact us.

There have been a few famous cyber security breaches regarding financial data in the past year. Here is our next example of one that involved a financial security breach at a large department store.

Hackers broke into the credit card payment system of the department store early last year. The company’s security system apparently issued alerts sixty thousand times but even so, the hackers were able to move around inside the system for more than half a year, all while continually causing alerts every day they were there.

The problem, in this instance, was that the number of alerts that occurred in the system per day was so high that those that corresponded to the actual break-in were only a tiny percentage of the total according to employees at the company. According to some estimates, as many as three hundred and fifty thousand credit cards were exposed during the attack, and some nine thousand have been used by fraudsters since then.

According to some security experts, the main problem was that the point of sales network for the company had all of the registers connected to a central computer. Because of this centralized system, it was easy for hackers to continually add their software back onto registers every day.

The breach could have been prevented had the company more closely monitored the connections between the registers and the central computing system. Every section of the process has to be monitored and secured or a breach at any point could circumvent point of sale security, which is exactly what happened in this case.

For more information about keeping financial transactions secure against hackers, please contact us.