The Life-Cycle Of An Electronic Payment

by Axis Payments

What happens after you “swipe,” “tap” or “provide” your credit card for the purchase of products or services? Who actually sees your financial information? What can you do if your credit card is declined?

Credit Card Payment Characteristics

The credit card industry divides payments into whether the physical card is “present” or “absent.” Sliding and tapping are card “present” transactions and online purchases are card “absent” transactions. When you provide your credit card information, the vendor sends the data to a credit card processing company.

What Do Credit Card Issuing Banks Check?

Your data is sent via these networks to the credit card issuing bank to verify that the account number and PIN are correct. Also, the bank will check to see if the owner had reported the card stolen. This is the “authentication” step to check if your credit card is real.

When this is verified, then the credit card issuing bank will “authorize” the transaction. If there are any problems, then the bank will reject the card. Your merchant is initially only told that the credit card was rejected.

What Do Merchants See?

Usually, the merchant does not see a whole lot if you swipe your credit card. For an online transaction, his website will record your account number and PIN. For the online payment process, when the card is “absent,” the customer has no other recourse after rejection.

If you have your credit card with you during the “face-to-face” transaction, then the vendor can look at the actual card or request you to provide extra verification. This is when you might be asked for the numbers on the back of your card. This is a “fail-safe” security check when the card is “present.” Vendors also might ask for your address.

Each month, the merchant will receive a summary of all credit card transactions, including those which failed. The credit card processing firm is more likely to discuss why the transaction was rejected in greater detail on this monthly statement.

“To Err is Human”

While we are all doing our best to make sure that the life-cycle of an electronic payment flows smoothly and accurately, all humans are prone to make mistakes. If your credit card has been turned down, then contact your credit card issuing bank. Perhaps, you just moved or your account information was confused with someone else.

Most electronic payments only take seconds to complete. We want the entire process to be fast, efficient and accurate, so you can enjoy your life.

 Copyright 2016  Axis Payments

What To Look For In A New Payment Processor

looking forby Axis Payments

Whether you have been in business for some time now and are already accepting electronic payments or you’re just about to begin, the question always comes up; what should you look for in a payment processor?

In no particular order, the list below might come in handy.

24/7/365 Live Customer Support
Depending on your business, you actually might need assistance in the middle of the night sometime, or, perhaps you’re open on Christmas Day. What happens if you run into a problem? It’s always great to find a processor that supports your business hours so you know you can count on them when you need to.

Competitive Rates
Money matters, right? Your rates and fees will largely depend on the type of business you run and the processing volume you do each month. That said, it’s important to read all of the fine print and make sure you’re getting a good deal.

Choose An Established Provider
This might sound like common sense, but it’s always prudent to go with a processor that has been in business for awhile and has a good reputation. Every industry has the shady “fly-by-night” shops that appear then suddenly disappear. You don’t want to entrust building your business to companies like these.

EMV Compliance Across The Board
The EMV liability shift has come and gone and while no reputable processor should offer you equipment that lacks this capability, be warned…some still will!

NFC Capable
Services like Apple Pay, Samsung Pay and Android Pay that use near-field communication are becoming increasingly popular. As you weigh your point-of-sale equipment options, make sure to consider this growing segment.

Mobile & Online Processing Capability
Do you ever need to process away from your brick and mortar location? Do you have a storefront online? These are things to consider as you’re evaluating processors. Ask about the solutions they provide and make sure they can accommodate your needs without breaking the budget.

Next Day Funding
Many merchants depend on getting their deposits quickly for a multitude of reasons. Processors tend to have different requirements and capabilities in this regard. If you do heavy weekend processing, for example, it’ll be worth discussing with you new potential processor.

Equipment Warranty
Today’s point-of-sale terminals are high-tech and can get quite pricey. Explore your options about equipment warranties just in case your customer decides to spill that cup of coffee right on your shiny new keypad.

So, take these points into consideration as you navigate your way through the competitive landscape that is the electronic payments industry. There are a lot of providers out there. Some do certain things very well, but might not offer the complete solution you need. The main thing is that you know what you need and what you’re getting yourself into when you choose a provider.

Copyright 2016  Axis Payments