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 Getting Started |
The
reality of life is many customers expect to make
their purchases with a credit card. You have an
obligation to provide your customers with safe
and secure credit card processing. However,
fraudulent people are abusing websites with
stolen credit cards, or identity theft credit
cards, fake credit cards, etc.
There is more risk in dealing with smaller companies to process your credit card transactions. It is strongly advisable to use a reputable firm to process your credit cards, such as a leading bank. Rates vary greatly, shop around.
In preparing this article, we found rate variations of over one to two percent between well established national banks over smaller companies offering similar services. For example, Chase Manhattan and their alliance with the largest Merchant Processing company exceeding our expectations. Their rates were nearly two percent lower than the smaller companies, yet were able to deliver funds in one third of the time.
It should be an obvious decision for you. Consider using well established national bank vs smaller company that may only have a few years of business behind them; and faster delivery of processed funds.
Examine each company, and ask specific questions. The smaller companies will tend to use such terms as "should", ie. "that should not be a problem", or "you should not experience that, its unlikely to happen". This term negates their assurances of a safe and worry-free process.
We recommend taking extra steps to protect yourself from fraudulent sales. For example, typically you would not see the Internet purchaser with the actual credit card when they place their order. We recommend that you have them fax a photocopy (front and back) of their credit card, together with a "signed" Order Form acknowledging the terms and conditions of sale. This will show you that they are in possession of the credit card.
This is most important, as it will reduce your risk greatly. All transactions have Recourse, meaning the card holder can challenge the charge. However, taking extra steps will reduce this 'recourse' to a reasonable risk, as you now have hardcopy documents -vs- a blind sale. Another recommendation is only ship to billing address of credit card holder. This will reduce your risk further.
Your companies future and reputation is at stake. Select a company to process your credit card transactions wisely. Interesting links: http://www.zdnet.com/pcweek/stories/news/0,4153,2405184,00.html
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