Why Businesses Need Secure Payment Services
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Why Businesses Need Secure Payment Services
Cash as a payment method has been slowly declining in Australia since 2007, Then the 2020 COVID-19 pandemic hit and the need for contactless payment was the final nail in the coffin for cash. Australian consumers fell in love with the speed, convenience, and reliability that online payment methods can offer. And though the pandemic has passed, they have maintained their preference for contactless payment methods such as card payments, direct debit, and digital wallets. But as the popularity of online payment methods and digital wallets grow, so does the need for businesses to have secure payment services in place to protect themselves and their customers.
But what is a secure payment service and why is it so important for businesses to have one?
What is a secure payment service
Secure payment services help businesses accept and manage secure online payments made by credit card, debit card, or direct debit. A secure payment service should handle the entire payment process from end-to-end from the moment the customer enters their payment details to the time when the business receives the payment.
Like Biz Core’s Microsoft Azure Security, a secure payment service should have strong built-in security specifically designed to protect the sensitive information of both customers and the business.
How online payment systems work
Alhough a secure online payment system makes the process look fast and easy, there are quite a number of factors involved.
Generally, the main entities involved in an online payment include:
- The customer – a customer will use their credit or debit card to purchase goods or services from your business.
- The merchant (you) – the person or business providing the product or service. As the merchant or business, you will also need a merchant account for customers to transfer funds into.
- The payment processor – communicates with the issuing bank via their card networks.
- The issuer – the financial institution or bank that issues the credit or debit card.
- The payment gateway – a virtual, cloud-based system that works similar to an in-person POS system and ensures payment information is encrypted and secure.
How does it work?
The online payment process usually follows these general steps:
Step 1: customer uses their payment card to purchase goods or services
Step 2: the payment information is sent through the payment gateway, encrypted and secure to the payment processor
Step 3: the payment processor communicates with the issuing bank to ensure the customer has sufficient funds to approve the payment
Step 4: the payment processor will communicate with the merchant as to whether the payment is approved or declined.
Step 5: The payment is settled and the funds are deposited into the merchants bank account, usually at the close of business that day.
What are secure payment methods
A secure payment means that both the businesses information and the customer’s information (such as their credit card number, credit card expiry date, and CVV) is encrypted during the payment process.
Typically, one of the safest methods of payment is credit cards. This is because most credit card issuers will routinely monitor credit cards for fraudulent transactions and suspicious activities. Credit card issuers will also often offer their customers zero fraud liability coverage, meaning customers are not responsible or liable for any fraudulent charges that may occur. When this routine monitoring and fraud cover is combined with a secure payment service, credit cards become one of the most secure payment methods available.
However, all payment methods come with their own risks and using a secure payment service can be a good way to ensure the sensitive information of both you and your customer is secure regardless of the payment method chosen.
Which online payment system is best
Each business will have its own unique needs and non-negotiables and it’s important to research every secure payment service carefully before making your decision.
However, there are some important features to look out for when doing your research.
When handling sensitive information, it’s vital your secure payment service has strong built-in security features that protect both you and your customers. The security should offer full encryption and protection against fraud.
Free trial or demonstration
Finding a secure payment service that offers a free trial or demonstration is important. This will help you determine if the product is right for your business before making any commitments.
Hidden fees can be a nasty surprise for any business, so make sure you choose a secure payment service that is upfront with their fees and charges.
Multiple payment methods
Customers like choice so having a variety of payment methods to choose from can help keep your customers happy and loyal.
Flexible payment schedules
Offering customers a number of payment options can be a great way to ensure your business is paid on time. Find a secure payment service that offers weekly, fortnightly, or monthly payment options.
Customer management tools
The best secure payment service should offer customer management tools that keep track of customer information, customer interactions and payments. This will take some of the admin stress out of running your business.
Secure more with Biz Core
Looking for a secure payment service but not sure where to start? Biz Core is here to help!
We offer a free live demonstration with our experts so you can be sure you’ve found the right fit for your business.
Contact Biz Core today for more information or to book your free live demonstration.
Loan management software FAQs
Why is sports membership payment software important?
Sports clubs have a range of fees and costs that need effective management. From day-to-day payments to competitions to club fees and membership, there are a lot of payment structures that need to be accounted for. A sports club payment system is built to meet these unique needs and make payment processing and collection simple.
Read more: Why is a Sports Payments System Important?
What fees can be charged on a credit card account?
Credit card issuers may charge various fees associated with credit card accounts. These fees can vary among different card issuers and may include the following:
Penalty fees, such as late payment fees and overlimit fees
Transaction fees, including foreign transaction fees and cash advance fees
Miscellaneous fees, such as balance fees and returned payments fees balance
However, fees can vary based on the card issuer, the type of credit card, and the terms of the card agreement. So it’s important to check with your card issuer to confirm what fees you may be charged.
Can I pay as credit with a debit card?
Yes, in many cases, you can use a debit card to make payments as if it were a credit card. Debit cards typically have a Visa or Mastercard logo, allowing them to be processed as credit cards in situations where credit card payments are accepted.
Whether using credit cards, debit cards, or direct debit, Biz Core makes payment processing for schools and their families easy. Contact us today for more information and a free live demo.
What is a processing fee?
A processing fee is a charge imposed by a financial institution, payment service provider, or merchant services provider for processing a transaction or providing payment-related services. This fee is applied to cover the costs associated with facilitating the transaction and maintaining the infrastructure required for payment processing. The processing fee amount can vary based on several factors, including the type of transaction, payment method, provider policies, and the nature of the service offered.
Who initiates a direct debit payment?
A business will initiate a direct debit payment. However, this will only occur once the business has obtained a signed direct debit authority form from the customer.
Biz Core makes setting up a direct debit easy for both your business and your customer. Contact us today for more information and a free live demo!