Small businesses can streamline their sales and increase their consumer base by accepting Credit card payments online. It is essential, however, to protect your company and its clients from the many internet frauds and threats that are currently active.

We'll dive into what entrepreneurs need to know about accepting credit card payments online and what they should expect from a reputable credit card processing service.

Tips for Accepting Online Card-Not-Present Payments

The security of card-not-present transactions, such as those made online or over the phone, is worse than that of card-present transactions. The following are five suggestions for lowering the dangers of such deals.

1. Verify Billing Addresses

Want to verify the identity of the true account holder before allowing them to make an online purchase? Asking the account holder to confirm their billing address is a quick and easy approach to make sure.

According to Joe Palko, an e-commerce expert with Your Store Wizards, "for mail order or telephone order card-not-present transactions, always employ address verification or [the] Address Verification Service."

Because those who attempt to commit payment fraud with stolen credit cards often don't know the billing address, the AVS fraud prevention system is an ideal approach to guarantee the online purchaser or the person on the phone is the cardholder.

2. Confirm That the Shipping and Billing Address Match

Make sure the billing and shipping addresses match up if you sell products and accept credit card payments online or over the phone.

Palko emphasized the importance of inspecting the shipping address before sending out orders for card-not-present transactions. Shipping to a different location from the one listed on the billing statement is a common tactic used by fraudsters.

Palko also recommended paying extra attention to shipping addresses in major cities with international shipping ports.

"Keep an eye out for addresses in Miami or Los Angeles," he said. These are important seaports from which shipping consolidators will send goods around the world.

3. Research Your Credit Card Processor’s PCI Compliance

Small business owners taking online payments sometimes struggle to understand PCI compliance, a set of credit card processing security regulations.

The Payment Card Industry Data Security Standard (PCI DSS) is an international initiative to safeguard online payments. It states that you must keep your customers' credit information safe even if they aren't physically present. Credit card processing is an integral part of every business, but just because a digital service provider accepts payments doesn't guarantee they are PCI compliant.

You are responsible for any credit card processing data breaches that may occur. You can't claim ignorance and argue you didn't realize your supplier wasn't following the rules. Therefore, it is essential for small businesses to make sure their credit card processor satisfies all current PCI criteria for credit card transactions.

Neuro-senior ID's VP of marketing, Don Bush, has indicated that while most service providers do offer some measure of security, it is ultimately up to the business owner to do their due diligence and verify that the payment service provider in question has at least satisfied the PCI requirements.

Is there a plan B if they fall short of expectations?

To alter one's service providers, Bush recommended.

4. Take Security Precautions with Your E-Commerce Website

Cybersecurity is crucial for online retailers since their success is tied to their customers' perception of site reliability and safety.

Get an SSL certificate for your online store, which verifies your site's identity and enables secure communications. To protect your network, you should take all necessary precautions. Firewalls and other intrusion detection systems, along with regular platform updates, are essential to keeping your data secure.

5. Train Your Staff to Watch for Signs of Fraud

If you want your team to be able to spot symptoms of fraud and act quickly, you need to provide everyone with the knowledge and resources they need. When all employees are well-versed in safe payment procedures, they will be better able to detect and stop fraudulent conduct as it is happening.

Potential Consequences of Not Following PCI Dss Guidelines

You may reach a far larger audience by accepting credit card payments online, but there is a risk of a data breach, decreased sales, or even suspension of your company's ability to accept credit card payments if you're not careful.

Noncompliance with PCI DSS requirements may result in the following outcomes:

1. The Retailer Is Fully Liable for Fraudulent Online Purchases

Your familiarity with PCI compliance rules, which regulate merchant credit card and debit card activities, may have grown as you have begun accepting credit card payments at your business or office. However, there's a major distinction between accepting cards in person and doing so for online sales.

Bush said, "With transactions are done online, the store is fully accountable for fraudulent purchases." "Neither the approving financial institution nor the payment service provider bears any responsibility for fraudulent purchases. All of it is on the store owner. In other words, you are responsible for the full amount of any losses incurred if your business accepts a fraudulent or stolen credit or debit card.

2. Retailers Face Fines and Could Lose Credit Card Acceptance Privileges

What are the potential consequences for a company that does not adhere to PCI DSS standards while handling credit card transactions over the phone or online? Bush warned that it was possible to lose more than the proceeds from a sale or payment. In addition to the fees that banks charge for failed checks, your company could forfeit any shipping costs that have already been committed.

Bush cautioned, "If you get too many of them, you could lose the ability to take credit or debit cards online. You might as well just shut down your virtual shop now," he said.

Choose Your Credit Card Processor Wisely

The top credit card processors will serve your company by meeting all PCI standards, processing payments quickly, charging fair rates, and providing helpful and responsive customer care. As an added bonus, they make both in-store and online shopping easier. Some of our top recommendations include:

• For established small businesses, we recommend Helcim as the best credit card processor because of its upfront pricing and lifetime rate lock guarantee. Read our comprehensive Helcim review to find out.
• We recommend Square as the best credit card processor for startups and developing enterprises due to its scalability and modular design. If you want to know more about Square, check out our review.
• We recommend Clover as the best credit card processor for startups because of their low prices, no long-term commitments, and high-quality point-of-sale (POS) software and hardware. For additional information, check out our comprehensive review of Clover.

Be Smart When Accepting Online Payments 

As a result of the internet, companies can reach out to a wider audience of potential customers. Card-not-present transactions, however, can raise the possibility of fraud and its consequences. For your company's safety, it's important to work with a reliable payment processor and take all necessary precautions to verify the buyer's identity before processing the transaction.