Most consumers hate getting phone calls from a persistent debt collector. Being employed as that persistent debt collector can be even more difficult. You are likely to get yelled at every day, have the majority of your phone calls ignored, and have people provide you with false credit card information. The internet has made payment processing a possibility over the phone, which is great in a debt collector situation, but it can also be a liability to the company.
Most companies do not have the ability to run the card transaction immediately, instead storing the information. When a batch of the card not present transactions is run, it is likely that a high percentage of them will be declined. They may be declined because of incorrect card information given, or because the person?s banking institution does not recognize the debt collector.
Either way, a card not present dispute can result in charges and unpaid fees to the debt collector. When the credit card company kicks back the charge, the funds are never transferred to the company. They may also receive a fine for attempting to run an invalid credit card transaction. The credit card payment system is not set up for multiple invalid credit card numbers to be processed.
This chargeback process is in place to prevent fraud and security losses. In 2014, there were $16.31 billion worldwide fraud losses from payment card fraud. In the USA alone, card fraud costs more than $8 billion annually. However, the advanced security methods can make it difficult for a company to actually run and profit, especially one that relies on credit card payments and card not present transactions via a mobile or internet method.
A solution to this problem is utilizing the services of a third party credit card processing company. Larger, outsourced processing companies often have the ability to process card not present transactions immediately, allowing the company to run the information, while the customer is still on the line. This can reduce the amount of wrongful information given and can give the customer a chance to correct the chargeback with their banking institution or credit card company. Many third party processing companies also offer chargeback protection, both for the protection of the customer and the consumer.
If a customer?s information is wrongly charged, the third party processing company will mediate the situation. If the company receive a credit card chargeback and receives a fine for it, they will also be covered. Sometimes the additional charges will be passed onto the customer, sometimes the third party will cover them entirely. This can be a very beneficial solution for card not present transactions.
Data breaches totaled 1,540 worldwide in 2014, up 46% from the year before, and led to the compromise of more than one billion data records. As the usage of the internet increases, so will data security and protection methods. Although this can help to bring down the number of security breaches, it can also make it harder for people to purchase and pay items without their credit card present. Currently, the third party payment processing systems are solving that gap of service.
Internet security is a concern in our country. We rely so much on the internet and its storage of our confidential information. Yet, online shopping and payment sources require us to provide our information, without ever handing our credit card over. This allows wrongful users to get access to credit cards and other secure data. Some online companies may find it difficult to process online payments, while also protecting their company and their customers. Third party payment processing companies provide protection and the ability to run a successful online business.