Preventing Online Fraud

Written by Robert Levings


Continued from page 1

Storage-Based Methods

Oncerepparttar order information reachesrepparttar 108922 payment gateway, it must be securely stored in order to reducerepparttar 108923 risk of “hackers” gaining access to confidential information viarepparttar 108924 Internet.

When securing credit card information, most payment gateways encrypt (secure)repparttar 108925 entire database. The problem with this approach is that, ifrepparttar 108926 database is compromised, a hacker can gain access to potentially thousands of credit card numbers for fraudulent use. With EasyPay123, each transaction is individually encrypted using patent-pending security technology. Even inrepparttar 108927 unlikely event that one transaction is compromised, all other transactions remain secured. In addition, when using EasyPay123, credit card numbers are stored only onrepparttar 108928 EasyPay123 system as opposed to being inrepparttar 108929 merchant’s database where security measures may be more difficult to implement. As an additional security method, onlyrepparttar 108930 last five digits of a credit card number are viewable through EasyPay123’s Reporting Tool, Merchant Services or email and response notifications.

EasyPay123 also enforces a rigorous password policy in order to restrict access to sensitive data only to authorized individuals. Passwords are changed on a regular basis to further enhance password protection. It is important that you choose a password that will not be easy to guess and keep it in a safe place to eliminaterepparttar 108931 risk of others gaining access to your data.

Using Sound Business Practices

Although there are many technological tools available inrepparttar 108932 fight against fraud, one ofrepparttar 108933 best tools available is good business discipline and judgment.

A number of good business practices can help reduce fraud:

(1) Spend time validating each order, particularly ones whererepparttar 108934 shipping and billing addresses are different or whererepparttar 108935 email address is from one ofrepparttar 108936 free email services (2) Ask for complete information atrepparttar 108937 timerepparttar 108938 order is made (3) Be extra careful of overseas shipments (4) Don’t ship to PO boxes (insist on a physical address) (5) If you’re unsure of anything, callrepparttar 108939 customer directly

Summary

No single method of fraud prevention is foolproof. The key to fraud prevention is to leverage appropriate technology and apply sound business judgment to all transactions. If you have any questions aboutrepparttar 108940 process, please call us at EastPay123 toll-free at 866-438-8767.

About EasyPay123

EasyPay123 is a leading supplier of payment processing solutions to businesses across North America. Offering world-class solutions at affordable prices, EasyPay123 helps merchants simplifyrepparttar 108941 process of acquiring, launching and using payment applications to improverepparttar 108942 way they do business. Visit us at www.EasyPay123.com.

For a description of some ofrepparttar 108943 e-commerce terms used in this article, please visit our online glossary at www.EasyPay123.com.

If you found this article helpful, you may wish to request one or more ofrepparttar 108944 other articles inrepparttar 108945 EasyPay123 series by visiting our website. Articles in this series include:

Understanding E-commerce Transactions How Transactions are Processed Getting Merchant Accounts How to Design and Build Payment Applications How to Choose a Payment Gateway How to Pick a Shopping Cart Preventing Online Fraud Gaining Visibility for Your Website Understanding Wireless Payments

© 2003 EasyPay123 All Rights Reserved. This article may not be copied, reprinted, published, translated, hosted, or otherwise distributed by any means without explicit written permission from EasyPay123.



Robert Levings is President of EasyPay123, a leading provider of online payment solutions to merchants across North America.


Understanding Online Payments

Written by Robert Levings


Continued from page 1

A virtual point of sale application (VPOS) is a replacement for traditional hardware-based POS terminals that you may be familiar with at restaurants, bars and other places where credit cards are accepted. The application is either installed on your PC, or is accessed through a secure web connection (much like an online order form). VPOS lets you authorize, settle, credit and delete transactions, and may perform other functions such as reporting.

VPOS is used by businesses that want to process payments that arrive by phone, fax or email, such as call centres and mail order businesses.

Wireless ___________

Useful When …You are processing payments in remote locations (e.g. pizza delivery, flea markets, etc.) Make Sure That … Your data transmission is secure. The wireless connection should be digital to protect data. ___________

Many wireless devices are emerging now to satisfyrepparttar needs of mobile workers. Digital cell phones, Personal Digital Assistants (PDA’s, such as Palm Pilots) and specialized hardware can now be used as mobile payment devices. With a “WAP-enabled” cell phone or browser-based PDA, you can enterrepparttar 108921 basic information required to process a transaction.

Wireless payment processing is useful in situations where traditional or PC-based point of sale devices cannot be used.

Swipe Card ___________

Useful When …The customer is present and when you need to giverepparttar 108922 customer a signed receipt for their payment Make Sure That … Your merchant account is configured to take advantage ofrepparttar 108923 lower discount rate (i.e. credit card fee) ___________

Swipe card applications are ones whererepparttar 108924 credit card can be “swiped” through a card reader, andrepparttar 108925 customer can signrepparttar 108926 receipt. The swipe device can typically be connected to a PC, or specialized devices are available for use (such as traditional POS terminals).

The merchant account fees for swiped (“card present”) transactions are lower than “card not present” transactions.

2. Get a merchant account

A merchant account gives merchantsrepparttar 108927 right to accept credit cards for payment. A merchant account is required for each credit card you wish to accept. This step can berepparttar 108928 most time-consuming and frustrating for merchants, and it will also berepparttar 108929 component that most influences your costs of doing business online. Researching your merchant account options, understandingrepparttar 108930 merchant account process, knowing how merchant account providers assess merchants, and “shopping around”, will pay off dramatically.

Merchant accounts have several fees associated with them, including a set-up fee ($200-$500), monthly statement fees ($5-$10), a monthly minimum fee ($20-$30) and a discount rate. The discount rate is a percentage of your sales revenue thatrepparttar 108931 banks levy, and it varies by how “risky” your business is perceived to be (many factors enter into this, such as your credit history,repparttar 108932 type of products you sell, your sales volume, average order size, etc.).

When enquiring about merchant accounts, start with your bank first. Then shop around. Fees vary significantly from institution to institution. In fact, they sometimes vary within an institution, depending uponrepparttar 108933 merchant account representative you speak with. Depending upon your sales volume, shopping around can save you a lot of money over time.

If you wish, EasyPay123 has relationships with several merchant account providers, some of which have online applications that are available online on EasyPay123’s website. We’d also be happy to advise as you work throughrepparttar 108934 process of obtaining a merchant account.

For more information, see EasyPay123’s article entitled “Getting a Merchant Account” available by sending us a request through our online contact form at www.easypay123.com.

3. Select a payment gateway

The payment gateway isrepparttar 108935 service that connects your payment interface torepparttar 108936 financial network. Gateways takerepparttar 108937 payment information fromrepparttar 108938 application, ensure thatrepparttar 108939 data is valid, format it appropriately, and send it on torepparttar 108940 financial network for authorization, settlement, etc. Gateways typically also offer advanced features such as reporting and transaction management.

When you select a gateway, make sure that they can connect to your interface of choice (some gateways may also offer their own payment applications that you can take advantage of). Also make sure that they can connect to your merchant bank (so that funds can be deposited to your account). Finally, determine what other features you are looking for in a payment gateway, such as recurring payments, ability to process in multiple currencies, email notification of orders, fraud screening, etc. Shop around and ask lots of questions. Once you connect to a specific gateway, switching can be expensive and time consuming.

4. Payment-enable your application

Once your gateway has been selected, someone needs to connect it to your payment interface and customize it to meet your needs (if it is customizable). This is typicallyrepparttar 108941 job of your developer. Make sure thatrepparttar 108942 developer has done this kind of work before, and will be around if you need changes inrepparttar 108943 future. Be explicit about your requirements and document them so that they are unambiguous.

5. Test and Launch

Since it’s your money that is being processed, be meticulous about testingrepparttar 108944 application. Use a real credit card (for each credit card type your are accepting) and process a small transaction (e.g. $1.00) to make sure thatrepparttar 108945 payment is authorized properly and that it settles to your bank account. Once you launch, problems are difficult to fix without affecting your customers.

Summary

Offering convenient payment options to your customers is a good way to secure their loyalty and reduce your operational costs. A variety of payment methods are available, and various interfaces can be used depending uponrepparttar 108946 needs of your customers and your business. When evaluating payment processing options start with your customers’ needs and document all ofrepparttar 108947 features that you wish to have in your payment solution. Takerepparttar 108948 time to shop around, and make sure thatrepparttar 108949 service providers that you choose are ones that you will be happy with inrepparttar 108950 long run.

About EasyPay123

EasyPay123 is a leading supplier of payment processing solutions to businesses across North America. Offering world-class solutions at affordable prices, EasyPay123 helps merchants simplifyrepparttar 108951 process of acquiring, launching and using payment applications to improverepparttar 108952 way they do business. Visit us at www.EasyPay123.com.

For a description of some ofrepparttar 108953 e-commerce terms used in this article, please visit our online glossary at www.EasyPay123.com.

© 2003 EasyPay123 All Rights Reserved. This article may not be copied, reprinted, published, translated, hosted, or otherwise distributed by any means without explicit written permission from EasyPay123.

Robert Levings is President of EasyPay123, a leading provider of online payment solutions to companies across North America.


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