Monthly Archives: March 2014
Electronic Payments: The New Trend in Payment Collection
The first credit card issued in the United States was by Visa in 1958. Since then, credit card use has increased substantially, becoming one of the most popular payment methods. According to a study conducted in 2012, about 24 billion credit card transactions were processed for general use. (Ray, Daniel and Ghahremani). One of the newest purchasing trends in recent history is the method of electronic payment. With electronic payments, customers can shop wherever and whenever they want, all without having to leave their home.
E-Payments provide convenience and efficiency to consumers by allowing them to:
- Sign up for automatic bill pay, to eliminate the hassle of manually paying bills every month and avoid paying late fee penalties
- Schedule future payments and view their historical and outstanding invoices
- Save forms of payments in a secure eWallet for easy access during future transactions
Electronic payments have not only brought convenience to the consumer, but to the merchant as well. Merchants can enhance and secure their AR processes by integrating their invoices and orders back to their accounting system in real time. They also get real time authorization to assure that the credit card number is valid and that there are sufficient funds available.
Merchants also benefit substantially from ePayments by being able to:
- Encrypt or Tokenize credit card information for better security
- Enhance the efficiency and security of their collection process
- Save tremendous amounts of money by reducing paper, manual entry and mailing costs
- Provide their customers a secure way to make payments themselves
- Avoid the PCI hassle by reducing or eliminating customer’s credit card exposure
Although credit cards are a great resource for collecting payments, they can also be detrimental if not managed properly. If companies are accepting large amounts of credit cards but lack the resources to process them, they may end up hurting the efficiency of their business. In today’s highly competitive market place, companies can’t afford to be slowed down by manual data entry and human error. Integrated credit card processing solutions can speed up the process and prevent mistakes by reducing the need for employees to enter credit cards manually. When a customer buys a product online with a credit card, the credit card first goes through an authorization process, which validates the credit card number, expiration date, CVV number and the billing address. Then it goes through the settlement process for payment collection.
Along with managing the efficiency of processing credit cards, merchants should also take the necessary precautions to reduce security risks. The internet has made it even easier for thieves to steal personal information without ever coming in contact with the victim. A study in 2012 concluded that 39% of surveyed Americans said they were very concerned about online shopping and security (Ray, Daniel and Ghahremani). With high consumer concern as well as the problems that a security breach would create, merchants should put security on the top of their list. In order to do this, companies should be using solutions that are up to date on all PCI (Payment Card Industry) compliancy. To learn more about PCI, visit https://www.pcisecuritystandards.org/
For merchants, it’s important to choose a partner that has expertise in the ePayment industry. You want someone that can offer you a solution designed to leverage your Dynamics GP, while also having the capabilities to grow with your business and strengthen security. The experts at Nodus Technologies can help you understand not only the importance of being PCI Compliant, but also how Nodus’ certified solutions can help you achieve PCI Compliancy. For more information on how Nodus Technologies can help, please contact us at (909) 482-4701 or email email@example.com.
Ray, Daniel, and Yasmin Ghahremani. “Credit Card Statistics, Industry Facts, Debt Statistics .” CreditCards.com. N.p., 13 Jan 2014. Web. 3 Feb 2014. <http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php