5 Serious Mistakes Business Owners Make With Their Credit Card Processor

Posted on Nov 18 2017 - 11:20am by admin

Have you ever felt frustrated when your credit card processor rejects a valid card and you lose a potential sale? The fact is that many businesses don’t use their credit card processors as they should. Here are 5 common mistakes businesses make when using a credit card machine.

Credit Card Processor

  1. Not Swiping the Card all the Way Through

The first and most common mistake is to prefer keyed transactions over swiping the card for each transactions. To many frontline staff, keying in data is more convenient than swiping it through the machine. But the fact is that swiping is more reliable since it reduces the possibility of data entry errors due to pressing the wrong key or transposition. When swiping a card through the reader, remember to swipe it all the way through for maximum accuracy in recording the transaction. Even though this approach takes longer, it is worth the effort in the long run.

  1. Not Getting All the Necessary Information

This is a mistake frequently made by small businesses that do not have a swiping facility. In these situations, they ask the customer for credit card details, including the card number, date and code. Unfortunately, this is not all the information you need for a secure transaction. An effective merchant account solution to this problem is to seek out additional details such as the zip code of the customer and the billing address. When making sales to a business or corporate client, there is additional information that you must gather, such as the tax number of the client and their registration number. The more information you have, the fewer your chances of suffering a loss

  1. Poor response to chargebacks

Many businesses suffer financially when they fail to respond to chargebacks in the right way. The most common reason for the ineffective response is that they haven’t collected the necessary information from their clients in the first place. Thus, when the bank demands a chargeback either due to a claim of fraud by the customer or for a complaint about product quality, the businesses usually do not have the information that can help them win the dispute. This information includes the signature of the customer and copies of emails exchanged with the customer.

  1. Not having standard procedures in place

This problems arises when small businesses leave it to the frontline employee to develop the credit card processing mechanism. Most of the time, the managers or owners are unaware of how the payments are processed at the Clover Station or other POS terminal. This creates problems when a staff member leaves and the one taking their place has no clue about using the credit card reader or entering details on the computer. The risk of costly errors increases greatly as a result.

  1. Not Having a Permanent Agent

Credit card payment systems have become more complex and differentiated over the years. Today, it is unwise to rely on a call centre employee to help you out when a credit card transaction becomes faulty or simply won’t process. Getting a permanent agent on board makes a world of a difference because these agents are much more informed than a customer service rep. They can help you navigate through complicated software and resolve technical problems with the system on the spot instead of having you wait for ages on the support line.