What you Need to Know about EMV

What’s the difference between a Chip Card and a Magnetic Stripe Card?

You probably know that chip cards offer much better fraud protection and help prevent chargebacks than the (now) antiquated magnetic stripe cards, but what are the specific differences between the two? And how does that affect the decisions your business should make? These are important questions to have answers to when designing your payment processing solutions model, and knowing the differences will help you make better business decisions. Let’s dig in. — What is a magnetic stripe card? Magnetic stripe cards are just classic credit cards (also known as swipe cards), the ones we’re all familiar with. The actual stripe is on the backside of the card, and it uses modified iron-based magnetic particles to communicate data between the strip and the receiving credit card terminal. Magnetic stripe cards simply serve as static storage devices to be read by the terminal. The terminal then performs a card swipe, PIN encryption,…

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Savings

7 Ways to Reduce Chargebacks and Save Your Company Money

If you are a business owner, you know the great annoyance that can come from chargebacks. Maybe a customer claims to not have received a product or they say there is a problem with the product and a chargback is issued. Chargebacks can also happen due to actual cases of fraud in which someone’s card information has been stolen. Many business owners believe that chargebacks are just an unavoidable part of running a company and so they have come to accept it as a necessary evil. In fact 47% of merchants have come to accept fraud, believing there is nothing that can be done about it and 20% think it is too expensive to control. The truth is though that chargebacks can be incredibly costly to you with an average of $15,162 in expenses per month. Actions can be taken to avoid chargebacks however and they can be reduced up…

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Dealing with chargebacks

Dealing With Chargebacks

Chargebacks occur inevitably as a part of running a business that accepts any payment. A chargeback is when a customer refutes a charge with the bank linked to the card used to purchase anything online or in store. Therefore, it is important to try to minimize your number of chargebacks as much as possible. There are several ways businesses can decrease the risk. Merchants should try to do everything possible to ensure that customer disputes do not reach the chargeback stage. Usually, before contacting the card issuer, customers will attempt to contact the merchant directly with the problem, and when this happens, merchants should be able to deal with the issue and try their best to resolve it. Ensure that you are including a good way for customers to contact you. This way there is no need for the customer to file a chargeback. Why Customers Issue Chargebacks Chargebacks are…

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