Though E-Commerce is an important part of today’s world, it also comes with some risks. It is not unusual for something to go wrong in the area of payment processing. There are several red flags that indicate problems with credit card processing that everyone should be familiar with.
Providing merchant services is a process that should go smoothly, but doesn’t always. It can go wrong before anyone realizes what happened. One red flag to keep an eye out for is any hidden fees. There are two compelling reasons why hidden fees happen. One of them is a lack of understanding and clarity about pricing and the other one is deceptive salespersons. When reviewing statements search for anything that doesn’t seem right. Merchant services contracts should always be read in full before being entered into. It is best to avoid any contract which includes costs that seem unnecessary excessive.
Another red flag to be aware of with e-commerce payment processing is a lack of next-day funding. Any service that fails to offer this is passing a huge disadvantage to their clients. No next-day funding often leads to the efficiency and cash flow of any operation being affected in a negative way.
Reliable merchant services make it a point to answer any questions their clients pose to them. Questions which are asked but go unanswered are a red flag that simply cannot and should not be ignored. Business expenses can be quite costly and it never pays to be under-informed or misinformed.
Credit card processing can be adversely affected by those who don’t feel safe using a particular merchant. Security is a huge concern in today’s world and credit card processing is where this is most prevalent. If consumers don’t see any reassurance that the site they are using is secure they often come to distrust the site and may even choose to take their business somewhere else. This is evidenced by the fact that 29% of consumers in the United States won’t give their personal or financial information to any site that fails to display a trust mark.
These are the red flags to look out for when using e-commerce.