As a business owner, you rely on credit card processing to generate revenue and satisfy customers. What happens, however, if the system fails and you experience an unexpected credit card processing outage?
This article will look at the various causes of credit card processing outages, how they affect your business, and how you can deal with and avoid them. We’ll go over the most frequent causes of credit card processing outages, how to handle them, and what you can do to prevent them.
What Is a Credit Card Processing Outage?
Credit card processing is the system that allows funds to be transferred from a customer’s account to a merchant’s account by transmitting credit card information.
Typically, this system runs smoothly and allows merchants to process customer orders without issue. However, there may be times when the credit card processing system fails, and merchants cannot make sales.
The cause of such outages is frequently unknown, necessitating immediate action to resolve the problem. To provide a consistent customer experience, merchants must address any issues with their credit card processing system as soon as possible.
What Impact do Credit Card Processing Outages have on your business?
Credit card processing outages can sometimes be highly inconvenient for merchants. Not only can it result in a loss of sales, but it can also undermine customer trust in your company. If customers try to buy something from your physical store, online store, or both, and the transaction fails, they may take their business elsewhere. It is especially damaging if the customer is a one-time customer who is unlikely to return.
When payment processing systems fail, business owners are frequently forced to accept cash only. This can be a significant issue today, where money is becoming increasingly scarce, particularly since the pandemic outbreak. In 2020, Canadians spent $569 billion on credit cards, while cash purchases totaled only $72 billion.
The consequences of a credit card processing outage can differ depending on the type of business you run. If you own a restaurant, for example, and an outage occurs during peak hours, it can result in a significant backlog of customers waiting to pay. Most of them might not have money to complete their transactions, further complicating the situation.
While you may be able to resolve the problem quickly, you don’t want to deal with it on a busy night. If the outage is uncontrollable, such as a power outage, it can be a real test for any business.
Reasons Credit Card Issues Might Occur
These outages can occur for various reasons, including issues with internet connectivity, power outages, hardware malfunctioning, and payment software problems. Let’s look at The most common reasons for credit card processing outages and what you can do to avoid them affecting your business.
Problems with Internet Connectivity
Internet connectivity issues are the most common causes of credit card processing outages. Your ability to process credit card transactions also fails when the internet fails. This could be due to a local blackout or a more prominent issue affecting the entire region.
A reliable internet connection and a backup plan are critical to avoid internet-related outages. In some cases, restarting your router and notifying your internet service provider or payment processor can help solve the issue.
Outages of Power
Credit card processing can be hampered by power outages caused by inclement weather, grid issues, or human error. When the power goes out, your internet connection and credit card processing systems may be affected, making transaction processing difficult.
Unfortunately, credit card processing outages are almost always unavoidable during a power outage. To lessen the impact on your business, it’s a good idea to have a backup power source, such as a generator, to ensure that operations can continue even if the power goes out.
Malfunctioning Hardware
Credit card processing hardware, like POS systems and card readers, can also fail and cause processing outages. This can be caused by faulty components, hardware that is out of sync with your software, worn or damaged card swipe readers, and other difficulties. It’s crucial to maintain and upgrade your payment processing equipment regularly and purchase hardware directly from your payment processor or even a dependable partner to prevent hardware-related outages.
Payment Software Issues
Payment software glitches or service interruptions can also cause credit card processing outages. Technical errors, outdated technology, or problems with your credit card processor can cause service outages and processing issues. To avoid software-related outages, You should use dependable payment processing software and stay current on technology.
Human Error
human error can be a cause of credit card processing outages. This can involve incorrect configuration of the payment system, failure to follow proper procedures, accidental damage to the equipment, or other actions that may disrupt the normal functioning of the payment processing system. Businesses need to train their employees on the proper handling and use of payment processing equipment to reduce the risk of human error-related outages.
How to Handle Credit Card Processing
Keep in Touch with Your Processor
Contacting your credit card processor’s customer support in case of a potential outage is the first thing to do. It will give you a clue as to whether the problem affecting your business is local or widespread. To help you get back up and process payments as soon as possible, your processor’s support team should be well-equipped to handle such situations and give you the necessary instructions and troubleshooting advice.
Inform and reassure your clients
Staying ahead and keeping your customers informed when an outage occurs is crucial. Inform them that the problem is only temporary and that every effort is being made to return all functionality. To communicate with your customers, consider using social media, announcements over loudspeakers, or door signs. You could reward their patience with a one-day discount or a promotional item to entice them to return.
Alternative Methods of Purchase
Depending on the type of outage, you might think about giving your customers alternative purchasing options. For instance, you might think about providing a mobile payment processing option using cell phone apps if conventional payment methods are not working. This could enable you to continue operating your business even in challenging circumstances because cellular data is frequently still usable during power outages or Wi-Fi disruptions.
How to Prevent Card Processing Outages
Offline Terminals
Use offline terminals compliant with the Payment Card Industry Data Security Standard (PCI DSS). Even when there is no connection to the leading network, these terminals can securely store archive card information.
Businesses can continue processing payments without fear of losing sensitive customer information using these offline terminals. When the connection is restored, the previously stored card information is transmitted, completing the transaction without interfering with the customer’s experience. This feature is a valuable tool for businesses, especially during network outages, because it reduces the impact on operations and helps to maintain customer trust.
Get a Backup Generator
Purchasing a backup generator for power outages is a smart move for businesses of all sizes. Access to a generator during one widespread power outage distinguishes your company from competitors and ensures that you can continue operating even in inclement weather.
When purchasing a generator, it is critical to do your research to find the best option for your specific business needs. With many commercial generators on the market, you need to consider factors such as the size of your business, the amount of power required, and your budget.
By taking the time to research and purchase a backup generator, you can ensure that your business is prepared for any unexpected power outages and that operations can continue to run smoothly even in adverse weather conditions.
Weak Internet Connections Tools
It can be challenging to deal with a shaky internet connection, especially for companies that depend on card readers to process payments. If the dreaded “system offline” message appears on your card reader repeatedly, your internet connection may be too slow to support the hardware you’re using.
Fortunately, there are resources available that were created especially for locations with patchy or slow internet access. If you experience this problem, you might consider switching to a more affordable and dependable card reader with a 3G or EDGE connection speed.
Even though these devices might not have all the cutting-edge features of their more expensive competitors, they can offer a dependable solution for companies located in regions with poor internet connections. You can ensure that your company can continue processing transactions even in locations with limited internet access by choosing a more affordable card reader.
Conclusion
The longevity of your business depends on your ability to prepare for unforeseen circumstances. You could lose money if your credit card processing goes offline due to a power outage or hardware malfunction, you could lose money. It’s a good idea to invest in backup processing technology, or to provide your customers with easy access to alternative payment methods, to avoid this from happening.
By consulting with an experienced credit card processor, you can make sure that your company is prepared to handle any potential disruptions. Remember that being proactive can mean the difference between a minor setback and a significant one.
