Providing services for online payment acceptance is a serious and responsible business. And it should be treated accordingly.
No matter what business model you choose, you are always financially liable to your acquiring partners for merchants transactions processed by your payment company.
1. Know your client (KYC)
Unfortunately, it is not only legitimate businesses that seek to accept payments over the Internet; cybercriminals do it too. And your task is to prevent them from connecting to your services. To do this, you should develop and strictly observe screening procedures for the potential merchant and monitor his subsequent transactional activity. The recommendations and corresponding requirements that you receive from your acquiring bank and other acquiring partners will prove quite helpful.
2. Service of merchant and buyer timely support
Ensure effective customer support service both for your merchants and their customers. Not all online sellers respond quickly to complaints from their customers. If you provide the Internet-buyer with the opportunity to address his problem directly to your payment company, you will be able to resolve conflict situations which may end up as a chargeback, and at the same time track how your merchant works. Buyers usually call if:
1. The payment fails. There are various reasons: The issuing bank bans payments via the Internet and the buyer will have to contact the bank; the buyer has not passed the verifications for 3D-Secure, etc.
2. The merchant said to have made a refund to the bank card, but the buyer has not received the money. Here it is necessary to explain to the buyer that the money is not credited to the card on the day of refund.
3. Contracts and provisions of rendering services
Remember the importance of proper legalization of relationships both with your acquiring partners and with your merchants. Detailed contracts and provisions of rendering services with clearly stated duties and responsibilities of the parties help resolve many controversial situations. No one likes to deal with legal documents but in the payment business, it is much better and easier to have them than to do without them.
Part 2. How to start a payment processing company. What is the best business model?
Part 1. How to start a payment processing company. What means of payment to work with (integrate).
