October 1, 2020

Payment Processing Best Practices: How to Mitigate Risk

AQ and Currency are collaborating on a series of blogs to combine our unique industry knowledge and experience. Read on for Part 1.

As we move to a more contactless world where a larger percentage of payments occur online, accepting credit cards can significantly increase your businesses sales. Accepting credit cards can seem tricky, especially in the B2B space where higher value transactions can add layers of additional risk.

There has been a significant rise in B2B payment volume, so we put together a 2-part series of best practices for mitigating risk and following proper data security measures when it comes to payment processing.

In part 1, we’ll cover best practices to ensure you are set up to mitigate chargebacks (specifically for those high value transactions). And in part 2 we’ll cover how you can protect cardholder data, increase customer confidence by building a trusted brand, and the basics of data security.

Before we get started let’s go over some frequently used terms with which you may not be familiar if you are new to accepting digital payments.

  • Chargebacks: When a cardholder either didn’t authorize a charge or has an issue with the item or service for which they are charged, and initiates a process with their card provider to dispute the payment transaction.
  • AQ Pay: A payment product developed by our partners CurrencyPay®, that turns invoices or equipment quotes into a point-of-sale opportunity, built specifically for the Foodservice Equipment & Supplies (FES) Industry.

Let’s get started.

Part 1: Ways to Mitigate Chargebacks

 

  1. Verify AVS & CVV: The best way to mitigate a chargeback is to take steps to prevent one. Always require the cardholder’s address (AVS) and Card Verification Value (CVV) for each charge to limit the potential risk of a fraudster using stolen credit card information for a purchase.  AQ Pay’s default settings include the requirements for AVS and CVV verification, so keeping these settings covers this step!
  2. Clear Sales Policies: There are a few common reasons for a chargeback besides fraud, and minimizing those will help to educate your customers, decrease disruption in your sales revenue, reduce costs, and keep you in good standing with your processor and the card brands.

To do so, you should:

  1. Clearly define your refund policy: A customer should always be able to easily understand their rights to a refund or a return.

TIP: By adding your refund and return policy to your Terms & Conditions inserted in the company footer area for all your quotes and invoices, you have clearly communicated your policy to your customer. This can be done very easily through AQ Pay:

  1. Card Not Present Transactions: For online purchases, include e your refund policy in the terms and conditions on your checkout page and in printable or savable (pdf) quotes and invoices. If you have a “no returns or refunds policy”, it's recommended to have your customers acknowledge that they've reviewed and agreed to the policy before finalizing the purchase.

TIP: Utilize AQ’s Quote Acceptance to electronically accept and sign, staying within the project details and allowing for quick access.

  1. Card Present Transactions: With a customer in store, it’s best to have your refund policy clearly displayed by check out, as well as on the sales receipt or invoice. If you have a “no returns or refunds policy” we recommend requiring customers to review and sign a receipt or invoice clearly informing them of the policy.
  1. Offer Good Customer Service: If a customer has questions or concerns about their purchase, it’s best to clearly disclose how the customer can contact your company’s customer service personnel. An email address, phone number, or a contact portal are commonly used and should be easily accessible. Avoiding inquiries or trying to prevent a refund only increases the likelihood of a customer initiating a chargeback and reduces customer confidence in your products and service, possibly damaging your brand reputation.

TIP: In AQ Pay, access your personal information under the Admin Settings tab of AQ, to verify that the contact and other information of each AQ user is always up to date.

  1. Display Detailed Product Descriptions: Ensuring the customer has a clear understanding of the product or service they are purchasing and avoiding misleading descriptions also helps reduce chargebacks.

TIP: By using AQ Pay, your product data is coming straight from your quote and, in turn, from AQ’s Content Core, the industry’s trusted source for product information.

  1. Transmit Clear Billing Information: When a customer reviews their monthly card or bank statement, a customer may forget about purchase(s). Ensuring a clear billing descriptor (how your company appears on a card or bank statement), along with a phone number to reach you increases the chances that their first step will be to contact you and not their card issuer thus giving you another chance to prevent a chargeback.

TIP: When using AQ Pay, our customer success team ensures the correct brand name is used!

  1. Alerts on Recurring Charges: If a customer uses their card to purchase a product or service that’s billed on a set recurring schedule, it’s always recommended to notify the cardholder prior to the charge.

That’s all for Part 1. We’ll be back next week with part 2, on cardholder and data security. If you have any questions or would like to speak with a specialist to get started with CurrencyPay® or AQ pay, please reach out by phone 1-866-452-8324, email sales@AQ-FES.com or go to www.AQ-FES.com.

Related Links: AutoQuotes Launches AQ Pay, Powered by CurrencyIntroducing AQ Pay: Simplifying the Payments Process – Q & A from our Latest Webinar

Matthew D’Anjou - Vice President & Head of Payments at Currency

Matthew D’Anjou is the Vice President & Head of Payments at CurrencyPay. He has over nine years of payments experience win the payment processing and financial services industry. He has helped many businesses with payments solutions, giving him the experience and knowledge to help solution a vast variety of partners and merchants at Currency.

Previously, Matthew led partner integrations, global payments and global enterprise merchant solutions at Litle &Co, Tipalti, BlueSnap and WorldPay. Matthew’s expertise lies in merchant payment solutions focused on functionality, reducing payment costs, and turning payments from a cost center into a revenue center. Since joining Currency, Matt has been focused on building a robust payments solution that reduces fees and increases payment options for our partners, aiming to provide the best experience for them and their customers. Specializations: Interchange Optimization, Recurring Billing, Payment Facilitation, IVS partnerships, fraud & chargeback prevention, B2B big ticket transactions, partner integrations, alternative payments, global payments, and driving revenue within payments.

© 2020 CurrencyPay. All rights reserved. CurrencyPay is a registered trademark of CurrencyPay, LLC

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