There are many advantages and disadvantages of e-payment processing systems. Listed below are three: Convenience and Security. Hacking vulnerability is another disadvantage. However, the benefits far outweigh the drawbacks. E-payment processing systems are becoming the preferred method of payment for modern consumers. But are they right for you? Read on to discover if e-payment processing is suitable for your business.
Convenience
The convenience of e-payment processing systems is evident in today’s world. With the advent of eCommerce sites and online shopping, the convenience of paying for anything has increased dramatically. As a result, businesses can now expand their operations to far-flung areas using this payment processing system. In addition, the recent COVID-19 pandemic has increased the demand for electronic payment processing systems. Having a disease like COVID-19 has made people stay at home and shop online more frequently, increasing the need for e-payment systems.
Electronic payment processing systems are a great way to boost your sales figures. You can accept credit cards or even payment plans instead of having to deal with a cash register. Not only is this convenient, but it also saves time. You can also use e-payment processing to implement subscription programs for your customers. Customers will be more likely to purchase from you if they have the option to set up a subscription program.
Security
Regarding the security of e-payment processing systems, you should be very cautious. Every year, millions of security breaches happen on the Internet, and the average consumer has become increasingly aware of the dangers. While security is a crucial aspect of any online business, many existing strategies are easy to implement and follow. Security measures include using a payment gateway, which encrypts financial data before passing it on to a payment processor. This allows for the smooth transfer of funds from the buyer to the seller without exposing the financial information of either party.
For example, the Payment Card Industry Data Security Standard (PCI DSS) sets the standards for the security of payment card data. These standards require that payment processors protect cardholder information and implement various security protocols to protect sensitive data. The PCI DSS requires payment service providers to use encryption throughout the journey to prevent data breaches. Moreover, most payment service providers use an address verification system to verify that the cardholder has provided the correct personal and billing addresses. If the two are not the same, it’s a warning sign of fraud and a good chance of cybercriminals having the wrong lessons.
Cost
Payment processors are often the most expensive component of e-payment processing systems. They facilitate the entire transaction and charge a fixed fee each time a customer makes a payment. The fee may include a markup or roundup fee. Many merchants also choose payment processors that offer integrated mobile and e-commerce solutions. If you’re considering e-payments as a service for your business, looking for a payment processor that provides a wide array of payment methods is essential.
E-payment processing systems provide businesses with many benefits, including greater visibility into payment status, accurate audit trails, and elimination of data entry errors. Since many companies use a variety of electronic payment options, you should understand the pros and cons of each option. For example, ACH debit pulls are best for recurring charges, and virtual cards are best for sending secure vendor payments. If you’re considering using e-payment processing systems, you should ask yourself how much your business stands to save by adopting an e-payments strategy.
Hacking vulnerability
The latest attack on e-payment processing systems has exposed a critical security hole. The vulnerability was centered on an exposure many e-commerce sites have yet to address fully. It exploits multiple erroneous payment requests made by a single user. This allows hackers to make up to twenty unsuccessful attempts to make a payment from a single customer per page. Unfortunately, the system doesn’t automatically refresh after a failed attempt to collect different information.
Cyber R&D Lab researchers found the vulnerability in point-of-sale devices manufactured by two of the industry’s largest companies. They said it would take five to ten minutes to connect to a device through a USB port. Another vulnerability could be exploited via an internal network. Once inside, hackers could install a malicious sniffer card.