In the year 2013, consumers in the United States spent a total of $8.6 trillion. Out of this number, $4.6 consisted of credit and debit card purchases. The world of mobile and internet payment is only growing at the present time. There are some problems facing payment processing companies who accept card not present payments; however, there are also several solutions to these problems as time goes on and technology becomes increasingly secure. Here is a list of some of the common problems and solutions for the card not present transaction process.

Card Not Present Chargeback

The Problem

One of the biggest problems associated with card not present transactions is the card not present chargeback. These chargebacks may be caused from fraudulent orders due to stolen credit card information or chargebacks due to operational deficiencies. The main problem with card not present chargebacks is that retailers are held accountable to credit card companies for transactions they may not have received.

The Solution

Nowadays, merchants can have peace of mind with payment gateway services which allow for secure payment processing. This works because when a consumer’s credit card information is entered to the system it also undergoes a confirmation and verification process. The ability of more merchants to accept virtual payments with reduced risk is vital when the projected use of credit cards is on the rise. In 2012, the average consumer owned 1.92 credit cards. By 2017, the number of Visa cards is expected to rise by 28% while the number of MasterCards is expected to rise by 36%. With so much potential in online transactions, merchants truly benefit from technology that allows these payments to be more secure.

Service Not Being Delivered Or Received

The Problem

Another major problem with card not present transactions is the issue of a service not being delivered or received by a consumer after making a payment. Sometimes even when a service is delivered a consumer may claim to have not received it. Until now, there was little merchants could do to verify that services were indeed delivered. Luckily, advancing technology in the form of more secure payment solutions helps to alleviate this issue.

The Solution

Nowadays merchant credit card processing technologies come with a myriad of helpful tools for online retailers. Some such solutions include helping to keep accounts profitable by ensuring that orders are completed as received. This is made possible with technology that can send out reminders to retailers when they have outstanding orders that need to be fulfilled. Another added bonus is the ability to better manage transactions that undergo modifications or consumer changes. Instead of getting lost and orders being completed wrong somewhere along the line, payment processing technology can help ensure that changes are automatically noted and carried out.

If you have any additional questions or thoughts on the topic of card not present transactions, please leave a comment in the space provided below.