Internet Credit Card Processing: What You Need to Know

Accepting credit card payments online is almost a must for any small business these days. Internet credit card processing is an ideal way to grow business and simplify sales. The problem is that you need to protect your customers’ credit card information as well as defending your own business against security risks. In order to avoid becoming one of the 42 percent of online merchants who are responsible for fraudulent transactions, there are some things you need to keep in mind.


  • Verify the billing address of the purchaser’s account. This is a good way to ensure that you are taking a transaction from an authorized account. People who attempt fraudulent Internet credit card processing transactions generally cannot verify this billing address.


  • Match up the shipping and billing addresses. In addition to verifying the address, make sure that the billing and shipping address match. This can be a red-flag for fraudulent transactions.


  • Remember that you are liable for transactions. Just because you understand PCI Compliance Standards for your brick-and-mortar business does not mean you understand fully how it works online. For online transactions, the retailer is 100% liable for fraudulent transactions.


  • Make sure your service is PCI compliant. Many digital service providers offer Internet credit card processing services but that does not mean they are up to date on PCI requirements. You cannot use the fact that you didn’t know as a defense if you find that data is being compromised.


This is not a small issue. If you don’t follow all of the current PCI Compliance Standards, and you end up getting hit with a data compromise situation, you could lose a lot more than revenue and shipping costs. Your privileges to accept Internet credit card processing could be revoked, for all intents and purposes shutting you down online.