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Opt for gateways that support diverse payment options like credit/debit cards, digital wallets, and international payments to accommodate customer preferences. Ensure the gateway offers PCI DSS compliance, encryption, tokenization, and fraud prevention tools to safeguard transactions. Learn More What is a Payment Gateway?
Here are the inside details about what defines a payment solutions provider, how processing works, the credit card processing fees , risks, and more. TL;DR There are several parties involved in credit card processing. They include: the merchant, cardholder, cardassociations, acquiring bank, issuing bank, and payment processor.
It’s also critical to ensure card information is protected from data breaches with secure encryption and cybersecurity standards in place. NFC payments, including digital wallets, are very secure, relying on encryption to mask the card number, further protecting cardholder information.
Protect Stored Cardholder Data Organizations must protect stored cardholder data and other credit card information using encryption, masking, hashing, or other methods to make the data unreadable to unauthorized individuals. Additionally, sensitive authentication data must never be stored after authorization, even if encrypted.
From independent sales organizations (ISOs) and payment facilitators (PayFacs) to acquirers, cardassociations, and beyond, each entity plays a unique role in shaping the payment industry. The payment processing ecosystem is vast and multifaceted, with a staggering array of statistics underscoring its significance.
The UK CardsAssociation reported that, as of Nov. 2016, there were more than 100 million contactless cards in issue in the U.K., Instead, customers pay by touching their contactless card or mobile device to the terminal, making it perfect for quick purchases in coffee shops, supermarkets and local retailers.
P2PE Merchants using only a validated, PCI-listed Point-to-Point Encryption (P2PE) solution. SPoC Merchants using a commercial off-the-shelf mobile device (for example, a phone or tablet) with a secure card reader included on PCI SSC’s list of validated SPoC Solutions. Not applicable to e-commerce channels.
The Payment Card Industry Data Security Standard (PCI DSS) plays a crucial role in protecting cardholder data for businesses that accept credit card payments. This set of security guidelines is mandated by major credit cardassociations such as Visa, Mastercard, American Express, and Discover.
More specifically, the OCC labels a merchant processing activity as: “the settlement of credit and debit card payment transactions by banks for merchants through various cardassociations.” Payment processors take the encrypted payment information from the gateway and exchange it with the card networks and banks.
In this they state : “A one-time password sent via SMS may be used to validate possession of the SIM cardassociated with a customer’s mobile phone number. Some argue that this cannot be done safely with SMS unless the transaction information is encrypted and included in the SMS message.
In addition to online payments, if an organization wants to accept offline donations via credit cards, a merchant account is used alongside a hand-held credit card reader. A cardassociation is a group of banks that sets the terms for all credit card transactions.
BIN Sponsorship A service provided by payment processors that enables merchants to accept payment cards from multiple card issuers. Bluetooth Card Reader A wireless device that connects to a mobile device or computer to process payment card transactions.
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