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Merchant Underwriting: What It Is, How It Works, and Why It’s Important

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Credit card chargebacks , which occur when customers dispute a transaction, can be costly for both merchants and payment facilitators. Ensuring adherence to legal and regulatory standards, such as PCI DSS (Payment Card Industry Data Security Standard) requirements. Key advantages include: Minimizing fraud and chargebacks.

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The Ultimate Guide to Ecommerce Payment Solutions

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Key features to look for in an eCommerce payment solution include security and fraud protection, payment method variety, integration capabilities, chargeback protection and dispute resolution, and global payment support. Businesses using self-hosted gateways must handle data security measures and comply with industry standards like PCI DSS.

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Looking for the Best Payment Gateway? Here’s How to Choose the Right One

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Ensure the gateway offers PCI DSS compliance, encryption, tokenization, and fraud prevention tools to safeguard transactions. Look for PCI DSS-compliant payment gateways that optimize the security of credit and debit card transactions. You can also dispute chargebacks from your account.

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The Anatomy of a Credit Card Transaction

Clearly Payments

PCI DSS Compliance : Merchants and payment providers must adhere to Payment Card Industry Data Security Standards (PCI DSS) to protect cardholder data. The merchant is notified and can provide evidence to refute the dispute. Chargeback Reports : Track disputed transactions and their resolution status.

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How Merchant Services Contracts Work in Payment Processing

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Security and Compliance : The contract should detail the payment processor’s compliance with security standards, such as PCI DSS (Payment Card Industry Data Security Standard) , and outline your responsibilities in maintaining security. Liability and Chargeback Policies : Understand your liability for chargebacks.

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Credit Card Processing for Small Business: Everything You Need to Know

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It also ensures that data security best practices, particularly PCI DSS (Payment Card Industry Data Security Standards) requirements , are followed to the letter to prevent any breach or loss of sensitive customer data. The company facilitates the transfer of information and funds between the customer’s bank and your business’ bank.

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Risk Management for Merchants in Payment Processing

Clearly Payments

Chargeback Risk: Chargebacks occur when customers dispute a transaction and request a refund directly from their bank. Implementing effective chargeback management practices is essential to minimize their occurrence and address disputes promptly. Chargebacks are generally the biggest concern that most merchants have.