Modern day online trading is probably one of the most time-dependent niches when it comes to payment processing. Due to the nature of commercial online Forex trading and the fact that immense efforts and costs are invested to drive traffic, if a processing selling merchant services company’s platform or software cannot keep up with the volume of transactions in real time, the result is loss of sales and even the loss of clients to the merchant.
Attracting and driving online traffic through an online business funnel involves immense marketing efforts, effective analytic capabilities and ongoing optimization. These factors constitute the ongoing investment required to assure a successful online trading business. Delivering a customer to the stage of accepting your service offer when recognizing an attractive position must be supported by a practical and dependable payment service provider to ensure and exceed acceptable and functional business results with high conversion rates.
In the era of big data, internet economics, ever growing trading levels and high traffic volumes, it is of utmost importance for Forex trading platforms and providers to be supported by cutting edge payment processing technology with a wide range portfolio of payment processing solutions.
Companies such as AllCharge, and also AlgoCharge that utilizes an advanced technological algorithm powered processing engine, are the type of payment service providers that are geared for modern day real time online transaction volumes.
An established online payment service provider has many responsibilities and must be able to provide merchants with the global ability to receive customer payments in the various forms of credit and debit card transactions as well as alternative payment methods such as local bank transfers, pre-paid cards and popular e-wallet solutions, all under one platform for fast, effective and reliable results. Being able to maintain high conversion rates for web based companies is a direct variable when choosing a payment service provider, as well as the capability to process various local currencies and provide attractive and comfortable transaction limits.
Payment Service providers also referred to as PSPs, adhere to strict credit card industry standards and regulations. Since PSP companies are responsible for the transmission of credit card information and other sensitive financial data in an online environment, these organizations must utilize advanced encryption technologies to minimize the possibility of data theft and fraud. This is why it is common to see HTTPS and SSL when making online payments and transactions.
In addition to supplying online businesses with a secure platform so their customers can complete online payment transactions faithfully, PSPs should also provide companies with a comprehensive back office reporting system to review individual transaction details, payment processing statistics, and general information and reporting. PSPs should also include special security management tools to protect merchants from suspicious purchasers and unusual credit card activity. These important security protocols minimize chargebacks while maintaining high conversion rates as well as reduce overall fraudulent exposure.
Without a secure and established payment service provider, online businesses would need to contact multiple financial institutions and establish many different relationships to allow for the various types of payment processing solutions. This approach is both time consuming, expensive and difficult simply because companies generally specialize in their respective fields and are often not equipped to follow the many financial regulations set-forth by authorities and the Payment Card Industry council.
In today’s competitive and fast paced business environment, choosing the right payment service provider for a business can be the difference between failure and success. While on the surface, payment service providers appear to offer the same online services, the reality is often very different.
When choosing a PSP for a newly established online company, it is important to ascertain the types of industries a payment service provider has processed transactions for in the past and when the PSP was founded. For example, it would be unwise for a large online Forex or Binary Options company to establish a processing relationship with a small or young payment service provider that has limited or no experience with the online trading market.
Companies within certain industries and verticals find it especially difficult to obtain payment processing solutions due to the elevated risk that is inherent with their company’s business model. One of the many benefits of working with a payment service provider that specializes in the online trading industry is that it is specially equipped to contend with high risk credit card processing.
When a PSP is processing transactions for several companies within a specific and common online arena, it has greater exposure to online purchasers attempting to commit fraud or credit card theft on a specific business model and vertical. This greater exposure helps identify and prevent future incidents of fraud or credit card theft for all its current merchants.
Many registered companies in the Forex, Binary Options, and e-gaming arenas also find it difficult to obtain credit card and payment processing because they are not regulated within certain regions or financial zones. At present, only few payment service providers have managed to establish the required business setup to support such operations until the necessary regulatory requirements are met.
Another major concern for online merchants is whether their customers’ credit card information is securely maintained during and after the payments process. To minimize the possibility of credit card theft or fraud, payment service providers are required to practice strict security standards set forth by the Payment Card Industry council. These specific data security standards were introduced as part of an independent council that was established in 2004 by the American Express, Discover, JCB, Mastercard and Visa companies. Before these companies collaborated in creating one independent council, each organization demanded different requirements from merchants and financial organizations.
Payment Card Industry Data Security Standards (PCI-DSS) continue to evolve in order to meet the changes in technology, payment methods, and risks associated with a dynamic global business environment. PCI compliance is important for merchants and financial organizations to ensure that proper credit card information is protected. There are 12 PCI DSS requirements a company must follow in order to attain PCI Certification status. Companies that are PCI Certified must also undergo an annual audit in order to have their certification renewed on an ongoing basis. Using a PCI-DSS certified Payment Service provider enables the online merchant to focus on their core business activity and strategy. There are a few PSPs that have developed services that enable merchants to store certain card holder data for swift and easy processing of following payments and transactions without the registered customer needing to provide his card details again. This solution increases conversions, optimizes customer service, saves costs and enhances the customer experience.