Tag Archives: Host Merchant Services

Customer Service: A Big Challenge for Payment Processors

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The credit and debit card industry thrives on payment processors and the services they offer; unfortunately, customer service and support seem to be taking a backseat to other factors for many companies. At Host Merchant Services, we believe there is an unfortunate financial motive at play that explains why this is happening.

Consolidation is one of the reasons customer support seems to be lacking these days among the biggest payment processors. Investment bankers see great potential in this industry, and they are approaching big players to make them even bigger players. And therefore customer service has become a big challenge for payment processors.

Once an investment banking firm starts working with a payment processing firm, the prospect of a merger is never far behind. This is how Wall Street operates, and this is how major payment processors acquire their peers and get bigger. Unfortunately, this is also how customer support goes away.

The problem with these consolidated giants is that their customer support platform begins to suffer through growth. Value-added services start piling up, and the smaller merchants will take them because they are bells and whistles, which are always very appealing. The problem is that these features are offered at the expense of customer support. These companies become so large they have to use call centers where you are put on hold for a long period and speak with representatives who aren’t very helpful or knowledgeable about the industry and your account.

Granted, there is nothing wrong with a processing firm offering some bells and whistles for their customers such as free equipment. This would be a very valuable feature for a smaller business that is either starting or expanding to add a new location. In this case, the merchant would love to get new credit card terminals for free, but what about support for this service?

When payment processors offer too much and get too big, they tend to become merchant technology companies. This is when Wall Street investors recommend scaling back on customer support, which is a costly proposition for processors. This is also when online help desk packages are rolled out to replace call centers. There are some large credit card processing companies out there that don’t even have a phone number to call if you need help or would like to sign up. It’s not even an option, which we don’t think is right.

At Host Merchant Services, we believe that customer support is of greater value than the gimmicks the big guys offer. We also believe that customer support will be the next frontier of the credit card processing industry. Once big processors start losing market share due to inadequate merchant support channels, the industry will once again pay attention to this important aspect of the business.

The Importance of Customer Service In The Payment Processing Industry

In the dynamic world of payment processing, customer service plays a crucial role in ensuring smooth transactions and building strong relationships with merchants and consumers. Why is it so important? A knowledgeable customer care representative can handle difficult customers efficiently and help in the growth of the company. On the other hand, a bad customer care executive can ruin the deal and also destroy the company’s reputation.

Good customer service helps to build trust and confidence in the merchants as well as the customers. And especially when it is about any financial information trusted customer support is crucial. With a skilled customer support team any payment processor can easily develop a sense of reliability and enhance reputation.

Efficient customer service reduces frustration for all parties involved. Imagine waiting endlessly on hold or receiving generic automated responses when you need urgent help! Payment processors that prioritize personalized support not only save time but also ensure that issues are resolved quickly.

Outstanding customer service can lead to increased loyalty from both merchants and customers alike. Building long-term relationships requires going above and beyond mere transactional interactions. By delivering top-notch support consistently, payment processors can create lasting partnerships based on trust.

Any payment processor depends on fast and better payment processing and a strong and reliable customer support and service mechanism.

Quality Customer Service: Biggest Challenge for Payment Processors

Quality Customer Service: Biggest Challenge for Payment Processors

1. High call volumes: For any customer service team high call volume is not a positive sign. If the call volumes are high then delays are natural. The delay starts with the call of the customer when no executive is free to take the call. The second part is resolving the issue after understanding the query or problem of the customer. This can lead to long wait times and frustrated customers.

2. Complex technical issues: Payment processing systems are complex, and when something goes wrong, it can be challenging to troubleshoot and resolve the issue quickly. Technical glitches or system downtime can significantly impact customer satisfaction.

3. Lack of communication: Effective communication between payment processors and their customers is crucial for providing quality service. However, there are often gaps in communication channels, leading to delays in resolving issues or providing updates on account statuses.

4. Fraud prevention: Payment processors must constantly stay vigilant against fraudulent activities that could potentially harm their customers’ accounts. Balancing security measures while ensuring a smooth user experience can be difficult.

5. Limited support hours: Many payment processors have limited support hours, which may not align with the needs of all customers who require assistance outside traditional business hours.

6. Language barriers: After globalization, many payment processing services provide their services globally. Language in different regions of the world varies and it leads to a strong language barrier. Language barriers become a significant challenge for customer service representatives trying to assist non-native speakers effectively. For the company, it adds more expenditure to hire and train customer support staff to cater to customers of different languages.

7. Ongoing training requirements: Customer support and services are always evolving. Therefore it is important to update the staff with proper training and orientation regularly. With evolving technology and industry regulations, payment processor staff need continuous training to stay updated on best practices for handling customer inquiries and concerns.

8. Integration issues with third-party software: Some merchants use third-party software that integrates with payment processor systems but may encounter compatibility issues or difficulties during implementation or troubleshooting processes.

9. Slow response time from other stakeholders: Occasionally, resolving certain customer queries requires coordination with external parties such as banks or card networks; however obtaining timely responses from these stakeholders can sometimes pose challenges

Strategies for Improving Customer Service in the Payment Processing Industry

Strategies for Improving Customer Service in the Payment Processing Industry

1. Prioritize Training: One of the most effective strategies for improving customer service in the payment processing industry is to prioritize training for your customer service representatives. Ensure that they are well-versed not only in the technical aspects of payment processing but also in providing excellent customer support.

2. Enhance Communication Channels: Customers want quick and easy access to the customer service representative. By offering multiple communication channels like phone, email, live chat, etc can lead to a good customer experience. Additionally, a comprehensive FAQ page on your website can help to answer the most common questions for your customers. Make sure these channels are easily accessible and staffed by knowledgeable representatives who can quickly address any concerns or issues.

3. Implement Self-Service Options: Empowering customers with self-service options can significantly reduce wait times and enhance their overall satisfaction. Provide online portals where customers can access account information, make payments, or initiate refunds without needing to contact a representative.

4. Monitor and Analyze Customer Feedback: Customer feedback is crucial for any company for improvement and growth. Therefore, payment processors should regularly monitor and analyze customer feedback to identify areas of improvement within their customer service processes. Use this valuable information to proactively resolve issues, streamline workflows, and enhance overall satisfaction.

5. Invest in Technology Solutions: Technology is ever-evolving. You should be ready to accept and implement new technologies in your customer service system. AI can easily reduce the burden on your staff by handling customer inquiries efficiently. Technologies such as artificial intelligence (AI) chatbots or interactive voice response systems (IVRs) to automate routine inquiries or provide instant responses outside regular business hours.

By implementing these strategies, payment processors can strengthen their relationships with merchants while fostering loyalty among end-users who rely on seamless transactions every day

Banks Are Hoarding Bitcoin to Protect Against Hackers

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On October 21, 2016 there was a DDoS attack that efficiently shut down several internet services for an extended period of time. Some of the websites include Github, Twitter, Spotify, The New York Times, Pinterest, Netflix, and many, many others. As a precaution in case of further attacks, banks are now stockpiling Bitcoin to pay off hackers if an attack is underway. Bitcoin are the preferred currency of online criminals due to their anonymity and difficulty to trace.

The reason the hackers were able to take down so many different websites at once is because they attacked a DNS hosting company, Dyn. Many popular and high-traffic websites use Dyn, and this made the attack much stronger than launching it on each website individually.

Banks have taken notice of the recent attacks, and now some are looking at several different options of how to minimize losses that may incur from said attacks. While no policy has been confirmed as of now, it appears that many banking companies believe that a bribe in the form of the online currency may cost them less money than suffering an attack.

It is currently unknown which particular businesses are taking this route, and it may remain that way for the foreseeable future. Only time will tell if this pay off method will be a worthwhile option. There is some worry that this kind of negotiation will cause more criminal groups to increase threats and attacks in hopes of making easy money, but hopefully that is not the case. Depending on what happens in the future, other companies, not just banks, may look into bartering with Bitcoin as well.

Identity Stolen

Who is Likely to Have Their Identity Stolen?

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Identity theft is a growing problem. Part of the reason for this rise in the number of people having their identities stolen is the use of the internet for social and commercial interaction. A recent study has shown that people who spend the most time and do the widest range of activities online are up to four times as likely to have their identities stolen. They routinely share personal information on multiple online channels, and this behavior increases their degree of online exposure.

A growing number of people see the convenience of online activities as being more important than privacy and security. While many companies are working to create methodologies and technologies to protect people’s identities online, cybercriminals are becoming more sophisticated with each passing day. They’re able to capture sensitive information from a wide range of people, and it’s getting harder to catch them. People trying to reduce their risk of becoming a victim of identity theft should be careful about what information they share online and what sites they share it on.

The increasing popularity of social media is also making people more vulnerable to identity fraud. Each day millions of people interact on social media. Yet few of them know how to protect their identities online. In an attempt to generate revenue through the use of targeted advertising, these sites encourage users to share as much personal information as possible. Users trust the social platforms and freely share private information. Sadly, many social platforms lack effective policing and security methods so their users’ information is vulnerable to nefarious characters.

People who share their full name including middle name, date of birth, home town, school name, location, and graduation date, relationship status, pet names, affiliations, hobbies and interests on social media run a great risk of becoming a victim of identity theft and other types of fraud.

“Selfie Pay” is the New Way to Make Purchases

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Did you ever think you would be able to pay a bill with a selfie? Facial recognition is being rolled out as a way to authorize online transactions in markets in Europe as you read this. MasterCard’s “Identity Check Mobile,” also known as Selfie Pay, is being launched in Austria, Belgium, the Czech Republic, Denmark, Finland, Germany, Hungary, the Netherlands, Norway, Spain, Sweden and the UK. In these markets, MasterCard customers (who wish to) can download an app and authorize online payments by snapping a selfie or scanning their fingerprint with their smartphone. This is following a trial introduction of a similar program using biometric technology in the U.S., Canada, and the Netherlands. According to MasterCard, the app will be accessible throughout the rest of the world at a later date in 2017.

The facial recognition authorization app was designed to enhance security and speed up transactions that don’t occur in face-to-face situations. With Selfie Pay, e-commerce is going to benefit, since customers won’t have to remember a password every time they make a purchase. Instead of memorizing a long password requiring a capital letter, a special character, and at least one number, the app works by memorizing your face with a digital ‘map’. After the Identity Check Mobile app is downloaded, users are asked to take a photo of their face. That picture is used as a point of reference for the user from then on. In the event that someone tries to bypass the system by holding up a picture of the person, for example, Identity Check Mobile sends a prompt for the user to blink.

So what kind of encryption is in place to protect the sensitive user data? A MasterCard spokeswoman said, “As an industry, we are moving toward storing biometrics in all instances at the device level. Fingerprints are stored at the device level, and we are currently prototyping facial recognition to be converted and stored as encrypted code on some devices.”

American EMV Adoption Marks One Year

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Just over 12 months have gone by since the merchant services and credit card processing industry in the United States faced the historical EMV liability shift. October 1, 2015 was the big day.

Switching to the Europay, MasterCard and Visa (EMV) system has been a major responsibility in terms of installing terminals and educating shoppers and merchants about the use of chip cards.

Credit card processing has not been affected as much; in fact, fraudulent transactions due to counterfeit cards have decreased substantially since October of last year. Nonetheless, the shift has also uncovered some realities that American retailers must confront.

The Good News about Chip Cards

In the United States, more than 700 million credit and debit chip cards are currently in circulation. This is certainly encouraging to learn a few weeks prior to the busy holiday shopping season. Nearly 45% of shoppers who have the new cards are using them more than three times per week. There are about 2 million merchants that have implemented the new chip card terminals, and more than half of these retailers are small-to-medium businesses.

The Current EMV in the United States

The most salient problem with the liability shift is related to the terminal experience. Merchant service providers report getting complaints from their clients about the extra time it takes to complete a chip card transaction with the new terminals, which require shoppers to insert or dip their cards and input a PIN on a keypad.

The old “swipe and sign” transaction of legacy credit and debit cards used to be a lot faster, but it was also very problematic in terms of counterfeiting and fraud. In Europe, chip cards have been around for more than a decade, and thus credit card companies such as MasterCard and Visa are working on ways to speed up the checkout experiences, and this is already being implemented in some places.

Credit card processing companies are reporting another unpleasant reality associated with the switch: the increase in chargebacks has been inversely proportionate to the reduction in counterfeit fraud cases. For businesses such as restaurants, chargebacks have been a major hindrance because owners were not prepared for the sudden deluge. Payment networks such as MasterCard have indicated that chargeback volume will decrease as chip cards become the new American standard.

Fraud Costs Cut in Half Since the Introduction of EMV

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Great news for the credit card processing industry: Just one year into the shift towards the Europay, MasterCard and Visa (EMV) system in the United States, and counterfeit fraud costs have been slashed by just over 50%.

According to a report issued by credit card giant MasterCard in mid-September, counterfeit fraud costs are being sharply reduced thanks to more American merchants adopting the EMV system for accepting chip cards.

The report covers the period from April 2015 to April 2016, and it looks at the two million American businesses that have successfully installed the new terminals. The situation for merchants who have not yet switched to the chip card system is not looking good, as their counterfeit fraud costs climbed an astonishing 77%.

MasterCard described the reduction in fraudulent transactions thanks to chip card terminals as being very positive for shoppers, merchants, and banks.

This positive trend can be attributed to a sharp drop in counterfeit credit and debit cards. When American shoppers complete transactions with their new chip cards, unique codes are being created for every purchase. These codes can only be produced when the chips on the cards communicate with the new EMV terminals. This level of sophistication was absent from the old magnetic stripe system.

Shifting to the chip card system initially brought about some technical and behavioral concerns. Although credit card processing has not been substantially changed by the shift, there has been a learning curve for consumers plus longer lines at the register in some stores.

The initial terminal woes are being alleviated by smart practices. When European merchants switched to the chip card system years ago, they also went through some growing pains; however, those were eventually overcome. The same can be expected to happen in the United States as MasterCard plans to roll out M/Chip Fast, which is an enhancement that will speed transactions at the register. This enhancement will hopefully be in place in time for the busy holiday shopping season.

Online Dating Users Scammed Out of Millions [2023 Update]

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Dating sites pervade the Internet. This is nothing new. In fact, they have been around and in use almost since the World Wide Web became a global sensation. Scammers and fraudsters pervade society. This is also nothing new. What is new is that they have moved mainstream and have become more technological and innovative in their approach. These individuals have morphed together with online dating sites to create quite a problem. The new adage has become ‘If she sounds too good to be true, then click the ignore button.’ Sadly, too may are not heeding attention to this warning, resulting in more than a few online dating users being scammed out of millions.

FBI Information on Online Dating and Romance Scams

Bad Online Behavior Abounds

Much of this problem arises from individuals hiding behind their computer screen to commit crimes. People who might otherwise never commit such crimes face to face now feel empowered and emboldened by their ability to swindle people out of their hard earned money without ever having to meet them. They become fraudsters in the truest sense. These are not just people across the globe we are talking about either. They are everyday people down the street. In fact, they might not even be women at all, as these scammers are true masters of disguise. They can be whoever the individual at the other end of the computer connection wants them to be.

beware of online romance scams

Beware and Avoid Becoming the Next Victim

Online romance fraud affects nearly every type of individual. For some, the feeling of desperation and loneliness has become so bad that they want to believe the other person behind their online dating experience really does love them. They are willing to fork over thousands of dollars in order to fulfill this void. Still others are in a happily committed relationship already, yet they find something intriguing about having their own online persona. They can act out their wildest fantasies without anybody knowing about it. Then, fate steps in and scammers and fraudsters who know exactly how to play upon their emotions hoodwink them in.

Online Dating Scams and How to Avoid Them

Do not become the new victim of an online romance scam. Dating sites are working diligently to protect their customers, but individual vigilance is required here. Do not be afraid to meet others using this Internet revolution, but be cautious at the same time. If the other person sounds too good to be true, they probably are!

More Helpful Resources for Avoiding Online Romance Scams

Dating or Defrauding: Protect Yourself from Online Romance Scams

Romance Scams in 2023 – What to Watch Out For

Pay By Check

More Businesses Than You Think Still Pay By Check

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Modern payment methods in the United States range from EMV chip cards to digital wallets to bitcoin; however, there’s one traditional form of payment that has managed to survive the shift towards digital.

Use of Paper Checks by American Business Entities

The use of paper checks by American business entities and individuals remains uncomfortably high in the 21st century. A 2013 survey by the Association of Financial Professionals indicated that half of all U.S. companies were happy using old-fashioned checks for their payment transactions.

In 2016, a survey conducted among 120 American retailers revealed that only half of respondents were interested in going digital for their payment methods; among those that were still using checks, 10% stated that they had no intention of switching to electronic payments ever.

The most surprising data of the aforementioned 2016 survey is that they half of the respondents explained that 3/4 of their payments were still made by writing out checks. Some of these retailers do not accept checks from shoppers, but they will still write and mail a check when they need to make a payment to a vendor. The only electronic payments they make are to international vendors.

When it comes to the adoption of electronic payment methods and advanced credit card processing, the U.S. is notorious for being a slow adopter. Many Latin American nations have virtually eliminated checking accounts in lieu of express deposit accounts with debit cards for consumers and electronic ledgers for business entities; this is a financial trend that dates back to 2005. Even the switch to EMV credit card processing is taking much longer than expected in the U.S.

Retailers and other businesses still using company checkbooks in the U.S. need to realize that a significant amount of fraud is perpetrated through gaining access to checking account information, which can be easily collected from each and every check printed.

Electronic payment platforms and credit card processing offer far more security measures to prevent theft and fraud, and they tend to be less costly than checking accounts. Automating the accounts payable process with digital platforms is clearly the most sensible way of doing business in the 21st century, and this is something that the American enterprise world should realize. Host Merchant Services takes pride in helping businesses switch over to using electronic payments, which are far more secure and up-to-date in the 2016 business world.

Hotel Chain Looking into Data Breach

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Kimpton Hotels & Restaurants is investigating reports of a data breach at several of its properties.

Kimpton operates 62 boutique hotels across the country and has begun to look into the scale of this hacking. Management has hired a computer security firm to find out if guest information or internal systems have been hacked. The hotel group has been discreetly advising guests who recently stayed at Kimpton to monitor their credit card bills and immediately notify their banks of unauthorized charges.

Headquartered in San Francisco, Kimpton released a statement that said, in part, “Kimpton Hotels & Restaurants takes the protection of payment card data very seriously. Kimpton was recently made aware of a report of unauthorized charges occurring on cards that were previously used legitimately at Kimpton properties.” Kimpton says it is doing everything it can to resolve the matter. They do offer customers some small solace about fraudulent charges to customer accounts. “Payment card network rules generally state that cardholders are not responsible for such charges.”

One computer blog has reported finding multiple sources in the financial industry ready to confirm a pattern of fraudulent credit card processing, suggesting a data breach at somewhere in the vicinity of two dozen Kimpton hotels.

The hotel chain is not the only hotel to find itself on the wrong end of a data breach. Over the last year, a number of hotel chains, including Trump, Starwood, and Hilton, found themselves victim to cyber criminals with customers’ information stolen. Omni Hotels had 50,000 credit card numbers taken.

Reportedly, most of the incidents appear to have occurred at counters with POS systems, including gift shops, restaurants and stores, but there were also complex data breaches that accessed information through internal data systems.

These breaches only reinforce the need for strong security measures to avoid even the smallest data breach. From merchant services to POS, cyber criminals are working as fast as possible to breach security technology as developers are finding ways to fortify defenses. From patches and upgrades to better firewalls, everyone should be protecting their data which is always at risk.

New Methods for Nonprofits to Accept Donations

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The only means of sustenance for nonprofit organizations is the money they receive from a variety of sources. Because many NGOs want to maintain neutrality and independence in operations, they do not accept corporate funding. They therefore depend solely on funding sources such as road side stands, races and fairs to raise funds for operations. These traditional methods of raising funds posed a limitation to cash as the only acceptable method of receiving payments. With the growing demand for more digital modes of payment instead of paper cash, many nonprofit organizations are seeking new ways they can receive cash digitally.

Beyond the tradition

There are several digital tools through which nonprofits receive charity donations. These fundraising tools raise millions for the nonprofit industry every year. Even though it may be difficult for some NGOs to accept digital payments due to governmental regulations or lack of online banking infrastructure, the digital modes of receiving charity donations remain an emerging trend. This is because these tools are easy to use and are affordable at every level of fundraising to the NGOs. The digital tools for raising charity funds allow nonprofit organizations to reach a large number of donors simultaneously. It also allows flexibility and ease for both the donors and the NGOs. With these systems, one can donate with just a simple click of a button. These methods of fundraising are the best for a century which is characterized by convenience.

DipJar technology

One of the key technologies that seek to provide nonprofit organizations with more convenient ways of accepting charity donations is DipJar. DipJar is a platform which has been designed in a way that facilitates at-the-spot payments and enables a person to donate even when he or she is not holding cash at that moment.

FirstGiving

FirstGiving was specifically designed to aid nonprofit organizations. This digital tool for receiving charity donations can be used together with other donation tools such as CRM, CMS, donor management, and social media. FirstGiving enables the nonprofit organization to receive online donations. It also provides an option for managing direct donations and the opportunity to interact with the donors.

PayPal donations

PayPal is another means of receiving donor funds from around the world. It also helps nonprofits to gather information about donors who donate through PayPal so that they can contact them subsequently for further discussions.

The way forward

Moving from the traditional ways of fundraising to the new, modern ways of fundraising or to adopt a combination of both will provide the nonprofit organization with more sources for funding. Other networks such as the Good DonateNow Lite, google wallet, and others provide suitable and convenient platforms on which nonprofit organizations can receive charitable donations. Online fundraising is becoming the order of the day. This is due to the fact that it provides more convenience and ease in raising funds. It also projects the nonprofit organization to the view of several donors.