ACH payment systems are becoming more and more prevalent, and knowing how ACH works for your business is more important than ever. That includes knowing the risks of ACH. Here are 5 things you should know about payment processing.
1. Not All Fees Are Created Equal
The average credit card processing fee is between two and three percent per transaction. The transaction method may also change that percentage. Online or over-the-phone transactions may be subject to a slightly higher fee than in-person transactions. These fees can be based on a flat rate or be part of a tiered system. It’s important to do some research into which type best suits your business.
While the concept of credit card processing fees is fairly straightforward, there are many other fees you can incur during the life of your relationship with a payment processing system like monthly minimum or statement fees, early termination fees, and more.
Though services like Paypal, Google Pay, and Apple Pay are widely used and can be small business-friendly, it’s good to do some research on these fees to ensure these payment options are right for your business.
2. Small Businesses Can Still Have Security Breaches
In 2013, retail giant Target had a security breach that affected about 110 million shoppers’ credit, debit, and personal information.
Though small businesses don’t usually have that amount of data running through their payment systems, data breaches are still a very real possibility for all business types and sizes. And if a breach occurs, 60% of small businesses who experience one will go out of business in the following 6 months.
Protecting your transactions and your customer information should be a top priority when choosing an ACH processor.
3. Payment Protection Depends on Processing Type
Have you ever gone to the grocery and started to insert your payment card into the chip reader, only to have the cashier tell you that you need to swipe? As inconsequential as it seems, each processing type comes with different payment protections.
Most credit and debit cards now have a magnetic stripe on the back as well as an EMV chip. The EMV chip readers have encrypting protections that replace sensitive customer information with random numbers as an extra security measure.
4. Not All Breaches Come from Outside Cyber Attacks
Not all payment security issues come from mastermind computer hackers who skillfully take down your online defense systems.
Many originate from internal procedures. Inadequate passwords and leaving login credentials easily visible near a point of sale are the most common culprits. Though the inclusion of upper- and lowercase letters, numbers, and special characters is a bit of a hassle, take the time to create strong passwords to protect your business from these simple mistakes.
5. Security Starts with Your Staff
Your employees are the lifeblood of your business, and to be successful in their roles, they need access to your sensitive business information. 54% of data breaches are due to human error and system failure.
The processing of mobile payments should take place within secure and business-provided connections, using your payment provider’s secure apps, software, and tools. Using personal devices for these transactions leave your business information vulnerable.
ACH payment processing systems, though much safer than nearly any other payment offering, there are still ways to incorporate best practices and considerations to safeguard your business and your customers.ReliaFund offers great ACH payment options with personable service and expert guidance, check us out today.