Payment Processing Challenges Businesses Face in 2022

The last two years have been tough on the business community as the pandemic halted so much and hurt the economy big time. Now, as we try to get back on track with operations, merchants are faced with these challenges in payment processing this year, especially those who are new to this system.

4 Payment Processing Challenges to Be Wary Of

Fraud 

Fraud and identity theft have always been the two biggest problems in payment processing because they result in high chargeback rates that could put a business at risk of losing its merchant account. Over the last two years, more people have shifted towards online shopping and that means scammers also had more opportunities for fraud. 

To tighten your security this year, make sure that you partner with the right high-risk merchant account providers that offer strict authentication measures when processing payments. You should also train your employees to easily identify whether or not a transaction is potentially fraudulent.

Lack of Integration

A lot of businesses still use old methods to input transaction records; this lack of integration can be a huge challenge, especially when different payment processing methods are used in the business. 

If you’re one of these businesses, it’s time to start integrating everything into a single payment processing platform that you can update in real-time without the risks of errors. 

It will allow you to be efficient in your inventory and financial management while saving your team time and resources in inputting and managing data.

Longer BINs

As if Bank Identification Numbers (BINs) weren’t already long enough at six digits, there’s a new mandate that requires Mastercard and Visa to set their BINs to eight digits starting April 1, 2022. Since BINs are an integral part of payment processing for things such as creating dispute reports and detecting fraud, you need to make sure that your staff knows of these changes right away. 

You should also contact your merchant account provider to know if their current system supports both six- and eight-digit BINs to avoid hassles during transactions.

High Processing Fees

A lot of merchant account providers charge very high processing fees, especially for high-risk merchant accounts. Although some of these merchants are left with no choice, these high fees can hurt their bottom line in the long run because they end up paying more to their provider instead of actually earning money. 

That’s why finding a good merchant account provider that offers reasonable rates with their packages is crucial. Make sure that you compare services and rates before you settle with a merchant account provider.

It takes a lot of hard work and patience to manage a business successfully, especially in these times. But while you may encounter these payment processing challenges this year, you can handle them by following the right strategies and looking into what works best for your business. 

Start by choosing the right merchant account provider and everything else becomes a lot easier.