Card not present transaction has become the new trend in the ecosystem of payment. Standing in the 21st century, we must embrace technology. Otherwise, we will not be able to prosper. In fact, businesses across the globe are flourishing with the help of technology and if you are still sticking to the old and primitive business strategies, you are actually making a mistake. People are carrying credit cards and debit cards. Therefore, it is very hard to see cash transactions nowadays. Moreover, if we consider the present situation where COVID-19 is making a big impact on the businesses, people are maintaining social distancing. As a result, they are strictly avoiding cash transactions or any kind of transaction where touching the payment terminal is required. Ultimately, the number of card not present transaction is increasing.
Considering the present situation, it is very important to understand the card not present transaction. Otherwise, you will not be able to accept credit card payments online. We at International Payment Solutions understand this very well and this is why we have elaborated the process. So, have a look at the following points:
Card Not Present Transaction
Well, card not present transaction refers to a transaction where the physical card is not required. Customers make online bill payments sitting at their homes. We have explained the process here:
The customer makes online bill payments with their credit card or debit cards. After that, the merchant processor gets the important credit card information through the online payment gateway. The payment processor checks each and every detail of the credit card transaction and after that, the payment processor passes the information to the credit card network. Then, the cardholder’s credit card brand or credit card network verifies the information and sends the details to the sponsored bank. The bank takes the final decision. If the cardholder has enough credit available to the card, the transaction gets approved. Otherwise, the bank declines the transaction.
Then, the bank sends the information to the credit card network and the credit card brand sends the same to the merchant processor. So, this is how card not present transaction gets completed. The customer does not need to present physically to make the credit card transaction. Moreover, merchants can accept card not present transaction from anywhere.
Advantage of Card Not Present Transaction
Enhance Cash Flow: Cash flow plays a vital role in the business. It basically determines the growth of your business. If you have enough positive cash flow in your business, you are going in the right direction. However, when it comes to maintaining the cash flow, card not present transaction plays a very important role. It allows the customer to pay without visiting your shop. Moreover, if you have payment terminals that support card not present transactions, you can expand your business easily. You can accept payments even from international customers. The number of sales will be increased and so, you will be able to take your business to the next level easily.
Flexibility: Well, such transactions provide enough flexibility to both the customers as well as the merchants. Customers can make a transaction without swapping or tapping. They can make a purchase from their living place. On the other side, there are several payment terminals that allow the merchants to accept card not present transactions from anywhere. We at International Payment Solutions deliver such payment equipment.
Secured: Card not present transaction is a secured way to pay bills. Yes, merchants have their online payment gateway that securely sends the transaction details to the merchant processor. Then, the merchant processor does the rest.
Increase Customer Engagement: After the arrival of COVID-19, people are facing difficulties to visit your physical outlet. But, in such a situation, you can attract your customers through your online marketplace. If your business supports card not present transactions, the customers will be able to make payments online. Thus, the overall customer engagement will be increased.
So, you have understood the importance of card not present transaction. Now, having concrete knowledge will not be enough for you. You must have payment equipment that actually supports card not present transactions. We have added such equipment below:
Online Payment Processing: You can integrate such payment terminal to your online marketplace and it lets the customers pay online using their credit cards and debit cards.
Virtual Terminal: It is web-based payment equipment. Here, the merchants have to put the credit card details manually.
Not An IPS Merchant?
If you want such payment equipment, you must become a merchant of International Payment Solutions. It is one of the best merchant processor solutions and this platform has years of experience. Therefore, IPS will understand your queries better than others. So, what are you waiting for? Get in touch with International Payment Solutions as early as possible and take your business to the next level.