The Most Common Debit and Credit Card Fraud Risks for Brick-and-Mortar Businesses

Store merchant taking cc for payment

Ecommerce has emerged as a monumental market presence, and along with it, the vast, destructive shadow world of hacking and digital fraud has evolved equally as rapidly. Neither of these trends should be overlooked by brick-and-mortar business owners, whose very livelihoods depend on addressing potential threats to their businesses. Unfortunately, it’s often the proprietors and managers of brick-and-mortar businesses themselves overlooking said vulnerabilities. And in an age of mobile payment processing and dynamic points of sale, it can be an expensive oversight.

But it’s not that these entrepreneurs are necessarily lax or indifferent about security. It’s not uncommon for a location’s management and even risk-management policymakers to invest in robust loss-prevention strategies and institute strict check-vetting and acceptance, while overlooking one of the most common, insidious, and expensive security vulnerabilities: debit and credit card fraud. Fortunately, there are some practical steps businesses can take to greatly reduce their fraud vulnerability.

 ID Checks for Stolen Cards

Stolen credit cards are one of the most common manifestations of credit card fraud. Rather than somehow electronically intercepting card information, or stealing someone’s identity (usually), the thief has come into physical possession of the card. While thieves will often use stolen cards to make card-not-present purchases online or over the phone, many will also attempt to use them for physical purchases. Generally, this is one of the easiest forms of fraud to prevent by requiring that the clerk check the ID of the purchaser.

 Dummy Card Fraud

There are two variations of dummy card fraud featuring similar scams: doctored cards and counterfeit cards. Doctored cards are popular with scammers who have actual credit card numbers but don’t have the equipment to rewrite counterfeit cards. Doctored cards are real credit cards, usually printed rather than embossed, that have had their information changed. The magnetic strip on the card is then either altered or erased so when the merchant scans the card it then fails to read it, resulting in the scammer asking that the information be entered manually.

Counterfeit cards are a variation of doctored cards. Oftentimes, if the scammer has access to the technology necessary for actually printing and encoding the magnetic strip of a credit card, they will produce new credit cards written with the stolen card number.

Brick-and-mortar business owners can curb dummy card fraud by ensuring their POS equipment is EMV (chip) compatible, as chip technology is much harder to counterfeit than its magnetic-stripe-based counterpart.

How to Protect Your Business

Technology may seem like the logical place to start when it comes to protecting your business from fraud, but the reality is, successful fraud-prevention starts with people. Employee training is key. Employees are usually both the first line of defense against fraudsters and those targeted by them. Often, just a basic level of training on spotting and avoiding fraud is sufficient to significantly reduce it. The balance most businesses struggle with for card security is being as vigilant as possible without alienating the customer. No one wants to have to share their birth certificate and utility payment processing documentation to confirm their address to buy a new electronic device. But a little security can go a long way. Simply requiring customers to show an ID that matches the card and calling a manager for any card that has to be entered manually can be enough to both prevent incidences of fraud and deter future scammers.

 About Payscout

Payscout has worked to establish the company as one of the most trusted payment processing providers in the world. Facilitating safe and convenient payment solutions across six continents, Payscout has been linking merchants and consumers with credit, debit, mobile, ATM, and alternative payment solutions. Managing payments, whether on-site or across mobile and online media, is easy with Payscout. Payscout integrates with more than a dozen software applications and also offers healthcare payment processing as well as specialization in non profit payment processing. Whatever your specific payment needs, Payscout can accommodate you with quick, convenient, friendly, and secure service.

Learn more about Payscout’s payment processing solutions at www.payscout.com

The Convenience Fee Conundrum

Working with laptop in office
Convenience Fees are an attractive solution for boosting your bottom line, but if you’re not careful, they can cost you your ability to accept payments altogether.

In the accounts receivable management (ARM) world, convenience-fee payment models are growing in popularity, and for good reason: When applied correctly, they have the ability to reduce a merchant’s payment processing costs significantly by charging the consumer or debtor a flat fee for the convenience of accepting payments online or over the phone (depending on the consumer’s/debtor’s State of residence).

What many collection agencies may not realize is that convenience-fee solutions are the subject of serious scrutiny from compliance experts (and enforcers), and if they’re not properly applied, they can cost the merchant their ability to accept payments altogether. Having their merchant accounts closed, being blacklisted, and being cut off from their banks are just a few of the potential hazards for a merchant who deploys this model without doing their due diligence.

Here is what you should consider if you’re thinking about offering some type of convenience fee solution:

Convenience Fees and Compliance

There are two layers of compliance that a merchant must consider if they are using a convenience-fee model: Operating in accordance with the Fair Debt Collection Practices Act (FDCPA), a federal law that governs the practices of third-party debt collectors, and Compliance with Card-Brand (Visa, MasterCard, American Express, etc.) rules.

FDCPA guidelines prohibit “the collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law,” 15 U.S.C. 1692f(1). However, a third-party vendor, in most cases a payment processor, can charge the fee because that vendor is not subject to FDCPA, which only applies to third party debt collectors.

Most of the payment processors who offer convenience fees are doing so in compliance with FDCPA requirements. From the card-brand perspective, however, there is a set of very specific rules pertaining to added charges such as convenience fees, Visa’s being the most restrictive, and many popular solutions are not in compliance with these rules.

Visa defines three main types of fees: Surcharges, Convenience Fees, and Service Fees, each with their own set of restrictions. In the US, a Merchant that charges a Convenience Fee must ensure that the fee is assessed as follows:

1)  Charged for a bona fide convenience in the form of an alternative payment channel outside the Merchant’s customary payment channels and not charged solely for the acceptance of a Card

2)  Added only to a Transaction completed in a Card-Absent Environment

3)  Not charged if the Merchant operates exclusively in a Card-Absent Environment

4)  Charged only by the Merchant that provides goods or services to the Cardholder

5)  Applicable to all forms of payment accepted in the payment channel

6)  Disclosed clearly to the Cardholder:

– As a charge for the alternative payment channel convenience

– Before the completion of the Transaction the Cardholder must be given the opportunity to cancel.

7)  A flat or fixed amount, regardless of the value of the payment due

8)  Included as part of the total amount of the Transaction and not collected separately

9)  Not charged in addition to a surcharge

10) Not charged on a Recurring Transaction or an Installment Transaction

It’s the fourth and eighth items in this list that can, together, compromise a merchant account quickly: Convenience fees have to appear (and be processed and authorized) as a single transaction by the merchant of record.

As you are reading this, if you’re currently deploying or considering a convenience fee model that involves running the fee as a separate transaction, you may be at risk of losing your merchant processing account.

Fully compliant programs do exist that can minimize your business risk while reducing your payment acceptance costs.

Click here to learn more.

Four Big Challenges Facing Healthcare Companies

Two male doctors in consultation at desk in office

The healthcare industry is growing increasingly complicated. Providers are often operating at the intersection of complex IT and billing solutions, competing state and federal policies, and the ever-evolving data-security landscape.

While this operational complexity can seem daunting, a recent survey has shed light on the various challenges facing the industry today, as well as issues that healthcare servicers will encounter in the future.

A 2018 Healthcare Business Strategy and Technology Survey polled the nation’s leading healthcare providers to reveal insights, challenges, and strategies related to topics such as healthcare payment processing, data security, billing and coding, and others.

Survey respondents included:

  • Healthcare collections facilities (50%)
  • Multi-location hospitals with shared service centers (25%)
  • Single location medical practices (25%)

The survey revealed the following challenges:

Payment Collections

Respondents said that patients’ inability to pay is the biggest challenge they face when it comes to revenue reconciliation. Respondents also noted that a lack of payment channels can also hamstring healthcare operations, including an absence of online payment portals, virtual assistants, or hospital staff to assist patients.

When it comes to payment processing and collections, 90% of respondents said they accept electronic payments from patients, including credit cards and debit cards as well as health savings or flexible spending accounts.

Integrating IT solutions like accounts receivable collections software into your healthcare organization can help alleviate some of the billing pains associated with patient checkout and payment collections. Accounts receivable collections software can also ensure that financial transactions are secure, efficient, and provide real-time data.

Innovative Payment Options

The survey also revealed that web payment options are increasingly important for healthcare providers. More than 60% of respondents said their institution or organization plans to add web payment options within the next 12 months.

Additionally, approximately 25% of respondents said they plan to add automated payment options to their phone system. This was an increase of 12% from last year.

Interactive voice response options, such as virtual assistants and intelligent automation, increased from last year as well. According to the survey, an estimated 50% of healthcare providers reported using or planning to adopt automated response systems, which is an increase of 7% from last year.

HIPAA Compliance

Regulations stipulated under the Health Insurance Portability and Accountability Act (HIPAA) are a big deal for healthcare providers, according to the survey. HIPAA rules are extremely complex but are intended to protect patients’ medical records and personally identifiable information. In fact, a majority of survey respondents ranked HIPAA compliance and reporting requirements as the top two factors when choosing a payment processing service.

Documentation

Although documentation practices such as coding and billing weren’t discussed in the survey, insufficient or inaccurate documentation can lead to huge headaches for both the patient and healthcare provider. An estimated 80% to 85% of denied claims stem from incorrect documentation. Essentially, insurance companies can deny claims if bills and medical records are not coded to complete accuracy.

About Payscout

Payscout is a trusted, global payment processing provider working across six continents and connecting merchants and consumers via credit, debit, ATM, and alternative payment networks. Payscout makes it easy to manage payments on-site and across online and mobile platforms. Payscout even offers customized API connections for international payment processing and integrates with over a dozen software applications. If you work in a healthcare environment, Payscout’s mobile payment processing services can help drive revenue efficiently and securely.

Learn more about the importance of payment processing systems at www.payscout.com

 

Protect Your Business with Payscout’s Check Protection and Verification Services

Close-up Of A Businessperson's Hand Giving Cheque To Colleague At Workplace

In the age of cashless checkouts, mobile wallets, and wearable payment devices, there might be a tendency to neglect some of the seemingly “antiquated” forms of payment, including good old-fashioned checks. Although many checks are submitted electronically in the form of an electronic funds transfer (EFT) or automated clearing house transfer (ACH), some people still prefer paper checks, especially when they can avoid convenience fees.

Payscout offers check protection and verification services that can complement your existing electronic payment processing system or accounts receivable collections software to ensure all of your financial operations are secure and accurate, whether you operate domestically or internationally.

Payscout services include:

Check Verification

Payscout offers a variety of check networks that allow you to evaluate the risk of a customer’s check. You can determine if the customer has any outstanding bad checks, a history of bounced checks, or any negative accounts. This service is often used by smaller retail institutions and comes with a small transaction fee.

Check Guarantee

For even greater security, Payscout offers a check guarantee service, even if the check initially bounces. You simply enter the check writer’s identifying information, and a third-party guarantee company will respond and inform you as to whether or not it will guarantee payment. If approved and the check bounces, you can send the check to the guarantee company and receive reimbursement.

Electronic Check Conversion

This service allows you to convert a paper check into an electronic transaction that is guaranteed as long as you follow required procedures. When you opt to convert a check to an electronic transfer, Payscout returns the paper copy to the original writer or they void the check and send it to the check processor. The funds are then deposited electronically into your checking account.

Electronic check conversion provides the highest level of protection against insufficient funds and can also eliminate trips to the bank as well as simplify the reconciliation process with your financial institution.

These services can help secure and streamline payment processing across sectors and even countries. For example, if you are expanding your business overseas, an electronic check conversion service is a secure way to verify that an account is open, valid, and in positive standing and streamline international payment processing options.

Check protection and verification has wide applications for the healthcare industry, too. Providers can easily enhance their existing healthcare payment processing and increase the efficiency of their accounts receivable operations. This service will help reduce the amount of time tracking down patients with bounced checks and also provide access to patients’ issuing financial institution.

Learn more about opportunities to enhance your existing payment system with check protection and verification options at www.payscout.com

Is Your Business Equipped to Handle the Holiday Shopping Frenzy?

mobile shopping - holiday look - with cc

The holiday shopping season is officially here, and consumers are ready to spend—big time—according to a recent analysis by Forbes. As consumers increasingly spread shopping experiences across multiple mediums – traditional malls, big-box stores, and online shopping and e-commerce – businesses that are equipped to accommodate the influx of online traffic stand poised to reap serious benefits.

Take a look at these holiday shopping stats:

  • Black Friday is still the busiest shopping time for storefronts, but foot traffic declined nearly 9% from 2017.
  • Consumers spent $3.7 billion online in 2018, a 28% increase from 2017.
  • Online Black Friday sales generated $6.2 billion, an increase of 23.6% from 2017.
  • Mobile devices accounted for 68% of online traffic and 54% of orders on Thanksgiving Day.
  • Mobile devices made up 67% of all digital traffic on Black Friday, a 61% increase on the same day last year.

In the age of online shopping, e-wallets and cashless checkouts, the “customer experience” is crucial. These days, consumers want and expect an expedited checkout process both in stores and online, frictionless mobile payment processing, in-cart transparency, and, of course, data security.

If your business or organization isn’t equipped to accommodate these consumer preferences, you might be missing out on both traffic and revenue.

Mobile Payments

Mobile payments refer to any transaction for a product or service that is made through an app, website, or payment processing attachment on a smartphone, tablet, or other mobile electronic devices. In most cases, payment information is encrypted for security purposes. Mobile processing differs from traditional payments such as cash, checks, or debit and credit card information that require a stationary touch screen or computer.

The expansion of mobile payment processing is driven largely by consumer demands, but it’s also easier for retailers. Moving more consumers through checkout efficiently with a mobile point of sale system can drive business in-store and provide customers with a seamless, PCI-compliant checkout experience online. As more consumers turn to online shopping, retailers that adapt to the changing market will be well positioned to capture future growth.

In-Cart Transparency

Consumers often add items to their cart whether or not they intend to buy them. This is especially true during high traffic periods, such as holiday shopping. However, Retail Dive reports that an estimated 23% of customers will abandon the items in their cart if they can’t see the total up front, including taxes, shipping costs, and delivery dates.

Retailers that can make the online holiday shopping experience easier on consumers, including securing and organizing their online carts, can reap the benefits of online shopping.

Giving Tuesday

Online shopping isn’t just for revenue-generating organizations, especially during the holidays. Giving Tuesday is one of the biggest days of the year for non profits and an important source of revenue for their operating funds.

A non profit payment processing system can help these organizations streamline donations during Giving Tuesday or any day of the year through a centralized merchant account, regardless of whether donors are online, on-site, or using a mobile platform.

About Payscout

Payscout is a trusted, global payment processing provider working across six continents and connecting merchants and consumers via credit, debit, ATM, and alternative payment networks. Payscout makes it easy to manage payments on-site and across online and mobile platforms. Payscout even offers customized API connections for utility payment processing and integrates with over a dozen software applications. If you work in a healthcare environment, Payscout’s mobile payment processing services can help drive revenue efficiently and securely.

Discover how you can leverage consumer preferences for online shopping at www.payscout.com

Payscout COO Is Recognized with Prestigious Board Position

Juan Sotelo

The Greater Los Angeles chapter of the Jefferson Awards Foundation recently honored Payscout Chief Operating Officer Juan Sotelo with an appointment as chair of their advisory board. Since joining the board in 2016, Sotelo’s commitment to altruism and innovative business acumen consistently stood out to both local and national leadership of the Jefferson Awards Foundation.

The honor would likely come as no surprise to anyone familiar with Sotelo’s career and accomplishments. His resume includes working as a mathematics teacher, serving as the sales and operations manager for tech giant Oracle, and running his own consulting services firm, JD & Associates.

In 2013, he joined Payscout as Vice President of Business Development. During his two-year tenure, Sotelo shone as a committed and creative thought leader, contributing to Payscout’s success in emerging markets like mobile payment processing. He further advanced Payscout’s success and growth by spearheading growth initiatives, internal process development, and strategic brand advancements.

In 2015, Sotelo was promoted to Chief Operating Officer. As COO, Sotelo immediately excelled in the overseeing of customer support, operations, brand development, and marketing for Payscout staples like utility payment processing.

Sotelo also helmed Payscout’s expansion into revolutionary new payment processing spaces with the establishment of their virtual reality (VR) payment application. This application can be used to aid non profit payment processing and encourage donations.

When not busy changing the face of the payment industry, Sotelo also works as the Managing Partner and President of the production company Film Antics, which has released over 20 films, including a feature film, under his leadership.

While his career and financial ingenuity are quite impressive, there was another characteristic beyond those skills and accomplishments which stood out to the people at the Jefferson Awards Foundation. Sotelo’s engagement in humanitarian work, particularly with youth, contributed to the chairmanship.

Plaudits from an organization as respected, significant, and influential as the Jefferson Awards Foundation is no easy feat. The foundation was established in 1972 by former First Lady Jacqueline Kennedy Onassis, U.S. Senator Robert Taft, Jr., and longtime public servant Sam Beard as the American equivalent of a Nobel Prize for public and community service. Since then, its awards recognizing those who’ve made strides in volunteerism and public service have been given to several Presidents and Vice Presidents of the U.S., Supreme Court Justices, generals, Senators, and the top business leaders, humanitarians, artists, performers, journalists, and athletes in the country.

Learn more about Payscout’s innovations and user-friendly platforms, at www.payscout.com

Is the Wallet Card the Credit Card of the Future?

Cashier holds terminal for cc transaction

If you haven’t heard of the Wallet Card yet, chances are you will soon. Unveiled in early 2018 by Dynamics and Visa, the Dynamics Wallet Card™ has been generating an impressive amount of buzz. It’s been written up in numerous articles and has won several awards. One of those was the 2018 Best of Innovation Award at the Consumer Electronics Show in Las Vegas, widely considered the consumer electronics industry’s most prestigious award. It’s the first time a payments consortium has won it.

That’s a lot of exposure and expectation for any new product or technology. All too often, products that are subject to that much hype wither away into obscurity under the glare of that much scrutiny and anticipation. So what is the Wallet Card and will it be the “next big thing” in consumer finance?

What the Wallet Card Is and Does

The Wallet Card has the capacity to be all of your payment cards: debit, credit, pre-paid and one-time use, even branded loyalty and gift cards, all in one. A digital display and two-button interface allows users to toggle between accounts and cards instantly.

So how will this impact international payment processing? Only time will tell. But with partnerships with leading banks and communications corporations all over the globe, the Wallet Card is being billed as a virtually universally-accepted form of payment.

The Wallet Card is linked to the internet of things with both a cell phone chip and antenna, which is said to allow it to communicate with and transfer money between the user and their bank anywhere on the planet, at any time.

That connectivity also means the instant issuance (and registration) of new cards. For instance, after the deletion of a compromised card number, one could expect near-immediate reissuance of an uncompromised card.

Robust security and instant reissuance could certainly prove a selling point, as almost 50% of cardholders in the U.S. have to have at least one card reissued every year. And conveniently, all of that tech is powered by a self-charging battery, which means no loss of payment method at inconvenient times or daily charging.

Is It Going to Replace Plastic as We Know It?

Perhaps unsurprisingly, there’s considerable disagreement on the answer to this question from those predicting the future of commerce and finance. One camp, those skeptical of the Wallet Card’s future status as the revolutionary smart card, has pointed out that mobile digital wallet platforms already exist. There is any number of digital wallets available as apps or built-in features of smartphones that can do most everything the Wallet Card does, and they’ve been around for a while.

Wallet Card proponents counter that existing digital wallets don’t enjoy anything like universal acceptance from vendors, particularly since so many of them rely on near-field communication (NFC) to transmit payment info. Additionally, the Visa-branding and support from global financial heavyweights should guarantee the quality, consistency, security, and acceptance of the Wallet Card.

Even those who doubt that the Wallet Card is going to become the end-all, be-all of mobile payment solutions admit, however, that at the very least it will have niche appeal. People will appreciate that it doesn’t need to be accessed or managed through an app, and doesn’t have to be charged.

Regardless of if the Wallet Card takes off or fizzles out, it’s important to work with a global payment processing provider you can trust for everything from healthcare payment processing to international payment processing. Payscout is an international payment processing solution provider who can help entrepreneurs and domestic U.S. merchants navigate complex compliance solutions. Beyond processing payments on six continents, Payscout offers a wide array of financial solutions, including their mobile web portal, Condor, which facilitates bill-payment transactions.

About Payscout

One of the most respected, successful, innovative, and forward-looking thought leaders in the financial services industry, Payscout has consistently earned their way onto lists of America’s fastest-growing private companies every year since 2014. Among the state-of-the-art suite of user-friendly tools they offer is their lauded accounts receivable collections software. All of which works in service to their mission statement, “Payscout supports the entrepreneurial dream one transaction at a time.”

Discover how to grow your business at www.payscout.com

Payscout specializes in providing best-in-class payment processing solutions for the ARM industry

Back to back laptops with light & pencil cup

Payscout specializes in providing best-in-class payment processing solutions for the accounts receivable management (ARM) industry. These solutions have helped Payscout’s top ARM clients grow more than 33% year-over-year.

Payscout, a leading payments innovation company, provides solutions that power entrepreneurs in a myriad of industries, from retail, non-profit, money services businesses (MSB), and even marketplaces.  One of the verticals in which Payscout’s partners thrive is the accounts receivable management (ARM) industry.  Accounts receivable, as a whole, plays a critical role in a credit-based economy.  The entrepreneurs who support the system provide reliable, efficient payment mechanisms to enable frictionless debt payments.

The reason Payscout’s ARM partners thrive is because their technological solutions are built on Integrity and Trust, Reliability, and Innovation.  In the ARM space, innovation enables more efficient payments, and as a market-leader in innovative payment solutions, it’s no surprise Payscout’s partners continue to thrive.  Payscout’s helping their top partners in the ARM space grow by over 33% a year.  Are you ready for that kind of growth?

Contact Payscout today for your free rate analysis and to learn more about our ARM solutions!

Topics: Global eCommerce, Credit and Debit Card Processing, ARM

Will We See a Cashless Society? The Pros and Cons

Small business owner with terminal and customer

For a lot of people, it can feel as though they’re participants in a cashless society already. Their paychecks are direct-deposited into an account from which bills are automatically debited. They also regularly make payments (in-person and online) without ever handling cold-hard cash.

Virtually every business accepts plastic, and you can slide or insert a card to buy a candy bar on almost any new vending machine. And with the ubiquity of mobile payment processing devices plugged into cell phones, you could likely buy from four different vendors at the local farmers’ market without ever touching paper money.

That being said, our society is anything but cashless. Most people still carry cash, use cash, and take it for granted as a still-relevant staple of societal financial interactions. But as common as cash remains, the technological, societal, and even global trend has certainly been moving steadily into a more cash-free space. So will we see a cashless society in our lifetime? And perhaps more importantly, do we want one?

The Benefits of a Cashless Society

A number of the benefits of a cashless society are already apparent. We buy virtually anything we need or want from anywhere on the planet where people sell things online, and we do so with the click of a button. Furthermore, many of us haven’t sat down with a stack of bills, stamps, and envelopes to send out checks for bill payments in years.

There’s no question that digital transactions make commerce more convenient. To some degree, cashless commerce forces transparency and accountability for the payer and the paid. Electronic payments are recorded in perpetuity to the cent. It’s not just a matter of dishonesty or theft. Even something like by-check utility payment processing still relied on a series of people physically moving, sorting, collecting, and processing the check. And as people are only human, occasionally mistakes or outright errors are made. Indeed, utility payment processing has come a long way, and with payment processing improvements, left a lot of human error by the wayside.

The Drawbacks of a Cashless Society

The footprint left by digital payments remains an accessible, permanent record that a transaction was made, which is great for most people making them. It is not great for people who’d prefer their financial transactions weren’t being tracked and recorded. But that can be good for society in general. For instance, a cashless society would make illegal and dangerous transactions more difficult, or at least easier to track and uncover when they did occur.

While that may sound more like a benefit than a drawback (and it is), criminals aren’t the only people with an interest in transactions that aren’t tracked, recorded, and linked to them. Without going into detail, there are any number of products and services that are personal, sensitive, medical, etc. that people have perfectly good reasons for wanting to keep private.

Will We See a Cashless Society?

Cash does have some undeniable benefits beyond discretion for the spender. It’s immediately available and virtually universally accepted. It’s also convenient for person-to-person transactions, and has gained popularity for larger transactions like securing a quick-close on, and lowering the price for, a house. And there are some people who simply want to keep their assets liquid, physical, and under their direct control.

So, will we see a cashless society in our lifetime? It is possible. Despite the trend toward more plastic and digitally-stored currency, cash is still very much a feature of our society and culture. We will, undoubtedly, continue to see an increasingly cashless society, but it will be a while before hard currency is phased out entirely.

About Payscout

One of the most respected, successful, innovative, and forward-looking thought leaders in the financial services industry, Payscout has consistently earned their way onto lists of America’s fastest-growing private companies every year since 2014. In addition to their non profit payment processing, Payscout’s state-of-the-art interactive user platforms continue to serve their mission statement, “Payscout supports the entrepreneurial dream one transaction at a time.”

Discover how to grow your business at www.payscout.com

How Payscout Is Committed to Making Payment More Secure with Tokenization

Young Smiling Business People At Work In Office. Portrait Of You

Payscout has long been committed to driving and supporting innovation in the payment processing industry. Much of that innovation has been dedicated to payment platforms (including those in revolutionary new channels like virtual reality) and establishing the most user-friendly suite of global payment processing tools.

However, they recognize that as important as those advances are, the most cutting-edge services and intuitive tools in the international payment processing space are not of much use to consumers and partners if they aren’t secure. It is that understanding that has inspired them to develop security measures, like Tokenization, as trustworthy, advanced, and dependable as their payment processing solutions.

The Tokens

It turns out that the best way to protect information from hackers and cyber-criminals is to remove that data altogether. No one can steal, destroy, damage, or compromise what isn’t there. Of course, previously this strategy suffered from a pretty significant drawback: eliminating payment data from a network meant that while the malicious and criminals couldn’t find it, neither could anyone else.

Enter Payscout’s Tokenization security system. Tokenization works by taking even the most sensitive payment data, like healthcare payment processing records, and replacing that data with a different, unique identifier, the token. Those tokens are pieces of data generated by proprietary algorithms that are mathematically impossible to reverse.

For instance, if hackers managed to break into the accounts receivable collections software of a participating merchant working with Payscout, they would only have access to the tokens. Although the tokens had replaced the payment card data, they would retain none of the information that was of any use to the intruder, being entirely meaningless to hackers.

The Customer Vault

The data that the token has replaced hasn’t been deleted or destroyed. To ensure that merchants still have access to sensitive payment data without having to store it, as is, on a local database with an unknown level of security, Tokenization is paired with the Payscout Customer Vault.

Information replaced by a token is transmitted through a Secure Sockets Layer (SSL) connection to the Customer Vault. The Customer Vault itself is a Level 1 PCI-certified Payscout data storage center operated by Visa, making it just about the digital equivalent of Fort Knox. The tokens with which the sensitive data have been replaced usually incorporate the last four digits of the card the payment was made with, allowing an accurate and predictable matching of the token with the secure data.

Perhaps most conveniently, the token isn’t just an inert stand-in for sensitive payment data. Tokens support the same payment actions and checkout models as the actual cardholder information would, and the merchant can initiate transactions remotely without risking access to the card’s number or other private information. Practically, it means that Payscout offers their partners exceptional safety and security without sacrificing convenience.

Learn more about Payscout’s innovations and user-friendly platforms, at www.payscout.com