Unlocking the Secrets to a Great Payment Vendor Partnership: A Discussion Featuring Forrester’s Lily Varon and CSG’s Jeff Kump
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To stay ahead of the competition, businesses must constantly seek partnerships that can propel them to new heights. One of the most important partnerships a company forges is with its payment platform provider. Choosing the right payments vendor sets the foundation for innovation, reliability and strategic prowess.
How do businesses know when they’ve gotten the payments partnership right? Jeff Kump, CSG Forte president, and guest speaker Lily Varon, Principal Analyst at Forrester dug into that question in a recent webinar, “What Good Looks Like: Making Payments Your Competitive Advantage.” They delved into the nuances that elevate a good payment vendor to greatness and offer insights into forging a partnership that stands the test of time.
Lily and Jeff discussed how companies can harness the payments process as a competitive advantage, explored various operational and technical aspects of payments systems. They also explained customer expectations and how to improve the customer experience.
Good vs. Great
A great payments vendor distinguishes itself by creating solutions that are efficient and intuitive, Lily explained. End users are looking for seamless transactions from service platforms that combine technology with user-centric design, creating a system where every feature resonates with the needs of the business as well as the customer.
When a vendor is good, they understand the strategic value of providing insights into payments and they’re making sure their platform is up to speed, Lily said. “Their payment optimization story is more than just the transactional piece,” she added. “But when we think about greatness, I think it is about becoming a strategic partner to their merchants and positioning themselves in that capacity.”
Payment vendors in today’s market can position themselves as visionaries that anticipate market trends and adapt swiftly. Consumers expect the businesses they’re buying from to do the heavy lifting for them, including mitigating fraud risks, without any friction or barriers to payment.
The New Customer Expectation: Forgettable Payments
Jeff gave the example of innovation in the rideshare experience that sets a standard of a “forgettable payment” and a better experience. “I think that does reset the expectation of the consumer of, ‘I don’t need to think about the payment. You have my information, you take care of it, don’t bother me.’”
“I love that ‘forgettable payment,’” Lily responded, “because—it almost feels sacrilegious as a payments nerd to say it—but we call payments the invisible invaluable for that very reason.”
“When a payment goes right, no one cares because it’s just embedded into the experience,” Lily continued. “But when it goes wrong, it’s the end of the world, right? The stakes are high.”
Creating a user-centric payments process can be a strategic advantage for businesses. It highlights the importance of optimizing payment processes to enhance customer experience and drive business growth. Lily explained that customers today expect a “rideshare kind of payment” from every vendor they work with.
“The last best customer experience that your customer has, regardless of where they have it, is the baseline of what their expectations are for their next experience,” Lily said. “So, this seamlessness of a rideshare kind of payment, it is still important for utility companies and insurance companies and public sector companies to recognize that the citizen or the member, the customer that you are serving is experiencing the seamlessness of these transactions elsewhere in their lives, and that is informing their expectations.”
As payment vendors strive to achieve greatness in their solutions, they can leverage emerging technologies such as artificial intelligence (AI) to enhance their offerings. AI can help payment vendors improve the speed, accuracy and security of their transactions, as well as provide valuable insights for their partners. “AI is transforming payments,” Jeff said. “It’s helping us do things better, faster and smarter.”
“Where we see AI, for example, in payments isn’t in the generative AI, customer-generated content. It’s about helping their payment partners be better for their customers,” Lily said. “It’s about navigating insights, navigating the report and using natural language to query data sets to get answers more quickly.”
The Quest for Quality Solutions
Quality is the cornerstone of a great payment vendor’s offerings. One sure way to ensure greatness, Lily said, is to make sure your company excels at the basics before adding the latest bell or whistle.
“Sometimes when people ask me about the future of payments, or what’s hot and new and exciting in payments, the answer sometimes is… a little bit less exciting than they might imagine,” she said. It’s still important and strategic to figure out what payment methods customers want to be using, she added, but “at the end of the day, customers want to achieve their goals. They want better shopping experiences, or better experiences, full stop. Not necessarily better payment experiences.”
The relationship between a business and a great payment vendor is a partnership of equals. It is a collaboration built on mutual respect, shared goals and an unwavering commitment to growth. A great vendor invests time in understanding the unique challenges and aspirations of their partners, crafting bespoke solutions that align with their strategic objectives.
Businesses looking for quality solutions should look for partners that can “help them optimize the [customer buying] experience on that front end, validating before the transaction to help them ensure that transaction is good,” Jeff said. “And then, on the back end, being able to help them if a transaction is declined, with retries.”
When embarking on the journey to find a great payments vendor, companies looking to provide a streamlined experience should consider the following:
Strategic alignment: Seek a vendor whose vision aligns with your business goals and who can provide strategic guidance to navigate the payments ecosystem.
Customer-centric approach: Choose a vendor that prioritizes the customer experience, ensuring that every interaction is a positive reflection of your brand.
Compliant and secure: Ensure that the vendor has a strong track record of compliance, security and platform stability, safeguarding your business and your customers’ data.
Great payment vendors are more than just service providers; they’re catalysts for transformation. By focusing on innovation, quality, and strategic partnership, businesses can unlock the full potential of their payment solutions and thrive in the dynamic world of finance.
How Can ACH Payments Simplify Payments for Property Managers?
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As a property manager, dealing with late rent payments, manual processing and human errors each month can be frustrating and time-consuming. Luckily, digital payment options can ease many of these burdens by providing your business and its tenants with streamlined payment collection solutions that offer enhanced security, traceability and convenience.
Automated clearing house (ACH) payments are becoming an increasingly popular option among property managers and landlords—and for good reason. These systems effectively simplify how your business facilitates taking payments, providing better experiences for your renters. Explore the key advantages of leveraging ACH payments below.
Using ACH for Rent Payments
An ACH payment is a type of electronic funds transfer (EFT) that allows users to send and receive money electronically between bank accounts. ACH is especially useful for property managers and landlords to simplify how they facilitate payments associated with their rental properties.
ACH transactions can optimize property management payment processing for various types of transactions, including the following:
Rent collection
Contractor fees
Security deposits
Utility bills
Homeowners association (HOA) dues
Benefits of ACH Payments for Property Managers
Property managers can deal with a high volume of monthly transactions, and leveraging ACH can help them manage payments more effectively. Explore some of the key advantages of using automated clearing house payments for your business.
Enjoy Cost Savings
As a landlord or property manager, processing paper checks for your tenants can quickly become expensive. ACH payments offer a cost-effective way to collect rent payments and security deposits. Streamlined payment processing means fewer labor costs associated with collecting and correcting renter transactions. Your business also does not have to deal with hidden fees.
Save Time
Another key advantage of using ACH is saving significant time each month. Collecting, processing and depositing rent checks can require hours of manual labor every week. ACH payments automate the fund transfer process, enabling your team to save time and energy you can spend on other essential management tasks.
Boost Cash Flow
By providing renters with convenient recurring payment options, you can enjoy a more predictable income stream and better cash flow management. Automation helps reduce administrative and transaction costs, helping your business improve profits. ACH payments also streamline debt collection efforts, making recovering overdue or returned payments faster and more effective.
Improve Tenant Relationships
Landlords and property managers can improve their relationships and reputation with their tenants by offering ACH payments. These systems provide renters with increased convenience, predictability, flexibility and security, making monthly rent transactions easier than ever. You can support improved satisfaction and a positive rental experience for your tenants.
Simplify Reconciliation
ACH payments also support easier reconciliation processes by providing the following:
Detailed transaction information
Automated recordkeeping
Real-time updates
Fewer human errors
Audit trails
With more accurate and accessible financial reporting through ACH transactions, you can enjoy streamlined property management processes.
Benefits of ACH Payments for Renters
In addition to benefiting landlords and property managers, ACH payments are advantageous for tenants looking to simplify how they pay their monthly rent. The following are some key perks of leveraging ACH transactions for your renters.
Cost-Effectiveness
ACH payments come with few or no processing fees for renters. These payment solutions are typically more cost-effective than other common money transfer methods, such as paper checks. Most financial banking institutions require customers to pay for physical checks, a cost that adds up over time.
ACH costs are also significantly cheaper than processing paper checks, which can be subject to a range of internal and external fees, from network processing to postage expenses.
Convenience
Making ACH payments is very convenient for your tenants. When using ACH, property managers can make it easy for tenants to set up recurring rent payments. Tracking ACH payments is also a huge benefit. Your renters don’t have to worry about a physical check getting lost in the mail or arriving late. They can view their transactions online and ensure you’ve received their money. Offering convenient, automated ACH payment options can increase the likelihood of renters making on-time payments.
Greater Security
Another advantage for renters using ACH payments is enjoying safer money transfers. The ACH system is a government-established solution and must meet strict federal regulations for online payment security.
Nacha, which is the organization that oversees the ACH network, offers additional risk management services to protect these digital transactions and combat fraud.
Flexibility
Today’s renters want flexibility. Making ACH payments allows them to schedule their payments in advance and leverage automatic recurring charges, giving them greater control over their finances and peace of mind. Your tenants will also appreciate being able to pay via the methods most conducive to them and their preferences.
Fewer Errors
Human error can complicate rent payments. Whether they accidentally enter the wrong account number or payment amount as they complete their monthly rent transactions, a minor mistake can lead to late fees and headaches. An ACH payment solution lets them enter and authorize their banking information once, ensuring accuracy. Then, they can rely on automation to facilitate correct, on-time payments.
How to Set up ACH Payments for Rent
The best way to set up ACH payments for renters is to work with a trusted payments provider, like CSG Forte. We have extensive experience in the property management industry, and our platform makes accepting ACH payments from your tenants simple. We understand the importance of receiving rent payments on time to protect your bottom line.
CSG Forte will improve your payment processing and deliver outstanding data privacy and security, so you can feel good knowing your renters’ information is safe. We’ll help you streamline your administrative processes while reducing late payments and fraud.
Contact CSG Forte to See Our ACH Platform in Action
Property managers and landlords can easily capitalize on ACH payment processing with CSG Forte.
Give your tenants an easy, secure way to pay their rent and receive your payments on time every month. Our platform makes tracking funds and managing transfer confirmations simple. It offers access to over 20 banking institutions and enables same-day payment options for remarkable convenience for you and your renters.
Are you interested in learning more about our one-stop shop for payment processing? Contact CSG Forte to get started today.
What’s a Payment Channel?
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Today’s consumers have tons of options when paying for goods and services. From pulling out cash to quickly tapping a phone or credit card near a terminal, payment methods have expanded to include an array of choices, each with its own perks and drawbacks. Offering these different methods of payment—also known as channels—creates benefits for businesses and customers. Before you set them up, you’ll need to know the difference between channels and how to implement them in your organization.
What Is a Payment Channel?
A payment channel is any way a customer might make a payment or anywhere that you, a merchant, might accept a payment. A payment channel includes a payment method, such as a debit card or a bank account, and the technical infrastructure that allows businesses and financial institutions to verify transactions and send funds. The infrastructure might include steps like securely sending card information entered into a website or checking the transaction for potential fraud.
Retail channels are a similar yet distinct concept. Retail channels cover different ways people can shop, like brick-and-mortar stores, catalogs and online shopping sites. Payment channels are generally related to these retail channels but are more specific to how people make payments. They correlate to retail channels but leave some room for overlap.
For example, at a brick-and-mortar retail channel, you might process payments on a physical point-of-sale (POS) system—a cash register—as well as on smartphones or tablets within the store. Your catalog might accept payments by phone but also integrate into an omnichannel approach. Customers could walk into your brick-and-mortar store to pay at the POS, or they could shop the catalog online and pay via online checkout.
Payment and retail channels closely relate to each other. Since you definitely want to create a cohesive, omnichannel experience, it’s essential to consider what payment channels you might implement. Some of the most popular options include:
Physical POS Systems
Most brick-and-mortar stores have a POS of some kind. These systems allow businesses to take in-person payments such as credit and debit cards, cash and checks. A physical POS can use more traditional technologies as a standalone system, but mobile POS systems are also common. A mobile POS uses devices such as smartphones and tablets to process payments, often with attached card readers. This option works well for businesses looking for easy-to-implement tech or for those on the move, such as field service providers.
Phone and Interactive Voice Response (IVR) Payments
Payments made over the phone can come in one of two varieties. The traditional approach involves talking to an agent to communicate payment details and share card information. An alternative to these contact center payments is to use IVR to walk customers through the process without needing to talk to an agent. The customer can enter specific numbers or say certain words to make the payment. Both methods are popular with service businesses and recurring payments.
Online Checkout Solutions
Online checkouts can come in many forms for everything from e-commerce and subscription services to rent and utility bills. They might integrate features for managing shopping carts, storing the customer’s information for next time or setting up automatic payments. Supported payment methods might include credit and debit cards and Automated Clearing House (ACH) transactions. ACH is the system used to electronically transfer funds between bank accounts and process electronic checks in the United States.
Contactless Payments
Many cards now have integrated chips with near-field communication (NFC) technology. A compatible POS system allows customers to tap their credit or debit card to make payments. Digital wallets like PayPal and Apple Pay can also use NFC technology to facilitate card payments and bank transfers. You’ll find these wallets integrated with online checkouts and supported by physical POS systems, which can collect payment data wirelessly from a user’s smartphone or watch.
The Benefits of Multiple Payment Channels
In a competitive landscape, offering convenience and choice can make a big difference in where your customers shop. Credit cards and debit cards are by far the most popular payment methods at the point of sale, but analysts expect digital wallets to become much more common. However, payment preferences can vary widely by industry, geography, customer demographics and other characteristics.
By offering a range of options, businesses and their customers can reap several benefits, including:
A Better Customer Experience
With more choices, customers can make payments how they want. These methods often come with unique advantages. Cash doesn’t have any processing requirements or fees, while credit cards can offer rewards and fraud protection. Online or over-the-phone payments are convenient and fast.
With multiple options, customers can pick the right one for their situation. From a business perspective, a better customer experience from payment channels can make it more likely someone will make a purchase with you or reduce the liklihood that their payment will be late.
More Sales Opportunities
Different payment channels can create new sales opportunities. Taking online payments can help a local shop reach customers worldwide, while a POS could help a storefront business take payments from customers who don’t typically carry cash.
Flexible payment options can also help customers make payments on time, allowing businesses to maintain steady cash flow.
Additional Features
Some payment channels support useful features. For example, online checkout systems can help customers set up automatic recurring payments, which you can’t do with cash payments. Online checkouts also offer branding opportunities. You could even create email or SMS text message payment channels by including a link to an online payment platform in emails and SMS text notifications.
Payment Channel Security and Compliance Considerations
Protecting customer information and meeting regulations is crucial for any organization collecting payments. Most payment channels use different technological infrastructures, so you’ll need to pay attention to security and compliance requirements. Make sure your solutions follow best practices for technology standards and protocols, like end-to-end encryption, tokenization and fraud prevention methods.
Depending on your industry and the payment channels you use, look for solutions that meet the Payment Card Industry (PCI) Data Security Standard (DSS) and the Health Insurance Portability and Accountability Act (HIPAA). Working with a member of the Nacha Preferred Partner Program can help ensure security with ACH transactions, too.
How to Set up Multiple Payment Channels
Setting up multiple payment channels might sound complex, but a merchant service provider and a unified payment platform simplify the process. Here at CSG Forte, we use the Dex Payments Platform, a comprehensive solution for payment processing. Dex integrates with various online, in-person and phone payment systems for simplified management and various tools to meet customer needs.
Your team can integrate this highly customizable platform with application programming interfaces (APIs), or you can work with our experienced team to implement channels for your business. We can also help with hardware requirements.
CSG Forte offers full payment processing support for the following channels:
Physical POS: We can help build a physical POS solution and supply the tech, including card readers and our Virtual Terminal that turns existing computers into instant workstations. Our POS systems are PCI-validated with point-to-point encryption for extensive security.
Phone/IVR: Our phone and IVR services come with your own toll-free number and script-building assistance. Touch-tone and speech-recognition technology can help you build a great customer experience. We also have solutions to streamline and secure payments received through your contact center.
Online payments: Our robust online checkout solution is smart, speedy and stocked with options. Accept credit and debit cards and ACH payments, and allow customers to pay through your app or other platforms through robust APIs.
You can accept both credit cards and electronic checks on any of these channels, and each channel comes with our cloud-based Virtual Terminal for transaction management and our powerful payment gateway services. All of the reports funnel into the Virtual Terminal, so you don’t have to worry about piecing things together on your own.
These payment channels don’t necessarily have to correlate only to retail, as well. For example, government agencies could implement online payments to accept taxes on the web and leverage a POS system for in-office payment collection.
Payment Channel Solutions for Your Business
Whatever your industry, diverse payment channels can transform your approach. Expand options for your customers and your business with simplified payment processing. And what’s easier than setting up all of your channels with one company? Get started with CSG Forte today. Give us a call at 866-290-5400 to see what we can do for you.
What Are ISV Payments?
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In today’s software market, keeping pace with the competition is critical—particularly for the growing number of independent software vendors (ISVs). ISVs must continuously look for ways to add value to their products and set themselves apart to drive business growth. Integrated payment solutions help ISVs achieve these goals by keeping incoming payments in one place instead of using potentially risky third-party platforms.
Integrated payment processors offer the payment methods that ISV customers and end users want. This variety of payment options enhances the customer experience and ensures a seamless payment journey by providing flexibility and convenience during checkout.
What Is an ISV?
An independent software vendor is a company or individual that develops and sells software products designed to run on third-party platforms or operating systems. ISVs create applications, programs and other solutions independent of the platforms on which they run, such as Microsoft Windows, macOS or mobile operating systems like iOS and Android. Many ISVs specialize in specific software products or services geared toward niche sectors or industries like healthcare, finance, government, property management or retail.
ISVs play a crucial role in the software industry by providing innovative solutions tailored to various needs, from enterprise resource planning (ERP) and customer relationship management (CRM) systems to specialized analytics and accounting tools. These solutions can be desktop applications, mobile apps, cloud-based services or embedded software for devices.
What Is an Integrated Payment Solution?
Integrated payment solutions allow end users to make payments directly within a software application without using external gateways or third-party payment platforms. This capability enables users to complete a purchase or transaction seamlessly within the same interface instead of being redirected to a different website.
More importantly, integrated payment solutions add layers of security, helping protect businesses and end users from data theft or loss of funds.
Why Do ISVs Need Integrated Payment Solutions?
The absence of integrated payment solutions could impact customer satisfaction, hinder sales growth and put ISVs at a disadvantage in a competitive market where user convenience is crucial. The absence of integrated payment solutions can influence the end-user experience, as many customers prefer a seamless payment option directly within the software they already use.
Without integrated payments, end users often need to go through a cumbersome process to make payments externally, leading to a higher likelihood of abandoned purchases due to inconvenience or security concerns. These actions can result in lost sales opportunities and reduced revenue. Additionally, relying on third-party payment gateways can introduce complexities in managing transactions, potentially leading to errors, delays or security vulnerabilities.
CSG Forte’s integrated payment platforms help ISVs in several ways, including:
Ensuring compliance with Payment Card Industry Data Security Standards (PCI-DSS)
Reducing exposure to sensitive payment data
Creating automated billing options for subscriptions
Managing payment disputes or chargebacks
The Benefits of CSG Forte’s ISV Payment Integration
CSG Forte has many years of experience working directly with ISVs and providing integrated payment solutions tailor-made for specific applications. ISVs that utilize our payment solutions benefit from:
Increased security: Integrated payment solutions mean fewer people will access an ISV’s most sensitive financial information. These solutions minimize manual entry, making them less vulnerable to interception or theft. CSG Forte payment platforms also contain safeguards like encryption and tokenization that make storing valuable data safer.
Fewer errors: Miscalculations can lead to accounting issues and inaccuracies in revenue reporting. Integrated payment platforms minimize these problems by preventing duplicate transactions and automatically distributing processing data to the appropriate destination.
Revenue optimization: Integrated payment solutions enable ISVs to complete transactions faster. This benefit can help increase cash flow, allowing ISVs to improve profitability and foster more productive relationships with end users.
Streamlined operations: With an integrated payment platform, ISVs can increase efficiencies in their accounting functions, eliminating the need to reconcile transactions and enter information manually.
Improved customer satisfaction: Efficient transaction processing is critical to user satisfaction and whether customers decide to return for future business. Lengthy processing or unfamiliarity with a payment system can sometimes lead to abandoned transactions. Integrated payment solutions help increase successful sales rates by eliminating many time-consuming factors associated with third-party payment platforms.
Scalable integration: At CSG Forte, we can design an integrated payment solution to grow alongside an ISV’s changing needs. Our award-winning application programming interfaces (APIs) enable software to seamlessly connect to the payment processor and perform all essential tasks. The processor can accommodate changes in the ISV’s customer base, product offerings and sales volume without requiring significant adjustments or disruptions.
Why Choose CSG Forte for ISV Integrated Payments?
At CSG Forte, we strive to help ISVs drive business growth quickly, efficiently and profitably by providing top-class integrated payment solutions. Our cloud-based payment solutions combine seamlessly with existing software by leveraging superior technical expertise and decades of combined experience. Our solutions deliver everything ISVs require to complete and manage payment transactions 24/7 from any location.
With increased visibility into your payment processes, you can change payment methods, grant refunds, cancel charges and address other end-user requirements. You’ll also benefit from comprehensive customer support for all your operational needs, from around-the-clock assistance to self-service options.
Discover More With CSG Forte
If you’re an ISV and want to learn more about how our integrated payment solutions can benefit your business, the experts at CSG Forte can guide you. Discover why businesses across an extensive application range choose us first for secure, efficient payment platforms that integrate seamlessly into their software. Contact us today to get started.
Decreasing Late Rent Payments With Automated Collections
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As a property manager, one of your top priorities is collecting rent from your tenants on time. This process can be tedious, leaving you to wait for checks in the mail and follow up with tenants about missing or delayed payments when something unexpected comes up.
Fortunately, receiving and keeping track of rent payments doesn’t have to be difficult. By digitizing and automating rent payments with the right solution, you can easily collect rent every month, decreasing the chances of late payments and giving your tenants a more straightforward way to pay.
Why Leverage Automation in Property Management?
In today’s digital age, many aspects of running a business can be automated—including some of your property management processes. No matter if you want to send out automated reminders to tenants or automatically process maintenance requests, you can find a solution that helps you do just that. As a result, you and your team can provide tenants with quick answers and assistance, all while you free up time to focus on more complex tasks throughout the workday.
How to Automate Rent Collection
One of the best ways to use property management automation is to automate rent payments. With a flexible rent payment platform, tenants can pay their rent in a way that best suits their needs, whether they want to easily pay online each month or schedule automatic monthly bank account withdrawals. This gives tenants the freedom to pay rent how they want, and you enjoy greater peace of mind that rent will be collected consistently and on time.
Generally, automating rent collection is a matter of setting up Automated Clearing House (ACH) processing through your preferred solution. Once you receive a tenant’s consent and they provide you with their bank account number and bank’s routing information, you can enable the system to automatically remove the specified amount from their bank account when rent is due. The system will transfer that money to your preferred bank account within a few days, typically sending your tenant an automated email or text message receipt once complete.
Top Benefits of Recurring Payments for Property Management
When you set up recurring rent payments, you save yourself and your tenants a lot of hassle. On the date rent is due, the system takes care of everything, allowing both parties to avoid the consequences of a missed payment. Explore a few key ways you and your tenants can benefit from a reliable payment processing system.
1. Fewer Late Payments
A late payment can mean several issues for your business—you need rent on time and in full to keep your business running, and payments coming in days or weeks late negatively impact your operations. Plus, you want to avoid wasting time trying to get ahold of tenants and reminding them their rent is due, especially as late rent payments can be subject to tenant laws.
Through an automatic payment solution, you can make it easier for tenants to pay rent on time because they don’t have to remember to send a check or manually pay online. As a result, they can confidently know their rent is transferred to you each month—avoiding potential late fees—and you can experience fewer late payments.
2. Easier Documentation Process
If you manage several properties with numerous tenants, manually documenting rent collection can be highly complicated and time-consuming. Keeping track of receipts, invoices, statements and other financial documentation becomes a headache for your team without a reliable system in place.
Simplifying rent collection via an automated solution can make record management easier. The right payment platform can provide transaction information, reporting and analytics, and other essential financial details to help you stay on top of rental payments—all kept in one convenient, accessible digital environment.
3. More Secure Experience
Sometimes, collecting rent manually—particularly through paper checks—can be an unsecured process. For example, say you provide a mailbox for tenants to drop off their rent checks every month. If someone unassociated with your management business gets into that box, they could gain access to highly sensitive tenant information.
Protecting your tenants’ personal details is a central part of your job as a property manager. If current or prospective tenants can’t trust your team to securely handle payment information, they’re likely to leave and rent elsewhere. Choosing a secure rent collection platform creates a safe payment experience with features like end-to-end encryption and tokenization, so your tenants can feel confident their data is safe.
4. Greater Convenience
Today, consumers everywhere use digital payments for a variety of expenses, whether they’re shopping for clothes online or paying for a service. This convenient process makes it quick and easy to pay with a preferred debit or credit card or through an ACH transfer—no need to put a check in the mail or take out cash from the bank.
Why not extend that same experience to rent payments? No matter if a tenant schedules their rent payments for automatic transfer or elects to pay with a debit card every month, you can provide them greater convenience by offering them that option, especially because paying online is likely something they already do frequently.
5. Save Time and Effort
A reliable payment solution can make each workday easier for your team. Rather than physically collecting payments, following up about late or missed rent, and manually keeping track of payment history, you and your co-workers and employees can focus on other, more complex tasks that require your attention. Ultimately, setting up automatic rent collection can save your business considerable time and effort.
How CSG Forte Makes Payments Easy
CSG Forte offers various digital payment solutions to help your property management company simplify rent collection, including our secure and accessible ACH platform, Dex. Through Dex, you can implement ACH payment processing that improves your cash flow and creates a secure, convenient experience for your tenants. In just a few days, you’ll have your funds as expected, allowing you to keep your operations running smoothly.
There’s no need to worry about whether the system will accept a tenant’s bank—Dex provides access to more than 20 banks. Plus, setting up ACH for your tenants with our platform is easy, as everything you need is available in Dex. As a result, you get a straightforward payment processing system that makes collecting rent a breeze.
Get Started With Recurring Rent Payments Today
CSG Forte is ready to help your property management company simplify rent collection so you can receive more payments on time and ensure your business doesn’t fall behind. With over 20 years of industry experience, we can help you build the ideal payment solution for your needs.
Secure, Swift, Seamless: Why Your Customers Love Digital Wallets
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Consumers want fast, convenient ways to pay for their purchase—without digging through their wallet for their card payment details. Shoppers increasingly say they choose where to shop based on how convenient the online payments process is. One way to enhance your customer experience (CX) and streamline the online transaction process is by offering your customers digital wallets as a payment option.
Digital wallets are gaining popularity—with an expected 5.3 billion users by 2026. They’re becoming increasingly important not just for the benefits they provide customers; businesses that take advantage of this evolving technology soon will be ahead of the game—digital wallet adoption still lags among some types of merchants, despite continued increase in consumer usage.
It’s those ongoing advancements in digital wallets that are exactly why collaborating with a knowledgeable payments provider is essential for organizations that want to attract and keep customers in a dynamic online payment environment.
The Rise of Digital Wallets
Digital wallets are becoming mainstream. They’ve transcended novelty status and become an integral part of everyday life. Consider this: 79% of Gen Z consumers use digital wallets at least once a month. They’re also growing in popularity with Millennials and Gen Xers, half of whom reported using digital wallets more often than traditional payment methods in a recent Forbes survey.
So, we know digital wallets are increasingly popular. But, why?
Customers Expect Fast, Secure, Streamlined Service
Customers crave simplicity. They want transactions to be swift and secure, and they don’t want to take any unnecessary steps. Digital wallets fulfill these expectations by offering:
Fast Processing: With a few simple steps, payments are completed in seconds.
Security: Digital wallets employ robust encryption and authentication methods, providing peace of mind for users.
Reduced Redundancy: Say goodbye to repeatedly entering card details—digital wallets store payment information securely.
Why Offer Digital Wallets?
Meet Customer Expectations
Customers expect to see familiar payment options when they visit your website. Digital wallets have become a standard feature for most consumers, akin to credit cards and bank transfers. By offering a digital wallet option, you signal that your company is attuned to consumer preferences and up to date on the latest technology.
Increase Trust and Security
Trust is the bedrock of any successful business relationship. Customers recognize digital wallets as secure payment methods. Whether it’s PayPal, Venmo, Apple Pay or Google Pay, these platforms have earned their reputation for safeguarding sensitive data. By integrating them into your payment ecosystem, you reinforce trust with your audience.
Streamline the Checkout Process
Offer a frictionless checkout experience: no fumbling for credit cards, no manual data entry. Digital wallets eliminate these pain points. Customers appreciate simplicity—they can complete purchases swiftly, especially on mobile devices. This simplicity also helps your company’s bottom line; consumers who use digital wallets spend 31% more than non-users, according to recent survey data.
Choosing the Right Payment Methods
Quality Over Quantity
While variety is enticing, overwhelming customers with too many payment options can backfire. Instead, focus on quality. Prioritize widely used digital wallets that resonate with your audience. Remember, simplicity is best.
Understanding Customer Preferences
Knowledge is power. By analyzing transaction data, you can discern which payment methods your customers prefer. Do they browse from Apple devices? Then consider offering Apple Pay. Are they connecting using Google Chrome? Google Pay may help you speed up transactions. Armed with this type of insight, you can tailor your offerings and enhance the user experience.
Collaborating with Payment Providers
Now, let’s address the elephant in the room: managing separate accounts with various digital wallet providers. It’s time-consuming and inefficient. Here’s where a payment provider comes to the rescue:
Centralized integration: Partnering with a payment provider allows you to consolidate digital wallet options. Instead of juggling multiple accounts, you have a unified interface.
Seamless updates: When a new digital wallet emerges or an existing one evolves, your payment provider handles the integration and is there to guide you through the process.
Efficiency: Focus on your core business while the payment provider manages the technical intricacies.
Remember, the goal is to enhance your customers’ experience. By offering digital wallets and collaborating with a reliable payment provider, you’re not just streamlining payments—you’re building trust and loyalty.
The future of wallets is digital, and now is the time to claim your spot—ahead of the competition. Incorporating digital wallets isn’t a trend, it’s a necessity to stay relevant and keep customers coming back. Your customers demand speed and convenience; meet their needs by adopting digital wallet technology today. Contact our experts at CSG today.
Think Outside the Square: How QR Codes reshape payments
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From telemedicine to bread baking, there’s a list of things that enjoyed a surge in adoption during the pandemic. For businesses, that includes the use of contactless payments and QR codes—which turned out to be no passing trend.
Previously, QR codes were used mainly for marketing purposes. Now they have found mainstream adoption beyond the pandemic as a tool to facilitate contactless payments. With convenience being a top priority among consumers, QR codes have proven to be a seamless and secure payment method for both businesses and customers alike.
We’ll delve into the benefits of incorporating QR codes into your multichannel payment processes and offer examples on how to effectively implement them, enhancing the payment experience for your customers.
WHAT ARE QR CODES?
QR (short for “quick response”) codes are two-dimensional barcodes that store information in a readable pattern. Traditional barcodes can only hold limited data like product numbers. QR codes, with their added dimension, can store various types of information including URLs, contact information and payment details (e.g., an invoice).
QR codes encode data into a grid of black squares on a white background, which can then be scanned by a smartphone or QR code reader. The scanning device then instantly accesses the encoded information, letting users quickly access websites, make payments or retrieve other information automatically.
You can think of QR codes as a bridge between physical and digital commerce. They offer a quick way to interact with content and perform tasks using a smartphone camera.
TYPES OF QR CODES
The QR codes that businesses use can be split into two types: static and dynamic. Each type differs in content and function.
STATIC QR CODES
These QR codes contain fixed data—the data can’t be changed once the code is generated. You often see these used to contain simple, unchanging information like website URLs, business card details or product information.
DYNAMIC QR CODES
Dynamic QR codes can be modified after creation. They’re often used in conjunction with a web service or platform that lets a user update the content linked to the code. This means the QR code can be personalized to specific users—linking to different URLs or displaying different text. This is why dynamic QR codes are often used in situations that require real-time updating, like marketing campaigns, inventory management and—as concerns us here—payments.
HOW QR CODES WORK IN PAYMENTS
Here, we’ll focus on one of those tasks that QR codes facilitate—initiating transactions—which merchants can use to offer contactless payment at a store or settle an invoice remotely.
Take retail transactions, for example. Merchants can generate QR codes to represent a specific payment amount. At the point of sale, a customer can simply scan a displayed QR code using their smartphone. This usually directs them to a secure payment portal where they can confirm the transaction and choose their preferred payment method—credit/debit card, mobile wallet, bank transfer, etc. The process makes it easy for customers to pay on the go, and merchants don’t need to have a cash register or payment terminal to accept payment.
Beyond retail transactions, QR codes can also facilitate invoicing with reduced friction. Businesses can generate a QR code for each invoice, embedding payment details such as the invoice number and amount due. When recipients receive the invoice, they can simply scan the QR code to access the payment portal, where they can review the details and complete the transaction with a few taps on their device. This streamlines the payment process by eliminating manual entry of payment information and reduces the risk of errors.
Essentially, QR codes are digital keys that unlock seamless payment journeys, whether they involve in-store purchases, ecommerce or invoice payments. They’re versatile and easy to use, making them an appealing tool for businesses looking to simplify their payment processes and improve the payment experience.
EXAMPLES OF QR CODE USE CASES FOR PAYMENTS
As mentioned, QR codes are versatile, and they help customers make quick, secure payments in a variety of ways. Here are just a few examples.
STREAMLINING PAYMENT VIA MONTHLY BILLING STATEMENTS
If your company sends out monthly billing statements, chances are you encourage customers to make payment online or through your app. You can take them straight to a payment portal by printing a QR code on the bill encoded with that URL. This saves the customer time in having to navigate to that portal through several clicks or even having to enter the URL. Not only that, but you can also encode the QR code to include the account number and amount due, which pre-fills the payment information for a faster checkout. It’s a great way to combine a traditional communication channel—the paper statement—with an easy digital payment experience.
ACCEPTING IN-PERSON PAYMENT MORE EASILY
Imagine you’re a field technician installing a new internet router in a customer’s home. As you’re setting it up, the customer shows interest in upgrading to a better router on the spot. With a few taps on your tablet, you quickly generate a personalized invoice reflecting the upgrade cost. Instead of fumbling with cash or card readers, you simply present the QR code on your device screen. The customer scans the code with their smartphone, and just like that, the payment is processed. You install the upgrade then and there, leaving the customer satisfied with faster internet connection. The best part is the QR code ensured payment right away—you didn’t have to invoice them and wait for the payment via the monthly bill.
REPLACING PAPER INVOICES
Suppose you’re a home repair service worker who has just completed a job for a customer. Instead of the traditional route of handing over a paper invoice and waiting for a check, you offer a more secure and efficient payment option: a QR code. The customer scans the code with their smartphone, securely processing the payment electronically. This not only saves time and reduces the risk of errors associated with manual payments, but it also provides a better payment experience by using a modern payment solution.
ADD QR CODES TO YOUR PAYMENT CHANNELS
Incorporating QR codes as a payment channel offers businesses a practical and efficient way to interact with customers. With CSG Forte Engage, our intuitive payments solution, organizations can seamlessly integrate QR codes into their operations, providing customers with personalized and secure invoices for hassle-free transactions. By leveraging QR codes, businesses can streamline their payment processes and enhance customer satisfaction with a secure and convenient digital payment channel.
Take the next step in offering this convenient, secure method and contact us today.
Cut Costs and Reduce Friction With IVR Payments
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Today’s customers expect your business to accept multiple payment methods and make billing processes hassle-free. That means your business needs a streamlined solution that eliminates billing issues and complex payment options. With interactive voice response (IVR) payments, you can enhance the customer payment experience and get paid on time more often.
What Are IVR Payments?
IVR payment processing is a voice-over-internet protocol (VoIP) payment system that guides your customers through prompts to complete transactions. There are two typical kinds of IVR transactions:
Self-service IVR payments: This solution allows customers to pay bills without agent intervention. Self-service IVR payments minimize the costs associated with human resources and give customers the convenience of handling their bills 24/7.
Agent-assisted IVR payments: These transactions require your team’s assistance. The IVR system collects relevant customer information and directs calls to one of your authorized agents, who completes the transaction.
Many organizations leverage digital payment methods with IVR systems to offer customers multiple ways to pay.
How IVR Payments Work
IVR payment systems work seamlessly to complete payments in a few steps:
Customers call: To initiate an IVR payment, a customer calls a specific number on their bill or calls your contact center and follows the automated responses. Customers can make payments, check account balances and track any billing issues over the phone—all without human interaction.
Customers follow the IVR process: IVR payment processing is similar to other IVR technologies with additional security features to align with the Payment Card Industry Data Security Standard (PCI DSS) and other regulatory requirements. Automated scripts prompt users to provide payment information securely. Customers key in information or speak it into the system. The system leverages natural language processing (NLP), speech recognition, machine learning (ML) and other technologies to analyze customer responses.
The IVR system authorizes payment or routes customers: The IVR software uses technology to determine whether agent intervention is necessary or whether the customer can complete the transaction using self-service features. If customers are routed to pay by self-service, the system will automatically deliver payment confirmation via phone, SMS or email. If the IVR transfer requires agent assistance, the customer can hold while the system routes them. Alternatively, the customer can schedule an automated callback when it suits their schedule.
IVR transactions typically take less than five minutes to complete.
Industries Leveraging IVR Payments
Various industries and sectors leverage IVR payments to streamline bill paying:
Finance and banking: Financial institutions use IVR payments for installment payments, balance monitoring, settlement payouts, debt collection, and credit card and loan payments.
E-commerce: E-commerce and retail businesses leverage IVR payment systems to manage customer payment information, handle one-time payments, and run royalty program payouts and other transactions.
Healthcare: Medical service providers use IVR payments to collect bills, manage prescription billing and process insurance claims.
Utilities: Utility companies use the systems to manage accounts and payment information and seamlessly set up recurring or one-time payments.
Ticketing and reservations: With IVR technology, customers can easily book and pay for tickets over the phone. They can process cancellations or complete transactions without speaking to a representative.
Convenience for customers: IVR systems boost customer satisfaction by offering hassle-free bill payments. Self-service capabilities eliminate the need to communicate with agents. IVR systems can also provide multilingual support and automate recurring payments, enabling absolute flexibility and convenience.
24/7 availability: IVR payment solutions enable customers to pay bills 24/7 without an internet connection. These round-the-clock capabilities allow customers to pay when it suits their schedules, increasing the likelihood of bills being paid on time.
Reduction in operational costs: Leveraging IVR systems can significantly reduce your operating costs. These systems increase efficiency and decrease labor costs associated with payment-related issues that require contact center involvement. IVR-enabled ACH bank transfers also have lower transaction costs than conventional credit card transactions.
Enhanced security features: Trusted service providers deliver IVR solutions that minimize the risk of exposing payment information data. Customers can key in credit card details even when speaking to an agent. Reputable providers also adhere to stringent rules to comply with PCI DSS, safeguarding sensitive information in the most robust ways.
Challenges and Solutions
The right IVR systems help solve two challenges across multiple industries:
Addressing potential security concerns: Transactions contain sensitive data, so your organization should ensure the appropriate security measures are in place. The right IVR solutions provider will help you by offering adequate security defenses, firewalls, regular process testing, encryptions and control measures.
Improving user experience: You want customers to have positive experiences when paying bills. With the right IVR system, you can enhance the customer experience by offering multiple payment options. You can deliver self-service functionality in various languages, offer several ways to connect to your IVR system and provide intuitive navigation, making payment frictionless.
Partner With CSG Forte for IVR Payment Processing
CSG Forte offers complete IVR payment solutions. We help businesses worldwide to scale and meet growing consumer needs. Our platform processes over $84 billion in transactions each year. CSG Forte’s award-winning payment solutions provide:
Specialized features for IVR payment processing: Our flexible solutions allow customers to pay at any time, using any method and language they choose. We implement enhanced safety features, advanced automation and robust analytics for valuable insights.
CSG Forte’s IVR payment processing solution will enhance your customer payment experience and help you boost your revenue. Our one-platform solution makes it easy for you to scale services as your business grows.
Learn why thousands of organizations trust us. Contact us to optimize your bill payment capabilities with a trusted service provider and award-winning IVR payment solutions.
Frequently Asked Questions About Payment Processing
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The digital payments market is projected to reach $16.62 trillion by 2028. All businesses should be familiar with the basics of payment processing to remain agile in a competitive industry and ever-expanding landscape. We’ve answered some frequently asked questions (FAQ) about payments and their processing to help you get started.
Payment Methods
Understanding the terms and systems that go into payment processing gives you the edge to offer your customers frictionless, secure and simple ways to pay. Here are answers to some common questions about payment methods.
1. What Goes Into a Transaction Flow?
The transaction flow consists of various participants and components, including:
Customer: The customer is the individual or organization paying for services or products.
Merchant: The merchant is the service provider or business receiving payment from the customer.
Payment method: The payment method is how the customer pays—via check, credit or debit card, cryptocurrency, or electronic wallet.
POS system: The point-of-sale (POS) system is a digital platform or physical device used for the transaction. The POS system can be on an e-commerce website, app or terminal point at a store.
Payment gateway: The payment gateway safely captures and sends information from the POS system to the acquiring bank or payment processor. This gateway encrypts and secures the data during the transaction.
Payment processors: The payment processor is a third-party company managing the technicalities of the transaction. These technicalities include validating information, receiving authorization, and facilitating communication between the acquirer and issuer.
Acquirer: The acquiring bank, or the acquirer, is the financial institution where the merchant’s account is. The acquirer receives payments on behalf of the merchant, processes transactions for the merchant and settles the funds in the account.
Issuer: The issuer or issuing bank is the financial institution that authorizes or declines the transaction on behalf of the customer. Issuers consider customer account status, the validity of the transaction and available funds.
Card network: The card network includes organizations like Mastercard, Visa and American Express. These organizations provide the infrastructure, rules and standards for processing transactions.
ACH network: The Automated Clearing House (ACH) network is used to move money between bank accounts in the United States electronically. Nacha, previously called the National Automated Clearinghouse Association, runs the ACH network and ensures the payment system is safe and efficient. Transaction types include business-to-business, consumer and government transactions.
Payment security: Payment security consists of a range of technologies and standards to ensure transactions are secure from breaches and unauthorized access. Security involves encryption, tokenization and compliance with the regulations set by the Payment Card Industry Data Security Standard (PCI DSS) Council or the ACH network for bank-based payments.
Settlement: Settlement and reconciliation are the processes of transferring funds from the issuer to the acquirer and updating the transaction records to reflect the funds transferred.
2. What Is Payment Authorization?
Payment authorization is when the issuer verifies that the customer has the available funds and confirms that money can be released from the customer’s account. The issuing bank conducts thorough checks before authorizing transactions.
3. What Are Payment Settlement and Operations?
Payment settlement starts with customer payment initiation and ends once the funds are deducted from the customer’s account and paid to the merchant.
During settlement, the issuing bank verifies the transaction details and authorizes money to be debited from the customer’s account and credited to the merchant’s account. This settlement communication operates through the payment network.
4. What Are the Needs and Considerations of E-Check and Credit Card Payments?
E-checks and credit card payments have a few key differences:
E-check payments: The Automated Clearing House (ACH) merchant network processes e-check payments between participating financial institutions. E-checks are categorized as electronic funds transfers (EFTs). They work like ACH transfers with routing and account numbers, facilitating funds transfer between accounts. Electronic checks can save your business on payment processing costs—they’re typically more affordable than card transactions.
Credit card payments: Card authorization occurs when the merchant accepts a card payment and the payment processor reaches the card issuer. The issuing bank ensures the credit card is valid, verifies the transaction amount and available funds, and does security checks. The issuer will deliver a two-digit code approving or declining the transaction. Credit card transactions are convenient for customers, especially those who prefer to have a range of payment options.
5. What Are the Top Digital Wallets and How Do They Work?
The top digital wallets in North America include:
Apple Pay
Google Pay
PayPal
Venmo
Digital payment wallets use software that links your payment details from your bank account to the vendor you’re paying. Some apps offer open wallets that allow contactless online and in-store payments.
Electronic wallets make payments easy for customers—there’s no need to keep card details on hand to pay, and the information is stored in one central, protected location.
6. What Does Accepting On-Site Payments With Devices and POS Entail?
If you want to accept on-site payment with POS systems and devices, you need the associated hardware and software. You’ll also need a payment solutions provider.
The necessary hardware includes a card acceptance machine, like a POS terminal. The hardware connects to software that processes transactions via the provider’s solution. POS terminals can accept several types of payments, including contactless payments, credit and debit cards. Customers can tap, swipe and insert cards depending on their preferences.
Processing Models
Processing models allow transactions to happen between the issuer and the acquirer. Here are the related questions answered.
1. What Is a Payment Gateway?
A payment gateway links all entities involved in a transaction and helps systems communicate with each other. Payment gateways establish secure connections to transmit data and process the transfer of funds from the customer’s account to the merchant’s to complete payment.
2. What Is an Enhanced Payment Gateway?
An enhanced payment gateway is a robust version of a standard payment gateway. This solution goes beyond processing payments, leveraging advanced fraud detection capabilities. Enhanced payment gateways may also feature subscription billing and customizable checkout options.
3. What Is an Acquired Payment Gateway?
An acquired payment gateway is a payment processing solution offered by a payment service provider. This solution lets you securely receive customer payments using online wallets, debit cards and credit cards. The gateway handles authorization, transaction processes and the transfer of secure funds into your account.
4. What Is a Payment Facilitator?
A payment facilitator (PayFac) simplifies the setup of payment processing for your business, allowing you to accept in-person and online payments. The PayFac has a master merchant account. Your business becomes a sub-merchant under the PayFac, eliminating the lengthy underwriting process. The PayFac enters a contract with the acquiring bank and manages the approval process on your behalf.
5. What Does It Mean to Be a Third-Party Sender?
A third-party sender (TPS) facilitates ACH transactions by having funds flow through its account. Third-party senders act as intermediaries, making payments on behalf of customers. This approach provides little protection in terms of risk management and adherence to safety standards. A TPS typically comes with higher transaction fees because of the higher involvement in the flow of funds.
6. What Is the Difference Between a Third-Party Sender and a Third-Party Service Provider?
A third-party sender directly receives and transmits funds through its bank account on behalf of a company. A third-party service provider does not hold funds and transfers funds to ACH network users.
When third-party senders pay on behalf of a client, the risk involved tends to raise the price. A TPS solution can also cause customer onboarding friction.
Leveraging a third-party service provider (TPSP) offers greater security, as these entities strictly adhere to regulations and don’t automatically move money. You’ll also benefit from faster processing times, better customer onboarding, flexible transaction limits and lower transaction fees.
Pricing
Payment processing pricing is also an essential consideration for your business.
1. What Is an Interchange Fee?
Interchange fees make up the majority of payment processing fees. You pay interchange fees to financial institutions that manage the customer’s card payments. These are standard charges that come with the convenience of using a specific payment method.
2. What Is Pass-Through Pricing?
Pass-through pricing includes interchange, assessment and payment processor fees. These fees are typically itemized or combined monthly on a statement for a merchant to pay. Pricing structures differ, so it’s important that your business partners with a competitively priced payment solutions provider.
3. What Is a Flat- or Fixed-Rate Model?
A flat- or fixed-rate model charges your business the same processing fee percentage regardless of the card used. The flat-rate percentage is typically based on the cards with the highest interchange rates.
4. What Is a Convenience Fee?
A convenience fee is an additional credit card or online payment charge. It’s sometimes charged by a payment processor when a customer does not pay by cash, check or ACH. It can be applied as a split charge or split fund.
5. What Is a Split Charge?
With a split charge, the payer sees two entries on their statement—one for principal and another for convenience.
6. What Is a Split Fund?
Merchants can set up predefined splits to go to different bank accounts. Split funds come in handy when your business charges convenience fees that need to go to a separate account from the transaction amount. Debit and credit funding bank accounts are usually set up this way for merchants.
CSG Forte offers split funds and handles the setup to ensure hassle-free allocation.
Integrations
Integrated payments connect your POS system to a payment processor, offering streamlined transactions.
How Does Integration Impact the Payment Experience?
Integrated solutions enable you to offer a better payment experience. Customers can pay using various methods without the need for different payment terminals or manual processes, making transactions frictionless.
Payment tokenization is a security measure that uses unique tokens instead of transmitting sensitive payment data during transactions. These tokens protect information like banking details, primary account numbers (PANs) and credit card numbers.
2. What Is the Payment Card Industry Data Security Standard?
PCI DSS is a set of standards requiring all businesses that handle credit card or payment information to maintain a secure environment. These compliance standards apply to all organizations, no matter the size of your business or the amount of transactions it handles.
3. What Are the Top Considerations for Nacha Compliance?
Secure payment transmission and storage of sensitive information.
Store hard copies of documents with customer information safely.
Validate customer routing numbers.
Guard against possible fraud.
Verify customer identities.
Outline and enforce an official security policy.
4. What Is End-to-End Encryption?
End-to-end encryption (E2EE) is a way to safeguard your customers’ data during transactions. This encryption prevents data breaches and unauthorized access to sensitive information like credit card or bank account details. Sensitive information is encrypted and securely transmitted from one point to the next, allowing your customers to pay you safely.
The payment gateway performs the encryption when the customer initiates the payment, and it decrypts the information when it reaches the acquirer.
5. What Is Point-to-Point Encryption?
Point-to-point encryption (P2PE) is an encryption method established by the PCI DSS Council. It offers excellent protection, using an algorithm to encrypt card information when the customer initiates payment. The unreadable code is transmitted to the payment processor with a decryption key. The decryption happens virtually, so your business never comes in contact with customer payment information.
While P2PE and E2EE are similar, the PCI DSS Council only accepts point-to-point encryption.
Ready to Streamline Your Payment Solutions?
CSG Forte will help you scale your business rapidly and make payments frictionless for you and your customers. Each year, we help process over $84 billion of payment transactions.
The Automated Clearing House (ACH) is a network that clears funds moving from one bank account to another. When a payer transfers money via debit, credit card or EFT, the funds await authorization. Once clear, the ACH system moves the funds into the payee’s account.
The National Automated Clearinghouse Association (Nacha) oversees this network in the United States. Nacha employs rigorous security measures to guard users’ accounts. Outside its security nexus, bad actors who gain access to pertinent information can commit ACH fraud. This type of fraud is relatively common—a criminal only needs access to a few details to open the door to several opportunities for theft. Preventing access at the start is better than remedying a security breach.
What Is ACH Fraud?
ACH fraud occurs when criminals use account and routing numbers to impersonate victims and manipulate the movement of funds. Criminals can obtain routing numbers at the bottom of their targets’ checks. They might use this information to impersonate someone and steal funds through various methods:
Internal fraud: When an employee of a company uses legitimate credentials to make unauthorized ACH withdrawals and payments, the fraud is considered internal.
ACH kiting: Kiting occurs when fraudsters move funds from one company account or financial institution to another.
Fraudulent authorized push payments (APPs): When a customer attempts to pay you, criminals trick them into making ACH transactions prompted by scams, and the funds never reach your account.
Unauthorized access to personal accounts: ACH transactions render you and your clients vulnerable to unauthorized persons having access to sensitive accounts.
Unauthorized ACH withdrawals: Merchants and clients risk having funds withdrawn from bank accounts without authorization.
Within the ACH network, there are several steps between a payer sending funds to an account and the payee receiving the funds. This process is not impenetrable to criminals, who are using more sophisticated means of defrauding unsuspecting users. Traditional ACH systems lack proper security mechanisms, leaving you and your end users vulnerable.
ACH Fraud and Concerns
Concern is mounting over the rate at which ACH fraud is increasing, highlighting the need for more vigorous security methods. Criminals only need two data sets to successfully steal money through the ACH network—a bank account number and a bank routing number. Businesses and enterprises accepting payments need to address increasing ACH fraud to protect themselves and end users.
ACH fraud can occur from external means or inside a company. Employees don’t need to know complicated data sets or complex codes to hack a business or another person. Staff are also at risk of social engineering and phishing attacks.
How ACH Fraud Can Effect Your Business
A U.S. District Court recently found a credit union liable for not acting on several suspicious ACH transactions. If you’re a business accepting payments or overseeing financial transactions, it’s critical to be proactive in preventing ACH fraud. Nacha and the Federal Reserve Regulation E have policies that state the consumer is not responsible for ACH fraud unless they fail to report an incident within 60 days.
Financial institutions can be held liable, with the bank returning the funds to the consumer and claiming them back from the original enterprise. Successful fraud protection can keep your end users safe and protect you from the costs of fraudulent ACH activity.
CSG Forte’s Approach to ACH Fraud Prevention
CSG Forte has extensive experience in ACH fraud prevention and detection, and our robust payment platform provides reliable, secure solutions. For your convenience and safety, we adapt to the evolving digital economy to provide a unified payment solution with built-in fraud-prevention protocols using the latest technology.
Furthering your peace of mind that your funds are handled safely, we’ve partnered with Nacha, the body overseeing all ACH transactions. You’ll also benefit from:
Advanced security protocols: Your data stays protected with our advanced security solutions, such as Forte.js and compliance with major card brands.
Real-time alerts: You can remain in control of your funds by monitoring transactions in real time and receiving alerts for every activity connected to your funds.
Comprehensive evaluation: We thoroughly evaluate merchant accounts to prevent delays down the line and help you accept payments seamlessly. Evaluation helps ensure your payment system will have adequate ACH fraud protection, mitigating loss in the long run.
We bring you reliable, safe payment processing solutions. Our approach to fraud prevention is comprehensive, as we’ve partnered with several leading software providers to prevent money laundering and several types of sophisticated financial crimes.
Key Features of Our ACH Fraud Prevention
To secure every payment and keep your data safe, CSG Forte develops every software platform and application tool with security as the cornerstone. The key features of our ACH fraud prevention include:
Software to detect behavioral anomalies: You can have peace of mind knowing our behavioral analytics software detects discrepancies from your usual activity and alerts you in case of an anomaly.
End-to-end encryption: We use end-to-end encryption technology to safeguard all data and prevent your information from leaking to a third party.
Tokenization: We limit the exposure of your sensitive information through tokenization, ensuring your data remains hidden in the system throughout the payment process.
We are committed to providing you with rigorous, up-to-date security systems for your enterprise, as evidenced by our compliance with several security programs. You can rest assured your funds are protected during every transaction.
Protect Against ACH Fraud With CSG Forte
ACH is a vital payment method to offer your customers. However, its attainability makes it vulnerable to breaches. Protecting your funds and your customers takes a proactive stance. Take action by integrating an advanced, robust platform from CSG Forte.
