It looks like some big changes are coming soon for credit cards. If you deal with a lot of online transactions, want to get a new corporate card or just want to learn more about credit card policies, you’ll love what’s in store. Adapting to new cards or policies is worthwhile; read on to learn how these changes will help small businesses and customers.
Card Agreement Edits
According to Credit Karma, the Consumer Financial Protection Bureau (part of the federal government) wants major card companies to revise their agreements and make them more user-friendly. If you’ve ever tried to get through one of these long, boring agreements, you’ll understand how much this could boost general financial literacy. With well-written agreements that simplify card company policies, businesspeople will get closer to truly understanding their agreements. The prototype agreement is 1000 words instead of the typical 5000 words you’ll find in many agreements!
Small businesses looking for a new card should wait for the revised agreements to take effect so they can more easily compare different cards. The changes include adding a question and answer section to agreements and defining obscure credit terminology. The focus on clarification should make it easier to avoid surprising fees or high interest rates.
More Secure Online Transactions
Now that online transactions are more popular than ever, it’s up to entrepreneurs to reassure customers that their online stores are as secure as larger companies’ sites. Most of us have done some online shopping but stopped short of making a purchase due to an insecure-looking website. Selling online means dealing with possible attacks on your e-commerce system. New authentication systems are rising to the challenge of online fraud. This includes Entersect’s transaction system, which doesn’t require a password. Instead, it verifies transactions by sending transaction details to the purchasers’ phones, which they can then approve.
This technology puts the power to reduce fraud in consumers’ hands by keeping them informed of their purchases. Even if you don’t use this type of authentication system, try to find something that is highly secure, but which doesn’t inconvenience people who want to make a quick purchase.
PCI Compliance Protects Businesses
Expect to hear more about complying with PCI standards to prevent fraud and other problems. Payment Card Industry (PCI) Data Security Standards mean that your online checkout process follows a specific set of rules to reduce fraud. Adopting PCI standards means your customers are using a recognized, tested form of fraud prevention. Even if fraud or identity theft occurs, the fact that the site is PCI compliant could spare the business from being sued by a consumer who shopped at your site. Find out more about how to implement higher standards here. The resources include a question and answer section and small business advice.
Credit cards are so important for many aspects of small business life. Whether customers want to use them for online transactions or your staff charges expenses, make reforming your credit card usage and online transactions an important part of the new year.