Did you know that in the United States, credit card payments account for about 90% of all transactions? And that number is only getting higher. As the digital age continues to rise, we are using cards more and more as a quick and easy payment method. Unfortunately, systems fail sometimes. Not everything runs smoothly all the time, and even something as common as credit card payments can have problems from time to time. Credit Card Processing Outage .
If you own or manage a business that accepts credit cards, then it is imperative that you understand the risks of using this payment method and take necessary precautions to protect your company from potential catastrophes. A sudden processing outage could be devastating if you’re not prepared for it. But there are ways to minimize the damage if this unfortunate scenario plays out in your business.
What is a Credit Card Processing Outage?
A credit card processing outage is the disruption of a credit card processor’s system. This can lead to decreased functionality or even complete failure of a business’s ability to accept credit card payments for a short period of time. This can happen for a number of reasons, such as: – Equipment failure: Computers with significant processing power are required for such a large operation, so it is not surprising that there could be problems. If a system fails, it could affect hundreds of thousands of customers at once. – Network problems: Networks are necessary for communication, and they can break down just like any other piece of technology. A network outage could have a significant impact, especially if the problem is outside of a company’s control.
Why are there so many Credit Card Processing Outage?
There are many reasons credit card processing outages occur, but there are a few issues in the system that are worth noting :
Fraudulent activity : As common as credit card transactions are, so too are credit card fraud attempts. This is one of the biggest reasons why a processing outage occurs. With so many transactions taking place, it is necessary for the credit card companies to keep a close eye on fraudulent activity.
Changing regulations : Although fraud is a serious issue, it is also important to ensure that all transactions are legitimate so as to not charge customers unfairly. Ongoing changes to regulations across the globe make it challenging for companies to stay compliant. A sudden change in a country might require an overhaul of a system, leading to an outage.
Prepare to be Responsive
When a processing outage occurs, the first thing you want to do is be as responsive as possible to customers. Let them know that you are aware of the issue, and that they should expect to see it resolved as quickly as possible. Your customers likely don’t want to be inconvenienced by such a problem, so let them know that you care about their experience and that you are working as hard as you can to fix the problem.
The best way to do this is through social media. Make sure to have a dedicated social media team monitoring all of your accounts so that they can let customers know when there’s an issue. Share information with your customers, and respond to questions and comments as quickly as possible. Make sure your posts are tagged with relevant hashtags and keywords so that they can be found by potential customers.
Get an Emergency Stored-Value Card
If your company accepts credit cards, then it is important to have several emergency credit card processing solutions in place in case a large scale outage occurs. There are a number of credit card processors that offer emergency stored-value cards that can be used to accept payments while your regular card processing system is down. If you don’t have one of these systems in place, you risk losing thousands of dollars if you don’t have another way to accept payments. Some companies may even have a contract that requires them to have a backup system in place. If you don’t have any way to accept payments, you may not be able to keep your doors open. Be sure to check your contract and make sure you have an emergency payment system in place.
Roll Out a Working Plan
Once you have identified the biggest risks to your business and have a plan in place to mitigate them, you can feel a lot more confident in your ability to survive a sudden and catastrophic credit card processing outage. There are two things in particular that you should focus on in order to be prepared for the worst-case scenario: – Be familiar with the terms of your contract with your credit card processor. You want to understand exactly what happens if something goes wrong. If something catastrophic occurs, what will be the first step to getting things back up and running again? – Have a credit card processing backup plan in place. You always want to have a backup plan in case your primary plan fails. Get in touch with a few different providers, and have them on standby in case you need a new processor.
Credit card processing outages can cause a significant cash flow problem for businesses that rely on the convenience of these payments. It’s important to prepare for this worst-case scenario by minimizing risks, being responsive to customers and having a plan in place for when an outage does occur. When a catastrophic event does occur, it can put your company in a tight spot if it’s not prepared to deal with the fallout. It is crucial to implement preventative measures in your business to reduce the chances of a catastrophe occurring in the first place.