The lucky 13: questions to test your knowledge on payment processing solutions
When you hear the term payment processing solutions, your first inclination may be to scratch your head a bit or to yawn. Even an experienced entrepreneur may still feel a little baffled. After all, payment processing is as simple as signing up for an account and ‘turning on’ the ability to take cards, right? For sure, simplicity should be the goal of companies that provide credit card processing services. Still they work hard to make that the case as there’s actually quite a lot of complexity behind the scenes to make payments happen.
Whether you’re a newbie in the world of payments or an experienced business owner, it is important to learn some ‘payment speak’. Understanding common terms will give you more confidence when you’re making choices that affect the types of payment processing you are considering. Test your knowledge with these questions. Write down your answers and see how well you can do. Answers will be at the bottom, so no peeking.
1. What’s another word term for payment processing solutions?
- Card processing solutions
- Merchant services
- Credit card transactions
- Payment application
2. What is the ideal payment hardware?
- Smart terminal
- Fully integrated POS system
- Mobile iPad
- It depends on your business
3. Who are business software developers?
- The people who make the payments work
- People who build the software used to run businesses
- People who sell payments
- People who develop the different types of payment processing
4. What do payment application developers do?
- Develop technology around fingerprint authorization
- Ensure that a credit card swiper can communicate with software and the processor
- People who decide what kinds of processing are needed for each industry
- People who help you troubleshoot problems with your payment processing
5. What is another word for dealer?
- Value added reseller
6. What is the role of the payment processor?
- Transfer the funds from the bank to the merchant
- Communicate the cardholder data through the payment networks
- Install the payment software into the POS system
- They are just the gateway between the merchant and the bank
7. What are the features of an EMV chip?
- Stores secret information
- Performs processing
- Performs cryptographic functions
- All of the above
8. Do you need a different processor to process an online payment vs an in-store payment?
- Not a clue
9. Are mobile payments less secure than swiping a credit card?
- Not a clue
10. Why are there benefits to including gift cards in your payment processing package?
- Customizable card controls
- They are integrated with your current system
- Customers typically spend more when paying with a gift card
- All of the above
11. What percentage of customers are hesitant to do business with a merchant who has been the victim of a data breach?
12. What is the primary role of a payment gateway?
- To connect the payment solution with the payment processor
- To speed up the amount of time it takes to approve a credit card transaction
- To provide eCommerce payment solutions
- To connect the payment processor to the card networks
13. What value added services should your payment processor be able to provide for your business?
- Loyalty solutions for your business
- Data insights into customers shopping behavior
- Business development programs
- All of the above
Now get ready to check those answers and see how you did. Don’t worry either way. There’s always more to learn in payments as the technology continues to evolve. Keep learning what’s available to your business and take advantage of the programs and solutions your payment processor has developed for your business. Ready for another challenge? See if you can spot the payment security threats.
1. Answer: A - Card processing solutions and payment processing solutions are used interchangeably. There’s no need to stress here.
2. Answer: D - Payment hardware is entirely dependent on your business. It’s highly customizable by the size of your business and your business vertical. There is only one rule when it comes to payment hardware: Never purchase without speaking to your payment processor first. There’s more great tips and information in this article.
3. Answer: B – Software developers create the ‘brains’ of the hardware you are using to run your business. Businesses have a variety of needs when it comes to running their business so software can be very specific by vertical.
4. Answer: B – Payment application developers connect the business software with the pieces needed to make the payments work, from card swipe to card approval.
5. Answer: D – Also called a VAR. Dealers sell payment solutions created by payment application developers. They may also be considered an advisor to many merchants.
6. Answer: B - The payment processor communicates the cardholder data that is passed from the hardware all the way through the card approval process.
7. Answer: D – The chip performs all of these functions. Learn more about EMV.
8. Answer: B – Your payment processor should be able to service all the payment needs of your business.
9. Answer: B – Mobile payments are in fact as, if not more, secure than a card that is swiped or dipped.
10. Answer: D – Gift cards have multiple benefits to your business. Learn more about gift programs.
11. Answer: B – Get more statistics on Verizon’s Data Breach Investigations Report here.
12. Answer: A – The payment gateway acts as a conduit between a payment solution and a payment processor. The primary benefit to using a payment gateway being able to keep your current processor while procuring the benefits of new payment solutions. Learn more about merchant gateways.
13. Answer: D - Sophisticated payment processing companies are moving beyond payments and becoming a hub of commerce innovation that businesses should take advantage of. Talk to us about about solutions for your business.