Traditional payment methods such as cash and cheques are already becoming a history. The latest advances in payments technology have completely changed the way people manage their financial aspects and payments.However, digital payments are still vulnerable to abuse by financial criminals. If you want to know more about the digital payment crime, as well as Authorize Net merchant accounts, just read below.
Digital Payments: Authorize Net Merchant Accounts
Digital payments lay at the root of tech progress in the banking industry. When it comes to payment security, it’s still a major problem all across the globe. With the advancement of payment tools, various payment platforms, and multiple payment providers, consumers consider the security of digital payments a top priority.
Banks and payment service providers (PSPs) can reach profitability and trustworthiness only if their services are smooth and secure. Otherwise, they’ll end up with dramatic losses. This is a big issue in all countries of the world, including the US. For 70% the US population, security is the biggest issue associated with mobile payments.
Statista reports that debit and credit cards are the most commonly used methods of payment in the United States. 39% of millennials used debit cards to make payments while shopping in 2017. The reason why they choose this type of payments is that debit cards allow for easy tracking of expenses and budget management. 25%prefer credit cards: the main reason is that these cards offer better security measures.
With all this in mind, it’s crucial to work only with a reputable business funding provider or payment processor that provides the highest level of security to merchants.
High level of security is of special importance since consumers become more comfortable with processing digital payments and more often rely on their banks for security.No matter you need Authorize Net merchant accounts or other merchant services, turn to a reliable and experienced merchant services provider to get the best deal for your business.
Digital Payment Crime: Fintech/Regtech Alliance
There exist a number of ways in which digital payments can be used by those involved in money laundering, fraud, or terrorism.
Transaction laundering has to do with setting up an internet store developed to sell legitimate goods but which, in reality, launders funds or sells illicit goods. This type of fake stores isonboarded by unsuspecting merchant processor systems, which process the payments without any bad intention.
The main types of transaction laundering include the following: illegal drugs (56%), pharmaceutical fraud (20%), and psychoactive substances (18%). Others account for 6%.
By the way, transaction laundering,authorized pushed payment fraud, terrorist financing, and other crimes add to 2 main financial crime risks for fintechs in the digital payments space. These include genuinely knowing your customer (KYC) and identifying unusual patterns in transactions. Regulation technology or regtech plays an important role in addressing these issues.
Consumers all over the world are adopting digital payments with rapid advances. They expect banks and financial services firms to guarantee the necessary level of security for payment processing. This means financial services companies and fintech firms must focus on increasing their ability to leverage security features to never stay behind the developments in the field.
Author Bio:Electronic payments expert Blair Thomas is the co-founder of high risk payment processing (Authorize Net merchant accounts) company eMerchantBroker. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.