Payments Blog

Business Terms You Should Pay Attention To

Every industry has its own code language that is specific for the kind of work they do. It is important to be aware of these phrases, either as a consumer or as a business owner. When you are involved with entrepreneurship it is crucial in order to avoid making losses as a result of insecurity. Security issues can be costly and time-consuming, all which will use efforts that you could be using to grow your business.

Having solid understanding of the risks faced by every business in this day and age will keep both you and your customers safe. We have put together a list of terms you should know and how they can apply to your business.

Data Security

Data security refers to the process of protecting data from unauthorised access and data protection throughout its life cycle. It can come either in form of software or hardware like firewalls that detect suspicious activity as well as secure payment devices and constant monitoring of transactions. Some of the ways of securing your data include:

1. a)   Data Encryption - converting the data into a code that cannot be easily read without a key that unlocks it.
2. b)   Data Masking – masking certain areas of your data so that personnel without the required authorisation cannot look at it.
3. c)  Data Erasure – ensuring that no longer used data is completely removed and cannot be recovered by unauthorised people.
4. d)  Data Backup – creating copies of data so it can be recovered if the original copy is lost.

Credit card companies came up with a series of regulations called the Payment Card Industry and Data Security Standard. Every organisation that uses credit card payment options should ensure that they are PCI and DSS certified. The purpose is to maintain a secure environment so cardholder information does not fall into the wrong hands. In May 2017, Pesapal attained certification,

Fraud

Fraud occurs when a person deceives a company or institution to obtain money, goods or services illegally. For example a customer might attempt to use stolen credit card information to make a purchase in order to get that product or service for free. In case the owner notices they are liable to file a dispute.

E-commerce businesses are at a greater risk since the purchases don’t take place in person. This makes it harder to confirm whether the purchaser is the legitimate cardholder. However there are a couple of ways in which in which you can ensure your business handles payments securely.

Payment Methods

A payment method is the way in which a buyer chooses to compensate the seller of a good or service that is acceptable to the seller. It is advisable to offer various options for your customers so as to accommodate those with various means. In order to tap into the international market you should offer various currency options so as to attract international customers. Ensuring that customers see a price they can relate to all through their purchase experience, especially as they select their payment method, is important. Examples of methods mainly used include credit/ debit card payments, mobile payments and in some places cheques.

Disputes

A payment dispute occurs when a cardholder contacts their bank and asks for a transaction to be reversed. The bank then reverses the transaction by issuing a dispute and debiting your business’s account for the disputed account.

A cardholder can file for a dispute for a number of reasons such as they might be dissatisfied with their purchase, they never received their parcel, their credit card could have been stolen or their information could have been compromised by a data breach.

The knowledge of these terms will help you avoid any losses that could be caused as a result of  insecurity incidences.  Remember it is always better to prevent than to cure.