The 21st century will be known for a number of technological breakthroughs, but perhaps none have affected the economy more than the rise of online shopping. The rate at which eCommerce proliferated the retail and business sales industries have had a significant impact on a number of different areas of the economy, including payment methods.
According to a new study from the Payments Council, debit card payments rose 400 percent over the past decade, a figure that makes sense when you consider the popularity of eCommerce. In the old days, cash was king. Then came checks. Both were fueled by in-person transactions, because it was easy for customers to write a check and place it in the hand of a merchant or pull a wad of cash out of their pockets. That changed once people started buying online.
As online technology evolved, it became increasingly easy for shoppers to pay for products by entering a card number, rather than pulling the merchant's address and mailing a check. As card usage rose, a number of regulations pertaining to payment security - particularly PCI compliance - came into play. Now, businesses must be cognizant of any and all risks that they run by processing customer data extracted from a card.
Additionally, vendors should be doing what they can to ensure they keep payment processing rates at a minimum. As more cards are swiped, vendors get hit with more charges. However, by obtaining the tools required to process level 3 customer data including line item detail, vendors can reduce interchange rates and reduce the hit they take each time they process a payment.
As time moves on, more payment solutions will arise to keep up with ever-changing technology. Merchants that work with a B2B payments provider can put themselves in position to face any challenges brought on by payment innovation.