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Industry News

Outsourcing payment processing can be beneficial to small merchants, expert says

By Joseph Trigliari

09/12/2009 - Payment processing and PCI compliance can be a complicated issue for businesses with merchant accounts, especially smaller businesses that are strained for resources to dedicate exclusively to payment processing.

As a result, small businesses may want to consider outsourcing payment processing to third-party providers, said Troy Leach, chief technology officer of the PCI Security Standards Council, in an interview with Pratical eCommerce.

"I'm seeing a trend, especially among the smaller merchants," he told the news website. "They're recognizing they don't have a dedicated IT shop in house. They don't have dedicated security staff that can support ongoing security. What they need to do is to outsource to a service provider that has that security skill set that has that fundamental understanding of just how a payment process works."

This is because smaller merchants do not really need to understand the ins and outs of payment processing - they just need to know how to process payments, maintain their POS terminals and other payment infrastructure, and receive their money, Leach noted.

Payment processing outsourcing could also increase the rates of PCI compliance among smaller merchants, which have traditionally lagged behind that of larger businesses, studies have shown.ADNFCR-2514-ID-19504872-ADNFCR

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