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The Must-have Regulations For Online Payments

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By Author: Sahil Verma
Total Articles: 160
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The payments industry has grown and changed dramatically over the last few decades. Because of the enormous potential of online purchases and card payments in general, banking networks and states were forced to establish relevant rules to protect cardholder data.

Being a merchant today entails adhering to a slew of regulations. They may vary depending on the territory or market, but there are also unified standards for any business that accepts electronic payments through an online payment gateway. What exactly are we discussing? Learn more in this article.

Card network regulations

The major credit card companies, such as Mastercard, Visa, have established guidelines for credit card-not-present transactions, or CNP payments. The rules are intended to protect sensitive customer data and to provide a clear policy for merchants on how to handle this data.

Presented information on the website

When designing a website, it is highly recommended that a business owner adhere to these card regulations in order to reduce the potential chargeback amount and stay in compliance ...
... with established requirements.

Product or service description

A detailed description must be provided, along with photos.


The price must be clearly stated, including all parts and shipping costs.


A customer must be able to read through delivery options, costs, and schedules.

Contact information

A customer must be given an easy way to contact a company.

Refund and cancellation policies

The website must include both refund and cancellation policies.

Privacy policy

A privacy policy is required on any website that handles sensitive data in any way.

Collected data during the payment

When accepting a CNP payment, a merchant must request the card number, the customer's name, the CVV or Card Verification Value, and the expiration date. In addition, third-party fraud prevention tools, as well as the transaction record or invoice mailed to the customer, must be included. Violations of data collection and payment regulations can result in massive chargebacks, which card brands must pay due to the business's inaccurate data treatment.

PCI DSS compliance

The Payment Card Industry Data Security Standard (PCI DSS) is an acronym for the Payment Card Industry Data Security Standard, which is a set of mandatory rules that protect the cardholder's private data while processing, storing, or transmitting this information. PCI DSS is a requirement for any business that accepts electronic payments through the best online payment gateway anywhere in the world.

To be PCI DSS compliant, a merchant must adhere to 12 audit requirements. Noncompliance results in massive monthly fees until the merchant complies with PCI DSS.

Know your customer processes

Know Your Customer (KYC) is a set of obligations used in the investment and financial industries to verify cardholder's identity, risk profiles, and financial profiles.

Know Your Customer is also essential for real-time and cross-border payments in any currency. In this case, KYC provides a trustworthy approach, financial transaction transparency, and risk mitigation.
To successfully complete the KYC, a cardholder is usually required to provide a government-issued identification document such as:

birth certificate
ID card
social security card
driver’s license

A customer's address should also be verified, either with a proof of identification document or with another address proving a valid file.

Anti-money laundering

Anti-money laundering (AML) refers to laws, obligations, and procedures aimed at preventing income falsification. Anti-money laundering laws and obligations are enacted in response to illegal activities such as market manipulation, trading illegal items, corruption, and tax evasion.

How are payment systems regulated?

They are regulated by various financial institutions, such as card associations. The goal is to safeguard how sensitive cardholder data is handled.

Are payment processors regulated?

Yes, they are all the time. A payment processor that does not have all of the required compliances is untrustworthy.

What are the various kinds of payment systems?

There are several options, but we can highlight card-present transactions and card-not-present transactions, with the latter requiring a higher level of security.

Is the regulation of payment service providers in place?

Yes, every time. Depending on the nature of the business, PSPs must adhere to a variety of regulations.

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