Cybersecurity and customer privacy are big issues in this day and age. According to the FBI, around 440,000 cyber crimes are registered every year, with reported losses exceeding $4.1 billion in 2020 alone. But while small business owners are increasingly aware of cybersecurity risks, many lack the time and resources to safeguard transactions.

To protect your business and customers from evolving threats, here's how Figure can help. Figure Pay offers a deposit account and a point-of-sale merchant payment system so you can accept mobile payments through the Figure Pay app. The Figure Pay network is highly secure because it’s powered by blockchain—one of the best data protection technologies around today.

How Figure Pay Secures Your Data

Blockchain technology connects merchants and customers directly so payments can bypass financial institutions and intermediaries normally involved in clearing transactions. Simplifying the mobile payments process strengthens your defense against fraudulent activities—when transactions are settling in an instant, cyber criminals have little opportunity to tamper with pay systems or collect private information.

Another security benefit of blockchain is that it ensures your data is encrypted. In terms of data storage, blockchain is reliable and safe because records are not kept in a central location and therefore not controlled by one authority. Blocks of data are distributed across networks, which means there isn’t a single point of failure that would compromise the entire system. You simply can’t remove, alter or corrupt records from one computer.

When you want to transfer money from your Figure Pay account, Plaid technology is used to securely connect to your external bank accounts. Of course, deposits in your Figure Pay account are eligible for FDIC insurance up to the maximum limit.

Why You Need Data Security

Payment theft, chargebacks for unauthorized transactions and invalid credit card refunds are common forms of fraud for merchants that accept debit and credit card payments. They can lead to significant financial losses and lasting reputational damage, potentially bringing your business to its knees.

Apart from financial consequences, cyber protection has a big impact on customer perception. Keeping customer data safe goes a long way to earn their trust. Customers expect companies to keep their data safe—in fact, a RSA survey reports 64% of consumers would blame the company, rather than the hacker, for breach of their personal data. The key takeaway? If you want to build a loyal customer base, data security is a must.

How Figure Pay Works for Merchants

Figure Pay is essentially a cash app that allows mobile payments and transfers to be made between Figure network members. You can apply for an account as a merchant or an individual, but a merchant account will allow you to accept payments for sales through the Figure Pay app. While Figure Pay isn’t a bank, deposits in your business account are held at UMB Bank, which is Figure Pay’s bank partner.

Taking payments for customer purchases is easy. You simply generate a QR code in the Figure Pay app by entering the sale amount, then show your customer the QR code so they can scan it with their phone to initiate a mobile payment. You’ll be notified when your transaction is complete. All this can be done quickly and securely from your smartphone—there isn’t extra equipment or hardware to buy or manage. Figure Pay can be integrated with your existing POS terminal too.

Once you’ve added employee details to your account through the app, they’ll be able accept customer payments from their personal phone as well. Don’t worry, you’ll have visibility and control of their access the whole time.

With the Figure Pay app, refunds can be issued to customers in just a few clicks. When you select “Returns” from the app’s main menu, you can type in the amount to return to the customer then press the send button. Once you scan the customer’s Figure Pay QR code, which the customer can provide electronically or in person, the transaction completes.

Funds from your Figure Pay merchant account can be transferred externally to your account at other banks or when necessary, refunded to customers into their Figure Pay accounts.

Benefits for You and Your Customers

Apart from payment and data protection, merchants can enjoy the following benefits with Figure Pay:

  • Contactless payments. In the post-COVID landscape where social distancing is still the norm, offering mobile payments can protect you, your staff and customers without affecting revenue stream for your business.
  • Low fees. While merchant fees can cost up to 2.75-3% per transaction with traditional networks, you can accept contactless payments and receive real-time settlement through Figure Pay at only 0.50% per transaction. This represents an 80% reduction in merchant fees. You’re also protected from chargebacks that can happen with debit and credit card payments.
  • Instant settlement. Sales paid by credit card could take days to appear in your bank account, but sales paid through Figure are settled in real-time, giving you access to funds sooner.
  • Improved customer experience. Current point-of-sale systems take several steps to take payment, but Figure Pay’s use of QR code makes the long wait by at the register a thing of the past for shoppers. Giving customers more ways to pay could also boost sales and increase loyalty.
  • Streamlined processes. Since sales activities are automatically recorded and can be viewed from the Figure Pay app, there’s no need to manually record transactions. Unlike cash, you won’t have the to physically deposit funds into the bank either. Once you have added your bank details, you can transfer your entire account balance or up to a recommended amount, so you’ve got potential returns covered. Your transfers should show up in your external bank account in two business days.
  • Employee management. You can assign different access levels for managers and employees in the app, so staff can take payments but you’re still in total control.
  • Managed rewards by Figure. Consumers who sign up to Figure Pay can earn bonuses and rewards on their purchases. By becoming part of the Figure network, you can potentially attract more sales from customers who are looking to build their rewards.
  • Individual account available. You won’t receive a credit or debit card with your merchant account, but you can also sign up as an individual consumer and get a hybrid card that allows you to purchase on debit or through a “buy now, pay later” installment loan. The hybrid card can be used at any merchant that accepts Visa.

Future-Proof Your Business with Figure Pay

When it comes to protecting your business from ongoing cybersecurity threats, engaging the latest technology can make a big difference. Figure Pay is backed by blockchain, a proven system which combines strong protection, convenience and low merchant fees in a single solution. For many small businesses, Figure Pay is cheaper, more efficient, and safer than traditional payment processing. Importantly, it also delivers a better in-store shopping experience for customers.

Setting up a business account with Figure pay is straightforward. If you have all your business information and proof of identity documents ready, then it’ll only take only a few minutes to complete your registration. Sign up today for a safe, secure, and easy mobile payment and credit system from Figure Pay!