When selecting a payment processing platform, there is plenty to consider. There are a number of online payment problems that can plague your business, as well as payment gateway security requirements to meet to ensure that the sensitive data of your customers and business is safe.
Before making any decisions, it’s wise to be aware of the most frequent online payment problems so you can better plan your payment processing optimization. Here are the most common online payment problems and how to avoid them to deliver the most seamless payment processing possible.
Four Online Payment Problems To Be Aware Of
Here are some of the most common online payment problems your business may encounter – if you haven’t already!
One of the most frequent online payment problems is due to compromised data security and fraudsters looking for data breach opportunities. In 2019 alone, there were over 650,000 cases of identity theft – the most common type of fraud. Of the more than 3 million fraud cases reported to the Federal Trade Commission, identity theft accounted for over 20% of them.
Credit card fraud ranks as the most common type of identity theft. Over 45% of identity theft cases in 2019 were due to various types of credit card fraud, mostly opening unauthorized new accounts.
The year 2019 was the worst for credit card fraud, but identity theft is expected to rise due to increased data breaches. When data breaches occur, they expose sensitive, personally identifiable information which can leave people vulnerable to identity theft.
Unfortunately, both identity theft and credit card fraud will remain major concerns in the coming months as the COVID-19 pandemic encouraged criminals to unleash cyberattacks. The crisis has become a fertile ground for fraud, as businesses scrambled to work remotely, consumers began buying online more often, and increased health threats have made people more vulnerable than ever. Even with the end of the crisis, fraud will continue to pose a major problem for payment processing security through the decade.
A chargeback is a forced return of money to the consumer, typically a credit card transaction. The action reverses a money transfer from the consumer's bank account, line of credit, or credit card and is designed to protect customers from fraud due to electronic payment systems. However, chargebacks can be a major online payment problem.
Chargebacks are commonly used to determine the health of a business, and a high rate of them translates into decreased authorization rates that essentially mean bad business. Merchants additionally hold the liability for chargebacks and it can cost them. These forced returns have grown 179% since 2018 and have cost merchants nearly 2% of their total annual revenue. This number is expected to increase dramatically throughout 2020 due to the COVID-19 crisis.
With the eCommerce market growing exponentially, payment processing merchants have to keep up with the growing demand for new forms of payment to satisfy customer needs. If your merchant services do not offer support for multi-channel payments, then you may find yourself using one vendor for online payments and a completely different one for POS payments.
Multiple vendors can increase both costs and the risk of processing issues. Lack of payment integration may also leave businesses being trapped in aged payment processing platforms with reduced capabilities that have trouble adopting new payment methods. As cCommerce continues to evolve, consumers will want new multi-currency options and old platforms with limited or no payment integration will not be able to meet their expectations.
Modern consumers and business owners don’t want to be tied down by payment processing to just their laptops. They want to make payments from their tablet or smartphone, 24/7, from any location. Business owners may have multiple locations and need to accept multiple forms of digital payment anywhere, at all times.
Older payment processing platforms may not have the mobility that modern consumers are used to. Due to technology advancements in user experiences in other industries, many consumers are now expecting the same – or better – level of convenience with financial mobile payment processing. As mobile ecosystems continue to develop, consumers will be placing greater emphasis on mobility and convenience for payment processing platforms.
Tips for Seamless Payment Processing
Meet these common online payment problems head-on! Here’s some tips to mitigate issues so you can provide the smoothest payment processing experience for your customers.
Place Emphasis on Security Requirements
By placing emphasis on data security, merchants can help avoid online payment problems related to fraud and ensure the security of their customer’s sensitive information. Payment processes should have strong fraud protection safeguards in place, such as KYC requirements and ID check security measures to prevent identity theft.
With the proper security requirements in place, your customers can be protected against fraudulent credit card processing transactions and put at ease that their payment processing services are delivering the ultimate security protection and not putting them at risk for scammers.
Increased vigilance will also prevent chargebacks and the complications that come from them. Security methods can help detect signs of fraud so the correct chargebacks can be placed – or avoided altogether – so customers are protected and costly mistakes are avoided.
Support of Multi-Channel Payments
Avoid problems with integration by using an integrated payment platform. Consolidating all processing payment types under one unified platform provides consumers with a simpler, easier, and quicker payment processing experience that can fulfill their modern demands.
Whether users are a sole-proprietary start-up, an established multinational enterprise, or somewhere in-between, multi-channel platforms allow payment processing of numerous kinds so customers can reach their full revenue potential in the most convenient way. All-in-one processing solutions streamline operations without complicated implementation and can help adapt to the changing payment trends of consumers.
Steer clear of issues with mobility by finding a payment processing solution that is compatible with tablets and smartphones and can accept digital payments from any location. Modern payment processing platforms can provide multi-channel mobile payments from the convenience of phones, from anywhere in the world, anytime. Whether users are a newly-formed startup ready to collect payments or a high-risk business trying to set up an account without expensive fees, modern payment processing apps allow the most accessible experience for modern consumers to receive and deliver payments whenever they want. With seamless mobile processing transactions, various payment methods, and 24/7 access, modern customer expectations can be exceeded.
Payment Processing for Your High-Risk Business
The right payment processing method can transform customer expectations, streamline operations, and help to avoid these common online payment problems so you can achieve your revenue potential.
With Transcend Pay’s revolutionary payment processing software, you can have an all-in-one payment processing solution that makes facilitating multi-channel transactions smoother than ever. Thanks to our extensive financial network, we approve 99% of high-risk business accounts. Plus, there’s no reserve requirements or hidden fees, so you can keep more of your hard-earned revenue and grow your business!
Our payment processing platform also features strident security measures so you can better protect sensitive data. Real-time visibility into all merchant account data and instant banking verification ensures that accounts are legitimate and owned by the person who claims to own them within a matter of seconds so you can easily reduce fraud and minimize risk.
So, whether you’re using our innovative payment processing software, connecting to our merchant gateway, or installing our cutting-edge Tpay solution to start accepting online payments within minutes, Transcend Pay has the payment processing solutions you need to deliver the safest and most secure customer experience. Contact our team today and learn more about how you can go beyond the competition with Transcend Pay!