Along the entrepreneurial journey, every merchant is bound to hit a few bumps. For self-growth and skills discovery, owning your own business might be a fulfilling experience. Making money seems very nice, but processing money could be hectic.
Merchants and shoppers both are expecting nothing but less than a safe and smooth digital experience in today’s technological advanced eCommerce environment. Challenges and complex processes for all parties in online payments are due to multiple reasons including multi-currency options and cashless payment methods. B2B and B2C vendors, payment processors, shoppers and banks all are facing challenges in payment processing methods.
Some payment processing challenges faced by merchants are enlisted below.
Loss as Chargebacks:
Disputed charges or transactions that shoppers dispute on their debit/credit cards are known as chargebacks. A high rate of chargebacks decreases authorization rates that are not good for business. The e-commerce market is continuously growing, so are fraudulent schemes that are not good for business.
In helping merchants maintain a good position in relation to credit card companies, the payment processor plays an important part in resolving chargebacks and refunds. Due to the lack of a proper plan to manage chargebacks and refunds or due to insufficient knowledge, small companies are especially vulnerable to fraud.
Working with a payment processor with clear tactics and policies can make a difference between damaging or growing your business.
The rise in customer expectations:
To meet customer expectations is the biggest challenge of all in the current eCommerce market on a global level. New technologies and innovations are changing customer expectations about what a company should offer, including personalizes shopping experiences and payment options. No matter what a company is providing, customers will always demand more.
Various payment methods, seamless transactions via mobile apps, 24/7 payment support and multiple currencies are now the norms to keep customers satisfied. To stand out from the crowd, Tech giants are offering a little more than competitors.
A specialized payment processing service provider can assist if merchants are not sure about, in which payment method to invest.
Overwhelming processing Fees:
It’s a dream of every business to keep cost low and generate more profit. Taxes and fees are regular features of everyday business, but while dealing with multiple financial institutions and international markets, countless regulations seem overwhelming.
Payment processing fees vary internationally and their calculations depend upon various factors: type of card used, the average size of transactions, methods of accepting payments, business type and many more. Sometimes charges are very difficult to negotiate.
Merchants can stay up to date with worldwide legal and financial requirements with the help of a dedicated payment provider.
A business can’t provide multi-currency options and other new payment methods to their customer by ignoring integrated payments. A business may also get trapped in old platforms of payments by neglecting payment integration that can cause failure to a business in the era of advancements. Choose a payment processor that provides an API and support the integration.
Increased compliance and security:
Payment processors invest considerably in achieving the highest levels of compliance for payments, including KYC and AML verification, to build a trustworthy relationship with customers. Non-compliance with international standards can incur the risk of penalties and hefty fines that are unaffordable for small businesses and heavy loss for established businesses.
A business should choose a payment processing service provider wisely that is capable of removing chargebacks and increasing security with clear standards defined internationally. Your service provider should be compliant by financial watchdogs and international regulators such as FINTRAC, GDPR, OFAC and FATF.