How To Avoid Problems With Online Payments

By Author: Sifipay
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Online payments are the dominant payment force in the twenty-first century. Offering them, but also establishing them well, makes a customer happy with their purchase and a merchant more secure. Today, we will discuss how to avoid some common issues with internet payments and what the key factors are.

Friendly fraud and its prevention
Friendly fraud is defined as fraudulent activity disguised as a false chargeback request. Normally, a customer must be clearly dissatisfied with some aspect of the service or product, or its delivery, in order to issue a chargeback. When it comes to friendly fraud, however, a customer lies about the reason for their dissatisfaction in order to get their money back.

Friendly fraud is a crime because it is a form of fraud. It is detrimental to the business because it takes away a merchant's good quality product or service and thus the value of it. Furthermore, friendly fraud results in chargebacks, which harms the business once more.

According to Chargebacks 911, 81 percent of customers admit to issuing a chargeback for the sake of convenience. And roughly 40% of customers ...
... who have engaged in friendly fraud will do so again within the next two months.

To avoid friendly fraud, special fraud prevention technologies are required, which collect multi-channeled data about each customer and analyse the type of behaviour as fraudulent or not.

Chargebacks
We mentioned in the previous paragraph that a chargeback is a risk for a business. And it is correct. A chargeback is a customer's legal right to request a refund for an unsatisfactory service or product. Chargebacks can occur for a variety of reasons, including incorrect item purchase, damaged product, multiple purchases, delivery issues, and so on. One of the chargeback reasons is also friendly fraud.

When a customer issues a chargeback, the merchant's acquiring bank must forcibly pay back the money spent. An acquiring bank pays back by deducting funds from the merchant's account as well as chargeback fees. When chargebacks pile up, the merchant runs the risk of crossing the bank's chargeback ratio line. As a result, the merchant may be placed in a high-risk category or even lose his or her merchant account.
A merchant must implement a chargeback alert service for internet payments to avoid chargebacks. A chargeback alert service is a specialised technology that stops the process and alerts the merchant to the problem. After that, a merchant has 24 hours to solve a problem without involving the bank. In this case, the solution could be a return or refund.

Payment integration
A merchant must be as inclusive as possible when accepting internet payments. A merchant should select an online payment gateway carefully, focusing on the most convenient payment methods for the customer.
If the majority of the customer base is young, it makes sense to include not only traditional credit and debit card methods, but also Apple Pay, Google Pay, and other alternative payment methods. And, in order to be inclusive for a specific region, we recommend focusing on the most popular local payment method in some countries.

Limited mobility
Payment mobility is another aspect of internet payment inclusivity. We are not only talking about young people who want to use various payment platforms in 2021. It is common to expect not only desktop transaction capabilities, but also mobile phone and tablet versions.

Mobile phones will account for nearly 55 percent of traffic in 2021, while desktop computers will account for 43 percent. At the same time, customers' time spent on mobile phones has increased by nearly 25% in the last five years. Thus, in 2016, the average time spent on the mobile platform was 188 minutes, whereas it has now increased by 55 minutes.

Payment processing for your high-risk business
A high-risk business is one that has been designated as such by acquiring banks or other financial institutions for a variety of reasons. These reasons can range from the most basic, such as registration location – most businesses are high-risk. A merchant falls into this category if they accept multiple currencies and sell internationally.

Clearly, a poor credit history, a high chargeback ratio, and a closed merchant account all have an impact on the situation. However, some industries become high-risk solely because they provide subscription-based services or products, as well as businesses that operate in an industry with a potentially high chargeback ratio. As a result, some movie streaming services, airlines, and video game companies make the list.

A poor credit history, a high chargeback ratio, and a closed merchant account all clearly have an effect on the situation. However, some industries, such as businesses that operate in an industry with a potentially high chargeback ratio, become high-risk solely because they provide subscription-based services or products. As a result, some movie streaming services, airlines, and video game developers appear on the list.

A payment gateway service provider provides the best online payment gateway for your website, which is required for accepting electronic payments.

Any of the options is suitable if it meets the requirements. A merchant must consider fees, security, check-out experience, accepted payment methods, transaction location, and design when selecting a provider.

To know more about Sifipay Payment Gateway, please visit www.sifipay.com.