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How to ensure fraud and chargeback prevention

Category: Growth Hacks

How to ensure fraud and chargeback prevention
Mohab Growth Hacks 0

How to ensure fraud and chargeback prevention

Fraud and chargeback claims can malign your reputation, eventually resulting in loss in your business. In order for merchants to safeguard themselves against fraud and chargeback, it is recommended that they either choose a reliable and secure online payment platform available in the market or hire professionals to handle cases of chargeback and fraud within the company. Before we discuss the strategies for fraud and chargeback prevention, let us look at the definition of chargeback.

What is a chargeback?

Chargeback refers to an appeal made by a cardholder/consumer against fraud committed by a merchant. The appeal is made to the issuing bank. The bank deducts said amount from the merchant until the merchant is able to collect enough evidence to prove his/her case, in which case the money is returned. In some cases, the cardholder may issue a second chargeback known as pre-arbitration. This occurs when a consumer is determined to prove that he/she has been a victim of fraud at the hand of the merchant.

Let us discuss certain principles and restrictions that a merchant should look into in order to prevent fraud and chargeback.

Restriction on the number of payment attempts

Most online transactions happen through an online payment gateway. One way to minimize the risk of chargebacks is to impose a restriction on the number of times a cardholder can attempt to make a payment. Additionally, the number of purchases made through one card in a day can also be restricted. This simple principle can help you reduce the risk of chargebacks and even prevent the problem from occurring altogether.

Restrictions with regard to email

It is often found that people who come with an intention of committing fraud use multiple email addresses to make purchases using the same card. A merchant must monitor the cards that are linked to multiple email addresses. This may seem like a rather simple way of dealing with it, but it can be a highly preventative measure. It is always better to catch them before the crime occurs.

Monitoring IP addresses

Technology now makes it possible to monitor IP addresses. This can work in favor of the merchant since they can monitor the addresses and find out the e-commerce history and reputation of a particular buyer. There are multiple restrictions that a merchant can apply, such as blacklisting a particular IP address.

Customer service

Credit card companies often offer chargeback notification as a service. This means that any time a cardholder raises a dispute, the merchant is informed simultaneously. By making use of this service and providing good customer support, it is oftentimes easy to address the customer’s issues. Prompt action in such cases can help prevent chargebacks and build better customer relations for the future.

Maintaining and updating records

It is always a good idea to maintain complete and up-to-date records of all transactions made by a cardholder. These records should include dates of purchase, the amounts paid as well as authorization information. These records can be very helpful while handling and fighting chargeback disputes.

Proper training of employees

Employees should be trained on how to handle card and non-card transactions. By enlightening them on the subject, the merchant can save himself/herself from fraud altogether. Verifying signatures, requiring complete card information, etc. are just some ways that fraud can be prevented. As the popular adage goes ‘prevention is better than cure’; it would save the merchant a lot in chargeback fee if the fraud was to be prevented altogether.

Choose your battles

The merchant is charged a certain fee when a chargeback is asked for. An additional fee is imposed if the merchant decides to dispute it. Too many chargebacks also damage the merchant’s relationship with the account provider. Therefore, it is wise for the merchant to choose to dispute only the chargebacks that he/she is likely to win.

The above-mentioned steps may seem like too much for a merchant to take on by themselves. It is advisable, in such a case, to hire a chargeback management firm to deal with the issue of fraud and chargebacks, and adopt these effective strategies to safeguard your business.

5 years ago
Follow these 5 Simple Steps for Product Pricing
Mohab Growth Hacks 0

Follow these 5 Simple Steps for Product Pricing

Do you know that 61 percent of online buyers say that extra high costs is the main reason for cart abandonment? This clearly indicates that if product pricing is not accurate, you may lose more than half of the sales.

The product pricing mechanism lays emphasis on the cost price, profit, taxes, product value, and other variables. This means you have to consider various factors while determining the perfect product price. To assist you, we have compiled a list of five simple steps of pricing a product. Let us guide you through these.

What’s the Pricing Objective?

One of the foremost considerations in product pricing strategy is determining the company’s objective. You have to decide what you wish to achieve and where you see the company in the near future. When you are clear about your objectives, you get clarity about the product pricing.

For example, if you are in the nascent stage and you are entering a market, you can adopt survival pricing strategy wherein you are focused on establishing your presence and covering your expenses. Profit is not your foremost consideration. There are other objectives that influence the product price:

  • Maximum market share
  • Maximum market skimming
  • Product quality leadership

Demand-Price Relationship

While identifying the right market price of a product, it is crucial to study the demand curve. Often, there is an inverse relationship between the price and the demand. If the price is higher, the demand will be low, and vice-versa. However, this is not true in all the cases. We mentioned product quality leadership in the previous section. The demand and price both could be high if you are a leader in the segment in question.

Nevertheless, you can conduct surveys, initiate a project pilot, or perform a statistical analysis to determine the demand in the market.

Cost Estimation

Evidently, costs and target returns influence the price of the product. There are various fixed and variable costs associated with the product. To determine these costs, you can adopt activity-based costing (ABC) system to identify the exact cost based on all the activities, right from procuring raw materials to delivering the products to the retailer.

Also, if you prefer taking payments online, the customer can pay via multiple payment modes like credit or debit card, net banking, digital wallets, and so on. You can install a payment gateway to process these payments. The important thing to note is that the customer might incur payment processing charges, and you don’t have to include these while pricing your products.

Finalize a Pricing Method

The company’s objective influences the product price and the pricing method decides the pricing structure. And up to a certain extent, the pricing method is also dependent on the company’s objectives. Let us look at the pricing methods:

  • Markup pricing – The product price is determined after adding a profit percentage on the cost price.
  • Value-based pricing – The product price is influenced according to its value for the customers.
  • Target return pricing – The pricing is influenced by the target ROI.
  • Going rate pricing – You price the product as per the standard pricing of similar products.

Peek into Competitors’ Pricing Policy

Competition is almost everywhere. In some cases, you may face little or no competition. Here you can set the price as per your discretion after analyzing demand and customers’ willingness to pay. But if you operate in a niche having stiff competition, you must scrutinize your competitors’ objectives and pricing policy. This will allow you to customize your market offering in a way to gain an edge over your competitors.

The Bottom Line

With the right product price, you can grab a larger portion of the market share. But in addition to the price, you must create value for the customers, adopt innovative marketing strategies, and keep an eye on the market trends to remain a step ahead of your competitors.

5 years ago
PayTabs Payment Gateway Option for Egypt
Mohab Growth Hacks 0

PayTabs Payment Gateway Option for Egypt

By the end of 2019, there will be 50.7 million internet users in Egypt. With the rise in internet penetration, users will spend more time browsing social media, learning courses and skills, and shopping online. Evidently, digital payment will also witness a tremendous boost. PayTabs is working relentlessly to be a contributor in the digital payment revolution in Egypt.

If you are planning to integrate a payment gateway into your online store, mobile shopping app, or any other venture, look no further than PayTabs – a payment gateway facilitating smart and convenient online payment solutions. Why PayTabs deserves your attention? Read on to know more.

Smart Payment Options

The era of online transactions began with credit and debit card payments. The times have changed and now, there are numerous payment methods available for making an online transaction. By the end of 2018, alternative payment methods (APMs) will constitute 59 percent of all the online transactions. The popular payment methods include digital wallets, online banking, peer-to-peer transactions, gift vouchers, EMI payments, POS payments, and a few others.

PayTabs understands the importance of APMs. Therefore, it offers various alternative payment options in Egypt – such as Visa, MasterCard, SADAD, AliPay, WeChat Pay, UnionPay, and others. Besides these APMs, PayTabs allows merchants to transact in multiple currencies. You can indulge in the export and import of products and services without worrying about online transactions.

PayTabs facilitates payment collection within 24 hours via different modes of payment. There is a provision for generating invoices and sending these to your customers. Whether you have a website or not, online invoicing is available for taking payments online. If your business revolves around subscription-based services, use PayTabs to collect recurring payments.

The Smart Dashboard assists in analyzing sales performance. You can check out completed transactions, pending transactions, and failed transactions. Identify the most popular payment methods. This will allow you to strategize for a higher conversion rate.

Seamless Integration

Payment gateway integration is a deciding factor when it comes to selecting an online payment processor. Whether you own a website, a mobile app, or a brick-and-mortar store in Egypt; a payment gateway should integrate and perform seamlessly. PayTabs is compatible with e-commerce websites such as Shopify, Magento, PrestaShop, WooCommerce, CS.cart, OpenCart, and others. There are dedicated e-commerce plugins that integrate with these e-commerce platforms. You just have to customize it according to your requirements.

And if you have developed your own website using any other script or platform, you can use PayTabs APIs (Application Programming Interfaces). These APIs integrate with the website without any hassles. Similarly, there are PayTabs SDKs (Software Development Kits) that integrate with mobile apps. There are dedicated iOS and Android SDKs for mobile apps available on both iOS and Android.

PayTabs takes care of customer experience as well. The iFrame on-page checkout feature prevents any redirects and allows customers to pay then and there. This saves time and ensures a seamless user experience. To increase conversion rate and prevent cart abandonment, it is highly recommended to integrate PayTabs Express Checkout window in your e-com website. While customers browse your online store, the checkout window keeps hovering on the screen, providing quick access when it’s time to check out.

Robust Security & Support

Confidentiality, privacy, and security are inevitable aspects of payment gateways. PayTabs is one of the online payment processors that deploy the latest and most effective security protocols to maintain confidentiality, privacy, and security of individuals transacting on an online store.

The majority of the online transactions are secured with 3D Secure Authentication to prevent any financial frauds. In addition to these, Dual Layer Fraud Protection & Management further strengthens security aspects. PayTabs adheres to the international security protocols. It complies with PCI-DSS norms and deploys DigiCert EV SSL certification for the stringent encrypted environment.

PayTabs – The Best Payment Gateway in Egypt

As the residents of Egypt are showing an interest in online transactions, it is the right time to integrate a payment gateway into your website. With its many payment features, ease of integration, seamless compatibility, and compliance with security protocols, PayTabs enables merchants to reap maximum benefits from their online business.

5 years ago
How to Choose the Right Payment Gateway in Saudi Arabia
Mohab Growth Hacks 0

How to Choose the Right Payment Gateway in Saudi Arabia

E-commerce growth in Saudi Arabia over the last one decade has been phenomenal. There are over 12.94 e-commerce users in the country which is almost half the country’s population.  According to BMI Research, online sales in Saudi Arabia will surge to $13.9 billion by 2021. The country has become the next frontier for businesses looking for new markets due to the strength of the economy and the youngest Internet-connected population in the world. If you have plans to set up a business here, you have to strategize on providing the best user experience at your store. One easy way of doing this is to take payments online by using the best payment gateway.

With so many payment gateways available for e-commerce stores in Saudi Arabia, choosing the best becomes a daunting task. In this article, you will learn the benefits of picking a reliable payment gateway and how to choose one in the country.

Picking the Right Payment Gateway in Saudi Arabia

If you want to compete in this highly competitive e-commerce market, you need to create an edge over the competition.  One easy way of doing this is through a seamless checkout process. You should accept payments through multiple modes and offer a quick and secure payment process.

This reduces bounce rates for your store, increases sales conversion and improves customer retention rates. All this is possible if you have an idea about how to get a payment gateway in the country. The best payment gateways verify each customer’s billing information and then approve requests. It is the only way to guarantee fast and secure payments at your e-store.

Below are some of the factors that will prove helpful in choosing the right payment system provider for your e-store in Saudi Arabia.

  1. Application Process and Time Frame for Execution

When shopping for a good payment system for your e-store, make sure you consider how long it will take to integrate the system into your store. In a fast-paced market like Saudi Arabia, you don’t want to lose any time because potential customers will move on to the competition. Look for a payment system that won’t take long to implement.

  1. Consider Your Business Needs

Most payment system providers will not tell you this but you have to evaluate your business needs when it comes to payments. Some providers will sell features which you don’t need for your startup in Saudi Arabia and these will eat into your revenues.  Talk to your team and create a checklist of the things you need in a payment system.

  1. Fees

Consider all the fees included in the software and check whether they will fit into your budget. The fee structure provided by the payment system provider should suit your business needs and the budget you have set. Compare the rates to other providers in the market to identify the best deal.

  1. Security

This is the most crucial aspect of payment gateways that you have to consider. Look for PCI-compliance, SSL encryption 128-Bit encryption, digital signature, Dynamic IPs and other security features and guarantee on the network. Never compromise on the security of the payment network you wish to use because this can ruin your business.

  1. Customer Experience

One of the most crucial aspects of a good payment system is the quality of customer experience provided. Make sure that the payment process is seamless and convenient for customers and also accepts multiple payment options. More importantly, go for mobile-optimized gateways to give a seamless user experience to mobile users at your store.

As the e-commerce industry in Saudi Arabia continues its relentless forward march, you have to strategize how to position your business to tap into the limitless opportunities available. Using the right gateway for your payment processing is a smart way of boosting customer acquisition and customer retention, increasing sales conversion, enhancing customer loyalty and much more.

5 years ago
5 Factors to Consider while Selecting a Payment Gateway in UAE
Mohab Growth Hacks 0

5 Factors to Consider while Selecting a Payment Gateway in UAE

The success of e-commerce depends on various factors, the choice of payment gateway being one of them. The payment service on your e-commerce portal influences user experience. And if a user finds it convenient to shop on your online store, you can expect recurring sales in the future.

While selecting a payment gateway in the UAE, you must keep certain factors in mind. Although payment gateways function in a similar way, irrespective of the country, there may be slight variances in the selection procedure here. We have outlined five factors that you should consider while selecting a suitable payment gateway for your online store.

Transaction Charges

The cost of installing a payment gateway is the foremost consideration for every online retailer. In addition to the setup fee, the payment gateway provider charges a fee on per transaction basis. Some of the providers in the UAE may not ask for a setup fee. In this case, the transaction fee may be high.

Talking about the transaction fee, it may be a fixed amount or a percentage of the transactional amount or a combination of both. The transaction fee may vary according to the types of products and services, the number of transactions, and other parameters.

Payment Method Options

There was a time when online payments were processed using credit and debit cards. But now there are multiple modes of payment such as digital wallets, internet banking, EMIs, and others. Depending on the acceptable modes of payment in the UAE, the ideal payment gateway should be integrated with all the needed payment options. Some of the online businesses work on the recurring payment model. Discuss the recurring payment feature with the service provider before finalizing the payment gateway.

When you offer diverse payment options to the user, the probability of a conversion increases. If you are into import and export, currency conversion facility is a necessity for you. Before finalizing a payment gateway, ensure it accepts payment modes that provide seamless currency exchange facility.

Security Parameters

Secure online payment systems ensure that customer’s financial information is secured against theft and misuse. Most of the payment gateways adopt the latest security standards, such as 256-bit AES and two-factor authentication (2FA). Also, the payment service providers must work in strict accordance with the regulatory framework issued by the Central Bank of the UAE.

In addition to security, seamless connectivity is necessary to reduce the transaction failure rate. Check out the payment gateway’s transaction success rate to determine its technical prowess and reliability.

Hosted or Shared

The hosted payment gateway redirects your customer to another link for payment. The transaction doesn’t happen on your website, and therefore, you don’t have to obtain a merchant ID. No confidential information is being shared on your website. The hosted payment gateways cost you more as they handle security risks as well.

The shared payment gateway processes payments on your website. The customer shares financial information with the payment gateway integrated into your website. To enable shared payment gateway, you have to integrate an API. For this purpose, the payment service provider must ensure reliable backend support. Also, you must ensure that your online trading platform is PCI-DSS compliant.

Compatibility & Support

It is crucial to determine whether the payment gateway works seamlessly on your website or not. Besides processing payments using different payment methods, test the payment gateway for mobile payments as well. Nowadays, users are biased towards mobile payment as it is convenient and secure. Also, check out the payment gateway’s cross-platform compatibility.

Access to prompt and reliable support system is a mandatory requirement. The technical executives should be capable enough to solve gateway problems pertaining to payment processing.

The Bottom Line

Some of the most prominent payment gateway service providers operate in the UAE. Depending on your online business, whether it is local or global, one-time or recurring; you can select a suitable payment gateway that integrates effortlessly with your online store.

5 years ago