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Smart Ways to Protect Your Business Against Chargebacks

Tag: payment processors

PayTabs

Smart-Ways-to-Protect-Your-Business-Against-Chargebacks

The current pandemic has forced many businesses to go from offline mode to online mode, as social distancing rules and phased lockdowns are still in place. The transition involves a steep learning curve as there are several new elements which businesses need to take care of when they are operating online. Chargeback prevention is one of the most important aspects you need to be careful about. It is one of the most frequent issues an online business needs to deal with. Here are some pointers which can help you navigate through this problem and carry out your business efficiently.

But First, What is a Chargeback?

The simplest explanation of chargebacks is that these are disputed transactions. If a customer raises concerns about the validity of any charges on their credit card, then the merchant is required to reverse the transaction. Such reversal is known as chargeback. While chargebacks are important so that the clients are not saddled with unwarranted payments, such charges can interfere with efficient operations of your business. An online business should try to keep such chargebacks to a minimum and offer relevant features to protect payments. Such charges can not only lead to financial losses but also the wastage of other resources, such as time.

            Also Read:Five Payment Processing Challenges For Small Businesses

Tips to minimize chargebacks

Choose an Online Payment Processor Carefully: Online payments form the backbone of a digital business. Since these payments are carried out by specialized processors, it is important that you partner with reliable service providers. Your processor should possess an impeccable track record. They should also be ahead of the curve when it comes to security of the transactions. You should check whether your processor can deploy the latest anti-scam and anti-phishing software. Online scams are one of the biggest reasons behind chargebacks. By eliminating the risk of frauds, you can also minimize the chances of chargebacks. Such processors can help you in implementing proper chargeback prevention measures.

Choose Appropriate Transaction Descriptor: If you are wondering how to handle chargebacks, this is one tip you should remember. Chargeback requests are generally initiated when a customer is not able to recognize particular charges on their credit card statement. So, ensure that your transactions appear in a familiar name to avoid the risk of accidental chargebacks. Instead of registering with the online payment processor in the name of your parent company, you should register with the trade name, which is the name known to your clients. So, if you are facing frequent chargebacks, you might want to get in touch with your online payment processor to see how you appear in your clients’ credit card statements. In case of any issue, get it fixed to avoid hassles.

            Also Read:These 10 things will help protect your Ecommerce Business against fraud

Build a Rapport with Your Clients: Businesses that build a strong relationship with their clients are less likely to face chargeback requests. One of the most effective ways to do this is by offering prompt customer services. If your customers are able to contact you and get timely resolution of their issues, they will be less inclined to take the drastic step of claiming chargebacks. It is also important that you do not add any unexplained charges on your bills. Transparent billing practices ensure that your clients have proper payment protection. Total honesty will lead to fewer small business chargebacks and a bigger base of loyalists.

Optimize Your Business Processes:Lax business processes may also lead to chargebacks. If your shipping duration is too long, the customers may not receive their products on time and may demand chargeback. Further, goods arriving in damaged conditions or not as per the description may also lead to chargebacks. In order to avoid such hassles, ensure that your business practices are up to the mark. You should maintain a clear line of communication with your clients. It is also a good idea to provide frequent updates about shipping milestones. If there is any problem with the product, it should be rectified accordingly, so that a chargeback is not required.

            Also Read:How to retrieve your money from a not-so friendly fraud

To wrap up, financial discipline is essential for any business, especially when it comes to chargeback prevention. These anomalies should be minimized so that the business can run with maximum efficiency. And by following the simple steps mentioned above and collaborating with reliable online payment processors, you can minimize the risk of chargebacks.

What are the benefits of working with a payment processor?

What are the benefits of working with a payment processor?

Reliable and foolproof payment processing is of utmost importance for any online business. While an online business can choose to have its own payment processing system installed, it is generally advisable to collaborate with a specialized payment processing service providers. Such collaboration brings several benefits such as dedicated services and access to latest technologies. So here are some of the pointers to let you decide whether you should go on your own or should work with a payment processor.

What is Payment Gateway or Processor?

First off, you need to be clear about the comprehensive definition of payment gateway or payment processor. These are the service providers which enable businesses and organizations to process online transactions made through debit or credit cards. Payment processors are able to support the payments made using website or apps. While choosing a pp service provider, you should ensure that they accept wide range of cards to let you expand your business without any hassle.

Payment processors may provide additional services such as carrying out validity checks and encryption of transaction details. These service providers may further ensure that the payments are sent to the correction destination and the responses are appropriately decrypted.

Why Work with a Payment Processor

Security: Since online payments require transfer of highly sensitive data, it is important that the security of such data is ensured. In the absence of any such securities, the clients may not be willing to share their details, leading to revenue loss for the business. Payment processors are dedicated service providers and hence invest in providing state of the art technological solutions to ensure the safety and security of the data. Overall, collaborating with payment processors can help you make your business more user friendly and secure.

Wider Payment Options: with the help of a pp, you can offer larger number of payment options to your customer, which will then lead to higher potential revenue for your business. Typically, payment processors support payments made through online banking, debit cards and credit cards. They may also extend their services to the use of online wallets. Through this service, a business may design a payment mix to ensure that it is able to provide different options to its clients. A business can widen its customer base by letting the clients make the payments the way they are most comfortable.

Flexibility: Collaborating with a pp lets you scale your business in an efficient manner. As payment options are changing rapidly, it is important that your business is able to change itself accordingly. Dedicated payment processors are in a position to provide latest services and technologies to aid the process of online payment.  With the help of these service providers, a business can offer cutting-edge payment solutions to its clients without incurring formidable transformation costs. While some processors may be directed towards certain specific business forms such as startups, still they are able to grow their services in a prompt manner.

Payment System Integration: Business organizations employ a large number of systems for their smooth operations. It is important that these systems are properly aggregated to ensure that there is smooth flow of information throughout the organization. Similar is the case of a payment system where it is optimal to integrate with other systems running in the organization. Payment processors offer integration services so that their clients are able to draw synergies in their operations and are able to economize.

Better Analytics: Working with a pp offers a business access to larger amount of data, which in turn helps in better analysis. Such collaborations are highly conducive for analytics purposes. Payment processors also tend to provide state of the art tools designed for analytics. With the help of these tools, businesses can analyze big data and determine trends to better forecast the future. Such analytics are helpful in several ways including for the purpose of planning and controlling. Analytics also aid the process of innovation by providing useful information.

Overall, it can be concluded that working with a pp is an ideal option for small and medium scale businesses. Large business may have enough internal resources to set up their own online payment system, however, even such businesses may be better served with collaboration.

5 ways to optimize your m-commerce business

5 ways to optimize your m-commerce business

E-commerce is revolutionizing the shopping experience of the buyers. People are more comfortable shopping online rather than stepping out of their comfort zone. The widespread smartphone penetration has further propelled the growth of e-commerce, particularly mobile e-commerce. By 2021, mobile commerce sales will constitute 54% of the total e-commerce sales.

If you are planning to tap prospective customers who prefer mobile shopping, you must focus on delivering a seamless mobile retail experience. And if you are wondering how to optimize online retail business for mobile users, the following tips will be beneficial for you.

Get hold of a responsive design

A responsive e-commerce website is one that comfortably adapts according to the screen size of the device. When it comes to mobile shopping, the screen size matters a lot. The condensed layout of the website must accommodate all the information in a well-defined manner. For example, the payment gateway page should adjust accordingly, without ruining the user experience.

Focusing on visuals rather than text is a smart way to connect with the buyers. This will ensure a minimal layout, and at the same time, you do not have to compromise on the user experience. Developing a shopping app is also feasible, but it will cost a fortune. Moreover, according to BI Intelligence’s Mobile Checkout Report, mobile shopping websites are popular among shoppers. Therefore, optimizing e-commerce website for mobile users should be your priority.

Facilitate social media shopping

If you do not find, shoppers browsing your mobile shopping store, you will find them hanging out on social media. And since you can integrate your online store and social media accounts, you can enable social media shopping. For example, Facebook, Instagram, and Pinterest allow you to promote and sell your products and services on social media. The visitors click on the Shop or Buyable Pins icon, and they are redirected to the secure payment processor. This is an excellent way to drive more sales because social media shopping reduces the number of steps involved during shopping.

Provide an intuitive user interface

If you deliver a seamless user experience to mobile users, you will witness higher conversion rates. Optimizing user interface is the best way to ensure maximum engagement. As the screen size gets smaller, it is better to focus on visuals rather than text information. Opt for photos, 360-degree images, videos, and so on. To increase click-through-rate, add a hovering “Buy Now” button. Keep the checkout process simple enough to avoid any confusion. Develop urgency in buyers by displaying product count, placing a countdown for a limited-time sale, and highlighting slashed down product prices.

Develop a relationship with customers

Once you acquire customers, you have to double your efforts to retain them. Let them create a profile on your e-commerce site, invite friends, share their collection with other users, upload photographs, and so on. Since users spend most of their time on smartphones, consider optimizing profile section for mobile screens. Allow customers to log in with their social media accounts, eliminating the need to create a personalized account.

Ask customers to opt for mobile notifications so that you can send them instant notifications related to product deals. Communicating with your customers via an email outreach program ensures higher engagement and conversions.

Make the mobile checkout process smooth and attractive

The cart abandonment rate is approximately 85.65% for mobile shopping carts. This highlights the need for optimizing checkout procedure for m-commerce. Aim at reducing the checkout steps to increase the conversion rate. If the customer abandons cart at the last moment, send a personalized offer such as a discount or cashback. In addition to credit and debit card transactions, online payment platforms should provide options like net banking, wallet payments, UPI payments, gift vouchers, and so on.

The bottom line

M-commerce can drastically increase your customer base if you optimize your business for mobile users. As smartphone penetration and internet accessibility increase exponentially, people are opting for convenient shopping means. Adhere to the aforementioned tips to render a hassle-free mobile retail experience for the shoppers.

The Questions to Ask Before Evaluating Payment Processors

The journey of entrepreneurship is not easy. Your day starts with a fresh challenge and most of your time is spent clearing obstacles. In the meantime, you are unable to pay attention to the small details that might be critical for your business if not taken care of. Choosing a payment processor in a hurry is one mistake that may cost you dearly in future.

Take a pause before you zero in to select a payment processor.

Don’t get swayed by the sweet talks of the sales guy.  Ask questions that will help you choose the right payment partner for your eCommerce business or physical store.
Always keep your objectives in mind and projected data ready, when you start asking questions.

As a business, your business model, priorities, and strategy can be different from other businesses.  So, a processor that works for your neighbor or a friend may not work for you.

To help you with this, we have created a list of things you should check before you give a nod to a payment processor:

 

Additional fee charged 

Processors normally charge a transaction fee, but some of them can also charge an additional fee in the name of a regulatory fee, some monthly fee, compliance or statement fee, etc.

These are charged upfront, but if the cumulative fees cross $200 per year for physical stores and $300 per year for E-Commerce retailers, it’s a red flag. Remember, there are additional service charges associated with the online shopping cart already.

Connectivity or speed of payment

This is a big issue as most of the payment processors use a software known as authorize.net. This software connects your shopping cart with the processor, but in some countries, they use some proprietary software, which may or may not work with your shopping cart and this may lead to connectivity issues. So, make sure that you are able to receive the payment from day one.

User experience

User experience should be good for both the merchant and the payer. The processor should offer robust customer support so that the merchant can handle different issues quickly and resolve the technical issues as well. As far as payer is concerned, payment process should be easy and convenient.

Deterrence against risk

If you are running a business where frauds are frequent, you should partner with a processor which offers excellent risk management capabilities. As the business grows, the probability of fraud also increases, so be proactive.

Share in payment processing fee

E-Commerce companies also get a small share of revenue from the fee that the processor charges for processing payments. This might be small in individual transactions, but when the transactions multiply with sales growth, this can become a big source of revenue.

Robust customer support

Make sure that you partner with a processor that offers robust customer support. They must take care of their clients and respond to their emails and phone calls instantly with a positive mindset.

Feature-rich processor

Sophisticated processors come with several exciting features that enable excellent services being offered to merchants such as “push to debit” solutions so that they can get access to their cash quickly.

Data analysis

Some advanced and sophisticated processors offer data analysis facilities, where in the merchants can see the data and analyze it themselves. It is beneficial from different angles and these features can be used by merchants for monitoring and understanding data for decision making.

Finally, make sure that your processor is known for offering excellent customer support. Check reviews and word of mouth recommendations. All of the above points are important. Analyze your business needs, keep your projections ready and engage in some straight talk.

One right question may alter your destiny for good.

Tips To Choose the Right Payment Integration Method for Your Ecommerce Site

Tips To Choose the Right Payment Integration Method for Your Ecommerce Site

Advancement in technology is gradually making payment integration easier and simpler. However, as new entrants to the world of eCommerce, you may find it a little difficult to choose the right integration method for your eCommerce business. At present, there are three popular integration methods and in this article, we are going to discuss these options in order to help you choose the right option for your business.

  1. Hosted checkout pages

As a matter of fact, this option can be used by any type of merchant, whether small or big.

There are many reasons why small merchants should choose this as their checkout solution. First of all, there is no need to hire a software developer when you integrate it with your website. It also works well when your website is not PCI compliant.

Hosted checkout pages are also beneficial for medium to large-sized merchants, who have already designed and created their checkout pages. This is the quickest way to supplement your alternative payment method. Almost 60% of the shopping cart abandonment incidents take place because people are not able to use their preferred mode of payment. It is more prevalent in the countries where cards are not used frequently.

The benefit of hosted checkout pages for merchants:

It has the following benefits for the merchants:

  • PCI compliance is not complicated
  • No need to store card information
  • Ideal for quick global outreach
  • Supports all major credit cards and major currencies
  • Supports local payment options
  • Offers easy integration

  2. Payment API

If you are among the perfectionists who would like to exercise extreme control as far as design and user experience of checkout pages is concerned, a payment API is the right solution for you.

For card processing, payment API is the ideal solution whereas if you need both card processing and value added services such as coupons and catalogs, currencies and subscription billing, Payment Plus API should be tried.

It doesn’t require customers to leave the site in order to check out and makes checkout a simple process with minimum steps to complete.

The benefit of payment API for merchants:

It has the following benefits for the merchants:

  • The XML based API doesn’t require any specific programming language
  • A native mobile checkout flow can easily be developed
  • Easier PCI compliance through client-side encryption
  • Tokenization enables the sellers to save the card information of the shoppers so that the returning shoppers need not repeat the process all over again

Payment API makes the checkout safe and secure.

 3. Shopping Cart

If you are using any shopping cart such as Magenta or Prestashop, the “shopping cart” is the ideal integration method for you. It offers users almost the same benefits as they get in hosted pages. It is comparatively easier and simpler to setup and it doesn’t require you to make any payment.

Choosing a payment processor

Your selection of the integration method is very important to offer better user experience and it decides your future success in the eCommerce space.  But, there are other factors as well that are no less important. Make sure that the payment processor you choose meets all your business needs and completely fits into your business model.

Make sure your payment processor is able to upgrade their technology and services to match your needs when you grow.  Make sure they offer the functionalities you require at present and might require in future.

When you come to PayTabs, we sincerely listen to your needs and answer your queries.  We have imbibed a culture of striving to meet your business requirements. We are also determined to resolve the issues you face during your journey to become a successful eCommerce entrepreneur.

Get in touch with PayTabs today and talk to a consultant to discuss your business needs and how to achieve higher conversion.