Along with the fraud comes chargeback. These disputed charges and transactions can affect reduced authorization and, in turn, bad business. While payment processors play a role in resolving chargebacks, increased chargebacks lessen the merchant’s credit.
FREMONT, CA: Online businesses and consumers alike expect online purchasing and selling to be comfortable, safe, and productive. Ecommerce transactions generate complex automated processes that include downstream players: banks and payment processors, to name just two.
Additionally, technological advancements in smartphones and e-wallets, ever-changing purchase patterns, and demand for cross-border, multi-currency electronic payments have fueled payment service providers a competition to maintain and increase market share. Similarly, accepting online payments and online payment processing poses some unique challenges. Below are three.
1. Online Fraud
Generally, transactions involved in online payments are a ‘card not present’ kind of transactions. This instance denotes the cardholder is absent physically when the transaction is processed, thereby making online transactions vulnerable to fraud and cyber-attacks. E-commerce and m-commerce are continually growing, and so are the fraudulent attacks making it a serious security challenge for all the merchants.
Along with the fraud comes chargeback. These disputed charges and transactions can affect reduced authorization and, in turn, bad business. While payment processors play a role in resolving chargebacks, increased chargebacks lessen the merchant’s credit. Chargebacks can involve massive damage to a company, merchant status, and credit scores. It can result in closing merchant accounts, and eventually kill the business. Be it lack of experience or lack of proper plan to handle fraud and chargeback; online firms are vulnerable to fraud and chargebacks.
Thus, to overcome the hurdle, businesses have to go for the online payment processor that offers chargeback management compliance with security guidelines and Payment Card Industry Data Security Standard (PCI-DSS). They should integrate some security features like Two Factor Authentication (2FA), technologies such as EMV in the whole online process.
3. Global Transactions
The internet has bought the world comparatively closer. Besides, it is always advantageous for the firm to spread out across and outside the residing country. With this occurrence comes the challenge of cross border transactions. As compared to local commerce, cross border transactions sometimes can be slow, inefficient, expensive, and can create complications in terms of the language barrier, banking norms, security, currency exchange, and general norms and guidelines. A hassle-free and straightforward solution for this will be coupling with an international payment gateway.