Running an online business isn’t easy as there are multiple things to focus on. From managing payments using a payment gateway system, to ensure maximum uptime, and stock of inventory, to customer service; everything has to be top-notch if one wishes to run a profitable business that people come to love.
However, there are many challenges that a business may face in their daily operations, with online payments being one of the bigger challenges that business has to deal with since their multiple factors at play that could not only result in a bad experience for the customer but also hit a business’ profits unless proper time and effort is spent in analyzing the challenges and putting up appropriate solutions to negate them.
In this article, we will look at a few of the top challenges that a business may face with accepting payments online, and how they can best overcome them to give customers a greatly satisfying experience as well as establish the business as a formidable brand.
Challenges Faced by Businesses in Accepting Online Payments
Online payments are convenient, fast, and seamless, but there is a lot at play to ensure that everything goes as intended. To make things smooth, a business has to address multiple challenges which we are going to take a brief look at.
Chargebacks
A chargeback takes place whenever a customer disputes a transaction on their card. Although, this is part and parcel of an online business; a high rate of chargebacks means bad business because it directly translates to lower authorization rates. Therefore, it’s important to keep these in check as the online market is very competitive.
Online Frauds
The eCommerce marketplace is an ecosystem that is vulnerable to fraud since the market is ever-expanding, and the number of people shopping online is on the rise year on year. Any incident of a customer’s financial information falling into the wrong hands can damage a business’ reputation and also expose them to the risk of a lawsuit being filed against them. Moreover, once customers lose faith in a business, it’s very difficult to rebuild that relationship. Therefore, it’s a burning issue that is constantly faced by businesses the world over.
Compliance and Security
There are multiple compliances and security requirements for businesses before they can start accepting online payments. However, having all of those compliances and security requirements met can be difficult, especially in the case of small business owners who may or may not have any idea where to look. It could be detrimental for a business to sell online without the requisite compliances as it could expose them to fines and penalties.
Payment Integration
If a business is to succeed in the longer run, they need to have an integrated payment system, otherwise, it won’t be able to compete on a level playing field with other players, especially the bigger ones as they won’t be able to accept most of the popular and emerging digital payment modes gaining ground over the years.
Customer Expectations
Meeting customer expectations is crucial for the success of the business. These days customers expect a seamless checkout experience, no transaction errors, and the ability to pay using their preferred payment method. A business can only be successful if it’s able to live up to the expectations of the customer.
Using a Payment Gateway System to Address Challenges
Even though there are multiple challenges when running an online business, there are ways a business can plan and implement solutions that could help them negate the issues so that they can focus on growing their business. The best way is to partner with a payment gateway provider of reputation. As you will see, it can help you negate most of the challenges since the service provider will have you covered.
Addressing Chargebacks
Business owners can work with a reputed payment gateway system to help them implement an online payment management system that could address the issue of chargebacks, especially fraudulent ones. It is important for businesses to maintain good standing with credit card companies and a payment checkout system that can help the business define chargebacks and refunds properly can go a long way in ensuring that the business doesn’t suffer damages due to false chargebacks.
Preventing Online Frauds
Fraudsters are constantly looking for ways to get their hands on sensitive financial information. However, an integrated payment system can make it almost impossible for them to decode what’s being shared whenever financial data is relayed between various parties. This is done via encryption and tokenization which are powerful methods to make it near impossible for a fraudster to read through the information being shared. Once implemented all information is hidden behind a firewall with randomly generated numbers that can only be decoded by the intended parties to whom the information is being relayed. This provides for risk management while reducing the overall security costs.
Addressing Compliance and Security Requirements
Reputed payment gateway providers adhere to industry standards such as PCI-DSS, 3D secure, etc. Moreover, additional measures such as SSL encryption, and tokenization ensure that your business is fully compliant and ready to accept online payments while offering the highest levels of safety and security to your customers.
Addressing Payment Integration
Your payment gateway service provider will help your business accept any and all kinds of digital payments including credit/debit cards, net banking, UPI, digital wallets, prepaid cards, etc. Moreover, depending on the service provider you may also be able to accept other upcoming payment modes such as Facebook, Instagram, WhatsApp, etc. this will allow the business to compete with the big players by giving them a level playing field.
Offer Superior Customer Experience
Payment gateway providers with a good reputation have 99% uptime that guarantees that payments go through regardless of the time of day. Moreover, they are more than capable of handling multiple transactions at the same time with a lightning-fast payment checkout experience.
If the challenges are big, then a business needs a better and more efficient solution to address those challenges, and a payment gateway system is an ideal way of meeting those challenges head-on.
So, if you are a business owner or thinking of starting a new business, give it a thought and get that payment gateway system in place so that you have the maximum number of repeat customers and zero failed payments, and minimum cart abandonments!