6 Issues Faced By Online Payment Companies During Recent Years
Despite the innovative technologies available today, including portable wallets, online installments, and global payment methods, there are still difficulties to manage.
Numerous advanced organizations need to work with online payment methods to empower exchanges all around the world, which is not possible with traditional banking models.
It therefore leads to some difficulties in the online payment market, including B2C, vendors, payment processors, etc. Here, I will be discussing some issues faced by online payment companies in this market.
1. Online Card Frauds
Online fraud is not a new thing. Fraudsters have discovered ways to do the same with online payments too. According to a report, 70 percent of card-related frauds are done with foreign cards. This is done by data breaches, as there are now so many online transactions. Fraudulent entries also lead to this sort of fraud.
What Can Be Done?
A frequent audit with your online payment system is necessary. A payment company should have an online security expert who can identify the vulnerabilities and resolve them. Adopt the latest security measures and identify the weak links in your system through audit and deep analysis.
2. Cross-Border Transactions
In cross-border transactions, the payee and the transaction recipient are from different locations. This is what makes it more vulnerable for the fraudsters, and are at a higher risk of fraud.
These transactions are generally observed at wholesale, retail, or in a recurring nature.
What Can Be Done?
Technological development is here to shape international payment necessities and enhance the security system of the payment gateways. The following acts can help in overcoming issues with cross-border transactions.
- Managing liquidity, credit risks, and more.
- Following government-instructed mandates and initiates for international payments.
- Increasing efficiency of processing through outsourcing.
- Using a transnational payment system in order to overcome the reliance on the corresponding network.
3. Chargebacks
When a customer disputes a purchase against the service provider and charges their money back, it is termed as a chargeback. It is very frustrating for the business owner as well as the payment company.
For example, I have asked someone to write my essay for me, and if the work is not delivered until my deadline, I can chargeback my amount.
In chargeback, customers deal directly with the payment company rather than the merchant or service provider. Generally, service providers and customers both claim that they have the right to the money. In such circumstances, the payment company has to decide who is in the right position to receive the money. This is a very challenging situation a payment company has to suffer from.
What Can Be Done?
In order to avoid such situations and resolve the dispute correctly fully, a payment processing company can take the following steps.
- Hold the money for a week or two.
- Get both the customer and service provider to communciate with you on email and ask for the evidence.
- Keenly review the situation and decide who deserves the money.
- Be polite with both the parties and make sure they are satisfied with the decision.
4. Security Of Card Data
When a business, merchant or service provider charges money from the customer with a credit or debit card, the details of the card are saved at the merchant’s end. It is very often seen that fake service providers use their customers’ data for further online payment and purchasing.
What Can Be Done?
According to Assignment Assistance UK, a payment processing company should follow the below steps in order to secure the card data of their user.
- Install and maintain firewall configuration.
- Track all network resources and cardholder data.
- You should encrypt the transformation of the cardholder data across all public and open networks.
- Avoid using vendor-supplied defaults for passwords.
- Track network resources.
- The antivirus software should be up to date.
- Put on restriction to access the cardholder data.
- Maintain and upgrade your security system and applications.
5. Updating The Payment Options
A lot is changing in the online payment industry with the advancement in technology. This has not only enhanced online payment procedures, but is also enhancing online payment features. In order to keep your users up to date, payment processing companies have to make sure that their users are using the latest updated version of their payment application. Keeping your users up to date is a bigger challenge, and companies often require more than a couple of months to make such an update.
What Can Be Done?
It is quite understandable that all the users of an online payment company should be updated with the latest payment features in order to avoid payment issues and fraud. For this, the company can take the following actions.
- Firstly, you should conduct intensive research and proper analysis before announcing an update.
- To inform your customers, use a trusted platform, for instance, your application or mobile notification.
- Provide your users at least a month or two to get themselves updated.
Make sure that your users should know what the benefit of getting updated is.
6. Meeting Customer Expectations
According to Statista, nearly 50% of users are satisfied with their payment processing companies. There are numerous challenges that customers face in their daily routine due to not being aware of the service properly. Customer satisfaction is the major issue that online payment companies are facing.
What Can Be Done?
Conducting surveys and keeping updating your users regarding the updates and policies is the best way to maximize customer satisfaction. Make sure that all of your customers are well aware of the online process for payment and how they can keep their transactions safe and secure.
To Summarise
Since the payment process has changed from cash to online, users, service providers and processing companies, all of them are facing difficulties equally. It is important to analyze the problem and then take the necessary steps to resolve the issues.
Author Bio
Claudia Jeffrey is currently working as an Editor at CrowdWriter.com, where she assists students with numerous tasks. Claudia loves to share her experience with her readers. She often blogs at Word Count Jet. In her leisure time, you will find her trying some new recipes.
