Most Common Online Credit Card Processing Problems And Their Best Solutions For All Online Businesses

The most vital challenge for any merchant doing online business is accepting online payments. Any business's primary goal is to earn as much profit as possible. Nowadays, the whole world is moving toward the cashless economy, or you can say toward the digital economy. Due to this reason, most merchant offers customers to make payments online via credit cards or any other alternative payment method.

The merchant offers their customers a quick and easy checkout process with many payment options to increase the conversion rate and bring more customers. Nowadays, all credit card processing comes with the latest high-technology security tools, but still, merchants require many different integrations to make the payment process completely secure.

Here, in this blog will discuss the most common problems merchants face regularly and their best solutions.

List Of Common Online Credit Cards Processing Problems And Their Solutions

There are many online credit card processing problems that merchant has to face. These problems are not limited. Here, we will discuss only a few which are most common. So, let's start.

Fraud -

As the e-commerce sector develops, more fraudulent orders are placed through your online store. Most of them are fake orders that scammers or hackers place at your store to discover security gaps and compromise store operations.

According to estimates, online payment theft will cost the e-commerce industry 20 billion dollars worldwide in 2021, representing more than 14% of the previous year's 17.5 billion dollars reported in 2020. According to the Statista Research department – In 2021, there will be more than 32 billion U.S dollars in fraudulent transactions made with the payment card globally. It is expected that this figure will reach 38.5 billion by 2027.

Globally, various types of payment fraud occur, such as -

Friendly fraud:Friendly fraud is one of the most popular types of payment fraud. It generally happens when customers make payments via credit cards, and after that, they contact their credit card company to dispute the charge. Customers generally claim that they do not receive the products or refunds.

In 2021, approx 40% of online merchants reported that they experienced this type of payment fraud.

Triangulation: This type of payment fraud occurs when customers purchase from unreliable online sites. As the customer enters their card details, the fake sellers immediately steal the customer's details. Three parties are involved in this fraudulent payment journey – a customer, the fake online store, and the payment gateways. The primary purpose of this type of fraud is to use credit card data for self-use.

Clean Fraud: When a fraudster uses legitimate information to conduct crimes, this is known as "clean fraud." The thief is well-versed in the identity of the cardholder.

Identity theft: Identity theft is a serious crime. It happens when data thieves steal merchant information.

Solutions -

Nowadays, almost every fintech service provider comes with PCI DSS compliance which helps to protect the data. The merchant needs to install fraud detection plugins on their online sites to prevent fraud. If you choose the instantcharge, you can get the anti-fraud tools to prevent fraudulent payments.

As soon as the fraud occurs, anti-fraud tools detect it, notify the merchant, and immediately resolve it. It helps reduce the cart abandonment rate, leads to a secure payment process, and helps increase customer trust.

Chargeback -

Chargeback is another one of the biggest headaches for the merchant. It is the biggest problem compared to payment fraud.

Here, customers make the payment via cards, and they demand refunds. According to some research, approx 81% of customers admit that they demand chargebacks. Their reason for chargeback is – they do not receive the products, or the product was received late, etc. Some customers claim that their purchase was fraudulent and know nothing about it.

These chargebacks may lower the online store rating, raise the warning flag in payment gateways, and sometimes force the online store to close its operations.

Solutions -

There are two ways to deal with the chargeback -

Offer excellent customer support: As a merchant, you are responsible for providing your customer with the full details of your products.

Response to their queries: Customer does not wait for a long time to receive their parcels. They want to receive it as soon as possible. You can establish an automated list of emails that will periodically inform the user of the reach of his goods. Alternatively, you can accomplish that using WhatsApp; this will deter them from complaining and helps build their faith in your company.

We instant charge offer the chargeback prevention tools to safeguard you. The chargeback prevention tools help merchant to decrease their charge back rate. The chargeback rate must be below 1%.

Credit Card Data Theft -

As a merchant, you are responsible for using online security tools to safeguard your eCommerce sites and identify theft. The customer does not hesitate to make credit card transactions on your sites in exchange for goods. Your responsibility is to keep hackers away from your eCommerce sites so that customer-sensitive data will be completely safe.

Solutions -

Due to the latest technology, it is possible now to secure the payment information of your customer's data. To secure the sensitive data, you must implement the -

SSL Certificate: You must include the SSL certificate for your online websites. You can also include end-to-end encryption with SSL Certificate.

Prefer secure fintech service provider: Always prefer the best and most secure service providers. Most eCommerce sites prefer Instantcharge as their fintech service provider because it is one of the most popular and offers the best security services. You can get all the solutions on one platform.

PCI compliance is compulsory: PCI DSS is compulsory for all online stores. It helps merchant to reduce the risk of credit card data loss and also help them to detect data theft.

We Instantcharge has PCI DSS level 1 compliance, which helps you to protect your and your customer's data against potential breaches.

Multi-Currency Payment Methods -

By implementing multi-currency payment methods on an online site, the merchant can experience 2X growth in order volume. Merchant can easily attract foreign customers just by implementing multi-currency. But, adding a multi-currency payment method is not an easy task.

Merchant required a new merchant account that could process cross-border transactions. Then there are the regulatory agencies that tend to make operating stores in the new nation difficult. These can include limitations on how payments are processed, a lack of government assistance, and occasionally a nationwide service expansion ban.

Solutions -

To overcome this problem, the merchant should use multi-currency payment gateways such as PayCly, Instantcharge, PayPal, etc. Working with these payment processors, the merchant won't have to worry about any regulatory restrictions.

Instantcharge allows you to accept multi-currency from all over the world. It also offers you to accept many local payment methods from worldwide. Due to these features of Instantcharge, merchants prefer it for their international businesses.

Conclusion -

As a merchant, you should understand the importance of suitable payment processors. You should also know how to resolve online payment problems. If you have an effective online security strategy, the risks associated with data breaches, constrained currency options, and payment methods will decrease. If a merchant wants to succeed, they must first study the eCommerce environment and the country's financial system before choosing the appropriate payment gateways.

You ought to choose the best fintech service provider to run your business successfully. We, Instantcharge, offer the best possible solution for your business at a reasonable rate in the markets.

With Instantcharge, you can get all the possible solutions, and you will be able to receive international payments without delay. It also offers you the best security tools to protect consumer data.

Reference -

https://www.statista.com/statistics/1273177/ecommerce-payment-fraud-losses-globally/
https://www.statista.com/statistics/1264329/value-fraudulent-card-transactions-worldwide/