Frequently Asked Questions about Online Payments and Their Solutions:- www.deekpay.com

People love to shop online because of the convenience of having products delivered right to their doorstep. However, setting up a secure online payment system to access customer payments is a challenge for e-commerce shop owners. Most customers use online payment methods such as e-payments and credit card processing, which cause payment delays due to issues with maintaining the security of customer data and protecting the business from cyber-terrorist attacks.

Common Payment Processing Issues with Online Payment Methods

Cybersecurity fraud: One of the most critical risks is cybersecurity fraud and those fraudsters looking for opportunities to compromise data. Fraud in credit card processing and transactions ranks highest in this crime category, resulting in unauthorised new accounts being opened. When a data breach occurs, personally identifiable and sensitive information is compromised, leaving customers vulnerable to identity theft. Credit card fraud is a type of fraud that has not been eradicated and will continue to exist when we pay online.

Customer Refund: A chargeback or refund is the act of being forced to return money to a customer's account. Refunds occur when a customer returns a product and the flow of money is reversed from the ecommerce shop back to the customer. A high percentage of chargebacks or refunds usually does not bode well for the profitability or business of an ecommerce shop. Additionally, the increased risk of data breaches can affect the flow of refunds back to customer accounts. Merchants and payment processors also have a responsibility to ensure that such chargebacks and refunds proceed smoothly.

Integration of different online payment methods: Customers tend to favour additional payment methods. Customer needs evolve and demand new online payment systems. In this process, different payment platforms need to be integrated, including banks, ERP systems and individual entities in between. As an e-commerce shop, you need to support multi-channel payments; otherwise, separate vendors must be found for online and POS payments. Multiple payment systems increase cybersecurity fraud and operational costs.

Limited mobility: While integrating different online payment systems, customers are looking for the convenience of moving to other devices. Customers are using not only laptops and desktops but also tablets and mobile phones to make purchases. Payment processing systems also need to evolve with the need for newer technologies. This portability is a key requirement wherein payment processors need to access multiple payment systems and be portable between various devices. In this digital world, customers expect e-commerce shops to offer more flexibility, speed and updated technology to ensure better convenience. Also, the challenge of ensuring secure encryption to prevent data theft is a key requirement.

Payment processors use a variety of payment methods to fulfil merchant payments. Payment processors and payment platforms use a variety of charging methods, including cash, debit/credit cards, e-wallets and direct bank transfers.

Cash: This is the safest method of payment preferred by businesses and the cheapest method, but there is no guarantee that theft will not occur.

Debit cards: These payments are made through MasterCard or Visa, adding a layer of authenticity to the transaction. They are also more secure due to the customer's use of a PIN.

Credit Cards: Credit cards are similar to debit cards in that they require a PIN for authentication. However, the customer is purchasing temporary credit for which they will need to pay later.

Direct debit: For recurring purchases, customers can set up a direct debit feature where their account is automatically debited when a daily purchase occurs.

E-wallet payments: these are relatively inexpensive and allow customers to make payments using their mobile phones.

QR code payments: these are made by simply scanning the code on your mobile phone.

Payment fees vary depending on the payment method used for merchant payments. Debit cards, credit cards and e-wallets carry online fees, depending on the provider. Cash or direct bank transfers are the least costly options for merchants to fulfil their payments.

Key points

In short, payment processors need to evolve with the changing needs of their customers. As customers prefer different payment options, e-commerce shops must continually meet these needs or risk losing out on sales. Various accompanying security issues prevent data breaches and ensure that customers have a secure and seamless payment experience.

Frequently Asked Questions

What are the most common payment issues? Cybersecurity fraud and identity theft are the most common payment issues. What happens when the payment gateway of an e-commerce shop is not secure? Shopping cart abandonment, order cancellation, order delays and refunds are the biggest problems faced when the payment gateway is not secure. What are the common reasons for payment failure? a) Payment gateway misconfiguration b) Blocked by merchant account c) Credit card has been cancelled. What are the important payment methods? a) Cash b) Bank transfer c) Debit/credit card d) E-wallet. If you need help getting the proper, secure payment technology for your eCommerce shop to achieve instant settlement of customer payments and refunds for your customers, visit PayU.