Accepting online payments by investing in an online payment solution is no longer a novelty today. Across various sectors, most businesses are switching to the omni-channel mode.
Selling products and services online has become a vital source of income. But online revenue generation is often interrupted by payment processing glitches. Widely observed, particularly in e-commerce and financial services prone to recurring payment processing errors, such errors can have disastrous consequences for businesses.
These include paying heavy compensations, damage control efforts, legal hassles, and PR expenses.
Merchants must apply due discretion before opting for an online payment solution. Steering clear of the following errors is necessary:
1. Refund Errors – Instead of issuing a refund for an incorrect transaction, the processor mistakenly charges the customer twice.
2. Currency Conversion Errors – Not obtaining consumer permission to proceed with dynamic currency conversion can lead to disputes later.
3. Insufficient Payment Authentication – Not all payment facilitators use Identity Authentication Services and Risk-Based Authentication. Without these fool-proof systems, payment authentication errors can wreak havoc.
4. Duplicate Transactions – Accidentally debiting the same account twice amounts to a duplicate transaction, a common occurrence when a customer changes the mode of payment after the payment fails once.
5. Wrong Amount Debited – Irrespective of the difference, charging an amount different from the one displayed while authorizing the transaction can lead to major customer dissonance.
6. Inability to Detect Expired Card – When customers try to use expired cards, an intuitive payment processor must detect this immediately. Else, it will lead to disputes with the bank, and the business will incur losses.
Steps to Avoid Payment Processing Mistakes
A highly competent payment solutions provider can help businesses stay on the right track regarding required digital payments. These simple steps will go a long way in keeping the online payment process error-free.
ü Well-maintained POS terminals – Retailers at brick-and-mortar stores that accept digital payments are also prone to the above payment processing errors. You must regularly check POS hardware functionalities during retail audits.
ü Regularly Updated Software and Secure Payment Networks – A seasoned payment processing service will ensure that the POS software is always up-to-date.
ü Risk-Based Authentication – Randomly subjecting customers to unwarranted authentication layers will increase payment friction and increase the risk of processing errors.
ü Fully Canceling Faulty Transactions Before Initiating a Fresh One – You can easily avoid duplicate transactions and refund errors if the payment SOP involves incorrect transactions being canceled as a prerequisite for initiating a new one.
ü Regular Chargeback Data Analysis – The Accounts Team must view the payments chargeback report daily to identify the most common mistakes and work on rectifying them.
ü Dual Checks for Non-Standard Transactions – You must sanction regular, low-risk transactions with minimal authentication, non standard transactions should be subjected to at least two levels of authentication.
Payment processing errors should never be viewed as just momentary lapses. In the long run, an inefficient payment processor can wreak havoc on an enterprise, damaging its reputation and driving customers away to competitor businesses.
Merchants should always adopt a preventive stance to keep their online payments glitch-free. The more secure, smooth, and seamless the digital payment experience, the higher the probability of customers making repeat purchases and spreading positive word-of-mouth.