One impact of the global Covid-19 pandemic is how shoppers have become more inclined to check their computers at home instead of fighting the traffic and crowds at the store.
For businesses, this has increased the chance of online fraud and transaction failure. For retailers and brands growing their e-commerce business, here are some ways to make payment systems more efficient, secure, and profitable.
Focus on the customer experience. Make it easier for your customer to buy to increase repeat orders. This may mean changing to a one-page checkout to increase conversions or offering alternative payment methods like “buy now, pay later” options, automated clearing house, or cryptocurrency. Visit your biggest competitor’s website to get a few ideas.
Know why transactions get declined. Knowing where to find the information will help you determine the appropriate fix. For example, if the declined transactions are from shoppers’ insufficient funds, consider adding a “buy now, pay later” option to convert those customers. Check your payment gateway’s address verification (AVS) auto-decline settings. You may be rejecting transactions that are being approved by your customer’s bank without knowing it.
Protect yourself against fraud. According to LexisNexis, every one dollar of fraud now costs U.S. retail and e-commerce merchants $3.60. Fraud and chargebacks are not only expensive for business owners but may cause payment processors to terminate merchants.
Most business owners rely on their gateway’s AVS settings to automate fraud filtering, which does not take into account other risk factors. When validating a card-not-present (CNP) payment, do consider other information such as IP geolocation, email validation, phone number validation, etc. In addition, an AVS match does not prevent a chargeback. In addition, advanced fraud detection and chargeback protection tools that can better analyze your transactions and reimburse chargeback losses.