Dealing with Online Payment Challenges as a Business Owner

Updated on January 17th, 2022
Online Payments

Despite the excitement and ongoing advancement in technology with mobile payments, wallets, international payment options and tighter security, there are still unique payment challenges with online payment platforms that will continue to impact businesses of all sizes around the world.

I’ve been in the payments world for years. I’ve seen most of the challenges the face both the business owner and a payments provider. There are many unique challenges that make it more difficult to accept payments without fraudulent transactions.

Here are some of the ongoing online payment challenges, and a few tips to combat:

Fraud

There are ongoing advancements in technology to address fraud. Fraud is more common in transactions where proof of payment (like card) does not have to be present. New types of fraud are continuing to be developed by clever criminals; who are figuring out how to break down current security measures.

Fraud has always been with us and the trend has no signs of slowing down now. However, we can keep arming ourselves with the vigilance to contend with this problem to  can have better protection.

It helps for us to remember and remind each other about the ongoing need to be protective about our information and proactively developing new security solutions to combat fraud.

Pro Tip: Start by doing an audit of your online payment system. You may even want an online security expert to provide you with an assessment to identify any vulnerabilities. Also, check with online payment service providers to better understand the security measures they have to combat fraud. 

Chargebacks

A major challenge for business owners in the online payments industry comes in the form of chargebacks, which can create excess costs and ruin brand equity. Too many chargebacks can even mean the end — curtains — for a business. Most business owners don’t factor in a number of chargebacks as well as their impact with their processor.

Chargebacks can also be a determining factor in the closing of an account.

Pro TipConsider new tools that help you identify patterns in user behavior that can identify when a transaction does not reflect normal purchase activity that can indicate someone else may be using that user’s payment sources. Shutting down these transactions before they even occur can proactively limit chargebacks. 

Demand for more payment features

More and more customers see the possibilities and excitement of new payment options beyond cash, checks, and cards. Consequently, their expectations have risen faster than the ability for many companies to provide all these features.

Huge demands are coming in such sectors as peer-to-peer payments and in the new types of currency markets. More people are interested in a cashless society and the online payments for all the many types of transactions available. This is why many top payment companies are emerging together.

Pro Tip: Do your research and check with other online payment providers that may be able to give you a more comprehensive set of payment solutions that will deliver more payment features to your customer base. By shopping around, you may even find a payments service provider that offers a more competitive rate for those additional payment features. 

International online payments

International credit card processing opens companies and individuals to the entire world where they can now make transactions. This creates unique challenges related to currency exchange, language barriers, various payment and technology standards, security, and different regulatory environments and conflicting banking infrastructures.

This lack of integration requires a lot of work and agreement to serve customers with international payment needs.

Pro Tip: Identify a trusted international payments provider who can help you navigate the complex waters of international online payments. Be sure they can deliver tools resources to help you understand the requirements of working with international customers. 

Systems integration

The online payment environment has specialized technology that can be difficult to integrate with other platforms used by other businesses.

It can become quite complex to integrate with these businesses and governments, given the amount of systems and regulation involved, which may result in payment delays, fees, lost transactions and other processing issues.

Even when online payments are integrated, the cost is high and out of reach for many small business owners who would like to participate in the online payments arena.

Pro Tip: Identify those online payment providers that offer numerous third-party integration arrangements or that can give you APIs so your development team can do the integration for you. 

Increasing compliance

Special compliance issues arise specifically for online payments which are not found anywhere else. This includes the continued escalating of regulatory requirements and essential technology certifications like PCI. This can leave many companies perplexed about what all the regulatory issues mean for them; and what they are required to update in their systems to make sure they comply. Eventually, they do not risk fines and penalties.

Pro Tip: Follow online industry sources to stay updated on the changing compliance and regulatory environment so you can make the best decisions about your online payment processes. Numerous blogs, publications, networking groups, and forums cover compliance topics so you can stay “in the know.”

Potential solutions for online payment challenges

Companies can address these online payment challenges by seeking assistance from payment companies that have developed the technological solutions that directly relate to these issues. Not only will these payment companies provide the necessary tools, but they can also offer education and training to ensure that other companies can also leverage all the opportunities available with online payments while still handling all the aforementioned challenges in a cost-effective and efficient way.

When seeking out a payments platform to work with concerning these unique challenges, don’t be afraid to ask them – very directly – how they can specifically help you work through these barriers and how to get the most advantages from online payments.

Make sure that the payment solution provider you choose has the technology and tools to ensure the security you require. It also needs to deliver infrastructure that can integrate with your existing systems; or improve upon the system you are now using in a scalable way.

S0 many payments companies are now offering a range of services. Do your homework and take advantage of trial periods to test drive beneficial or essential features.

Consider how these options can help you reach and serve your community of customers.

 

Renzo Costarella

Renzo Costarella

Renzo Costarella gives financial tips and tricks to help retire early. He is an expert at fintech sales and was former sales person at Due. He currently is an account executive at Brex. Previously, he has worked in sales, product, and growth. He graduated from UC Santa Barbara with a Degree in Business/Managerial Economics.

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