The advancement in online payment technology has accelerated the growth of electronic commerce. It has greatly enabled many businesses to expand their customer base and improve the overall shopping experience for customers. The growing number of online payment solutions providers like has further revolutionized how business receive payments from their customers, making online business an irresistible venture for any business. However, despite of the continuous upgrade of security features and expansion of online payment options, many business and payment providers still continue to grapple with fraudulent challenges that have long faced this industry. Mobile threat defense has moved with great speed in developing robust payment processing technologies that solve most of the challenges facing online payment industry.
Despite of the heightened efforts in technology geared at crippling fraud that is prevalent in card-less transactions, fraudsters continue to develop fraudulent methods that surpass the advanced security features that have been integrated into the current online payment systems. Though the fraud problem in online payment seems insurmountable, it is prudent for businesses and payment providers to embrace ongoing efforts in acquiring the latest fraud protection solutions that will enable them to effectively combat the fraud menace. More importantly, there should be continuous audit of online payment systems to detect and seal any vulnerabilities to fraud. Also, ensure that you are abreast with the current security approaches that online payment providers have embraced to prevent fraud.
This is a predominant challenge that businesses have to confront on a daily basis while using online payment services. Chargeback allows cardholders to file disputes with issuing banks regarding fraudulent transactions on their accounts. In a situation where the business is not in the position of proving the legitimacy of a given transaction, it risks losing the whole amount of the transaction as well other additional charges including payment processing fee, chargeback penalty and currency conversion commissions. In extreme cases, merchants can lose products or services that were sold. Chargebacks attract excess fees, ruin the publicity of the business and distract you from your core business. Therefore, it’s extremely necessary for merchants to seal the loopholes of chargebacks. Embrace high levels of honesty in your business dealings and provide excellent customer services that will ensure all complaints are solved expeditiously before getting out of hand.
Cross-Border Online Payment
Globalization coupled with international credit card processing has enabled many businesses to conveniently operate on a global scale. However, the differing technological payment standards across countries, regulatory framework and a huge disparity in banking infrastructure pose a significant challenge in developing an integrated online payment system that will efficiently serve customers in the international business community. In addition, navigating through the hurdles of turbulent currency exchange rates makes it more difficult for payment processing providers to penetrate into many markets across the world. However, enlisting the services of an experienced global online payment provider can help merchants to surmount these limitations and improve the shopping experience of international customers.
Complexity in System Integration
Businesses, governments and agencies use different hardware and platforms that do not easy mesh with online payment technology. The intricacy of integrating online payment in different unique environments increases cost, which can be a big hurdle for the uptake of online payment by small businesses.
Online payment continues to evolve along with its compliance standards and certifications. Most of the companies that do not keep up with the evolution pace of online payments often find themselves in loggerheads with the industry’s regulatory authorities. Therefore, it is important for businesses to be responsive to the dynamic regulatory and compliance trends regarding online payment.