• Elena Bazhenova, Business and Sales Operations Manager at exactly.


• 31.05.2024 11:30 am
#PaymentSolutions #BusinessFinance

Most new ecommerce businesses create digital strategies with one goal in mind: Get customers to the checkout. 

That’s how retail has always worked. In a traditional high street store, if a salesperson can convince a shopper to come across to the counter, then their work is done. 

But whilst this model might work for shopping in waking life, things are different online. The retail experience doesn’t end for customers when they reach the digital checkout. In fact, it’s only just beginning. 

It’s rare for people to walk into a store, pick up their items, head to the counter, suddenly change their minds, and stroll out of the shop empty-handed. But with online shopping, this happens all the time. It’s incredibly easy (and common) for customers to abruptly abandon their carts when they reach the payment page - which is why it’s crucial for companies to put as much effort into picking the right payment solutions as they do on designing the rest of their online store. 

There are more payment options available than ever now - so it's essential that businesses take the time to find one that provides the necessary features and flexibility to accommodate their operations and deliver an efficient, effective service to their customers. 

Here are a few things you need to consider when you’re weighing up your options…

The right parts for the right business

Money all spends the same - but how it’s processed is different depending on the industry. 

Hospitality businesses may need to split up transactions into reservation deposits, split payments, and property management. Retailers, on the other hand, might require the separation of inventory management, recurring billing options, and loyalty program payments. 

That’s why it’s vital to find a payment solution that combines the most important elements for your specific company. There are various payment systems that allow for this integration - and this will ensure you’re processing transactions as efficiently as possible in an organised way. 

Staying safe and secure 

Cyber criminals are getting smarter, bolder and more ambitious - and they are becoming advanced in finding vulnerabilities in ecommerce. 

The rise of fake shops - online scams where fraudsters build replicas of online shopfronts and take customers’ money without ever shipping any products - is shaking consumer confidence, and people are now treading carefully online to avoid being swindled out of their hard-earned money. 

Whilst hackers continue to strike with alarming success, some consumers are beginning to recognise the warning signs of scams - as well as the hallmarks of an authentic payment system they can trust. 

To keep customers safe, businesses need to prioritise security for every transaction, with a focus on three key elements: 

1. Tokenization: This is the process of converting credit card numbers and other sensitive data into a token that substitutes the original data so it cannot be read by unauthorised parties. 

2. Point-to-point encryption: This immediately encrypts customer data at the point of sale and carries it through to the payment processor, providing security while the sensitive data is in transit.

3. Fraud detection and management: This detects and alerts potential cases of fraud, including flagging transactions that seem out of character and suspicious. This should work to actively alert transactions of abnormal amounts or from an unverified device and block multiple failed attempts to make payment several times. 

Every payment processing system should incorporate all of the above for maximum security - and everyone will benefit in the long-term apart from the scammers themselves. 

A human touch

Excellent customer service can separate a good business from a bad one - and having the right payment partner on board is crucial to continue providing the kind of experience that keeps people coming back.

Amongst the variety of payment options available, there are equally as many payment providers assisting businesses in delivering these services to customers. 

It’s essential to choose the right provider that can offer support and various communication channels to help with integration, preferences and scaling should you require it. 

A good payment partner will be on hand to help when you need it - making the process of transactions secure and simple for everyone to maximise sales. 

Do the maths

After considering all of the above, it’s important to factor in payment solution costs, if these will be viable against revenue and whether they will generate a return on investment.

Some things to consider include transaction fees. Is there a flat fee per transaction? What percentage of each transaction will be taken by the provider? How do these work when a refund is requested?

It’s also important to consider equipment and maintenance costs to keep the payment processing operational, as well as the number of transactions you’re expecting. For example, some payment solutions place a limit on the total number of transactions over a specific period or amount, and in certain instances, there can be fees associated with exceeding that limit.

There’s plenty to take into account when selecting a payment solution - but it’s as essential as every other part of your business plan in the modern era. 

Take the time to choose wisely and you’ll reap the benefits in the long-term - watching a long line of happy customers returning time and time again.