What You Need To Know: Payment Methods On The Internet

Payment should be easy for everyone, be it cash or electronic payment. But that is not obvious. A large group of people has difficulty with this. Think of some elderly, deaf, blind, low-literate people or people with a physical disability. It is important that they can also arrange their daily payment and banking affairs independently. And that they have as much choice as possible about how they pay. What does DNB do for accessible payment transactions?

Shopping on the Internet enjoys general popularity, above all because it is possible to shop at any hour and potential customers have the greatest possible choice.

Not only with products but also with the various payment options.

In our blog article, we go into the advantages and disadvantages of the respective payment methods.

Due to the various payment providers, paying for online shopping is very convenient.

Many online shops prefer to pay in advance because the customer has already paid for the product before it is even shipped.

Purchase On An Invoice :

From the point of view of your customers, purchasing on the account is one of the safest payment options.

The advantage: Customers first receive the goods and only then have to pay.

The same applies to returns. In the end, you only have to pay for what the buyer wants to keep.

Pay By Direct Debit :

With this payment method, the retailer has the account details and the consent of the customer, so that money can be debited from the account.

This is how online shops get their money quickly and customers can look forward to fast delivery, especially in large shops.

The advantage for customers is that the payment can be reversed within eight weeks if something goes wrong or the product is disappointing.

Shop Online With A Credit Card :

There are many countries where paying by credit card is much more popular.

Likewise, products in the B2B sector are often paid for by credit card.

After entering the credit card details, the payment can be made directly, which is a great advantage for online shops.

As with most other payment options, customers can use the so-called chargeback procedure to reclaim the amount already paid for credit card payments if there are problems with the product or shop.

The Advance Payment :

Every company is interested in the fact that payment by customers causes as few costs as possible – especially for smaller companies it is immensely important to keep costs as low as possible.

This is a way to reduce complications with late customers and thus prevent payment difficulties.

That is why prepayment is very popular with small online shops. With this payment method, the invoice amount is on the account before the goods are shipped.

In addition, many fake shops only offer this payment method. Therefore, offer different payment options so that your customers can choose the payment method that suits them best.

The Installment :

Buying in installments corresponds to modern buying behavior: Take it with you immediately, pay later – online shoppers no longer want to save for a large product for a long time. The solution: installment payments.

Customers want flexibility. This is why the financing option is particularly useful for higher-priced products.

Looking forward to the Payment Gateway work and its usefulness Digital Payment Guru helps you to identify the Best Payment Gateway for your business.

Why Payment Gateway Is Useful In Electronic Stores?

Why Payment Gateway Is Useful In Electronic Stores?

Surely you have had experience as a customer of electronics stores, on various occasions, and now that you own one of these stores, you are wondering how you can improve your customers’ experience on your site.

A satisfied customer is a safe customer for future visits and purchases, a value of expanding through social networks or word of mouth.

When a customer walks into a store, they expect to find one intuitive navigation of the site, a clear design that does not lead to confusion, options, and other direct or indirect tools that encourage them to
stay on your page and even come back.

If your store is a safe place, with good navigation and accessories that help your customer in their decision about the products and ultimately their purchase, then you should not miss the star service that is undoubtedly the payment gateway.

 Digital Payment Guru is a platform which helps you with the Integration Service of Payment
Gateway. Digital Payment Guru Provides top payment gateways like PayPal, Paytm, PayU, Instamojo & Atom at the best market rates.

A payment gateway is a service implemented in electronic stores, to make it easier for customers to pay. Relying on the payment gateway you use in your store, you will get better or more inadequate knowledge for your customers when it comes to paying.

When it comes to payment, you do not want the quality to drop. It makes no sense to have the best design or most desired products if when your customer wants to pay for their cart contents, everything gets complicated with what They can`t or do not know the method to pay.

Taking the experience of hundreds of e-shop customers when paying, we get a series of tips and recommendations that will make your store the ideal place to make payment, avoiding the mistakes other sites make by using the not understand customer.

When the customer completes the purchase and proceeds to payment, he uses a debit or credit card number and enters his details in the space requested by the platform.

The customer’s browser encrypts the data to send it to the store where he purchased it. What encryption does is transmit the protected data so that it cannot be “hidden” and read by third parties. The SSL or TLS Secure Socket Layer or Transport Layer Security system is used to encrypt the data.

Now the customer’s data is entered into the store’s payment platform, which is also encrypted and secure.

The payment platform contacts the vendor banking platform and gives you the customer’s card details.

The bank in turn forwards the information to the customer’s target platform to verify that the data is correct and to carry out the authorization.

The customer’s bank verifies the details and if they are correct, sends the authorization to the seller’s bank along with an approved message. For example, if the customer’s bank does not approve the operation, it also sends a message with the cause “lack of money” or “connection not available”.

While it may seem like a complicated operation at first glance, it only takes a few seconds for all platforms to communicate and give the customer’s bank a message approving or rejecting the operation.

Looking forward to the Payment Gateway work and its usefulness Digital Payment Guru helps you to identify the Best Payment Gateway for your business.

E- commerce

Why Do Payment Transactions Fail On An E-Commerce Site?

Depending on the market, business sector, or geography, between 5% and 20% of payment transactions fail once a customer clicks on the “Pay” button!

This automatically means a loss of 5% to 20% of sales for the e-commerce site and therefore a significant impact on its turnover.

But how does this black box that is the payment process work? How to avoid errors? And above all, how to optimize your payment system?

‍The Hidden Face Of The “Pay” Button

Each country or region of the world has its cultural habits of online payment. B2B uses bank transfers more often, while B2C will approach 100% card payments.

In the scenario of payment by credit card, there are several actors:

• The customer’s Issuing Bank

• The merchant’s Acquiring Bank

• The Payment Service Provider (PSP): this is the heart of the process, it manages the different means of payment, works with acquirers (sometimes their own, sometimes local) takes care of the legal authorizations… and invoices your transaction fees according to all these parameters

• And of course the customer and the merchant

A payment procedure will take place in 2 steps.

Step 1 – Authorization:

Indeed when a customer pays online, he is not automatically debited from his account, he simply requests a purchase authorization from his bank: This is the authorization process.

The PSP receives the banking information and asks the issuing bank (your customer’s bank) if they wish to accept or refuse the authorization of the transaction. The issuing bank chooses whether or not to validate a transaction. To do so, it relies on financial and risk parameters.

From a financial point of view, the issuing bank will accept the transaction if the customer can pay (customer history, money in the bank account, payment limit, etc.).

From a risk point of view, the issuing bank will accept the transaction if it considers that it is not a fraudulent transaction (MCC- Merchant Category Code, secure site, location of the site about the customer, transaction history refused). Indeed, for financial and legal reasons, banks must maintain a low level of fraud and thus reject transactions in case of doubt.

Step 2 – Payment:

It is only later (between a few hours and a few days) that the merchant will receive the amount linked to this transaction in his bank account: This is the settlement process.

The merchant, via the acquirer, will send all the authorizations previously received to the card network (Visa, Mastercard, etc.) to collect the funds from the customer’s bank and simultaneously send the funds to the e-commerce site.

Note: More and more circuits other than banking have emerged recently (Paypal, Apple Pay, Amazon Pay, etc.), PSPs have adapted by now offering offers covering all payment solutions and interfacing with the customer’s payment system.

The 3 Main Reasons For Payment Failures

Technical Issues

The payment process involves many intermediaries. In addition to the PSP, other sub-suppliers are involved (acquirer, card network, 3DS [3] suppliers, issuing bank).

To reduce these so-called technical failures, the best option is to create a more flexible payment infrastructure: In effect, you can cascade multiple PSPs to ensure that your transactions always have a working route.

For example, depending on the geographical origin, you can route the payment to the PSP most suited to the region. Similarly, you can set up a payment route to test a first generalist PSP for example (at lower costs) then test a second more local one in the event of failure (at higher costs than the first but with a higher success rate for this region). Another example you can choose to disengage the 3DS when this service is faced with downtime and thus not block all your transactions. Anticipation, auditing, and knowledge of your PSP’s routing routes will be key in resolving these issues.

Risky Trades

Payment failures following a risk assessment generally stem from a lack of trust on the part of the issuing bank (that of the customer) or the acquirer (the intermediary between the PSP and the bank). Several parameters can be taken into account to define the risk profile of a transaction: location, country of the card compared to the country of the merchant, time, amount, etc.

There are many ways to “reassure” the issuing bank. The most important thing is to send the correct information to the bank.

Each bank has its payment analysis criteria and parameters. It is up to you to adapt to facilitate the evaluation of your transactions by them.

Customer Errors (Human Errors)

Failures due to “human” errors (wrong card number, missing information field, etc.) are fairly easy to prevent and repair. This can go through UX optimizations:

• Fields in red when an incorrect or missing element

• Return to the easy banking information page

• Highlighting the error with a clear explanation

• Fields more suitable for entering card numbers

• Avoid taking the user out of the site

• A “disengageable” 3DS, if the buyer is known, if the amount is low, etc.

Financial Failures

When a payment fails due to a customer’s financial problem (ceiling too high, lack, no liquidity present on the customer’s account, etc.), it is a question of thinking about commercial solutions rather than technical ones. This can range from offering payment in installments and pushing a credit offer, but also for service offers, taking the risk of giving access to the product while trying to pay again in a few days.