A robust payment processing strategy is essential for every business, big or small. The reason behind this is that it is the foundation for businesses to achieve long-term success, profitability, and sustained customer support. Ineffective payment processing strategy and lack of understanding of the system is one of the primary reasons for businesses not being able to meet their monthly business goals.
Your payment processing strategy is much more than just payment acceptance by the system. Depending upon your business reach and customer base, it may be a key influencer of your profit potential. In this blog, we talk about different ways in which you can optimize your payment processing strategy to enhance your business growth.
What is Payment Processing?
The first step towards improving your payment processing strategy is understanding the various payment processing systems. Your team must review the features of the payment processing solutions in the market and find out which ones will work best for your business. The two main payment processing systems are payment aggregators and dedicated payment processors. Let us find out more about the two methods below.
- Payment aggregators – Payment aggregators are big companies that handle the payment profiles of several businesses at a time. They use a common interface such as an app, widget, or website, to process the transactions. Zaakpay is a well-known payment aggregator company that shares merchant accounts with clients and processes payments.
- Dedicated payment processors –Dedicated payment processors provide customized payment services based on the needs of individual merchants. Instead of a single shared merchant account for several businesses, a dedicated payment processor will enable businesses to process transactions through their own merchant account.
Both types of payment processors will require a considerable investment amount on the merchant’s part. However, some payment providers offer competitive rates that can help companies with tight budgets.
5 tips to optimize your payment processing strategy
- Understand the types of Credit Card fraud
Choosing the appropriate payment processor for your business needs depends upon the understanding of your company’s security needs. You must select a trusted payment gateway partner such as Zaakpay with advanced fraud protection features. Depending upon your business, some types of fraud may occur more than others. Some of the common transaction fraud schemes are:
- Identity theft: This is the most common type of fraud, where a miscreant steals the identity of the customer to make purchases illegally. Your payment processor must have measures in place to detect and stop identity theft.
- Refund fraud: Fraudsters make a purchase through a stolen Credit Card, cancel the payment through the bank, and then collect the refund from the victim’s account, impacting your business with high fees.
- Credit Card tumbling: Tricksters generate Credit Card numbers randomly and test them out for online purchases. This can pose a significant risk if several hundreds of transactions are attempted on your site.
It would help if you chose a payment processor with a secure payment gateway that can be trusted by you and your customers. A security-focused payment processing strategy can help build profitable, long-term relationships with your customers.
- Devise strategies to prevent fraud
Your payment processor must offer a variety of fraud prevention techniques. The main features you must look for in your payment gateway are:
- CVV codes – Users must be asked to enter their 3-digit verification code to curtail identity theft.
- 2-factor authentication – This method allows customers to verify their identities while completing a transaction related to an email or message.
- IP address verification – In this strategy, your payment processor will be able to cross-check the IP address of customers with the one on their Credit Card.
- Minimum transaction limit – A minimum transaction limit must be maintained to prevent Credit Card fraud on your website.
- EMV chips – EMV chip readers ensure that customer’s financial data is safe from hackers during on-site processing.
- Choose the suitable payment processor
A good payment processing strategy does not just involve security concerns. The payment processing system you choose must have core capabilities and features such as:
- Ease of use – A sound payment processing system is one that is easy to use for customers and requires minimum training to understand.
- Flexibility – The payment processing system must help the users to customize the methods of processing payment and increase customer engagement.
- Portability – Your payment processor must empower your business to process transactions from whichever location your customers are making the payment from.
Your payment processing gateway aggregator must seamlessly integrate the system with other software and services. One of the best payment gateways in India, Zaakpay can offer comprehensive integration with most platforms, tools, and software.
- Support a variety of payment methods
A payment processing system that will meet the long-term needs of eCommerce businesses is the one that puts customers’ preferences on first priority. To this end, your system must support all popular payment methods to make it convenient for the customers. Your payment processing partner must support Credit/Debit Cards, UPI, net banking, and so on.
- Keep your system updated
Sometimes, the reason for the payment decline in an online transaction will be due to a technical error in the system. For instance, an outdated payment processing system may not be able to process a new Credit or Debit Card. It may reject the payment because of its inability to process the data provided. By maintaining an updated system, you can increase the opportunity to process more payments, and maximize your revenue.
Optimizing your businesses’ payment processing strategy must be among your top priorities as it is an ideal way to strengthen your business model. If you choose one of the best payment gateways in India, like Zaakpay, you can ensure that your online transactions are secure, reliable, and accurate.