E-Commerce Payments: 5 Ways to Cut Costs – Rob Crutchington of payment service provider Encoded explains how choosing the right gateway services solution can help increase e-commerce transactions, reduce costs and improve customer experience (CX)
For online and MOTO* merchants, ensuring transactions are processed quickly and securely, and at the lowest cost, is business critical. Higher payment costs can mean higher prices for goods and services, which means that to stay competitive, merchants want to minimize their payment costs.
For payment services, it’s not just about finding the latest technology or the best value solution, security and compliance are key factors to consider. It is essential to protect both the customer and the merchant. It is also important that compliance with the latest regulations does not affect the transaction process and does not lead to poor customer service.
Declined transactions can occur for different reasons and potentially lead to loss of revenue and customers due to poor payment experience. Failed payments that are rejected by the acquirer or issuer due to incorrect cardholder information, authentication tools, or even insufficient funds, can often only be resolved by customers themselves . However, merchants can reduce the number of declined transactions with the latest payment technologies and agent training.
The goal is to ensure that each transaction is processed quickly and at the lowest cost. A gateway services solution bridges the gap between the merchant and the chosen payment acquirer and bank, helping to expedite payment approval by the cardholder’s bank and confirm settlement. Choosing the right gateway services solution, working with a robust and secure payment processing platform can help achieve frictionless payments, which is better for cash flow and customer experience.
At Encoded, we have identified five criteria to consider when choosing the right payment solutions:
» Guaranteeing a lower cost acquisition with a dynamic selection
Payment gateway solutions bridge the gap between merchants and acquirers. Only truly independent gateways are able to find the least expensive acquirer at the time of the transaction.
To save money on every transaction, merchants can now access a new payment gateway feature to enable lower cost routing for online and contact center transactions. Choosing a dynamic acquirer solution that selects the lowest cost option every time means faster and more cost effective payments, which ultimately means better cash flow.
» Provide a seamless customer experience
The faster the transaction process, the faster the payment can be approved by the card issuer and the acquirer and the settlement confirmed. Choosing the right payment service gateway, in conjunction with PCI DSS compliant payment solutions, helps ensure a secure and frictionless process. Integration with open banking also provides more payment choices for the customer, which is increasingly important in a competitive market.
» Prevent fraud with secure processes
With fraud on the rise, customers today want to be assured that every transaction is secure. For the merchant, this means being PCI DSS compliant and adhering to the Payment Services Directive (PSD2) and the latest Strong Customer Authentication (SCA) regulations. SCA is now mandatory (since March 2022) and provides customers with an additional layer of security to make card payments safer. My next article will describe how SCA works for merchants and customers in the fight against fraud.
Gateway services solutions must provide both a robust infrastructure and ensure compliance and security assurance. A secure token vault can help store card data securely, while additional protection against fraud can also be provided with a solution like Encoded’s. Fraud prevention platform. (PPF). FPP helps improve conversion rates and customer service in contact centers when combined with Encoded’s agent-assisted payments. Agents can notify the customer that an additional level of validation is required when a payment is declined. Using Gov.uk Verify, 3D secure or Open Authorization (OAUTH) to prevent fraud helps increase successful transactions.
» Keep your developers happy while reducing development costs
Choosing the right payment solutions will facilitate secure and faster customer transactions, improve customer experience, and can help keep your development team happy. Selecting a technology platform with a developer-friendly API that enables user acceptance testing (UAT) and test environments means smoother and more cost-effective integration and implementation, enough to make smile any developer.
With Encoded’s gateway services, seamless integration with other Encode payment solutions such as Agent-Assisted Payments, IVR and PaybyLink can also reduce overall costs and improve CX.
» Customize your e-commerce payment pages
To provide the best customer experience, merchants want their e-commerce checkout pages to reflect the look and feel of their business. It’s important to choose a solution that (using hosted checkout fields) puts developers (and merchants) in control of their e-commerce pages. It helps avoid customer confusion by providing consistent branding and means changes can be made easily at any time.
Before choosing your gateway services solution, put these five criteria on your shopping list. With robust and reliable technology solutions that are secure, compliant, and work together to deliver the best possible customer experience, you can ensure that every transaction is profitable.
Rob Crutchington is Managing Director of Encoded
Encoded is an independent payment service provider and payment gateway specializing in secure payment solutions for contact centers.
Encoded offers a range of card payment solutions designed to help organizations comply with PCI DSS, GDPR and the new Payment Services Directive (PSD2).
Encoded’s solutions are trusted by many major global brands, including Samsung, Mercedes-Benz and BMW, as well as a host of UK utility companies such as Green Star Energy and Severn Trent Water. Solutions include: Agent Assisted Card Payments, E-Commerce Payments, IVR Payments, Mobile Apps, PayByLink Mobile Payments and Coded Gateway Services.
For more information on Encoding, see their company profile