If we look at the main reason why people prefer shopping online, the reason is quite simple. Online shopping is extremely fast and convenient for shoppers. You don’t have to step out from the comforts of your house in case you want to buy a single item.
Taking all of these into consideration, it is not easy for entrepreneurs to set up the store and get easy and good service to their customers. There are a lot of elements involved in having an eCommerce store.
For instance, the merchants need to select and add a payment method for their site, set up the shipment services and so much more. One of the most important aspects of having an Online Store is setting up a payment option that is both secure and convenient.
Setting up a secure mechanism for payment is not easy since there are a lot of aspects and elements which tend to get overlooked while setting it up. The mechanisms for payment need to be continuously monitored and provided updates to make it foolproof.
eCommerce stores ever since their inception have been adding a variety of new payment methods which are very fast and convenient and at the same time do not charge a hefty processing fee as well.
New Payment Options for Online Stores
The new payment options also let users make the payment using different currencies, have a plethora of other cashless options and the conventional online payment processes such as debit and credit cards are always there to use.
Even though on the surface it may seem as if it is easy to integrate payments into an online store, that is exactly the case since there are many elements of integration into formulating a secure and feasible payment gateway for your respective website.
A prospective entrepreneur needs to be aware of the fact that in the case your payment gateways are not secure and stable, this would most definitely lead to the customers abandoning their cart out of impatience, cancellation of orders, asking for refunds, and other issues as well.
Talking about an interesting statistic, the global cart abandonment rate is almost 70 percent. This would mean that for every 100 people who add a particular item to the card only 30 people will buy the item in the cart and the remaining 70 people would most probably be abandoning the cart.
Online Payment Problems and How to Solve Them
There are a plethora of online payment issues which are encountered daily by online store owners. Most of these issues are solvable with certain tweaks in the system. We are here to guide you on how to identify and solve the issues mentioned below.
1. Payment Fraud
ECommerce losses due to online payment fraud are estimated to exceed $25 billion by 2024. In 2018 alone, there were 18 million complaints in the USA related to eCommerce issues. Out of these 18 million complaints, around 50 percent were related to payment fraud. The online shopping industry is an ever-evolving field and as the online store of a particular entrepreneur grows in their customer base, there will be more and more cases of fraud orders.
Most of these fake orders have been placed by hackers and scammers who try to find loopholes to penetrate through the security services of the respective online store.
There are majorly three different types of payment fraud.
Types of Online Fraud
- Firstly there is friendly fraud which happens primarily when customers order and make a transaction through credit cards. After making a transaction what happens is that the customers claim that the transaction is disputed to their respective credit card issuer.
- Secondly is the triangulation fraud under which a customer would buy an item through their respective debit or credit card through an unreliable source post which the payment details of the customer would be stolen and misused.
- Thirdly, a clean fraud. This particular type of fraud occurs when a particular scammer uses the information of another card owner to commit crimes. This may also be referred to as identity theft.
The solution to Preventing Online Fraud
To prevent and detect any sort of online fraud occurring on your online store, you must install a payment fraud detection plugin that would be embedded within your website.
If the online store type is Magento then you can easily avail the services of the fraud detection extension developed by Mageplaza. This particular plugin would ensure that any sort of payment fraud is detected and reportedly promptly.
This would ensure that the cart abandonment rates in your online shopping site are reduced and the over-customer trust is also increased which ensures that the payment process is extremely smooth.
A lot of online store owners find the issue of chargeback much greater and more menacing than the issue of online payment fraud. Under this particular payment issue, a customer who brought items or services from your respective eCommerce store would charge back the money to demand a refund.
More than 80 percent of the customers have admitted to filing a chargeback and the primary reason they do so is because of late delivery or the non-fulfillment of a particular order of an item or service. A lot of the time the orders made would be unauthorized and done in a fraudulent method, without the permission of the owner.
These chargebacks have a negative consequence for the online store since a lot of red flags are raised on the respective payment gateways.
The solution to the issue of Chargeback
There are two primary ways in which a particular online store can address the issue of a chargeback. Firstly the online store needs to ensure that they have good customer support which would address the issues of the customers promptly.
This would make sure that the communication between the customer and the online store is consistently maintained. Secondly, the queries of customers need to be addressed quickly. Most of the time customers are impatient to inquire about the status of their order.
And if their queries aren’t resolved immediately, they’ll most probably issue a chargeback.