While electronic transactions may appear fast, smooth, and hassle-free to end-users, it's a whole new ball game behind the scenes.
It takes a great deal of programming work to make transactions appear seamless to customers. In truth, there are multiple backend tools that e-commerce brands use, and among these are payment gateways. However, they’re not completely foolproof. Payment gateways remain vulnerable to glitches that can disrupt the performance of online enterprises and damage their user experience.
Among the biggest challenges facing e-commerce businesses is overcoming the barriers surrounding payment processing. Despite new technologies that have emerged in the market, there are still threats to payment transactions that e-commerce merchants must avoid.
One of the first things companies must be cautious of is the lack of technical coordination among platforms. Many businesses suffer from inefficiencies brought about by the lack of integration among software solutions, which can impact payment processing. Some companies make the mistake of selecting payment gateways before ensuring their compatibility with other platforms. This can wreak havoc on the system (and incur extra labor costs), especially when operations are already underway. So it’s crucial to make sure that solutions like CRM, ERP, and e-commerce platforms are all coordinated and synchronized before anything else.
Another payment processing issue that often plagues most online businesses is their limited capability to accept multiple international currencies. This is a major setback for e-commerce brands as it prevents them from significantly growing their businesses and accessing the worldwide market. Whether you’re a small-time enterprise or an established storefront, having the capacity to accommodate multi-currency payments can give you a big advantage over competitors.
E-commerce businesses must also be able to accept payments from multiple channels, such as cash, check, debit card, credit card, kiosk, and mobile app. Being able to support omni-channel payments can help to capture more customers and convert more leads. Omni-channel processing also improves user experience and boosts customer satisfaction as it integrates mechanisms like payment reminders and invoice receipts.
Apart from payment processing options, chargebacks pose another major threat to e-commerce businesses by reducing overall profitability. Incorporating a reliable payment gateway can prevent illegal transactions and minimize the number of chargebacks.
Last but not least, payment fraud remains one of the top challenges to e-commerce businesses, putting major strains on digital performance and revenues. Thus, it’s important for companies to build safe and secure payment environments for their customers. This can be achieved by integrating security measures such as point-to-point encryption, tokenization, and fraud management tools. Plug-ins are also available on certain e-commerce platforms.