The technological development has had a massive effect on how business is done the world over. It has eliminated the need for buyers and sellers of goods and services to meet physically. It has instead developed the online space where a lot of transactions happen over the internet. Online payment means has been the backbone for the development of online trade.
This implies that for the continued success of online trade, the online payment methods need to be safe, efficient and easy.
The online trade has also opened up the world where cross-border transactions are rampant. This has seen the development of mobile money payment methods, as well as e-wallets and contact cards to help cater to the need of the online payments.
But then it the players in the industries, the online merchants and consumers alike have faced challenges in using the online payment methods. Some of the challenges and probable solutions are;
Given that online transactions lack contact, fraudsters have always been creating and exploiting loopholes to defraud unsuspecting clients and merchants. Some of the most common types of payment frauds are; fraudulent and unauthorized transactions, false request for a refund, bounced check, and returns.
Some of the methods of fraud include; identity thief, phishing, pagejacking, merchant identity fraud, and advanced fee and cash transfer scams.
Fraud can happen to you in different ways. Through emails, instant messaging, phone calls, social media, online auctions, texting malware to smartphones and getting traffic to fraudulent websites. This implies that you have to be careful when using your gadgets.
Look into utilizing a high-risk merchant processing service if your website is in a vertical that commonly sees fraudulent transactions. They help process payments for high risk merchants that typical payment processing services reject.
2. Cross-border transactions
Even in as much as online transactions has been increasing; the same cannot be said of the cross-border trade. Other than consumer habits, Payment security, as well as the payments options, is the hindrance to widespread cross-border trade.
There are already steps in place to help solve the cross-border payment challenges. Some of these include; government regulating fees and payments for the international goods and services, payment systems employing cutting-edge technology to help secure their systems, creating more transnational systems that will lead to less reliance on corresponding networks.
3. Card data security
Online payments methods have always come under scrutiny on card data security. There are different steps through a business entity can ensure the card security of their clients. These include;
• EMV Compliance (Europay, MasterCard, and Visa, standards). Where you accept only cards that use EMV protection, a global standard of card protection. It has a chip which allows cryptographic processing, keeping data safe from thieves.
• Complying with the Payment Card Industry Data Security Standard that provides for a secure means of using, handling, and storing credit card information.
• Tokenization where only a few information regarding the credit card is given out. This prevents any sensitive information from leaking out.
• Online payment systems can adopt secure socket layers which provide security by keeping away hackers from landing the sensitive information.
• Biometrics which several online payment methods have adopted.
4. Multi-currency and payment methods
Different countries using different currencies imply that global e-commerce will be forced to accept the various currencies. They are different online payments and e-wallet that allows the clients to pay in their native currencies.
The technological advances will keep enabling payments through the different currencies seamlessly.
5. Technical integration
There are various online payment methods that take a lot of time to process. This can be solved by the online merchants integrating their hardware and software systems to help to speed the process. It is also more secure and improves online transaction integrity.
The growth in online trade is set to keep growing. It means that the solutions to online payments challenges must also grow at the same pace.