[“Payment Processes Have Changed – Here Are The 3 Rules to Use for Defining Success Payments” originally appeared on Inc. and is written by Andrew Medal.]
Remember when a “purchase” consisted of waiting in a check-out line, making small-talk with a cashier, and handing over physical dollar bills and coins? Thinking back, it seems like a simpler time. Now, however, the entire commerce purchasing process has changed drastically. Now, the future of retail is here and it has no time for archaic systems that slow customers and business down.
The ecommerce world is dynamic. New technologies, including artificial intelligence, are changing the way both consumers and ecommerce businesses approach retail. Brick-and-mortar retailers have been forced to adapt their models to keep pace with an online and mobile-first world.
Consumers expect business owners to take their need for convenience into consideration. If a consumer lands on an ecommerce checking page and is required to fill out several forms and complete multiple captcha tests within a time span of ten minutes, they’ll likely abandon their carts in favor for a competitive site with a more streamlined process.
It’s hard enough to break through the noise of the Internet and convince consumers to visit your site; if you subsequently lose them due to an outdated payment system, you’ll have to work twice as hard to convince them to come back. Failing to implement cutting-edge payment systems that take into consideration the shifts in consumer behavior not only slows business growth, it has the potential to squash it altogether.
Small ecommerce retailers don’t have the time or capital to run clunky payment systems that take too much time to process. Luckily, there are emerging payment platforms that enable ecommerce organizations across verticals to offer seamless and hassle-free check-out procedure.
YapStone, helmed by tech futurist Tom Villante, is one company changing the online payment solutions game. Because of both their innovation and expertise in facilitating complex payment requisites for online marketplaces, YapStone has managed to rise to the top in this area and as a result be named on INC. 5000’s list of the Fastest Growing Companies in America for ten consecutive years.
Here are a few lessons I learned from Villante that any online business owner should consider when starting a new payment system:
1. Simplicity is vital.
“If you are an e-commerce company, you must make it your constant mission to improve your online customer experience and conversion,” says Villante. Too many businesses suffer from shopping cart abandonment, and its up to individual organizations to look at these abandonment rates and find the source of the site issue. High abandonment rates are usually not coincidental–they point to a larger issue regarding the checkout procedure.
To keep shopping cart inadequacies from stealing sales, follow this simple checklist:
Prioritization of mobile check-out version over a desktop one
Readily available social proof of past customer satisfaction on the checkout page
Clean and intuitive checkout page design
Simple account sign-up steps
Assurance of customer privacy
2. Chargebacks can kill.
Nothing hurts a business more than making a dollar and, subsequently, returning that same dollar to the consumer. Not only do chargebacks affect a business’s bottom-line, but they also hurt brand perception, because they indicate dissatisfaction with a product or, even worse, fraud. For the organization, chargebacks are also accompanied by an additional processing fee. Although the average fee settles at around $20 per transaction, that $20 charge adds up quickly if an organization is forced to fulfill refunds on a regular basis.
As more consumers depend on digital shopping, chargebacks will become increasingly common. With ecommerce, consumers don’t have the chance to actually see, touch, or try out a product before buying. While they are not preventable altogether, organizations do have some control regarding their frequency.
To diminish the volume of chargebacks, prioritize the following:
Implementation of proper cancellation, return, or refund policies.
Employment of an expert payment partner that can sufficiently activate risk and fraud protection measures
An undeterred focus on high quality and immediate customer service
3. A merchant of record is necessary for protection.
Marketplace business owners have to secure a merchant of record (MOR) that is responsible for every customer-to-seller transaction. Additionally, the MOR oversees the monitoring systems in designed to handle risk and fraudulent activity.
Partnering with a payments provider to serve as your MOR is the first step to ensuring the exchange of funds is facilitated efficiently.
Enterprise growth hinges on successful relationships. When the relationship between the business and customer is solid, both sides thrive. While deciding on a product to offer in the marketplace is one of the first things a CEO hopeful must decide, very quickly after that decision must come the plans for how that product will be purchased on the marketplace. Learning the intricacies of a payment system and how it functions for your specific business is essential in accelerating the success of your enterprise in the marketplace.