Payment Optimization in E-Commerce
Payment optimization is the art and science of streamlining payments processes for online businesses in order to reduce costs and boost conversions, by identifying and implementing best practices for cardholder validation, data collection, payment routing and fee solutions.
Merchants that harness data and technology to streamline payment processing can realize significant revenue and profitability gains through automation and streamlining payment processing, but this goal often presents many barriers – including time-consuming manual review of transactions to detect fraudulent activity – which needing third-party solutions to fill.
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Optimization of checkout experiences has never been more important with the proliferation of mobile devices. Consumers demand seamless transactions that do not interfere with their shopping experience or interfere with daily tasks; to facilitate this goal requires offering various payment methods ranging from credit cards and mobile wallets to offering one-page checkout that works equally well across desktop and mobile platforms.
E-commerce businesses must also implement an advanced set of fraud prevention tools in order to combat fraudulent activity, while still offering seamless customer experiences, accelerating growth, and maintaining margins. Unfortunately, many merchants struggle with striking this balance between customer experience and fraud protection; some merchants even end up trading off customer satisfaction in favor of greater protection measures.
To protect themselves against fraud, merchants must understand the various forms of it they face and how best to combat it. There are various tools available that can assist merchants with this endeavor, including fraud prevention software that analyzes transaction data to detect suspicious patterns, or machine learning algorithms which identify high-risk transactions.
Fraud management platforms allow merchants to automate review, approval or decline decisions for transactions based on specific risk criteria, saving significant time and effort while improving approval rates from card-issuing banks by decreasing false decline payments.
Retailers seeking optimal payments should choose a global payment provider with cutting-edge security features like 3D Secure and network tokenization. Additionally, providers should offer an automated retry feature which can save a percentage of transactions that would otherwise be declined and improve approval rates and overall e-commerce payments optimization. By addressing these key issues, merchants can unlock hidden potential in their payments operations, increasing conversions and customer satisfaction while simultaneously growing and expanding their online store. This article originally appeared on Forbes Business Development Council and has been republished here with permission from its author.
