October newsletter: Spooky edition!

Scaring away payment myths

Halloween is the season of spooky tales, but some of the scariest stories lurk in the world of payments... Many businesses are haunted by misconceptions that prevent them from optimising their payment strategies. It’s time to clear away the cobwebs and face these myths head-on!

Myth 1: Chargebacks are just the cost of doing business

Many merchants believe chargebacks are inevitable, but they don’t have to be. Implementing strict verification processes, utilising fraud detection software including chargeback alerts and simply educating your customers (for example, creating a website section about the chargeback process, and how to resolve issues without initiating one) can significantly reduce the number of chargebacks you face.

Myth 2: More payment options mean better customer experience

While offering a range of payment methods can be beneficial (and we would recommend it), too many options can overwhelm customers and lead to decision fatigue. It’s about striking the right balance, ensuring you do the research beforehand and support the most relevant options for your customer base without cluttering the checkout process.

Myth 3: Manual payment reconciliation is still the gold standard

Relying on manual processes in the age of automation is like using candles when you have electricity. Automated reconciliation tools, like auto-rebiller and network tokenisation, reduce human error, speed up the payment process and offer much clearer insights.

Myth 4: Mobile payments are unsafe

A persistent myth is that mobile payments are riskier than traditional methods. However, with advancements in encryption, tokenisation and biometric verification, mobile payments can be more secure than swiping a physical card. The key is to ensure you’re using up-to-date, reputable solutions that prioritise security.

The cost of fear: How payment issues impact customer trust

While it's essential to clear up common myths, the real horror comes when payment issues frighten your customers for good. A payment glitch here or a checkout error there can turn a loyal customer into a ghost - vanishing from your sales funnel forever. Here’s a couple of ways on how to avoid sending your customers running for the hills:

The haunted checkout experience

A confusing or lengthy checkout can spook even the most loyal customers. Payment friction - like unexpected fees, lack of payment options or having to enter information multiple times - makes customers feel like running in the other direction. Research shows that 70% of online carts are abandoned at checkout, often due to complications in the payment process.

How to fix it: Simplify the checkout experience by minimising the number of steps, offering guest checkout and ensuring the process is optimised for mobile users. It’s all about creating a seamless and transparent path to payment - no spooky surprises allowed.

Fraud fears

Nothing sends shivers down a customer’s spine like a security breach. If customers sense that their financial data isn’t safe with you, they’ll flee faster than you can say BOO. In fact, studies show that 83% of consumers would stop spending with a business after a data breach.

How to fix It: Invest heavily in fraud prevention and data encryption tools. Display trust signals like secure payment badges, SSL certifications and strong privacy policies on your checkout page. Transparency in how you handle data is key - customers need to feel secure in your virtual environment.

By banishing both myths and real-world fears, you can ensure that your payment process is smooth, reliable and trustworthy. Let’s make sure that when customers encounter your website, the only thing they’re afraid of is missing out on your great products - not the payment process itself!