A rather prominent trend in the domain of electronic commerce as of today is the so-called seamless purchase, when the process of paying is minimally perceivable for the customer.
Today, Bilderlings Pay is going to cover the peculiar features and prospects of internet acquiring.
The term itself is derived from the verb “to acquire”, and is used to denote the process of accepting a customer’s online payment cards as a means of payment for goods or services. This service also allows paying for the purchases made through online stores or services.
Indeed, the world of e-commerce grows increasingly complicated at a fast pace. As it was reported by Wolfgang digital in the course of a study on the leading trends in the domain of electronic commerce, today, a single household has an average of 7 devices that can be used to shop online.
However, as it follows from the same study, the importance of conversion of online trade, mostly focused on mobile devices, is somewhat overestimated as of today. Online market studies in Europe, North America and China lead to the following inference.
In these regions of the planet, 59% of visits to e-commerce websites originate from smartphones and tablet PCs, yet only 38% of visitors actually make a purchase through a mobile browser.
That is, browsing for goods and services and comparative analysis thereof through a mobile application have already become a common thing for almost 60 percent of potential buyers. One third of them, however, still prefer to make the actual purchase from a home computer.
Thus, mobile acquiring should be regarded to as a part of internet acquiring as a whole. The optimum configuration of a vendor’s internet resource, in these circumstances, would be optimised for both desktop PCs and mobile devices.
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It is a commonly held percept that customer loyalty is a factor that contributes greatly to the conversion of your business. In particular, the possibility of paying online conveniently, directly through the website, allows the site to gain consumer trust. In practice, such services have become a standard tool in e-commerce as of today.
Seamless purchase transactions, proper quality and timely delivery of the selected goods to the buyer, greatly boost your chances of acquiring a loyal customer. A customer like that is bound to return over and over again, adding goods to the online shopping cart or making expensive one-time purchases, such as tours.
The convenience of acquiring also has a positive effect on the overall image of a company. Buyers do enjoy the opportunity to pay for their purchases with any cards and, potentially, in any available currency.
The place where the customer lives and the time of purchase do not matter: The acquirer bank processes transactions 24/7/365. Provided that a high-speed internet connection and a bank’s payment card are available, the payment itself takes less than a minute.
The service provider’s facilities ensure payment security using the 3D Secure and SSL authentication protocols. These also monitor the transactions carried out with an online store for signs of potential fraud.
On the other hand, retailers find acquiring to be an effective means to achieve manifold cost reduction and improve supply chains due to instant global scaling of the entire business model.
Essentially, this operation is as much seamless and comfortable for a retailer. Verification of a successful transaction takes place in a time as short as the time required to get a receipt at the cash desk offline. In a minute, you can already see the money on your account. The acquirer and processing centre undertake just about all liabilities associated with carrying out a transaction. That is, ensuring safe use of bankcards, offsetting, accrual of bonuses, discount calculation, etc.
The acquirer charges a commission fee when working with globally compatible payment systems, such as Visa Int., MasterCard WorldWide, Diners Club, Amex, JCB and China Union Pay. The amount of such fee differs depending on the circumstances, but in general, the average acquirer’s margin tends to decrease.
- Regular payments
Bilderlings Pay has recently published a separate article on the system of automatic (recurrent) payments. Now, we are just going to remind that automatic deduction of funds without having to re-enter the payment card data is a very convenient instrument that can be offered by a payment service or an acquirer bank. As a result, the only thing that a client has to do in respect of recurrent billing is to determine the amount that is going to be deducted from his card account on a monthly (daily, quarterly, etc.) basis.
The payer only has to enter the card details when making the first, “setup” payment. All subsequent transactions with the selected contractor are carried out automatically. These could be bills for regularly purchased goods or services, such as subscription, for instance, when bills are issued to the cardholder once in every specific period of time.
In the meantime, another substantiation for the choice of a regular payment system could be the cost and quality of services rendered. At that, funds are always from the buyer’s card without having to re-enter any payment details and without the need for the payer to participate in the initiation of another transaction.
This type of internet acquiring allows the owners of online services and stores to issue invoices to customers instantly, with subsequent payment thereof online. Some types of transactions, for example, the ones involving large or non-standard goods and services, sometimes require extra conditions and payment forms. This can imply options, advance or deferred payments, partial payment, and so on.
The invoicing service is also provided by Bilderlings Pay. As it was already described, it enables a vendor to issue invoice in a manner most comfortable for the specific conditions of business. Apart from that, the availability of this service can improve competitive performance, providing a means to enforce the strategically vital directions.
According to the provisions of the EU Consumer Rights Directive, if the consumer attributes of a product fail to meet the declared ones in full or in part, the vendor must provide a partial or complete refund to the customer. The main thing is, internet acquiring makes sure that refund is carried out in this instance with no commission fees and within the shortest terms possible.
For example, refund for cancelled orders in the jurisdictions of EU and USA implies that the money is credited back to the card amount in the customer’s bank within just a few seconds. In the meantime, it does not inflict any additional losses upon the retailer, except for the foregone earnings from the sale of goods and services.
A customer willing to get a refund can set up an automatic refund scheme in the store’s system or request a refund manually, using the payment order. For that purpose, a smartphone or a tablet PC can be linked to the personal account in order to receive passwords for confirming transactions by SMS.
There are certain exceptions, however. In the AliExpress marketplace, for instance, the refund process could take 3 to 15 days. On separate occasions, it requires an express authorisation by the vendor. The “suspended order” status at this trade platform means that the vendor is suspected of fraudulent actions. In this case, vendor check takes 3 business days. If the vendor fails to provide a response within this period, the order is cancelled, and the money is returned to the customer’s account.
Of course, the motivation of a buyer who wants to cancel a transaction and get a refund can be different. Refund can be requested even if the online merchant performs its side of the deal honestly and diligently. But anyway, each instance of refund is, at least, a case of lost profit.
When we essentially entrust our funds to software applications and mobile devices, we cannot omit the considerations of security. As Bilderlings Pay already wrote, experts predict that by 2020, over 25% of all cyber-attacks in the domain of online commerce are going to take place through the so-called “Internet of things”. That is why the issue of protecting data with аnti-fraud systems becomes a matter of exceptional importance.
Security of the entire chain of transaction effected through the use of Internet acquiring is maintained by backed-up card payment protection systems developed in accordance with a single standard.
Normally, it guarantees full risk control and first-level protection according to the standard PCI DSS (Payment Card Industry Security Standards Council), version 3.2. Since December 2015, the Bilderlings Pay service also employs this system. In the unlikely case of failure of anti-fraud systems, if that would suddenly happen, the acquirer and the payment provider indemnify and hold their customers harmless against any losses.
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