Key Challenges in Online Payments

CIO Review Europe | Monday, April 26, 2021

Fremont, CA: Both online merchants and customers expect online buying and selling to be easy, fast, and safe. eCommerce transactions initiate complex automated processes involving a variety of downstream parties, including banks and payment processors, to name a few. Furthermore, developments in smartphones and e-wallets, changing purchasing trends, and demand for cross-border, multi-currency electronic payments have fuelled PSP competition to sustain and grow market share.

With mobile payments, e-wallets, and contactless cards, new innovations have already streamlined and smoothed business-to-business and business-to-customer interactions. As the online payment processing market grows, user demands for additional payment features and options lead to growth in multiple directions.


Card-not-present transactions are the most common form of the online transaction. If e-commerce grows, so does the potential for fraudulent use of payment networks and data theft. A certified Level 1 PCI DSS payment processor's risk management team will sniff out fraud before it happens, in addition to more obvious fraud-monitoring resources like the customer account, validation services, and purchase tracking.

Chargebacks are not only expensive, but they can also damage a company's reputation; an excessive amount of chargebacks can result in the closure of a merchant account, effectively destroying the company. Although chargebacks can occur for a variety of reasons, using customer service strategies focused on know-your-customer principles, as well as merchant accessibility, can significantly minimize or eliminate chargebacks.

Multi-Currency and Different Payment Methods

Accepting a range of payment methods and currencies is part of global e-commerce. Online retailers compete in global markets by allowing their customers to pay in their native currencies and methods of choice. eWallet payment processing, mobile payment processing, and, of course, acceptance of foreign credit/debit cards all help online merchants compete. Multi-currency, cross-border transactions will necessitate the creation of new bank accounts, business entities, and regulatory hurdles in each national market for merchants.

Choosing a payment service provider with the appropriate infrastructure in place will provide quick and reliable solutions to those issues.

A merchant will easily accept payment in one currency and credit his or her account in the currency of his or her choice. A good PSP can handle eWallet payments, credit, and debit card payments and incorporate mobile payment processing systems natively.

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