Increasing Consumer Security With Outsourced Merchant Services
Many shoppers have moved to the internet. No physical store location can compete with the convenience, privacy, and speed of online shopping. Customers can price shop and take their time making shopping decisions, all in the comfort of their own homes. Many even shop in their pajamas! Some shop for wanted items online, such as clothing, shoes, and accessories. Others use internet shopping for necessities, such as toilet papers, food items, and toiletry items. It is a great time to be an online retailer. You can reap the benefits of the online shopper, all without having to pay for a physical storefront. However, there are other things that an online retailer needs to consider.
Although it is a busy and profitable time to be in the internet retail business, that means there are a lot of online retailers fighting for the same business. An internet retailer that wants to be successful in the mix of hundreds of other similar companies needs to be extremely competitive. They need to ensure that their marketing is successful and that they are connecting with their customers in a personal and effective way. Also, providing customers with the best products and service can give an online business over other retailers who are not focusing on that.
With so many other businesses selling on the internet, it can be difficult to find a unique product or service to sell. The internet has made it easier than ever to price shop. In the past, customers would just purchase an item in front of them at the store, because price shopping required physically going to another store. Now, the customer can simply visit another webpage, and select the cheaper, similar item with minimal effort.
The similarity of products requires online retailers to find ways to encourage customer?s to purchase from them. They may offer bulk item incentives or reductions in shipping. They may send out coupon codes that can be used with online orders. Statista (2015) there are often incentives for buying items in bulk or buying expensive items online, therefore, shoppers often spend a lot when shopping online. The average U.S. shopper spends an average of $78 per order.
Although internet shopping can provided consumers with an extremely convenient and quick shopping model, it can provide security risks. The internet shopping process involves card not present transactions. This means that the consumer is required to input their credit information into a webpage, never physically using their credit card. If the information is hacked or breached, the consumer?s information is stolen. The business can be liable, which can be a huge problem for smaller online retailers.
Secondary merchant chargeback protection companies can provide many benefits to smaller online retailers. A merchant chargeback protection protects both the consumer and the business from a card not present chargeback. In 2014, there were $16.31 billion worldwide fraud losses from payment card fraud. A chargeback credit card can also prevent the business from losing funds for items that they sent to the consumer.
Gain trust with online customers.
Online customers expect a retailer to completely protect their card information. If their information is breached, they expect the business to provide merchant chargeback protection. However, chargeback protection is costly. In the USA, card fraud costs more than $8 billion annually. The credit card chargeback process often protects the consumer, which can be detrimental to the company.
Choosing an outsourced merchant chargeback protection company can also provide more trust in customers. Customers are more willing to use a checkout process that is branded by a secondary company that they recognize. They feel more protected and are more willing to provide their credit information electronically. The outsourced merchant chargeback protection offers benefits for both sides of the transaction.
The internet is an extremely convenient mode for shopping in today?s world. However, without the necessary safety precautions, it can be dangerous. An online retailer needs to ensure that they have taken all of the necessary safety measures to protect their customer?s information. This often means outsourcing the merchant process to protect both the consumer and the business.