As we all know, fraud is a significant source of chargebacks. Retailers can’t undervalue chargebacks caused by personal mistakes in payment processing. Merchants typically are accountable for chargebacks which implies that they cannot be pursued after an incident through the representation process. The only way to avoid them is not to be associated with them at the beginning of the process.
The payment process consists of various phases during which the payment processor, the retailer banks, payment processors, and card services work together to verify the identity of the cardholder and confirm the authorization details to ensure that transactions using credit cards are secure, reliable and reliable.
Some of the top payment processing errors are mentioned below:
Merchants that make transactions in multiple currencies need to be sure that they’re using the correct currency that the buyer has selected to pay in. This type of error could create a number of major problems.
Every purchase should be accompanied by the verified and validated credit expiry date. In the event that the card was reissued using identical bank details but did not include the date of expiry, that currently leaves the card susceptible to future disputes.
Credit is Processed as a Charge
It is not uncommon to observe merchants carry out an incorrect transaction by performing credit transactions as a charge. This type of error is known as credit processing as a charge.
The person who holds the account has the right to contest the transaction as fraudulent in the event that the transaction does not match the invoice that the customer agrees to provide. This is usually not an issue with electronic payment systems; however it could happen when transactions are entered by hand or modified without notifying the user.
Permission to purchase is one of the most important aspects of managing transactions, however, it’s not uncommon for retailers not to accept approval due to a variety of reasons. Moreover, if the contract ever gets contestable, the seller will be unable to defend itself.
What can merchants do to reduce the risk of payment processing errors?
Merchants must be aware of the guidelines for processing payments from their acquirer and also set up their interfaces and apps to obtain and use all the information required to verify the rules and obtain authorization.
Follow these guidelines to ensure you don’t make costly mistakes in payment processing.
- Always get permission before making a purchase and process the transaction as fast as you can in the timeframe provided.
- When handling other types of payments like credit, make sure you take the time to ensure that you’re using the proper procedure form.
- If you must restart an existing process in progress, make sure to end the process immediately to avoid repeat processing.
If you’re hoping to improve profits and establish a long-term relationship with your payment service, it is crucial to offer the best deal you can. This means submitting payments as quickly as you can and evaluating the processing companies, using the appropriate payment form, providing long-term service, and finding the right company that will respond rapidly to your demands as well as adapting according to the needs of your business.
If you’re searching for the most secure payment option for businesses, OnionPay is your best choice. As one of the best Indian payment gateway aggregators, OnionPay is owned through Zhudao Infotech Private Limited and can be described as one of the PCI DSS Level 1 certified digital payment gateway which provides an excellent checkout experience as well as multiple payment options.