The Benefits Of Using Local Online Payment Gateway, Currencies & Languages

By Author: Sahil Verma
Total Articles: 160
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To avoid chargebacks, your checkout should support a wide range of currencies and languages.

First and foremost, unexpected currency conversions can irritate your customers. Why?

For example, if a customer pays for your product or service and doesn't realize the payment amount was displayed in a currency other than the one they normally use, resulting in a different price on their bank statement than the one you displayed, they may file a chargeback because they feel cheated.
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In contrast, incorporating different currencies and automatically displaying them to your customers based on their geolocation or browser settings can help them feel much more at ease when making transactions.

Making payments on your website should not be associated with unpleasant surprises on your bank statement. As a result, look for an online payment gateway that can customize your checkout and payment forms so that your customers feel catered to, and who can help make online purchasing easier and less risky.

By significantly increasing your payment acceptance rate, incorporating ...
... many local languages and currencies will help you measurably improve your sales and conversion rate.

Local Acquirers

If you want to accept credit cards on your website, you must first sign a contract with an acquiring bank. And, once you've signed a contract, the acquirer will be in charge of authorizing card transactions during the payment process and connecting you with issuing banks on your behalf.

In practice, this means that when your customer uses a card to make a purchase, the acquiring bank will either accept or reject the transaction based on the information provided by the issuing bank and the card network.

In other words, your payment authorization request is received by the acquiring bank and forwarded to the issuing bank for approval. If the purchase is approved by the bank, funds are deposited into your account.

As a result, having a merchant account in a specific location implies that you will find it easier to work with acquirers and card networks from the same region, as they will be in the same time zone, operate under similar regulations, and so on.

So, in addition to offering your customers checkout in multiple currencies and languages, it's also advantageous to work with local acquirers — for example, if the majority of your clients are from India, having a merchant account with an Indian acquirer will help increase your payment acceptance rate.

Why 1-Click Payments Are Always a Good Idea

This innovative payment feature makes purchasing much faster and easier. Once a customer enters their payment information and personal information into your service, they will be able to make additional purchases with a single click.

In practice, you can add a payment through the best online payment gateway, which is then saved and automatically applied when your customer needs to use the same information to make another purchase on another occasion.

With this in mind, it's easy to see why the auto-complete feature is so effective at increasing payment acceptance rates.

Tokenization

If you want to take payment security and functionality to the next level, look for a payment provider whose merchant account and payment solution use tokenization.

Tokenization is a cutting-edge best practice for storing payment data. To put it simply, when tokenization is used, unique identifiers (i.e. tokens) are associated with payment data such as a given customer's card details.

In practice, when a payment is made, a token associated with a specific payment card is sent to your website and associated with the stored payment details. After that, an authorization request is sent to the acquirer.

This data management strategy has two major advantages: lower costs and improved security.

Lower costs

You save money because you no longer need to route transactions through your server because tokenization manages and encrypts customer data. As a result, some of the costs associated with meeting and monitoring PCI compliance are reduced. Tokenization transfers the majority of PCI compliance requirements from you to your payment partner, making this possible.

Increased security

Tokenization is excellent for increasing payment security because, even if a specific fraudster steals your customer's data, it will be tokenized and, as a result, they will be unable to use it to make online purchases (as it would be impossible for them to associate a given token with the payment information stored by your payment processor).

As you can see, using tokenization technology makes using your service more secure, which makes your customers feel more at ease when making purchases and, as a result, contributes to an increase in your payment acceptance rate.

Conversion-Friendly 2-Factor Authentication

Customers are asked to provide a secret code along with their card numbers as an additional layer of security, such as 3-D Secure, which is used to authenticate cardholders online.

Then, most of the time, cardholders are redirected to another page hosted by their bank, where they must enter the additional code.

In a nutshell, merchants use 3-D Secure to prevent fraud. However, many of them have complained that doing so has resulted in revenue losses as a result of a lower payment authorization rate.

Why is this the case? This is because some customers choose to abandon their carts when 3-D Secure is too intrusive and complicates the checkout process.

This polarised viewpoint on the benefits and drawbacks of 3-D Secure has caused merchants to either completely avoid implementing it in any of their transactions or to implement it in all of them.

This type of binary approach, however, is not your only option. The application of 3-D Secure can be optimized and custom-tailored to meet the needs of your business.

For example, you can use 3-D Secure to reduce fraud risks only in specific transactions, based on the cardholder's country, the value of the transaction, and/or the risk associated with it.

Also, keep in mind that you can find an online payment gateway that can implement a non-invasive version of 3-D Secure that will not have a negative impact on your payment acceptance rate.

The Benefits of 3-D Secure

As you can see, it's not all bad. Here are the three most significant advantages of 3-D Secure.

Liability Shift

Using 3-D Secure results in a liability shift; as a result, card issuers become liable for the majority of fraudulent card-not-present transactions, relieving you of this burden.

Lower Fraud Risk

Instead of being concerned about lowering your payment acceptance rate, consider how much more secure your transactions will be. This is due to the fact that 3-D Secure not only reduces the risk of fraudulent transactions but also lowers your chargeback rate and increases your chances of winning chargeback disputes.

Cost-Free

Many payment processors provide 3-D Secure at no additional cost. This means you get to reap the benefits of increased transactional security without having to pay a single penny more for it.

So, as previously stated, talk to your payment processor about customization options, and remember — 3-D Secure implementation doesn't have to be so black and white. Look for ways to tailor its use so that you can have your cake and eat it too.

Using Data for Smart Fraud Prevention

Over the last few years, there has been a significant increase in the number of fraudulent transactions and attempts around the world.

However, merchants are also dealing with another issue that is having a negative impact on their payment acceptance rate and should not be overlooked.

This problem is revenue lost as a result of poorly configured fraud prevention tools.

If your payment processor has equipped your merchant account with anti-fraud tools that aren't well-suited to your line of business or industry, they're very likely to generate "false positives."

And if this occurs, it will be disastrous for business. If your anti-fraud tools produce a "false positive," it means that a legitimate customer was misidentified as a fraudster and their transaction was declined.

As you can imagine, this type of scenario not only reduces your payment acceptance rate but also frustrates your customers, resulting in higher churn rates and lower customer lifetime value.