Engaging your clientele on an online platform can work in many ways to improve your brand. The accessibility and convenience offered on a website adds another dimension to your brick-and-mortar store. A professional website may even serve as a wholly independent e-commerce business. But before you get started, here are some things to keep in mind.
- Navigating Currencies and Pricing
An e-commerce website is accessible to a global audience. Anyone can take a look at your website and purchase products or services. Finding your key demographic is important when setting your prices because local rates may vary from regional and global rates, serving an international clientele may also come with additional costs.
To combat this, your online payment system can change currencies and pricing depending on your customer’s location. Taking advantage of these features can help you avoid the costs of unexpected delivery fees, exchange rates, etc.
- How Processing Volume Impacts Banking
The processing volume for your website refers to the total sales your website receives, or is expected to receive, in any given month. This is combined with the average price of a sale or transaction value to help banks determine the rates they will offer you. Banks always take a percentage of the sale, however this will vary depending on these figures.
- How Chargebacks Affect Your Business
If a customer is unhappy with their purchase, they can always request their money back through a chargeback. Chargebacks can be given for both products and services and exist to protect your customers.
Chargebacks also entail fees for the vendor and reflect poorly on the business. Banks will penalize a business or withdraw their services if there are too many chargebacks. The biggest threats here are fraudulent claims, but the right risk mitigation services and support can deter them and/or shift liability from the vendor to the customer’s bank.
- Strong Policies Can Save Your Business
One of the most effective fraud prevention techniques are policies that let your customers know what they can expect with their purchase and what you expect in return as a vendor. This helps prevent miscommunications and sets a clear outline you can use as supporting evidence in the case of false chargebacks.
These policies range from clear descriptions of your products or services to procedures they can take if they are unsatisfied. Making these policies visible and requiring customers to read them before they purchase ensure their effectiveness.
- Thinking Like a Fraudster
Those intent on fraud will always seek out loopholes, but this is can be mitigated. For example, if you provide a service you may request customers sign a form confirming their satisfaction after completion. You should also enable 3DSecure, a security protocol that adds an extra layer of security for online credit card transactions.
3D Secure requires customers to complete an additional verification step with their card issuing bank when paying. Typically, you direct the customer to an authentication page on their bank’s website, and they enter a password associated with the card.
Utilizing these tools and advice will help you build an online business with the potential to thrive. Be sure to use a payment gateway that knows your market and can assist you in setting up for success.
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