The outbreak of Coronavirus is raising questions about it’s impact on the digital as well as cash payments. How will the industry cope with this in the long run? What actions can be taken to keep the industry afloat? How can the industry support it’s consumers during this crisis? How will this pandemic shape the industry in near future? – Payment industry is struggling to find answers to wrap these questions and more.
As fears from change in consumer behavior emerge in the world economy, two things are clearly in sight – chargeback and friendly fraud. Travel companies including airlines, OTAs, hotels and such are in the front line of this pandemic. “The pandemic will include a surge in payment disputes as well as other hidden costs for merchants. Preparation now will help to blunt some of the long-term impacts.”, said Monica Eaton-Cardone, COO Chargebacks911.
When the worldwide effort to curb the effects is immense, it is more important than ever to keep close watch on chargeback and fraudulent activities. One certainty is that every vertical is not immediately affected. Some verticals such as online marketplace might see a ripple effect as worldwide consumption power deteriorates. Merchants in every vertical can expect a burn, some more than the others.
As consumer confidence turns into consumer fear, a spike in new and unique challenges can be expected. Fake products, counterfeits, and other scams playing on consumers’ virus-related fears is projected.
It is decisive now to connect to your banks and consumers to dispute and refund immediately whenever necessary. Multilayer fraud detection and chargeback alert systems can be an addition to reduce loss on revenue. Improving your connectivity with consumers can be a further step – be informative about how to reach you, optimize your response and call your customers before calling the bank. If your business model do not support instant fulfillment, inform your customers of any delivery delay. Deploy easy cancellation and quick refund methods specially if you are in subscription and recurring business models.
Every crisis leads to a effect, for good and bad. New solutions are born out of new problems. As a whole, it’s too early to definitely talk about any permanent shift in payment processing.
Team PurePay is with you in this fight to overcome existing challenges and future threats. And together we will defeat Covid-19 to live in the better days ahead of us.