Payments can be a strategic advantage and provide a competitive edge if executed correctly. Features to look out for are things like failover functionality, intelligent routing, soft decline retries and embedded payment links.
Most merchants combine separate payment channels, which leaves them vulnerable to single points of failure. Implementing a Payment Orchestration Platform, such as Velocity, improves resilience by layering redundant systems that can take over processes in the event of a failure. It means your organization will benefit from higher transaction success rates and lower payment costs as the orchestration platform automatically reroutes to a second or third alternative processor to complete the transaction.
Soft Declines – where a card number is probably valid but was denied by the issuing bank for data quality issues, such as invalid expiry date or authentication data, account for a significant percentage of all declines and it’s important to work with your PSPs to build strong resubmission strategies. Merchants can submit a retry when they receive specific decline code categories from issuers that indicate there are data quality issues. The issuer may approve the transaction if the merchant then provides valid data.
Pay-by-Link is another simple and useful tool PSPs can provide. It lets you send digital invoices by email or SMS including an embedded payment link that allows your customers to pay with all supported payment methods through a secure link. Additionally, retargeting customers who drop out at the payment stage with Pay by Link statistically prove to increase conversion rates.
Other features of a solid payment strategy are the ability to store customer cards to enable one-click payment in all channels and to easily add a range of payment methods. Merchants in all verticals need to recognize the importance of accepting a wider range of alternative payment methods (APMs) to meet new customer expectations.
APMs are growing in popularity and in many countries are already the de facto way to pay online. For example, 57% of German shoppers prefer to use PayPal when shopping online and Netherlands consumers make 60% of their online purchases with the local bank transfer payment, iDEAL.