From Legacy To Lean: 3 Things You Need To Add To Your Payment System
The payment or transaction page is the most important interaction many businesses can have with their customers. It might be their only interaction, but it might also be the start of a long relationship, and this can depend on how easy and secure the payment process is.
Your payment system and page could be at the peak of sophistication and have a beautifully branded ‘look and feel’, but if it doesn’t have these three essentials, you could be losing trust and business:
Smart user experience
Online payment pages should be designed to encourage the user down the payment path without much deviation. Shopping basket abandonment is a massive problem across all industries that process online payments - 2017 stats estimate it at 77.3% of all online orders.
The main reasons for abandonment are confusion, a lack of trust in the site, or they’re just not ready to buy yet.
Clear forms and fields
A lack of information, or a field not performing its function correctly, can make someone leave very quickly without entering their details, whether they’re shopping or making a bank transfer. Breadcrumb navigation will also mark the user’s place in the checkout process (login, payment, confirmation etc) and let them know roughly how long the transaction will take.
Security and safety
18% of shoppers will abandon their checkout if they don’t trust the site with their details. When asked for personal and financial details, users need to see padlocks and symbols they recognise. This can be reinforced with terms like ‘secure payment page’, and a reminder that their details will only be used for specific purposes before they type them in.
Calls to action
The final ‘Pay now’ button might seem self-explanatory, but the information leading up to it can make someone unsure. 24% abandon because they can’t see the total costs up front, and 16% will cancel if the delivery time is too slow. When a user confirms their transaction, they need to have all the information and be confident in the transaction.
Fraud risk management
According to Financial Fraud Action, businesses are moving in the right direction but still have more to learn. Fraud using payment cards, banking, and cheques “totalled £768.8 million in 2016”, but “prevented fraud totalled £1.38 billion”.
Payment fraud can take many different forms, and for cyber criminals, the payment page is the main target. It’s the business’ legal responsibility to identify fraud and protect their customers and site users.
The more information the identity thief already has, the harder it can be to detect them on your website. You may need to force your users and customers to help protect themselves by logging them off automatically after a period of inactivity, and enforcing regular password changes with strict rules about character and symbol variation.
Action Fraud advise businesses to look out for unusual purchasing patterns, including multiple purchases of the same item, orders over an unnaturally short period, and regular customers changing their behaviour and payment methods. If the buyer makes contact with your business’ customer service and tries to get around the usual payment rules and processes, that’s another clear cause for concern.
Some hackers will take control of a payment page and “reroute traffic from your...site by hijacking part of it and directing visitors to a different website”. Firewalls and malware detection can identify and prevent access to your network security system, preventing your customers from being diverted to a page that seems normal, but is actually very dangerous.
Error-free payment validation
The amusingly named ‘fat finger error’ refers to pressing the wrong keyboard keys when inputting bank payment details. It might sound trivial, but it’s caused billions in damage on trading floors around the world. In your organisation, incorrectly typed payment details cost £50 each time in charges, time spent fixing the error, resending costs, and exchange rate fluctuations.
Validate API enables businesses and financial institutions to verify and cleanse bank payment details, removing processing errors as part of the user journey.
- Automatically check and generate IBANs and BICs from domestic account details.
- Enrich payment instructions with all bank details and standard settlement instructions.
- Check global holiday data to avoid delays.
- Process single and bulk payments.
- Provide up to date global payment rules for compliance.
- Provide Purpose of Payment codes.
In total, Validate has saved over £125 million in operational costs for our clients and they’ve never lost a payment.
Apply Financial’s Validate API uses development tools and real-time analysis to reduce failed payments to zero, and save money for financial institutions and businesses whilst improving the user experience.
Try our Failed Bank Payment Cost Calculator to find out how much your business could be saving in payment errors.