Start Digital Merchant Onboarding with MIMOIQ in Minutes and Beat Your Competition

Merchant Onboarding 22

Start Digital Merchant Onboarding with MIMOIQ in Minutes and Beat Your Competition

Merchant onboarding refers to the stage of the first encounter between a sales organization’s payment processing partners and new merchants. The stage is crucial to launching the underwriting process, which eventually defines the risk profile of a merchant. Avoiding this risk is essential to protect a business from financial losses. Moreover, it also helps the independent sales organization find trustworthy merchants. Therefore, merchant onboarding is crucial, though the traditional onboarding process can be time-consuming. A business can adopt digital merchant onboarding to reduce time and hassles in the process. 

MIMOIQ is one of the leading platforms that offer fast merchant onboarding. Faster onboarding through this digital platform prevents various hassles. Nevertheless, the onboarding process happens quickly, enabling businesses to run multiple merchant onboarding without difficulties. 

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The Drawbacks of Traditional Merchant Onboarding

Traditional merchant onboarding comes with many hassles, and most companies have taken measures to adapt to digital onboarding. In the following section, some of the drawbacks of traditional onboarding have been listed. 

Omit the Errors:

Traditional merchant onboarding is error-prone. Since the process is handled through human interactions, mistakes can occur at various stages. Therefore, most businesses nowadays move toward digital merchant onboarding.

Expensive Process:

Human intervention in a process makes it expensive due to the wages that should be paid to the executives. On the other hand, an automated process does not involve employee wages. As a result, the process becomes cost-effective.

Time-Consuming:

The merchant onboarding is time-consuming if a business follows the traditional human-based onboarding. While humans may take 30-40 minutes or even more in traditional onboarding, MIMOIQ’s digital onboarding takes only a few minutes.

Lesser Application Denial:

The application denial rate is significantly high in traditional merchant onboarding. You can reduce the application denial rate through digital onboarding. The traditional process can be erroneous, which increases the rejection rate.

How Can MIMOIQ Offer Seamless Merchant Onboarding?

Through digital onboarding, an independent sales organization can enhance speed and accuracy in merchant acquiring services. MIMOIQ offers a cutting-edge Merchant Onboarding platform, which omits manual intervention in the merchant onboarding process. Besides automating the overall process, MIMOIQ ensures a safe, error-free, and hassle-free process. 

 

In the following section, you can find more information on the digital onboarding services offered by MIMOIQ. 

A Fully Digitized Merchant Onboarding

MIMOIQ offers a completely digitized merchant onboarding system that does not involve human interactions. In the past, companies had to deal with paperwork for merchant onboarding. The executives had to create new files and check the past files for the merchant’s risk profile development. MIMOIQ’s digital onboarding system will eliminate human engagement in the process. Risk profile judgment and new merchant profile creation will happen automatically. 

A digitized system also gives easy access to the merchant’s onboarding information. The companies can check the merchants’ onboarding status and related documents. As a result, the decision-making process of an organization improves drastically. 

Lightning-Fast Onboarding Process

Faster merchant onboarding brings excellent convenience to business management. Adding new merchants quickly will help your business develop good relationships with the merchants. The conventional onboarding process becomes slow for two significant reasons. Firstly, the process is handled manually, which is time-consuming. Secondly, manual processes can get erroneous, and it takes a long time to address the errors and rectify them to continue with the merchant onboarding. 

Using the MIMOIQ digital onboarding solution is time-saving for businesses. You can obtain a lightningfast onboarding process without worrying about errors during the process. The digital merchant onboarding is error-free and hassle-free. Therefore, most businesses have gradually started adopting digitized merchant onboarding to reduce the time involved in the process. 

Reduce the Business Overhead Expenses

Paying wages to employees is the most significant business overhead expense for a business. In traditional onboarding, an independent sales organization must hire multiple employees to handle multiple merchant onboarding management tasks. The process often becomes lengthy due to risk profile analysis, and document verification which needs to be done depending on many factors. A machine can calibrate the risk profile with a higher conviction. Moreover, the chance of error is also low when you use a tool for digital onboarding. 

Therefore, businesses can save their expenses in two ways by adopting digital onboarding. Firstly, it can reduce the number of employees dealing with the onboarding process, as the tool is capable of handling multiple tasks. Secondly, the tool eliminates errors from the process and eventually saves the business money. You can notice a significant cost reduction by integrating the MIMOIQ with the merchant onboarding process. 

A Transparent Preboarding Process

Transparent and systematic pre-boarding is essential for fast merchant onboarding. Manual pre-boarding is also possible, though it increases the burden of employing a few more people. However, pre-boarding comes with many rewards too. Businesses that adopt this strategy can improve their onboarding speed. Nevertheless, risk profile analysis during onboarding will become easier due to the availability of necessary documentation that was procured during pre-boarding. 

MIMOIQ’s digitized merchant acquiring services come with a pre-boarding feature. The system allows merchants to pre-board and conduct the onboarding after the agreement between the parties. You can introduce such a flexible and standard merchant onboarding model to your business using the MIMOIQ platform. 

A Seamless and Accurate Compliance

Compliance is a concern for every organization during merchant onboarding. A mistake in maintaining compliance can lead to many troubles. Firstly, compliance leads to penalties for organizations, and the penalty amount is hefty in most cases. Secondly, compliance enhances the risks of operating a business with multiple merchants. Business transactions with a potentially risky merchant lead to financial losses. 

MIMOIQ’s digital onboarding platform helps businesses achieve compliance in digital onboarding. Accurate compliance eliminates the risks discussed above. The platform can access merchant data like credit scores, company structures, company information, director details, company turnovers, merchant reputation, and many more. 

Improve engagement with the Merchants

A digital onboarding process gives excellent satisfaction to the merchants. Every merchant expects minimal onboarding hassles to develop a long-term business relationship. Finding annoyances in onboarding also creates a wrong impression of your business among the merchants. The merchants want to collaborate with the businesses that readily embrace technologies to improve multiple business processes. 

A digitized process also helps businesses to find merchants from various locations. Physical distance will not be a big issue in digital merchant onboarding. As a result, independent sales organizations can find multiple merchants from various locations. It eventually helps the organizations grow their business quickly. 

Conclusion

Besides offering fast merchant onboarding, the MIMOIQ platform also ensures a personalized, seamless, and adaptable merchant onboarding experience through the digitized platform. As a result, it develops a flourishing partnership between the sales organizations and their merchants. Onboarding is the first interaction between an organization and a merchant. The first interaction should be effortless and hassle-free to build a flourishing relationship in the long run. MIMOIQ is one of the most trusted platforms for advanced digital merchant onboarding. 

Simplify Instant Digital Merchant Onboarding

Create a world-class digital merchant onboarding process with MIMOIQ. Streamline your Merchant onboarding process using one platform to handle KYC, AML, transaction monitoring, and risk analytics.

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TraQPayments Receives Payment Processing Software Recognition from Leading B2B Review Platform

TraQPayments Receives Payment Processing Software Recognition from Leading B2B Review Platform

TraQPayments Receives Payment Processing Software Recognition from Leading B2B Review Platform

Recently, a leading B2B software marketplace presented TraQPayments with a prestigious industry award in recognition of its exceptional performance in the payment processing software category.

CompareCamp, one of the most trusted and widely-known sources for comprehensive B2B and B2C SaaS reviews, recently lauded TraQPayments as one of the best payment processing platforms this year. The software review platform granted TraQPayments with a Rising Star Award, a type of recognition usually presented to payment processing platforms that have accumulated a growing number of followers and positive mentions from satisfied users on social media.

Following a strict criteria, CompareCamp came up with an authoritative ranking of the best payment processing and invoicing platforms and considered TraQPayments as a strong contender among the software products included on the list. CompareCamp’s team of expert software reviewers evaluated the features and functionalities offered by TraQPayments, considering it as one of the finest payment processing software products in the marketplace.

CompareCamp performed a thorough assessment of TraQPayments’ overall performance in terms of accepting payments, generating invoices, and offering subscriptions. In its detailed TraQPayments review, CompareCamp examined each of the key features that the platform offers. The review especially highlighted TraQPayments’ ability to support automated payments, increasing customer satisfaction and convenience, and improving the efficiency of payment collection processes.

TraQPayments was also commended for its invoicing features, which make it easier for businesses of all scales to generate and send invoices. The platform is built with a QR code function that allows customers to complete transactions and settle payments more easily. TraQPayments also supports a variety of payment options, such as digital wallets like GPay and BHIM UPI. Integrations with the platform make it possible for customers to settle their balances through credit, debit cards, and net banking.

According to a recent report, 82% of Americans today use online payments, which include in-store checkout via a phone or QR code, in-app digital purchases, and person-to-person (P2P) payments. With COVID-19 accelerating digitization in banking, payment processing software products like TraQPayments offer the most essential features for businesses to set up and manage online payments and provide a seamless experience for their customers.

CompareCamp carefully evaluated all of the features and functionalities offered by TraQPayments and included it in their list of best invoicing platforms. As an all-in-one electronic payment solution, TraQPayments equips businesses with all the right tools to accept payments online, streamline the billing process, and provide the best customer experience.

All things considered, our team at TraQPayment would like to express our gratitude to CompareCamp for presenting us with such a prestigious award. The honor of receiving this award from such a reputable organization inspires us to continue providing top-quality payment processing solutions to all kinds of businesses.

We would also like to thank our customers and users for trusting us with their payment processing requirements. Rest assured that we will continue to develop and provide you with newer and better services in the years to come.

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How Electronic Payment Solutions are the First Step into the Digital Age

ffirst step into

How Electronic Payment Solutions are the First Step into the Digital Age

Finance is a big part of people’s daily lives— both on a consumer and professional level. We rely on financial transactions for so much of our day-to-day living. We buy groceries, pay our bills, receive salaries and sales, budget our finances, and so much more. Over the years, many of these activities have moved to electronic platforms, sparking a vast movement in financial technology or fintech.

Nowadays, 64% of consumers use some form of fintech platform. And while the adoption of these tools for payment has increased, there is still some pushback. But the importance of electronic payment systems cannot be denied. We rely on it heavily today. So do businesses. And soon, there might come a time the majority of our transactions will happen electronically.

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Aspects of Payment You Can Digitize

Just what can businesses and people digitize today when it comes to our finances? There are many aspects that have now gone electronic when it comes to money. Here are just a few of them.

Purchasing

Probably one of the biggest shifts in the past half-decade has been the growth of e-commerce. Consumers are no longer just buying more online. They’re actually at a point where many of them prefer it over offline methods. In 2020 alone, amidst the height of the pandemic, e-commerce grew by 27.6%.

Hence, there has been a massive shift towards online payment gateways and systems. Some electronic payment system examples we might be familiar with include PayPal, GooglePay, ApplePay, AmazonPay, Stripe, and so many more. Another growing option is TraQPayments, which merchants can use to collect money via payment links.

B2B Payables

Not only are people buying more in a B2C setting. They’re also starting to shift many of their B2B payables online. Businesses prefer to pay their suppliers, providers, and utilities online. Doing so is not only more productive. It’s also easier to track. Without the problem of unnecessary travel times and queues, business owners and managers can now allot their time towards other more important activities in the business.

Invoicing

People no longer just want to pay online. They want to be paid online as well. Online invoicing has radically shifted accounting and finance in a whole new direction. Because merchants want to pay online, companies should now start thinking about providing digital invoicing options online. These invoicing softwares do more than just online billings— which accounting can then file much easier. They also allow invoice recipients to settle payments online with ease.

Some of the invoicing software and examples that people should start looking into are PayPal and Stripe. However, these two options can be known for their massive fees. So you might also want to look at TraQPayments as an invoicing software option, given it has competitive fees and many other features and benefits.

Accounting and Book keeping

Now that so much money is moving online, 40% of accountants want to automate accounts payable and invoicing. By doing so, they’re able to accomplish bookkeeping and finance tracking tasks faster. For an accounting firm, this advantage could mean being able to get more clients. For an accounting department in a large corporation, that means that accounting managers will be able to stay up-to-date on all finance tracking with very little chance of falling back on work.

Personal Budgeting

Not only can professional accountants automate their bookkeeping. Individuals can also do so at a personal level. For someone who wants to pay their internet bill or water bill, electronic payments will most likely be a more viable option. It removes the hassle of having to leave the office for an hour to head over to the nearest payment center, for example.

There’s also the abundance of budgeting apps on mobile phones now that make it easier for people and families to get better control of their finances.

Payroll

Human resource departments also get to benefit from the growth of online payments’ popularity. 54% of small businesses say that there is room for improvement in their payroll policies and systems. Switching to online payroll services could be one of those improvements for your business.

Online payroll systems help HR departments save time and energy by automating salary computation and making it possible to disburse payments to employees virtually. That, in turn, speeds up the payout process. When employees get paid faster and more promptly, you’ll also have happier staff in general.

Expense Management

If your business still relies on manual systems to disburse, liquidate, and report back petty cash expenses, travel expenses, and so on, then there’s a chance you’re leaving money on the table. Expense management software makes small expenditure management more convenient for entrepreneurs, managers, and finance departments. Because most expense management systems are cloud-based, companies can also collect reports from traveling staff even before they get back to the office. This added edge allows for smoother accounting and more accountability.

Advantages of Going Electronic With Your Payments

All in all, it’s safe to say that electronic payments make our lives easier. And there are many advantages that build that case. If you’re not convinced, these benefits should be able to solidify this case.

Ease of Business

The ease of doing business should be a priority across economies, especially for small to medium-sized businesses. With the added features of electronic payment systems, SMEs can transact faster, take payments from clients and customers wherever they are, and grow much easier than traditional methods alone. 

The pandemic taught us that e-commerce and digital business should be a staple for any business, no matter how large. And more innovations in electronic payment markets make it easier for everyone to do that. Mobile adoption has also helped increase the ease of doing business. 90% of fintech users have used some form of mobile payment.

Saved Time and Resources

Electronic payment options save everyone time and resources. Imagine the decreased hassle of having to buy food because food delivery apps now make it possible to order and pay for food without leaving their home or office.

The cost savings brought about by electronic payments also compound massively. For instance, the cost of sending digital invoices is much lower than having to print and freight hard copy invoices. Invoice management software can also automate payment reminders so that business owners and finance staff no longer have to do so manually when clients fail to pay on time. 

Security

There’s an ongoing debate about the security of online payments, given how cybersecurity threats have risen with time. But overall, online payment options can provide more layers of security. Processes like KYC procedures and authentication steps add more layers of protection to people who send or receive payments online.

The security advantages of electronic payment systems will only improve through time as more protection innovations arise. We’re in the early stages of digital adoption still, and there’s plenty more room to grow, particularly around financial security.

Increased Reach

Businesses that use electronic payment options like e-commerce and online invoicing now have the ability to reach more clients, no matter what part of the country (or even the world) they are. Purchasing trends like cash on delivery and digital wallets are improving transactions online and encouraging more customers to buy virtually. As that reach grows, businesses will only grow more.

The Future of Business with Electronic Payment

All in all, the business world has drastically improved as electronic payment solutions improve with time. And those two will only keep growing together as more businesses and consumers start adopting this new era of commerce.

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What are the KYC Procedures for Merchant Onboarding?

KYC procedures for merchant onboarding

What are the KYC Procedures for Merchant Onboarding?

The merchant onboarding process is at the core of the payments industry, its effectiveness either enabling or inhibiting growth for businesses in this soon-to-be $2-trillion market. The global payments sector is rapidly evolving, with legislative changes, macroeconomic developments, and fintech’s push into the payments industry that is posing problems and opportunities. 

As payments companies negotiate the industry’s challenges, they are all affected by the digital change that is sweeping financial services. Customers and merchants have grown accustomed to faster, more convenient service, prompting payment providers to invest in digital infrastructure upgrades to gain speed and flexibility. Meanwhile, new businesses are emerging onto the market with unprecedented speed. 

When onboarding merchants, certain risks must be addressed, such as fraud, excess chargebacks, money laundering, tax evasion, and so on. Regulatory guidelines and applicable regulations compel us to take a number of preventive measures, including Know-Your-Customer (‘KYC’) and merchant due diligence procedures, in order to achieve this. As a result, we conduct a series of checks for merchants that begin before onboarding and last until the conclusion of their engagement with us. Financial service institutions or any other businesses who want to onboard merchants onto their platform can use the techniques described here to comply with guidelines and mitigate risk. 

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What is KYC?

When a client attempts to open an account or on board with a regulated financial institution, such as a bank, a private bank, or an investment company, KYC is conducted (e.g.: the KYC process you undertake when opening a bank account). An individual or a legal entity can be a client. The goal is to verify the client’s identity, address, and legitimacy through crucial document verification. When combined with due diligence and other mandatory tests, these allow us to identify possible fraudsters, and shell corporations and detect money laundering, among other things. Non-regulated enterprises, such as an online marketplace, are frequently required to conduct a full or partial KYC as a precaution. These enable us to secure ourselves and our end customers and the financial system as a whole. 

The Complete KYC Procedure

The KYC document check, also known as the Customer Due Diligence Check, is in the initial stage. Individual KYC and Business KYC are two types of KYC that can be used: 

Step 1: The KYC document check or CDD process

  • Individual KYC: We do a ‘KYC’ process, or CDD for an individual, when you are a merchant who is an individual (e.g., a sole proprietor). In general, we check your identity using an OVD check (identity documents such as Aadhaar, passports, driving licenses, and so on), individual PAN verification, and, if applicable, current address proof check (utility bills, etc.). We can also request additional documents to confirm your financial or company position, such as your business registration documents. 
  • Business KYC: When we are on-boarding a business partner, we perform a Business KYC procedure, also known as a CDD for a business. The OVD check is replaced by an ‘entity-proof’ check in this case. This, too, varies depending on the type of legal company you are. If you’re a company, for example, we’ll need to verify your certificate of incorporation, memorandum and articles of organization, and other documents. If you’re a trust or partnership, we’ll need your trust/partnership deed, registration certificates, and other documents. 

Step 2: Check for sanctions and PEPs on the sanction and PEP lists.

The names of our clients and their beneficial owners must then be checked against specified lists, such as national and international terrorism lists, or lists of “Politically Exposed Persons.” We must also notify the Financial Intelligence Unit of India (‘FIU-IND’) if a name appears on a sanctions list. We also check blacklists, greylists, and defaulter lists for firms, directors, and other individuals issued by banks, the Ministry of Corporate Affairs, the Securities and Exchange Board of India, the Enforcement Directorate, the Office of Foreign Assets Control (US), and others (for a detailed list please see Appendix II below). These checks help us combat terrorism and money laundering, as well as determine risk thresholds for individual clients. 

Step 3: Merchant screening and onboarding policies

Following that, we do a background and antecedent check in the form of an initial screening, for which we establish an internal merchant Onboarding Policy. The purpose of this step is to confirm the nature, purpose, and legitimacy of a potential client’s business. To determine business legitimacy, we conduct a variety of checks, including licensing/registration checks, credit checks, profit and loss statement checks, balance sheet reviews, and so on, based on information we obtain directly from the prospective client, as well as publicly available information such as the merchant’s websites, product listings, end-customer reviews, social media activity, and so on. We must additionally check for PCI-DSS compliance because it is mandated by law.  

Step 4: Merchant profiling and levels of diligence

Following these preliminary assessments, we must categorize merchants as low, medium, or high risk. Based on this, we determine the levels of due diligence and post-onboarding monitoring we do; for example, we need to conduct enhanced due diligence for PEPs but simpler due diligence for self-help organizations. We’re also barred from doing business with some industries (tobacco, hacking, gambling, weapons, and so on), while others are considered high-risk (pharmaceuticals, matrimony, gaming, security brokers, jewelry, and so on), necessitating more scrutiny and caution. 

Step 5: Continuous due diligence

Following onboarding, our due diligence procedures will continue to monitor any suspicious changes in merchant behavior. A change in the merchant’s website details, for example, or an unexpected display of high-risk products, could suggest fraud. These circumstances may necessitate a review of merchant risk profiles and due diligence levels. 

Step 6: Keep track of your transactions

We monitor merchant transactions as part of our onboarding process to look for any potential red flags, such as differences in expected transaction characteristics. Expected total transaction volume, average order value, chargeback frequency, and so forth are examples. For instance, if a merchant exceeds the maximum transaction limitations, exhibits a strange refund pattern, or receives frequent end-customer complaints, these are all red flags. Regulated entities must report any suspicious transactions (such as those that raise money laundering concerns) as well as transactions above specific thresholds (e.g., cash transactions over Rs.10 lakh, cross-border wire transfers surpassing Rs.5 lakh) to the FIU-IND. 

Step 7: Requirements for record-keeping and internal governance

Then, for at least 5 years, we preserve records of all merchant transactions and identity documents. These must be made available to the authorities upon request, such as in the case of an investigation. Internal governance demands such as dedicated internal committees, internal audits, periodic risk assessments, and proper employee training are also in place to ensure effective implementation of requirements. A Designated Director and a Principal Officer must also be selected, as they have specific reporting responsibilities under the PMLA. 

Step 8: Updates on a Regular Basis

Finally, both merchant risk profiles and KYC must be updated on a regular basis. It is required by law to update merchant KYC every 10 years for low risk, 8 years for medium risk, and 2 years for high risk. This is also aided by the continuous due diligence checks. 

Final thoughts:

Merchant onboarding is beset by the same age-old regulatory, trend, and competition issues that hamper the payments industry as a whole. Where once the industry dynamic was split between large retailer’s competitive margins and smaller merchant’s regulatory issues, the spectrum has now expanded to embrace the rising marketplace economy. Because everyone is a merchant in today’s environment, merchant onboarding volume, and transactional volume are both lucrative and hard. The marketplace economy has created a risk and regulatory gap, which is being navigated by a subset of creative payments organizations. 

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Best Practices for Managing and Improving Merchant Onboarding

Merchant Onboarding

Best Practices for Managing and Improving Merchant Onboarding

The recent global health crisis has had an influence on a wide range of industries and geographies, not least the payments industry, which has seen an unprecedented transformation. Consumer purchasing habits have evolved to online shopping for products and services, resulting in the requirement for faster onboarding and better continuing merchant monitoring to reduce fraud and compliance risk for merchant acquirers. 

When it comes to onboarding new merchants, automation is critical in order to make a smooth transition from the previous time-consuming approach to a slicker, faster process that reduces friction for the new merchant. But what steps should merchant acquirers take to guarantee that they are prepared to meet this new challenge of changing the customer experience while limiting risk? 

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Automation of underwriting processes

It is critical for acquirers to provide a smooth merchant onboarding experience for their customers. With the epidemic hastening the general public’s shift to a more online approach, new smaller digital-only merchants are popping up all the time, with low margins and a need to be up and running quickly; for them, a swift onboarding procedure is vital. 

Before an underwriting decision can be made, the normal merchant onboarding process comprises a number of phases that must be completed, as shown in the creative below. This is typically a 3–5-day process. This process is too protracted, as previously said, given the current climate and the unique terrain of online-only micro-merchants. 

Digital automation can shorten the time it takes to underwrite a new merchant from days to minutes. However, if not done appropriately, this speed in decision-making can come at the expense of risk management and have a detrimental influence on the acquirer’s profitability. 

Collecting data that is both actionable and objective

Effective onboarding decisioning requires access to meaningful and objective data. To enrich their perspective of each applicant, merchant acquirers should use a combination of their own data, third-party data, and assessment services. The best strategy is to combine application data with external data from a growing industry of data suppliers who can provide essential insight and assessment on topics like bank account validation, email addresses, IP addresses, device IDs, and negative hotlists. Internal data from various sources is ingested, which eliminates human data entry and reduces judgmental underwriting decisioning while also ensuring consistency. 

Using analytics and algorithms

Acquirers should not only have precise and objective data, but they should also be able to analyze it using analytic models and procedures. The tools should allow the acquirer to import models, scorecards, trees, and tables, and they should be completely user-configurable. Acquirers frequently have historical data about applicants in addition to external data, but it is inaccessible owing to the sprawl of data. Rather than going through the pain of trying to centralize all referential data in a single data store, design a solution that allows you to take data from multiple sources and retrieve it when you need it. 

Effective risk management, tracking, and learning rates

Risk management should not be the primary consideration for merchant acquirers and their merchant customers during the onboarding process. Merchant acquirers’ portfolios have become riskier as a result of increased digitization and demand for innovative payment options. As new entities pop up and enter the system at breakneck speed, the barrier to entry into the digital/ecommerce economy has increased. Validating these new entities necessitates the use of more robust systems that can make use of both internal and external data. 

Acquirers should improve their ability to manage fraud and compliance risk by evaluating possible collusive or fraud-targeted merchant behavior, the chance of merchant attrition or insolvency, and current and prospective merchant profitability. 

There is an increasing requirement for merchant monitoring in real-time in order to spot aberrant merchant behavior in time to prevent losses. We also find a lot of value in linking pre-book (onboarding) performance/results with post-book (monitoring) outcomes in order to establish a faster learning loop and enhance both areas. In reality, many acquirers are looking to meet both of these demands with a single platform/capability to improve insight sharing. 

Ensuring that merchant monitoring methods are comprehensive

Risk management is a continuous necessity that does not end after a merchant is onboarded. The world of business moves quickly, and many businesses, particularly smaller, more flexible ones, must pivot or alter their course quickly to stay competitive. Their consumer profile may alter as a result of these developments. As a business grows, a merchant may need to expand into new markets or adjust the way they accept payments to accommodate a greater range of card types and payment methods. As a result, their risk profile may shift, leaving your company vulnerable.

Identifying potential changes in a merchant’s sales operations that could influence their risk criteria requires some type of ongoing monitoring. Keeping note of indicators such as surges in sales activity, surpassing payment thresholds, out-of-area or strange sales activities, and altering website products or connections can provide you with an up-to-date image of each merchant you work with and show any potential red flags. Keeping a lookout for their presence on punishment lists, as well as any unfavorable or adverse media coverage, will be essential.  

An effective merchant monitoring approach will be automated, leverage cutting-edge analytics, real-time urgency and flexible data ingestion, and be able to proactively alert acquirers to potential risks and double as a competitive advantage for attracting new merchants to their network. 

Technology that is 'plug and play'

It’s critical to get your relationship with your new merchant off to the greatest possible start. A quick and flawless automated sign-up procedure can help attract and secure new merchants to your payments firm, but if things go wrong once they’ve signed on the dotted line, all your efforts could be for naught. A key component of the merchant onboarding process is a faster merchant setup. It enables merchants to swiftly deploy the equipment and technology they require to accept payments right now. As a result, this step should be as simple and straightforward as signing up.

Your new merchant will be a happy customer if everything is ready to ‘plug and play’ right out of the box. If it’s difficult to set up and get ready to use, they’ll toss it in the back of the drawer before it’s even used – and your brand’s reputation suffers as a result. As a result, make sure that all of the software, training materials, and other information that the merchant will need to get up and running is preloaded or supplied with the device, so that your new customer has everything they need right away. 

Quicker go-live

Because of the ecommerce boom, the introduction of smart technology, and the pervasiveness of social media, today’s consumers demand fast access. This puts pressure on merchants and brands to be available to their customers 24 hours a day, seven days a week, which necessitates collaboration with service providers that can assist them in achieving this high level of service. Merchants, like customers, don’t want to wait weeks for a new potential payment provider to process their manual (or even paper) application. They expect to be up and running in a matter of minutes. Why not a merchant account if they can obtain this level of service with a commercial banking account?

To learn more about our advanced merchant onboarding solutions. 

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How much does it Cost to Send an Invoice? How to do it Digitally?

Digital Invoicing

How much does it Cost to Send an Invoice? How to do it Digitally?

Did you know that 90% of all invoices are still processed manually around the world? So, how much do your invoices cost? While you ideally get paid every time you send out an invoice, you still need to figure out how to keep the expense of each invoice to a minimum. 

Creating, delivering, processing, and occasionally amending invoices can be a time-consuming procedure. Business leaders can be empowered to make sound data-driven decisions about optimizing their invoicing process by evaluating the cost of sending manual invoices. This allows their company to expand with confidence, knowing that they’re supported by a scalable invoicing automation technology that actually saves them money. 

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Manual Invoices: How much do they Cost?

Although sending manual invoices is costly, the majority of firms continue to do so. So, let’s take a look at the invoicing process’s costs. 

Direct Costs

With paper invoices, there are fees associated with the paper, ink, and mailing costs that must be incurred. Obviously, this will differ from business to business. With e-invoices, you avoid incurring these expenses. 

Indirect Costs

These are the expenses that are incurred in order to perform a task that includes an employee being compensated for packing paper invoices into envelopes, and the amount of time it takes you to enter all of the necessary information to generate an invoice, such as the client’s name and address. Manual invoicing is more expensive due to the additional manpower required to do the task. 

Hidden Costs

When it comes to invoicing, there could be a number of hidden fees to consider. Invoice lag results in a negative cash flow situation. It takes several days for a client to receive, examine, and respond to a bill that has been sent via snail mail. In the meanwhile, you are unable to pay an expense because you lack the funds, and you are assessed a late fee. Electronic invoices can be paid instantaneously because they are digital. Furthermore, what happens if there is a mistake? 

Examine the following six elements if you wish to assess your invoice processing costs:

Digital Invoicing

It’s no wonder that e-commerce enterprises are struggling to keep up with demand, especially because the E-commerce boom shows no signs of slowing down anytime soon. Working smarter, not harder, has never been more important, especially in light of rising customer expectations and constraints such as supply chain issues and transportation shortages. Digital invoicing may have been disregarded as many e-commerce enterprises attempt to expedite their procedures in order to keep up with demand. 

Digital invoicing is a more current method of reconciling online payments against invoices, which cuts down on the time and expenses of preparing, sending, and receiving digital invoices. It also eliminates the need for paper because you can send and receive invoices online, straight into your and your supplier’s accounting software. It’s merely one component of a comprehensive e-commerce strategy. 

What is digital invoicing, and how does it work?

The process of sending a customer a bill for goods or services by email or through your website is known as electronic or digital invoicing. Customers can usually pay their bills electronically if they receive an e-invoice. It can also refer to mailing a paper invoice with a request for payment via a website or secure payment form. 

Ecommerce shopping sites use a different form of electronic invoicing. A request for payment is launched by the business for goods or services that have been given or will be provided under agreed-upon terms using electronic invoicing. The customer initiates payment on ecommerce purchasing sites. 

What Does It Mean for Businesses?

The method for creating digital invoices differs depending on the service. Some systems let you send e-invoices directly from your accounting software, while others provide an invoice generating tool to help you get started. Specific functionalities differ depending on the processor or service. Some processors allow you to personalize the invoice‘s appearance, include logos, provide a discount for early payment, or automatically add late fees when invoices are past due, among other things. 

An invoice’s content is frequently customizable, and it may include information such as the customer’s name, a purchase order number if applicable, the invoice number and date, and payment terms. 

You may be able to set the invoice up as a one-time bill or as a regular bill. Setting up recurring billing is perfect for cases when you need to bill your customers on a regular, predetermined schedule, such as for memberships or monthly product “clubs.” With recurring billing, the client’s preferred payment method (typically a debit or credit card) is automatically paid at a pre-determined interval. Customers may view online payments, update their card and billing information, and more. Some providers offer a card update feature to prevent recurrent billing charges from being refused owing to expired or unusable cards. 

How It Works for Customers

When a customer receives an e-invoice, they will receive the information as well as the option to pay online. The link to pay online will usually be sent to a secure website through the gateway of your credit card processor. All of the information that the business provides in the invoice is visible to the customer, including the amount due, payment terms, due date, purchase order number, and any other items selected. Even though recurring billing is sometimes associated with e-invoicing, most recurring billing services do not send an e-invoice or request payment. Instead, payment is automatically debited to the client’s card or account. 

Is it possible for consumers to make changes to their e-invoice details themselves?

Customers are unable to update invoice specifics (such as the amount owed) because e-invoices are frequently converted to PDFs before being distributed. If there is a discrepancy, the customer can contact the company that sold the product or a third-party vendor (who is responsible for the invoice and billing service) to rectify the issue and request that a new invoice be issued with the proper information. 

When setting up a digital invoicing system for a business, what are the most important factors to consider?

Accounting and Digital Invoice Integration

Check for compatibility with your existing accounting software or systems when looking into how to send digital invoices with your processor or other invoicing provider. For easier reconciliation and record keeping, several e-invoice providers can link with QuickBooks and other accounting applications. 

Security

Security is vital for both your business and your customers when using any method of receiving online payments. Make that your digital invoice service (which is normally provided by your credit card processor) is PCI compliant and up to date on current security technologies. Tokenization, encryption, and other card security procedures are examples of security features. 

Costs

Depending on your processor, the cost of electronic invoicing will vary. Some processors provide the service free of charge in addition to your card acceptance rates and costs. Your clients won’t have to pay more for the convenience of paying by card through your digital invoice because e-invoicing is usually free. 

Final Thoughts:

Businesses can’t afford to ignore minor modifications to their processes in a time when consumer expectations are high, delivery costs are rising, and competition is fierce. Those who do not want to implement digitized processes risk slipping behind larger corporations and peer-level competition. 

 

If administrative activities are eating up too much time and preventing you from focusing on other elements of your business, digital invoices can help save a lot of time. Whether you’re an online shop, a third-party logistics (3PL) provider, or a warehouse, automating the invoice process is a cost-effective approach to communicating with clients about online payments and keeping track of your revenue. In a nutshell, digital invoices help with accuracy, metrics, time, and money benefits. 

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How can TraQPayments assist Merchants with the Setup of Recurring Payment Systems?

recurring payment Systems

How can TraQPayments assist Merchants with the Setup of Recurring Payment Systems?

Recurring payments are charges made by a merchant to a customer‘s credit card or bank account on a regular basis. These are frequently set up on a weekly, monthly, or annual basis, and are a convenient and efficient way for businesses to collect payments based on agreed schedules. Recurring payment processing not only saves time but also encourages customer retention and results in a more enjoyable purchasing experience for the customer. 

However, when it comes to completing these types of payments, payment service providers have a variety of methodologies and pricing structures to choose from. Let’s take a closer look at what recurrent payments are, what they are used for, and how TraQPayments can assist organizations with the setup of their recurring payment infrastructure. 

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What is a Recurring Payment?

A recurring payment is a kind of bill payment in which a company charges a customer for certain services on a predetermined schedule. To process recurring payments, the company must first obtain permission from the customer to charge a credit card on a regular basis. The company can then continue to collect scheduled payments until the customer opts out of the recurring billing arrangement. 

Recurring Payments in India

According to Reserve Bank of India (RBI) guidelines, customers must carry additional factor authentication (AFA) on all recurring payments made with their debit cards, credit cards, UPI, and prepaid payments instruments (PPIs). 

 

Customers can use any UPI application to allow recurrent e-mandates for recurring payments such as mobile bills, power bills, EMI payments, insurance, mutual funds, and loan payments, as well as paying for transit/metro payments up to INR 5,000. Customers must complete each mandate with their UPI PIN if the sum exceeds INR 5,000. 

For transactions under INR 5,000, AFA is a one-time process that works in the same way as OTP approval at the time of registration. (1080 × 1080 px)

Businesses profit from recurring payments because they provide a predictable stream of cash. Accepting recurring payments has a number of advantages. Here are a few of them:

Improve your Cash Flow

Accepting recurring payments ensures that your business will have a consistent cash flow into your bank account each month, and with a predictable cash flow, you’ll be better prepared to manage your business expenses as well as any unexpected costs. 

Receive Payment Quicker

Clients can set up a payment schedule and then let the billing software take care of the rest, eliminating the requirement for clients to pay according to the vendor’s schedules. Because there is no possibility of payments being forgotten or paid late, the payment procedure is expedited.  

No need to Track Payments

Recurring payments also mean businesses spend less time tracking payments from clients, which means they have more time to focus on their business rather than spending time on administrative accounting work. 

Billing Efforts are Minimized

Businesses don’t have to spend time each month writing invoices and processing customer payments. Instead, they only need to set up the initial payment schedule and then leave the rest to your payment software. You only need to get involved if an adjustment is needed in the charge amount or payment method. 

Enhances long-term Customer Retention

Allowing customers to set up recurring payments can assist businesses in improving long-term customer retention by saving them time and energy during the payment process. It’s also more likely that your consumer will view your service as a long-term investment, adding you to their regular budgets. 

Secure Payment Processing

For transactions under INR 5,000, AFA is a one-time process that works in the same way as OTP approval at the time of registration.

Allowing customers to set up regular payment schedules gives them additional peace of mind because this offers a more secure method of payment. Online payment services encrypt your clients’ data for a more secure transaction, and your clients can decrease the quantity of sensitive banking information in circulation by not making payments via mail. 

When Should Recurring Payments Be Used?

Recurring payments are ideal for businesses with clients who pay a set or similar amount on a monthly basis. Offering clients, the option of recurring payments makes sense in the following business scenarios: 

TraQPayments as a Recurring Payments Service Solution : Benefits of using TraQPayments

How can TraQPayments assist with Merchant Payment Schedules?

Merchants can schedule recurring payments via TraQPayments, which is an online payment system. The merchant must enter the customer’s information and designate a date on which the customer will commence payment. The platform will automatically keep track of the scheduled payments and will send out a notification to the customer on corresponding or pre-assigned dates 

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There are a number of methods that a business can use to collect recurring payments with our robust and well-equipped software. These include:

Conclusion:

Customers do not have to be physically or digitally present in order for recurring payments to be processed, which makes them one of the most convenient payment options. Instead, customers agree to share their payment information (usually a debit or credit card) with a business’s payment processor and to allow their card to be charged on a schedule that the business establishes with them. 

Setting up recurring payments with TraQPayments is a simple and uncomplicated process. We will assist you through the process of setting up your recurring payments systems for you. 

 

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Payment Gateway vs Payment Processor: What Is the Difference?

Payment Gateway

Payment Gateway vs Payment Processor: What Is the Difference?

The number of people buying things online is increasing. Companies have begun to adapt to a more digital style of selling in the aftermath of the pandemic, and have begun to look for ways to enable digital payment methods in-store. In fact, 71 percent of merchants say that their annual online and mobile sales have improved, according to a survey conducted by American Express Digital Payments. How does one manage this transformation as a company? 

You must first have the proper procedures and processes in place before you can sell online. Finding and sourcing a payment provider, on the other hand, might be difficult, especially if you are new to the industry. You may have found yourself asking issues like these as the world continues to become a digital marketplace, and you struggle to move your firm into the future. 

What is the difference between a merchant account and a business account? What exactly is a payment processor, and how does it differ from a payment gateway? What choices do I have for giving alternative payment methods to my customers? Is it going to cost me money? 

These are all frequent payment-related inquiries, each with a detailed response. In this article, we’ll look at one of the most significant aspects of setting up online payments: the difference between payment gateways and payment processors. 

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What is the purpose of an online payment gateway?

Any business that accepts electronic payments online, regardless of scale, needs a payment gateway to make the process easier. Payment gateways are the “online” counterparts to conventional credit and debit card readers. If you’re used to in-store payment systems, think of payment gateways as an online version of a point of sale (POS) terminal. 

Online payment gateways enable card-not-present (CNP) transactions, whereas POS terminals are primarily geared for in-person/in-store transactions. These are online transactions in which the buyer and vendor never meet in person. To continue the payment lifecycle, a payment gateway sends data from the point of entry – whether it is a POS terminal, website, or mobile device – to the payment processor. 

To summarize, payment gateways serve as intermediaries. They process information entered during the checkout process and manage the authorization and fulfilment of payments made to online shops. However, it doesn’t end there. They are also used in brick-and-mortar enterprises, as stated previously. 

What is the purpose of a payment processor?

We’ll move on to payment processors now that we’ve learned about payment gateways. You’ll need both to run a profitable business and accept payments.

Payment processors operate as a link between your company and the financial institutions that participate in a merchant’s business transaction. When your customer swipes their card, the processor handles everything, including encrypting their data, transferring it to their bank for confirmation, and finally to your bank. 

Payment Processor vs Payment Gateway: What are the main differences?

How does a Payment Gateway work?

The stages that describe how a Payment Gateway operates are as follows : 

How does a Payment Processor work?

A payment processor’s task is to deliver confidential customer information in the following format : 

How do they work together?

Payment gateways gather and send credit card information to the payment processor. They inform you and your consumer about payment approvals or denials. To break it down even further, consider the following : 

 

Payment processors function behind the scenes, securely routing data to various parties from the start of the transaction until the money is settled in your bank account.

 

The transaction is facilitated by the payment processor. A payment gateway is a mechanism that allows a firm and its customers to communicate the approval or rejection of business transactions. 

 

A gateway’s most typical purpose is to take payments for goods and services offered online; but, in today’s payment landscape, gateway technology has remarkably extended to create a seamless buying experience across all sales channels and devices. To handle online payments, an e-commerce business must choose both payment services (payment gateway and payment processor). 

 

Most crucially, the payment processor does not interact directly with an authenticator; this is handled through the Payment Gateway. As a result, selecting the correct payment gateway is critical for safeguarding your customers’ sensitive data. 

 

You’ll need both a payment gateway and a payment processor to process online transactions for your business. The gateway is where the transaction begins and ends. The customer will enter their credit card details and will be notified whether the transaction is approved or denied. 

 

The payment processor transfers data from the customer’s bank to the merchant’s bank. Every online transaction necessitates both so it is inconceivable to have one without the other. 

How to select a suitable Payment Gateway and Payment Processor?

Payment gateway technology has evolved to keep up with the evolving payments landscape, despite the fact that they were originally designed for traditional eCommerce business transactions. 

 

Payment processing can also be managed over a much wider number of channels and devices using modern gateways. This allows businesses and customers to have a more seamless omnichannel experience. 

 

Different companies can technically manage your merchant account, payment gateway, and payment processing. However, when problems or disagreements develop, this might cause problems. Who is to blame if your online store abruptly ceases to accept payment cards? 

 

You can avoid interoperability difficulties by getting all three from the same vendor such that there is only one vendor you need to contact if a problem arises. 

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What are the Merchant Benefits of Using Payment Links

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What are the Merchant Benefits of Using Payment Links

Whether you sell online or not, you’ve probably spent a lot of time and effort getting customers to the point of payment. So, it should be simple to accept their payments, right? 

Absolutely! That’s why a payment link can be extremely useful in some situations, such as when you don’t have access to card swipe devices or need to accept B2B payments electronically. Payment links are a wonderful alternative for executing transactions fast and easily in these (and other) situations.  

Businesses are realizing the benefits of going digital and are allowing for online sales where the payment process is one of the most important aspects of a successful sale, and you must approach it carefully to ensure that your consumers have a positive experience with it. 

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What is a payment link?

A payment link is essentially a payment technique that allows you to request and accept online payments from consumers outside of your typical online business. It’s usually powered by one of the prominent payment systems, which assures that both merchants and customers’ payments are secure. It also provides versatility in terms of how it can be used. Wherever you sell online, they can be an email invoice, a social network company page, basic checkout pages on a website, or even channels in messengers. 

How do payment links work?

Customers are sent an e-mail, SMS, or web link with a “Pay Now” or “Pay Invoice” option. Customers who click the payment button are brought to a payment page that displays the amount owed. They can safely fill up their billing and shipping information, and the transaction is complete. 

Who would use payment links?

While some companies may use payment links to receive the majority of their payments, others may only use them on occasion. If you’re a B2B company that sends electronic invoices to customers, for example, you may include payment buttons directly in your invoices to speed up payment. 

Alternatively, you could be a tiny B2C business selling at an event without access to card swipe devices or a virtual terminal. You can simply email a payment link to a customer when they are ready to pay. They’ll get it right away on their phone, and they’ll be able to finish the payment details quickly by inputting their credit/debit card number or selecting a payment wallet like Paytm or Google Pay. 

Making payments in today’s expanding e-commerce markets should be all about simplicity, security, and speed. There are multiple payment methods that have progressed over time, from cash to cards to digital payments, with each advancement being more convenient and advanced than the previous. Payment links, on the other hand, are a significant mechanism that is gaining popularity and traction.  

Here are some of the most important merchant benefits of using payment links to collect money :

Multiple payment methods that are convenient to use

There are multiple payment methods and currencies that customers can choose from when using a payment link. Customers who have already submitted payment information to you will find the page pre-populated with their billing and shipping information; all customers have to do now is click “Pay Now.” Even better, the payment page it directs to is mobile-friendly, making it simple to navigate even on a phone. (Including an eWallet payment option speeds up the process even further.)

Processing time is reduced

For the business, the benefit of payment links is that they no longer need to meet with consumers for payment or wait for a bank transfer, especially for small amounts. They can simply generate a link that is customized with the information of the purchased things and the requested amount, and clients can complete the payment at their leisure. The funds are automatically transferred to the merchants after a successful payment, reducing the inconvenience and eliminating the need for cash.  

Lowered overhead costs

Furthermore, receiving payments through a link eliminates the need for any payment devices such as POS terminals or other third-party applications, reducing setup and maintenance costs. Several apps offer a “pay as you go” model, in which merchants pay a per-transaction cost based on usage rather than registration or monthly price. This lowers the hurdle during initiation, especially for small businesses or those who only accept card payments for a small portion of their sales. 

Improved customer service

Payment links can be shared on any social media or messaging site, allowing businesses to personalize the transaction by including a message thanking customers or promoting other products. Furthermore, payment links give clients the freedom of choosing from multiple payment methods and paying with their preferred method. As a result, it enhances the overall shopping experience and can be used to cultivate a loyal consumer base. 

It's easier to collect payments

You can build a payment link and customize the checkout page with your own branding with minimal IT work. If more payments are made by credit card, it may ease the pressure on your finance or accounting staff and save them time processing checks. 

You can collect payments more quickly

Including a “Pay Now” button on an electronic invoice encourages customers to pay right away, rather than waiting for a physical check to arrive. Paying with a credit card not only expedites the payment procedure, but it also informs you instantly if the funds are available. If not, you can display an error message instructing the customer to try another card, which will immediately resolve the problem. 

Works on an international scale

It can be used to receive or send money in any currency. Whether it’s for a friend or to pay for a service, the person who receives the payment has the option to accept it and convert it, not to change it to another currency, or to refuse it. 

Conclusion

Many people talk about not having enough time in their daily lives. Transferring funds and paying in cash has become a time-consuming process. Streamlining this process by using Payment links, can provide a number of merchant benefits when used. 

 

With the passage of time, society’s pace has progressively developed, responding to new demands that have surfaced. The electronic market is one area where these shifts are becoming more visible. We have only now recognized the significance of online payment. 

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How to optimize Cash on Delivery Process and Why it’s Needed

STAY

How to optimize Cash on Delivery Process and Why it's Needed

Cash on delivery, or COD, is a word that most of us in the eCommerce industry and online buying are familiar with. In simple terms, it is a method of payment in which the customer pays the courier or vendor immediately with cash or credit card when the product is delivered. This is considered to be one of the most popular methods of online buying and selling transactions. 

Without a doubt, technology has brought about a sea change in every industry throughout the years. Due to several constraints imposed by protracted lockdowns, the pandemic has hastened technological adoption and disrupted various sectors, with the logistics industry being at the forefront of change. The ecommerce logistics industry was likewise one of the few to recover quickly after the lockdowns. 

However, the pandemic has changed the way the industry functions, with innovations such as contactless deliveries becoming a must, and as a result, more people shifted to ordering on prepaid ecommerce portals during the lockdown period. 

While the eCommerce business has embraced these on a massive scale, India has traditionally been a cash-based country, and as vaccinations are being delivered to the populace while safety measures are implemented, the Cash on Delivery (COD) mode of payment is resurfacing. When it comes to payments, India is mostly a cash-based economy, despite the fact that a large percentage of the population has adopted digital payments. This means that the Cash on Delivery (COD) mode of payment will continue to be a major priority for eCommerce websites and marketplaces.

Despite the popularity of digital payments like UPI, card payments, and mobile wallets, research shows that COD still accounts for one of the greatest percentages of overall payment methods in developing countries. While the Cash on Delivery process appears to be simple for customers and a painless one for businesses, it is not without its drawbacks.

 

Because COD payments have intrinsic concerns such as a higher possibility of order rejections at the time of delivery, which leads to higher sales returns, a comprehensive, robust solution for a frictionless Cash on Delivery process must be established. This has a direct impact on revenue realizations, inventory planning, and other aspects of the business, all of which have an impact on the company’s bottom line.  

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Why do Indians Prefer Cash on Delivery?

Even if our society is becoming more technologically advanced, credit/debit cards, net banking, and e-wallets account for only 30% of internet purchases. The following are some of the reasons why cash is still king:

Some clients prefer cash on delivery because they want to be certain that the goods that they receive are what they expected. They prefer to inspect the product in front of the delivery person before deciding whether or not to accept it. They can seek a refund if they receive an incorrect or broken product if they opt for payments using cash on delivery. 

Here are five practical strategies to improve the eCommerce logistics industry's COD order delivery procedure.

Examining the customer's history

Every firm has both good and bad customers. Some people may be prompt in completing their monetary transactions for orders, while others may drag the process out. For logistics companies to enhance the COD process, they should use consumer behavior analytics based on previous orders and rejections. This can then be utilized to create internal flags, allowing the COD process to become more efficient by screening out clients who are serious about their purchases at the time of order taking. 

Verification of customer contact information and address

In eCommerce, numerous social media outlets account for a significant portion of consumer acquisition. These consumers are typically from Tier 3 and Tier 4 cities, and they want to pay by cash on delivery because they are making their first online purchase. Helping customers write appropriate addresses with house/ward numbers and local landmarks while placing orders is critical. Address validation software is used by most large eCommerce retailers and websites to identify problematic addresses and execute an address re-verification process before shipping those items. 

Rechecking a customer’s address and phone number might go a long way toward making the Cash on Delivery process unfold smoothly. Re-validating a customer’s contact number via OTP, doing an address check based on the content of an address, and validating the pin code based on the content of an address are all important procedures in this process. The use of Google Maps APIs to indicate redundant/bad addresses will ensure that last-mile delivery goes smoothly.  

Updating customers in case of a delay

Nobody wants their orders to be delayed, especially customers. However, in situations like the current pandemic, unforeseen delays are unavoidable. Logistics providers can integrate deeply with carriers’ Transportation Management Systems and Delivery Mobile Applications to keep customers informed of any transit delays caused by COVID-19 limits, natural disasters, carrier-initiated delays, and so on. 

Businesses should share a shipment’s Non-Delivery Reason (NDR) in advance to ensure that the delivery executive’s comments about the non-delivery of COD shipments are accurate. Furthermore, sending NDRs to customers via SMS or WhatsApp and receiving comments from them via these platforms will allow customers to alert the company to any gaps in real time, allowing corrective action to be taken. 

TAT adherence for shipping timelines

It’s critical to stick to the TAT (Turn Around Time) that was promised to the customer. Logistics platforms can undertake an internal analysis based on a carrier’s recent performance in those cities, lanes, or pin codes to allocate a carrier with the highest chance of delivery conversions and TAT adherence. These will enable them to detect carrier capacity, infrastructure, and on-time delivery difficulties, as well as assign the best possible carrier for COD goods. 

Enabling electronic/card payments for COD orders

Customers/consignees should be able to pay for COD orders using UPI, Wallets, or by swiping their debit/credit cards on an EDC machine at their doorsteps. Allowing such electronic payment options will, in turn, reduce customer rejections and improve the Cash on Delivery process. 

Conclusion:

With COD remaining the most popular mode of payment for ecommerce, brands, ecommerce websites, marketplaces must be highly adaptable in terms of technology and internal and external control mechanisms to ensure increased COD order deliverability. The measures outlined above will go a long way toward accomplishing this goal.

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