The Online Payment Security Obstacles

The rampant incidents of online payment frauds, payment privacy breaches, and other payment security threats have further darkened the gray shades over the online payment transactions.

Any sort of false or illegal transaction to deprive victims of their funds, digital or any other property, interest, or infringes the privacy of the sensitive payment information using the Internet is online payment fraud.

Loss of merchandise, unauthorized transaction, and fraudulent transactions are the different types of online payment security obstacles.

Some of the most common online payment security threats, such as friendly fraud, cashback, identity theft, or triangulate fraud, are prevailing across the eCommerce and online business and services.

These payment security obstacles make the customers conscious and are affecting the purchasing decisions of them. Online payment transactions are losing their affinity.

Here are some of the latest stats from across the multiple resources:

According to the American Express Digital Payment Survey, 27 percent of the online sales have ended up as fraudulent transactions.
The world faced losses of more than 30 billion dollars until the end of 2019 due to payment fraud worldwide.
Customers have also fallen victims to the Payment fraud. Statistics suggest that more than 50 percent of the respondents have experienced a fraudulent attempt one way or another when using their credit card or other payment information.
Several surveys show that 69 percent of fraud starts with a consumer being contacted by telephone or email, such as overdue loans or prize scams.

Studies suggest that SaaS, eCommerce, and other subscription-based products or services merchants are more vulnerable to online payment security due to the recurring billing and payment processing.

From checkout to automated recurring payment charging and deductions, SaaS subscription merchants and customers both can fall prey to the online predators.

Online payment security concerns are the primary reasons for increasing churn rates. SaaS and subscription merchants often repeat the same mistakes and drown the company’s revenue due to negligence in such an overly competitive market.

Optimizing a payment process is unavoidable, but providing the customer a friction-less payment processing experience is also inevitable. In the struggle to find the balance between the two, often the subscription businesses have to face the challenges of the online payment security.

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Also Read: Leveraging the Power of Machine Learning in Subscription Billing to Mitigate Fraud and Churn rate

Some of the key obstacles in maintaining the online payment security SaaS businesses have to deal with include:

User Experience

SaaS businesses are based on providing the cutting-edge and personalized customer experience that cannot only draw more customers but empower the businesses with the lead converting into paid customers and paid customers to onboard and retain with resells, upsells, or cross-sells.

An attractive checkout with an accessible interface is one of the factors that impact the customer’s buying decision.

Checkouts and payment processes can be tailored to provide the best customer experience. Consider all the aspects of the customer base including their devices, locations, currency preferences, payment gateway priorities, and payment methods variety.

A single payment gateway or support to one or only the mainstream currencies and payment methods increases the security threats to manifold. However, integrating multiple payment gateways extend the support to multiple payment methods, currencies, and lessens the risks to online payment security.

Payment Failures Management

Failed transactions are certainly a security concern that gives rise to the involuntary churn as well. Integrating a subscription system that can overview all the failed transaction helps to manage the payment failures.

The other way to deal with the payment failures is to incorporating the feature of revenue recovery through dunning.

The new age Subscription Management Software like SubscriptionFlow allows SaaS vendors to recover their recurring charges in case the payments got failed due to any technical glitches or transactional faults at the other ends.

Setting up the schedules rules to retry the payments help them to recover the recurring charges and received payments directly into the merchant’s accounts.

Secure and Encrypted Payments

One of the biggest challenges for SaaS and other online payments based businesses is to process encrypted and secured payments.

Integrating payment gateways that provide PCI Compliant privacy and an additional layer of 3D security to online payments is a great way to process end-to-end secured and encrypted online payments.

This provides peace of mind for end-users and businesses alike, bringing a level of confidence to the payment process and removing the risk of sensitive information being lost or stolen.

Also Read: Online Payment Frauds—Types, Challenges, Detections, & Preventions

Integrations

Integrations are the brains of the SaaS and subscription software. Integrations allow scalability and extensibility in a system. Integrations facilitate the flow of information and data sharing across the applications.

But, the integrations could be the deadliest data security obstacle for many SaaS services providers. Securing the data can be achieved by efficiently managing the data sync rules.

The automated data sync and sharing rules keep the charge of data sharing into the SaaS services providers’ hands and they can better avoid the online payment security risks.

How SubscriptionFlow Helps SaaS Businesses To Deal With the Challenges?

SubscriptionFlow is an automated recurring billing and payment processing platform that allows the SaaS and subscription businesses to manage their subscriptions, invoicing, online payments, monitoring, measuring, and managing the subscription business and revenue growth in one place.

SubscriptionFlow is a highly customizable and extensible platform that can help the SaaS businesses to manage their subscriptions with secure integrations of online payment processors.

It also allows you to integrate multiple payment gateways channeled with its AI-supported online payment fraud detection’s and security risk prevention’s.

The AI-enabled modules sieve through the piles of the personal, payment, billing, shipping, and other data of the customers and suggest best and secured options for online payment processing ways, including payment gateways, payment methods, currencies, and more.

Talk to the experts at SubscriptionFlow and find faster and safer solutions for online payment processing along with the services to provide personalized customer experience.