Month: January 2021

Joe Weppler / January 25, 2021

Four Benefits of Mobile Payments ­ ­ ­ For all Businesses

A major trend that has stemmed from the pandemic is contactless service. From signing a document to accepting a package, people do not want to touch anything that has been touched by another person. In-store shopping is an area that is harder to make contactless, but using a mobile payment system (MPOS) lets shoppers checkout easier and safer.

A mobile payment is a payment made through a portable electronic device, like a smartphone or tablet. It can be used for personal use to send or receive money or in a professional landscape to replace traditional POS systems.

Making payments contactless is only one of the benefits of mobile payment systems — listed below are a few more!

1. Increase Sales

If you were to list three things the average consumer wants out of their shopping experience you would probably say: convenience, value, and speed. By meeting all three desires, mobile payments improve customer experience and increase sales.

Convenience is key when it comes to shopping. Consumers do not go to the store expecting to face an issue or delay. Mobile payment is one way to increase convenience, especially in remote locations. Typically, businesses in remote locations, like food trucks and farms, only accept cash because the POS systems do not work with their environment. Unfortunately, not accepting cards puts businesses at risk of losing important sales. Installing a mobile payment system lowers this risk, provides another convenience for the shopper and increases potential sales.

Value is added by letting shopper’s checkout anywhere in the store. Giving staff hand-held devices to process transactions will increase one-to-one engagement and customer satisfaction. Plus, mobile payments increase the speed at the checkout. Instead of having to punch in a PIN, count cash, or search for the right card, a shopper can tap their phone and be on their way. This speeds up the line and improves the shopping experience.

2. Track Trends and Inventory

Tracking inventory can be a daunting task, especially for a small business. Mobile payments streamline inventory and sales by collecting all the data in one place. The data tracked by the MPOS helps the shop owner determine the demand of certain items daily.

For example, a coffee shop owner might see that, on Monday mornings, the shop sells out of banana bread quickly, but on Wednesdays they mainly sell chocolate chip cookies. This data will allow them to have the appropriate amount of product, make their customers happy, and reduce waste.

3. More Security

Not only are mobile wallets safer for the consumer, but they also help protect the merchant from fraud. Since mobile wallets are often paired with biometric screening, such as a fingerprint scans, it is harder for cards and financial information to be stolen from the consumer, and stores can worry less about screening for fraud.

4. Integrate with loyalty programs

The average consumer is a member of 14.8 loyalty programs, but only 18 percent engage with the programs in which they are enrolled.  A main reason consumers decide not to utilize points systems is because they do not want to search through their wallet at each store. This does not mean loyalty programs are redundant though — they just need to shift to the virtual world.

The same Forbes report found that 75 percent of consumers said they would be more likely to use an incentive program if it was connected to their smartphone. Integrating payment and points together makes collecting points easier and more efficient. The shopper only needs to scan their card and the points will be automatically added to their account.

Mobile payments have many benefits, and it may be time for your business to look into a MPOS system if you haven’t already.

Joe Weppler / January 18, 2021

Protecting your Business from Common Types of E-Commerce Fraud

It is no surprise that over the last few months, e-commerce use has skyrocketed. By mid-March, same-day shipping orders were up by 237 percent, and e-commerce orders in 2020 were up 110 percent over 2019.

But this trend is not new. The use of e-commerce has been steadily increasing since 2014, and by 2021 the e-commerce industry is expected to generate 4.5 trillion dollars annually and accounts for 16 percent of retail sales.

E-commerce offers consumers ease, speed and accessibility, but it is not all positive. As consumers switched to online shopping, fraudsters followed. It was estimated that by the end of 2020, online sales would generate $630 billion, but $12 billion of that would be lost to e-commerce fraudsters.

E-commerce fraud is defined as any fraud that is committed through an e-commerce platform. Fraudsters have developed new ways to steal money from consumers and businesses virtually. The top five ways are listed below.

Common Types of Fraud

1. Card Testing

Card testing fraud can easily go undetected and is not normally discovered until it is too late. Card testing occurs when the fraudster steals a credit card number but does not know what the card limit is or if it works. To test the card, the fraudsters make numerous small purchases –usually using a bot to test multiple cards at once. When they know the card works, they make a bigger purchase. The fraud is not normally noticed until the bigger purchase is made, and at this point, it is too late to stop them and the business is out the money.

2. Friendly Fraud

Friendly fraud, or chargeback fraud, occurs when a customer purchases an item online and requests a chargeback from the payment processor. The payment processor returns the money to the customer, but the retailer must pay the charge. Friendly fraud is one of the most common types of e-commerce fraud and by 2023 is expected to account for 130 billion USD in losses. Although most friendly fraud is a result of an honest claim, fraudsters take advantage of the system to get free items. For example, the fraudster can order an item and then claim it was never delivered, or that they canceled the order and ask for a refund.

Despite friendly fraud being prevalent in e-commerce, it is not unavoidable. Leaders in the FinTech industry believe the increase of friendly fraud stems from companies rushing to meet customer demands, instead of taking time to make sure the claims are legitimate.

3. Refund Fraud

Refund fraud is committed when the fraudster makes an online purchase with a stolen credit card and then asks for a refund but claims the card has been canceled asks for a refund to be sent to another card. In the end, both the business and the credit card owner are out money, and the fraudster takes the money.

4. Account Takeover

Account takeover fraud is a form of identity theft. The fraudster accesses a customer’s account –often through stealing information from e-commerce accounts or buying it on the dark web–and purchases items or services. Account takeover seems like it would be able to detect fraud, but as e-commerce develops, so too do methods of fraud. Fraudsters avoid being caught by converting money to bitcoin, making checks out to cash, and sending items to a random address where they can pick it up.

Account takeover is considered a serious form of identity theft and ends up harming both the consumer and the business. When a business is used as a pawn in an account takeover scheme, customers view them as a security risk and avoid purchasing their products online. However, the business and the consumer are rarely at fault. The fraudsters who commit these crimes are highly skilled and can hack into even the safest systems.

5. Transaction Laundering

Transaction laundering accounts for 200 billion dollars in losses a year and comes in many forms. Money laundering via an e-commerce business is like money laundering through a brick-and-motor store. The fraudsters use businesses to process illegitimate funds and convert it into ‘clean money.

There are three main methods used to launder money through e-commerce businesses: front companies, pass-through companies, and funnel accounts.

Four Ways to Fight Fraud

1. Fraud Detection Solutions

Businesses concerned about fraud can hire a third-party service specializing in monitoring and flagging transactions. This type of service is good for any size business but is often most beneficial for smaller businesses that do not have enough resources or time to dedicate to monitoring for fraud.

2. PCI Compliance

The Payment Card Industry Security Standard (PCI DDS) is a set of requirements for businesses to follow to ensure they are securely storing credit card information. All businesses are required to follow the requirements to prevent fraud and protect consumers and businesses.

3. AI Bots

AI bots are usually used to detect money laundering because they can quickly sort through transactions and flag any discrepancies. Normally, AI bots are used in tandem with people. The AI will go through and pull any suspicious activity and then people will go through the suspicious accounts.

4. Blacklists

To fight fraud, many businesses have created ‘blacklists’ to ban any customer from shopping on their website. Once the businesses have detected a customer “testing” credit cards on their site, they can add them to the list, and block them from shopping again.

Joe Weppler / January 12, 2021

Appealing to the Online Shopper: How to Upgrade Your Website and Boost Sales.

Gone are the days of casually strolling through the mall, sipping a coffee, and window shopping. Now consumers ‘window shop’ online before committing to a purchase. To keep up with consumer habits and turn casual visitors into return shoppers, brands need to upgrade their e-commerce platforms.

A website’s design is an essential component of an e-commerce sale. A well-designed website allows the shopper to easily find what they are looking for without feeling lost or overwhelmed. If a website is poorly designed, shoppers will quickly move on to the next to find what they are looking for.

To help your business upgrade your website, we have put together a list of six key components of a well-designed, user-friendly website.

1. Keep it Simple

Have you ever visited a store and felt instantly overwhelmed by the lights, music or layout? The same feelings can arise when trying to shop on a poorly designed website.

A website should welcome the consumer. Not scare them away.

The first page a consumer sees when they click on your website is the equivalent of a storefront. It should represent your brand, present your best products, and be pleasing to the eye.

Here are some quick tips to help create a welcoming site:

• Pick an on-brand color scheme using only 1-3 colors.
• Use high-quality images.
• Use colors to emphasize certain elements (i.e add to cart, checkout, cancel, search).
• Don’t put too much content. Allow for empty space.

2. Easy to Navigate

A properly designed website is easy to navigate. Shoppers do not want to click through five different pages to find what they want to buy. They should be able to find what they want within three clicks.

Provide visual cues, such as color contrasting, to draw attention to important elements and guide the shopper through the site. Organize products into categories and list them in a sidebar. Lastly, use simple language when labeling products so they are searchable.

3. Make it Quick

A slow webpage is the kryptonite of the e-commerce world. If a webpage does not load quickly, 54 percent of shoppers will leave the website and look elsewhere. How slow is too slow? A recent study found 80 percent of shoppers expect a webpage to load within ten seconds.

4. Create a Hassle-Free Checkout

A long e-commerce checkout experience is just as disheartening as a long line-up at a store. On average, eight out of 10 consumers will abandon their carts at the checkout. Creating a short and effortless checkout experience is pivotal to a successful e-commerce site and limiting the dreaded abandoned cart.

Customers are more likely to give up if they are forced to fill out a lot of information. Allowing shoppers to checkout out as a guest speeds up the checkout process. Guest checkout pleases the shopper and lets you reengage them through email campaigns. It is a win-win.

Transparency is an important aspect of an effortless checkout. If your website appears sketchy or dishonest, customers are less likely to complete their purchase. To increase trust, provide as much information as you can about pricing, taxes, and other fees.

5. Be Informative

Do not rely on images to sell your products. To make up for the loss of an in-person experience, your website should provide as much information as possible about your products or service.

Using a combination of images, videos, text, and reviews will help the consumer decide if the product is right for them.

6. Mobile Friendly

If you have ever spent five minutes trying to press a small button on a non-mobile-compatible website, you will understand the importance of this step.

If your website is not mobile-friendly, you risk missing out on multiple sales. In 2020, 45 percent of e-commerce revenue in America came from mobile sales. To cater to these consumers, companies need to make sure their websites are mobile compatible.