Risk management for E-Commerce. The Check-Out process is still one of the decisive factors for the success in Online trading. Many Online shoppers cancel the purchase if their preferred payment method is not offered. The active number of types of control gives the possibility to minimize the risks and at the same time increase the Conversion Rate.
The E-Commerce centre (ECC Köln) have considered in their study “Payment in E-Commerce,” the landscape of payments in Online stores and observed that the selection concentrated on four payment methods: invoice, direct debit, credit card and latest also PayPal. Around a quarter of Online shoppers in the Check-Out process to purchase the bill, which is currently still One of the most popular payment methods for Online buyers. Since the default probability is this method of payment at the highest, choose nowadays, more and more Online retailers for a guarantee by a specialised service provider, such as, for example, the GFKL Lowell group – and the trend is rising.
According to evaluations of the ibi research, around 40 percent of the Online plan to integrate stores in the coming months as the hedged account in your payment process. In practice, this means that after selecting the invoice purchase is a complex risk assessment is carried out. On the basis of the with the Shop agreed criteria, it is decided whether the customer, the bill will ensure the purchase or not. In the case of selected service providers, this test runs as a so-called White-Label solution. Because a recent study found that almost 75 percent of Germans would be irritated, if you would find during the checkout process when you purchase on the invoice with a different Logo than that of the seller. The test therefore runs completely invisibly in the Background, the customer pays directly to the seller and does not require any further Logins for the payment method, for example, for third-party. As an additional Service, specialized service providers perform procedures in the event of a payment default, the entire bill, and the subsequent Collection. Thus, traders benefit Online from a 100% hedge account purchase.
In addition to the probability of default, additional factors such as direct transaction fees, costs of return handling for returns, cost of manual post-processing, or the duration until the final receipt of payment the payment process in the Online trading make it difficult and unprofitable to make. can
In the active methods of control dealers have Online the possibility to minimize risks in the payment process and to provide their customers with the best possible Service. The active methods of control to one step, because it controls, in advance, what forms of payment are displayed to the customer at all. On the Basis of a running in the Background real-time risk assessment, the selection is made individually for each customer. Specialized service providers offer interfaces to numerous credit bureaus. Here it is important to make sure that a wide range of agencies is available, because this increases the reliability and the accessibility of the information.
The concept for the active number of types of control will be closely developed with the customer, so the Online store operator. Together is developed, what are the selection criteria fall into the weight. Due to the fine-selection criteria, the selectivity is improved and provides the store owner with an individual and holistic view of its customers. Also the shop can be considered internal information. For Online Shops this has the advantage that you can use to determine the acceptance policy, thus, the active number of types of control at the same time active risk management and prevention.
In the selection of the partner Online merchant should make sure that its products can be quickly and easily via an API to the Shop connect. The GFKL Lowell group also relies on the use of two – instead of just a data center, in order to guarantee permanent Performance. One of them is always in Hot Standby, because it should come a failure, this guarantees stability. Because safety comes first: In load times, the System is by the input of any number of web server or database node is always scalable, so that no customer request is unaudited.
The buyer to feel of it in the buying process, nothing. He gets offered on the basis of an intelligent risk assessment for the relevant payment types. Simple, understandable, user-friendly. In addition, Online can work-Shops here, with discounts, or fees, in order to draw the buyer in the choice of the payment method. The GFKL Lowell group, one of the leading groups of companies in the area of receivables management in Europe, is a provider who advises Online stores in the number of types of control and accompanied. With interfaces to numerous credit bureaus Shops benefit Online, even from a fast software implementation. In this way, you can offer your customers with a good feeling and significantly more security for a wide range of payment methods.