E-commerce: Turn Plastic Money Real
Challenge No. 5: Foreign Transaction Fees
Have you ever used your debit card in a foreign country? How do you like that 3 percent fee when you return home? When you accept credit card payments from across the globe, you're exposing customers to unwelcome surprises from their local banks. Credit card acquirers are always looking for new sources of revenue and they have instituted foreign transaction fees on customers who use the card outside of the country where it was issued. For online purchases of digitally delivered products, this can be a frustrating experience for your customers.
Your customer support department will feel the impact when contacts increase due to customer complaints, which is why it's a good idea to inform your customer support team when your store begins to accept new types of cards. These kinds of informational updates go a long way to alleviate frustration among both customers and support teams.
Challenge No. 6: Chargebacks and Refunds
When customers are unsatisfied with the products they've bought or feel that they've been ripped off, they contact either your customer support team or the credit card issuing bank to demand their money back. These are what we call refund requests and chargebacks, respectively.
It takes highly prepared customer service agents to respond to refund requests and a dedicated payment processing team to respond to and fight chargebacks. Companies that choose to accept credit card orders must build up these resources if they are not already in place. Additionally, refunds and chargebacks affect accounting teams who must deal with reversing sales. It's probably something you already have in place, but direct sales in other currencies result in a rat's nest of accounting entries when they have to be reversed.
Challenge No. 7: Fraud
Have you ever had a sinking feeling when reviewing your credit card statement and you're sure some of those charges were not made by you? What about when you get the call from your bank informing you there are unauthorized transactions on your bank account?