Both online merchants and customers expect online purchasing and selling to be easy, reliable, and safe. eCommerce transactions initiate dynamic electronic procedures involving downstream actors such as banks and payment processors, to name a few. Furthermore, technical advancements in smartphones and e-wallets, changing purchasing habits, and demand for cross-border, multi-currency mobile payments have fuelled PSP competition to sustain and grow market share.
With electronic transfers, e-wallets, and contactless cards, innovations have streamlined and smoothed business-to-business and business-to-customer interactions. It became easier to send money to Senegal online. If the online payment processing industry expands, consumer appetite for more payment capabilities and options drives progress in various directions.
Providers are under pressure to go beyond conventional banking models to promote a cashless environment that allows for any order, even mechanical purchases like parking metres or vending machines. These requirements pose technological problems for retailers, processors, and consumers up and down the transaction chain.
Here is a list of the five main challenges in online money transfer from one country to another and how to overcome them.
Fraud and chargebacks
Online transactions are referred to as “card-not-present” transactions. If e-commerce grows, so do the potential for illegal use of payment networks and data theft. A licenced Level 1 PCI DSS payment processor’s risk management team can detect fraud before it happens, in addition to more visible fraud-monitoring resources like the customer account, validation systems, and transaction tracking.
Chargebacks, in addition to being expensive, can damage a company’s reputation; an excessive amount of chargebacks can result in closed retailer accounts, potentially destroying the company. Although chargebacks can occur for practical purposes on occasion, the use of customer service policies based on know-your-customer standards, as well as merchant usability, will significantly minimise or remove chargebacks. PSPs are now using new tools such as EMV and fingerprint recognition to eliminate theft and chargebacks.
Advanced EMV technology is used to verify the authenticity of a credit card and to promote purchase authorisation. When you purchase in-store, you put your card into a compatible card reader, the EMV chip is scanned, and data is shared in a highly secure manner using cryptography.
Cross-border transactions – International Money Transfers
Cross-border payments where you send money to Senegal or any other country from the UK or any part of the world can be inconvenient, unreliable, and costly, but they are critical to global exchange. National banking infrastructures are typically incapable of handling cross-border payments, resulting in separate and non-uniform development of technology and technological systems that hinder or delay cross-border transactions. New technologies are shaping cross-border payment requirements:
- Emerging global technologies would reduce the need for correspondent networks.
- Government-led policies and mandates can control payments and fees.
- Payment networks can better manage credit risk, liquidity, and costs.
- Multinationals can benefit from economies of scale while also consolidating credit risk.
- Outsourcing would improve production performance while lowering costs.
Card data security
Payment Card Industry Data Security Standards (PCI DSS) certification is required for any online or offline retailer or company that accepts credit or debit cards. PCI DSS requires merchants and processors to follow 12 requirements spread across six security domains:
- Create and keep a stable network and systems.
- Keep cardholder information safe.
- Keep a vulnerability detection scheme in place.
- Put in place strict access controls.
- Networks can be monitored and tested regularly.
- Maintain a strategy for information management.
Recent security breaches in retail, government and healthcare underscore what every retailer already knows: consumer and card data security is the top priority.
Multi-currency and payment methods
Accepting a range of payment methods and currencies is vital for global e-commerce. eWallet payment processing, mobile payment processing, and, of course, international credit/debit card recognition help online retailers compete in global markets by enabling consumers to pay in their native currency and mode of choosing. Multi-currency, cross-border transactions can necessitate new bank accounts, new business organisations, and new regulatory hurdles in each national market for merchants.
Online payment services span the gamut of proprietary hardware and software platforms. Although credit card payment processors are more reliable, they can be costly for online retailers. The lack of interface between processing systems adds to the expense—it can be complicated or impossible for a PSP to connect with other systems, resulting in processing and payment delays, missed transactions, and costly fees.
A mixture of features, including automated platforms and gateways, solves liquidity problems and minimises delays while maintaining online transaction transparency inaccurate real-time processing.