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CHARACTERISTICS OF A SUCCESSFUL PAYMENT METHOD: USER EXPERIENCE
4. Refund Mechanisms Many industries, such as apparel, see high volumes of refunds as part of a normal course of business. Other industries such as hotels and airlines have long lead times between payment and the delivery of goods/services and preauthorization of the transaction. Meanwhile, online gaming can see large volumes of deposits and withdrawals that far exceed actual company revenue. All of these are complexities that are susceptible to fraud. An effective payment method will have mechanisms in place that can handle different transaction use cases - such as refunds - without seeing a large spike in fraudulent activity. Also, a payment method should be able to link a refund to the original payment method – for pull transactions such as card payments this is easy, but requires more consideration for push payments, where the merchant is not aware of the customer’s card details. 5. Refund Posting Time There are important consumer considerations when it comes to refunds, particularly around refund posting times. For some payment methods, consumers can wait several days to receive a refund, leading to a negative user experience which may be directed towards the merchant, even if the merchant does not have full control over the refund experience. 6. Stored Credentialing Online consumers value a rapid checkout process and scrambling around to find their wallet so they can type in their 16-digit card number, CVV code and expiry date does not meet that need. As a result, the card industry has developed stored credentialing – known as card on file – to make the process a lot quicker and easier for known returning customers. A key use case for this is recurring transactions, also known as merchant-initiated transactions, where the “pullability” of a payment method with stored credentialed is a valuable user experience proposition.
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