Online payment processing is a vital part of any cannabis merchant's business. But if you're not doing it right, you could be losing out on sales or impacting your reputation with customers.
In the simplest of terms, a payment processor is a service provider that handles transactions between a merchant and a customer's financial institution. They act as the middleman between the two, ensuring that the customer's funds are transferred to the merchant in a timely and secure manner.
One of the key components of a successful online business is to have a robust payment processing system in place. Not only does having the right set up to make it easy for customers to buy online, but it also helps ensure that you, as the owner, get paid on time.
In this article, we'll look at the benefits of efficient payment processing and three ways to optimize your online payment processing for success.
The Benefits of Having An Effective Online Payment Processor
There are several benefits of having an effective online payment processor, here are just a few to start:
A top tier online payment processing provider can save you time and money.
An effective payment processor can streamline your entire process. From billing, payments all the way to collections which can make your business more efficient.
An online payment processor can also help to improve your cash flow by providing you with real-time visibility into receivables.
Lastly, an effective payment processor can build customer trust and loyalty by delivering them an efficient, convenient and secure experience at check out. A happy customer is one that’s most likely to shop again.
3 Ways to Optimize Your Online Payment Processing for Success
Here are three ways you can optimize your online payment system for success:
1. Work With A Proficient Payment Processing Provider
Any business that wants to stay afloat during difficult times must have a proficient provider for processing payments. In today's digital world, there are so many options available, it can be hard to know which one is right for your business. However, working with a reliable and experienced payment processor can make all the difference.
Ensure that your payment processing system has the following features:
Fast and secure transactions, flexible pricing, and 24/7 customer support.
A payment processing system should be easy to use by both your staff and customers.
Easily integrates with your existing software and systems.
Your payment processing system should be portable. That is, your customers should be able to process their transactions wherever they are.
By partnering with a company like Merrco that knows the ins and outs of the payments and cannabis industry, you can rest assured that your transactions are in good hands.
2. Offer A Variety of Payment Methods
Customers expect a variety of payment methods. People look to an array of payment methods available to them other than cash, in fact, cash is mostly likely the least used currency these days.
Customers prefer to pay with credit cards primarily, as well as online methods such as mobile payments, contactless payments and EMV chips.
By offering a wide range of payment options, you can make it easy for customers to do business with you. Making it easy is the key here.
In addition to the convenience factor, offering multiple payment methods can also help you attract new customers. For example, if you accept E-wallets, you can tap into a whole new market of potential buyers who prefer to use that method of payment.
3. Be On the Lookout for Fraud and How to Prevent It
Fraud these days show up in many different ways in the online space. And unfortunately, as digital continues to progress and evolve, so do the methods of fraudsters. Part of optimizing your business means keeping it safe and protected.
As a cannabis merchant it’s essential to be aware of the different types of fraud out there and how you can protect your business and your customers. It’s a key part of business, so here are some types of fraud to be on the lookout for:
Identity theft:
This is the most common type of fraud. Essentially, identity theft occurs when someone steals another person's personal information, like their social security number or credit card number, to commit fraud and other crimes.
To prevent identity theft, ensure that your payment processor offers effective fraud prevention tools.
Credit Card Tumbling:
Credit card tumbling occurs when identity thieves randomly generate credit card numbers using complex computer algorithms and then use online transactions to test the numbers.
The best way to prevent credit card tumbling fraud is through Card Verification Value. So instead of just asking for a customer's credit card number, ask for their CVV to verify their identity.
Return Fraud:
Return fraud occurs when someone obtains a refund using false or stolen information. This can be done in several ways, but the most common method is to use a stolen credit card to make a purchase from a business and then file for a refund.
How to Prevent Fraud to your Cannabis Business Online
There are a few things that businesses can do to help prevent refund fraud:
Carefully screen all refund requests to ensure that they are legitimate.
Have clear policies in place regarding refunds and returns.
If you experience refund fraud, report it to your payment processor and the proper authorities right away.
Choosing a payment processor that offers various security measures is vital in preventing fraud. Ensure that the payment processing company you use is PCI DSS compliant. It's essential for your customers to feel that their personal information is protected when they do business with you.
Final Thoughts
Optimizing your online payment processing is key to success. By following the tips we've outlined above, you can ensure that your customers have an easy and positive experience at checkout, which will ensure they return and do business with you again.
How Can Merrco Help?
Merrco is a payment processing company that provides payment processing services to CBD and cannabis businesses in Canada an the U.S. We offer seamless and secure payment processing services that make payment solutions faster and simpler. If you would like to partner with us or have any questions on how we can help your business thrive, please contact us at info@merrco.com or call us on our toll-free number at 1-800-957-0534.