Tips from our friends at Elavon
In 2020, business owners of all types and sizes discovered just how flexible they can be as they powered through the pandemic. Many quickly pivoted to new practices that met local requirements social distancing and masking. These changes also impacted how businesses handle payments.
Two trends became “must-haves” during the pandemic: contactless payments and curbside service.
Unfortunately, the shift to ordering online and driving to curbside pickup is expensive for merchants. First, the increase in online payments has resulted in a surge in fraudulent transactions and related chargebacks. Second, payment details captured online, over the phone, or via email are riskier so credit card brands charge higher “card-not-present” (CNP) rates. These costs can really add up.
While businesses will experience a bit of a “back to normal” reset once the pandemic is behind us, many of the new shopping and service interactions will remain because both consumers and businesses find them convenient. If you want to continue providing these services long term, you must make them work for your bottom line.
The Solution: Implement Curbside Pickup AND Pay
Implementing these convenient changes long term but without hurting your bottom line, it’s possible.
Here’s How:
Lower the cost of Payment Acceptance
- Use a portable Wi-Fi connected payment terminal at curbside. Encourage contactless payments and disable signatures and receipts. Customers can pay with credit or debit card or opt to pay with a digital wallet such as Apple Pay or Google Pay.
- These portable terminals streamline payments taken at curbside or at a pickup desk and ensure that your business qualifies for the more affordable card-present rates because card details are securely captured in-person.
Reduce fraud and chargebacks
- According to a report from Forter3, there was a 55% increase in attempted fraud for orders placed online for in-store pickup in the first half of 2020 compared with the prior year. Fix this by continuing to support order ahead with curbside pickup but only collect payments in person.
- Card present transactions are much more reliable and authentic than those payments entered through a website or over the phone. In addition to lower interchange rates, chargebacks due to counterfeit cards are also reduced or eliminated. This extends peace-of-mind, while saving you time and money.
With Altor, it’s simple to continue the convenience of curbside servicing while making slight adjustments to how you accept payments in order to keep costs down. The result is lower transaction costs, fewer fraud-related chargebacks, and a better bottom line!
