People love to shop online because of the convenience of getting products delivered directly to their doorstep. But for the eCommerce store owner, there is the problem of setting up secure online payment systems to access customer payments. Most customers use online payment methods such as e-payments, and credit card processors create payment laggards due to issues relating to maintaining the security of customer data and keeping your business safe from cyber terrorists.

Common payment processing problems with online payment methods

  1. Cybersecurity fraud: One of the most critical dangers is cybersecurity fraud and fraudsters looking for data breach opportunities. Credit card processing and fraud during these transactions rank the highest in this crime category, leading to the opening of unauthorised new accounts. When data leaks occur, personally identifiable, sensitive information is leaked, leaving customers vulnerable to identity theft. Credit card fraud is a type of fraud that has not been eliminated and will continue to persist when we pay online.
  2. Refunds to customers: Chargebacks or refunds are a forced return of money to the customers’ accounts. Refunds happen when customers return items, and the money flow is reversed back from the eCommerce store to the customer. A high rate of chargebacks or refunds usually is not a good trend for the eCommerce store’s profitability or business. There is also the increased risk of data breaches affecting the flow of refunds back to the customer account. The merchants and the payment processors are also responsible for ensuring that such chargebacks and refunds happen seamlessly.
  3. Integration of different online payment methods: Customers opt for additional payment methods. Customer needs are constantly evolving with demands for new payment systems online. In this process, there is an integration of different payment platforms, including banks on the one side, ERP systems on the other side and individual entities in the middle. As an eCommerce store, you need to support multi-channel payments; otherwise, separate vendors must be identified for online payments and another for POS payments. Multiple payment systems increase the risk of cyber security fraud and operational costs.
  4. Limited Mobility: Along with integrating different payment systems online, customers also look for mobility to other devices. Customers use not only laptops and desktops but also their tablets and mobile phones to shop at their convenience. Payment processing systems also need to evolve to keep up with the demands for updated technologies. This portability is an essential requirement where payment processors access multiple payment systems and portability to various devices. In this digital world, customers expect more versatile, faster and updated technologies to be provided by eCommerce stores to ensure better convenience. At the same time, the challenge of ensuring secure encryption to prevent data theft is also an essential requirement.

Payment processors use various payment types to make merchant payments. Payment processors and payment platforms use multiple charges, including cash, debit/credit card, e-wallet, and direct bank transfer.

  • Cash: This is the most secure type of payment preferred by businesses. It is also the cheapest method, but there is no guarantee there wouldn’t be theft.
  • Debit cards: These payments go through MasterCard or Visa and add a layer of authenticity to the transaction. They are also more secure due to the use of personal pins by customers.
  • Credit cards: Credit cards work like debit cards with a PIN for authentication. However, customers buy on temporary credit for their purchases, for which they have to make payment later.
  • Direct debit: When it is a regular purchase, customers can institute a direct debit facility where their accounts are debited automatically when everyday purchases are made.
  • E-wallet payments: These are relatively cheaper and allow customers to pay using their mobile phones.
  • QR code payments: These facilitate payments through a simple scan of the code on your mobile device.

Payment fees vary according to the payment method used for making merchant payments. Debit cards, credit cards, and e-wallets carry online fees, depending on the provider. Cash or direct bank transfer is the cheapest option for merchants to realise payments.

Key Takeaways

In conclusion, payment processors need to evolve with customers’ changing requirements. As customers prefer different payment options, eCommerce stores must keep evolving demands or risk losing a sale. Various attendant security problems prevent data breaches and ensure customers have a secure and seamless payment experience.


Which is the most common payment problem?

Cybersecurity fraud and identity theft are the most common payment problems.

What happens when the payment gateway for an eCommerce store is not secure?

Cart abandonment, order cancellations, order delays and refunds are the biggest problems faced when the payment gateway is not secure.

What are the common reasons for failed payments?

a) Payment gateway is misconfigured
b) Blocked by the merchant account
c) A cancelled credit card

What are the important methods of payment?

a) Cash
b) Bank transfers
c) Debit/Credit card
d) e-wallets.
If you want help accessing the proper, secure technology, obtaining an on-demand settlement of customer payments, and making refunds to customers for your eCommerce store, visit PayU