Merchants are classified as high risk merchants for card processing because of a greater than normal likelihood of chargebacks. Merchants in high risk categories find bank transfers are a powerful way to limit exposure to chargebacks while giving customers an easy, convenient, and popular way to make purchases online.
Customers are increasingly comfortable using bank transfers as a payment option. This is due in large part to the dramatic increase in online bill pay and online banking services.
Bank transfers are considered “push payments” because customers push payments to merchants through their online bank systems. Bank transfers are a popular means of payments throughout Europe, Brazil and other parts of the world.
At checkout, customers click on the bank transfers button. The list of banks displayed. The customer clicks on the appropriate bank and is automatically redirected to the online banking site.
The customer logs in, completes the transaction and is automatically redirected back to the merchant’s website. The merchant receives confirmation that the payment has been received and can fulfill the order. The customer receives a receipt for the purchase.
Now, ecommerce merchants have a way to take advantage of the customer trend to pay with bank transfers online.
Consumers and businesses today are concerned about the growing potential for fraud when making purchases online. A surprising number of consumers have had the misfortune of having security breached due to no fault of their own.
Bank transfers eliminate the potential for fraudulent transactions for both consumers and merchants. Since payments are pushed to the merchant, the merchant never has access to any personal information on the consumer. And consumers are protected by their online banks security when making a payment online.
All of this is done seamlessly through your website. The payment option is as simple to use as a card or echeck. Yet it is more secure.
Fraudulent transactions are nonexistent, eliminating chargeback concerns. Funds are settled quickly.
The best candidates to add bank transfers as a payment option are merchants with targeted international customers that are selling high ticket items.
One of the hottest industries for bank transfers is for airlines and the travel industry. Bank transfers enable airline and travel merchants to accept payments from international customers that are similar to safe as a cash transaction.
Online entertainment, software downloads, direct sales organizations, prepaid cards, and money remitters are also excellent candidates for bank transfers.