home Business Merchant Acquirer Challenges: Chargeback Insurance Providers

Merchant Acquirer Challenges: Chargeback Insurance Providers

Fraud is becoming more threatening, competition is growing incredibly fast, profits are falling… How can merchant acquirers overcome these and other challenges? Who can help you, as a merchant, with chargeback insurance providers? The answers are below!

Merchant Acquirers & Chargeback Insurance Providers

The merchant acquiring industry worldwide has undergone fundamental changes. Why? Well, commerce is getting more digitalized, and the demand for more advanced online/offline payment solutions is growing.

Nowadays, it’s critical for merchants to work with a true payment expert who best understands your finances. With a reputable payment processor or merchant services provider, you can reach success with ease.

Importantly, you can overcome certain periods of your business where extra cash would be really handy. Besides, you can get the best chargeback mitigation and fraud prevention solutions in the industry as the best answer to your need for chargeback insurance providers.

Merchant Acquirers Struggling

As it was mentioned above, merchant acquirers now find more than one rock on their way. Let’s focus on their biggest challenges and see what steps they can take to overcome them:

  • Changing Fraud Landscape

To combat fraud, merchant acquirers should apply machine learning techniques as a secret weapon to create sophisticated fraud reduction strategies. They should leverage algorithmic assessments responsible for taking fraud detection beyond traditional systems. As a result, acquirers will gain better risk management capabilities and build reliable services for merchants.

  • Demand for More Convenient and Efficient Services

Merchants are looking for innovative solution providers that can help them provide frictionless services and more enhanced experiences for customers. This is what traditional merchant acquirers should take into account so to stay competitive.

  • Cross-Border Acquiring

Did you know that by 2020, 30% of total consumer purchases will be completed cross-border? Merchant acquirers should take into consideration the fact that merchants need global solutions that’d allow for making convenient and secure payments.

  • Declining Profit Margins

Because of the commoditized basic services, acquirer profit margins are falling. According to McKinsey, the annual growth of payment processing revenue is expected to fall with 2-3% growth on a yearly basis.

To overcome this challenge and remain competitive, acquirers should explore new business models and technologies. They should be able to increase the value they offer without losing profitability and user experience. Faster onboarding processes, all-in-one solutions, and effective risk mitigation services can be the best way out.

  • Need for More Than Traditional POS Terminals

The traditional point-of-sale payment terminals are gradually losing their place. Now, mobile solutions based on smart devices are in more demand. That’s where modern mobile POS or mPOS services steps in, and acquirers should bear this in mind.

  • Demand for Newer Risk Management Services

The demand for new risk management technology is anticipated to grow strongly in the next few years. According to Aite Group Inc., provider of project management solutions, the risk management solutions market for merchant acquiring will surpass US$660 million by 2020

To sum up, acquirers are currently faced with pressure on all sides. To avoid the pressure in the best possible way, acquirers should take the right steps mentioned above.

Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that can best help you with chargeback insurance providers. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.