As you embark on the journey of issuing cards to your customers, it's important to anticipate the potential challenges that may arise. This article outlines common issues you may encounter and provides insights on how to prepare for them.
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Transactions Not Working
One of the most frequent problems relates to transaction failures. These can stem from various reasons, including:
User-related issues: This category includes common mistakes like insufficient funds or incorrect PIN entry. Approximately 10% of transactions fall into this category. Clear communication about balance checks and proper transaction procedures can help mitigate these issues.
Merchant-related issues: Sometimes, merchants or acquirers decline transactions for unexplained reasons. While less common (around 2%), these instances can be frustrating for customers. Engaging with acquirers and merchants can help improve acceptance rates, but it's not always feasible.
System-related issues: Technical difficulties with merchant, terminal, or payment network systems can also cause transaction failures. In these cases, the transaction often doesn't appear in your system.
Problems with Card Delivery and Activation
If you offer physical cards, you'll likely encounter challenges with personalization, delivery, and activation. These issues are often country-specific and related to logistics or activation processes. While some can be addressed during project planning, others may require more creative solutions. Given the convenience of digital cards, it's worth considering whether physical cards are truly necessary.
Transaction Reversals and Refunds
Customers may request transaction reversals (immediate) or refunds (after several days). These requests should ideally trigger a credit to the customer's account based on information from the merchant or acquirer. However, delays can occur if the card issuer doesn't receive the necessary authorization. This can result in frozen funds for several weeks. Understanding the potential for these delays is crucial.
Fraudster Activity
The introduction of a new payment method often attracts fraudsters. They may attempt to steal card data or make unauthorized transactions. Strong fraud prevention measures, including robust Know Your Customer (KYC) processes and transaction monitoring, are essential to protect your business and customers.
Overcoming Challenges in Card Issuing
By anticipating these common challenges, you can better prepare your business for the complexities of card issuing. Effective communication, proactive problem-solving, and robust fraud prevention measures are key to ensuring a smooth customer experience.
Interested in card issuing solutions? Contact us today!
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