Challenges Online Payments Are Facing and How to Solve Them

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Accepting online payments enables customers to make cashless transactions using phones or cards. Today, the ability to accept online payments has become a prerequisite for businesses.

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This is because electronic payments come with several advantages for your business. But, accepting online payments also brings with it customer and merchant challenges.

This article can help you identify e-payment limitations that could impact your business. Read on to know more about these challenges and the ways to address them.

Challenges of Online Payments

Online payments can help you expand your business and reach global audiences. It can also help improve customer experience since transactions are more convenient online.

These are some of the benefits of enabling e-payments for your business.

But, accepting online payments can also pose problems for you and your customers. Below are some of the potential challenges that you need to know.

Technical Issues

Online payments are vulnerable to technical disturbances. This is a common issue among systems that depend on technical infrastructure.

Technical issues can cause several hours of downtime. This can frustrate shoppers who cannot pay with cash.

Security Problems

Much like other electronic systems, e-payment platforms are also vulnerable to hacking.

Malicious users orchestrate attacks to trick unsuspecting users into providing important online details. These can include the log-in details of their e-wallets.

This information can provide access to the victims' personal and financial information.

Hackers can also take advantage of inadequate authentication on online payment systems. Lenient authentication processes can result in hackers using another person's cards and e-wallets.

In 2020, the total identity fraud losses rose to $56 billion. This number highlights the importance of adequate authentication measures.

Without these measures in place, customers may be reluctant to use e-payment systems.

Disputed Processes and Transactions

If you're a victim of hacking, you can try to file for a refund if someone else used your card. You can do this by filing a claim with your bank, online payment processor, or credit card company.

But, without information about the person who used your card, it may be difficult to prove your claim. This also means that you may not get a refund.

Increased Costs

Installing and maintaining e-payment systems can drive up costs for your business. You'll need money to protect sensitive data in your infrastructure against unauthorized access.

If you offer in-house e-payment, you'll pay extra to buy payment-security systems. You also need to pay more money to install and maintain the systems.

Addressing the Gaps in Online Payment Transactions

Now that you're aware of the challenges of using e-payment systems, you will need to address these gaps.

The first step is to have a certified Level 1 PCI DSS payment processor. Having this certification enables you to sniff out fraud before it can take place.

Under PCI DSS rules, e-payment processors must:

  • Build and maintain a secure network.
  • Protect sensitive cardholder information.
  • Create a vulnerability management program.
  • Put in place access control measures.
  • Check and test networks.
  • Introduce an information security policy.

Ways to Accept Online Payments

If you’re wondering about the methods of how to accept online payments for your website, you can choose from the ways below.

Credit and Debit Cards

Allowing customers to pay using credit cards is a basic way you can accept online payments. To offer this feature, you’ll need to create your own holding account or merchant account.

Recurring Billing

If you’re offering monthly or yearly services, using a recurring billing system is a smart option. This option is convenient for your customers and ensures you get paid on time.

Click-to-Pay Email Invoicing

You can send your customers an invoice through email and get paid only with a few clicks. Email invoicing allows your customer to pay online and secure a receipt in seconds.

With email invoicing, you can manage your data and streamline your reporting. Whenever your customer makes a payment, your system marks the invoice as paid.


Another basic way to accept payments is by using an electronic check. This way, your customer can input their check information into an online payment form.

This method involves processing checks without the physical presence of a paper check. ACH processing has different transaction fees than credit cards. Small businesses can also use this online payment option.

The Bottom Line

If you're prepared, you can address the challenges that come with online payments.

If you're worried about technical issues, you must maintain reliable tech support. Your IT team can perform maintenance operations on online payment gateways.

The team must have scheduled maintenance for payment systems. They can do this when your website doesn't have a lot of traffic, often during nighttime.

When looking for an e-payment processor, check the supplier’s Standard Level Agreement. This way, you'll know how long your processor can run without issues.

In the future, online payments can be the norm between businesses and their customers. You need to ensure that your business can get on with this transition.

The bottom line is this: e-payment platforms should enable easy and secure transactions. If you can offer these, you’ll reap the benefits that come with accepting payments online.