Tips for payment service providers: COPYandPAY channel dispatching

By Christopher Taine on 8. January 2015 in Open Payment Technology
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As globally-oriented merchants expand into new markets, payment providers need to not only offer comprehensive payment services and alternative payment methods, but also effectively manage these channels.

In a previous blog, PAY.ON Key Account Manager Rob Lemmen outlined some useful advice for easy merchant onboarding, utilizing the flexible entity structure of PAY.ON’s Business Intelligence Platform (BIP). In this blog, Rob explains how payment providers can benefit from the channel dispatching capabilities of COPYandPAY, configuring widget-based payment pages so that merchants have maximum flexibility through one integration.

The beauty of PAY.ON’s COPYandPAY integration is that merchants integrate once, copying a few lines of code into their web shop, following which payment providers can configure new payment methods and risk checks without any further development on the merchant side.

When a new payment method is required, payment providers can simply add a new channel through the BIP dashboard, then activate the new payment method so that it instantly appears in the merchant’s checkout.

Channel dispatching functionality makes it easy to set rules that determine which channel a payment is ‘dispatched’ to. This means payment providers can offer their merchants even more control over payment processing.

Increasing conversion rates with COPYandPAY channel dispatching

In order for merchants to maximize their revenues, it is necessary to offer a suitable range of payment optionsat the checkout. For example, a merchant may already offer Visa and MasterCard card payments, but may want to add China UnionPay to capture a greater share of cross-border eCommerce transactions. Payment providers can enable this by creating a new channel in the BIP, then adding the new card brand (in this case China UnionPay) to the COPYandPAY configuration. Finally, a new rule is set so that the new payment method is dynamically dispatched to its own channel.

Tailored risk checks for improved fraud prevention

Merchants expanding globally require not only a suitable payment set-up for each region or country, but also need adequate fraud prevention. Because different payment methods carry different levels of risk, tailored risk checks ensure conversion rates are maximized while risk is minimized.

1.    Strict risk checks are needed for payment options like Direct Debit

2.    Average risk checks are needed for MasterCard and Visa card payments

3.    Limited risk checks are needed for PayPal and Sofortüberweisung

Payment providers can create a channel for each risk category, then create tailored risk checks for each of these channels. For example, the low-risk channel gets duplication checks, while the high-risk channel is configured with additional velocity checks and account validation.

Additional risk rules in combination with Active Payment Method Selection

PAY.ON’s Active Payment Method Selectionis a powerful fraud prevention tool that performs background risk checks before payment options are presented at the checkout. This results in a seamless shopper experience that effectively reduces fraud without negatively impacting conversion rates. When combined with channel dispatching, merchants have even more flexibility in determining risk checks and authentication measures.

One use case is dynamically adding 3D Secure for high risk transactions. If Active Payment Method Selection is activated, 3D Secure can be added to mitigate the risk of fraudulent transactions, while ensuring that conversions remain high. To do this, payment providers add a channel for credit card processing with stricter risk checks (i.e. 3D Secure), then set a rule within BIP so that transactions coming from “riskier” shoppers (those returning red or orange results) are dynamically dispatched to the channel with activated 3D Secure.

Similarly, channel dispatching rules can be set so that all transactions over a certain amount – i.e. $200 – are dispatched to a channel where 3D Secure is enabled, where lesser amounts are processed without additional authentication.

All of these possibilities give payment providers greater flexibility for setting up their merchants for success. But it’s worth bearing in mind that this is not an exhaustive list of use cases for COPYandPAY channel dispatching! PAY.ON’s Account Management team knows that it is imperative for payment providers to keep their merchants satisfied, so we’re always happy to discuss in more detail how channel dispatching can be used for more effective payment processing.

 

 

Christopher Taine

About the Author

Christopher TaineView all posts by Christopher Taine
Social Media & PR Manager Spreading the word about PAY.ON's products and services.

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