How Payment Service Providers Can Optimize Their Payment Stack

Though many consumers are used to swiping their cards or entering their payment information without a second thought, payment industry professionals are aware of how many mechanisms are at work behind the scenes. As a PSP (payment security provider), you want to make sure merchants are given the tools to help their payments run smoothly behind the scenes. TokenEx and Payshield’s partnership is designed to support PSP’s top operational and security needs so they can continue to offer best-in-class technology to their merchants.  

In this blog, we’ll highlight our top suggestions for PSPs to optimize their payment stack, including suggestions for managing payment risk, increasing payment authorizations, and assisting merchants with their chargeback management. 

Quick Hits 

• Stop fraudulent purchases and chargebacks with 3D Secure and Verifi Compelling Evidence. 
• Capture more payments with Network Tokenization and account updater tools.  
• Increase the ease of chargeback management with chargeback alerts and order insight. 

Prevent Fraud 

Rising fraud costs have many merchants worried about the security of their payment partners. According to the Lexis Nexis True Cost of Fraud Study for Ecommerce and Retail, every $1 of fraud costs retail and ecommerce merchants $3.75, an increase of 19.8% since 2019. Having strong fraud prevention tools can help you stand out from the crowd, and address merchant and customer concerns. Here are two of the fraud prevention tools we highly recommend for every PSP. 

3D Secure 2.2  

The latest version of 3D Secure includes an improved user experience with a faster and easier authentication process that meets all the requirements for the European Union’s Strong Customer Authentication (SCA) regulation. Learn how Payshield could help you stop fraud with 3D Secure 2.2.

Verifi Compelling Evidence  

Many chargebacks are fraudulent, whether they are unintentional friendly fraud or intentional cyber shoplifting. When a chargeback is filed, many banks automatically support the claim from their customer, which makes fighting chargebacks an uphill battle for merchants. Verifi Compelling Evidence can assist in this struggle by assembling and presenting data to win chargeback disputes and reduce chargeback losses. Evidence, such as transaction data, shipping information, emails, and other compelling evidence is collected and presented to deflect the chargeback and return the fund to the merchant account. If you want to offer this service to your merchants, we recommend working with PayShield to enable Verifi Compelling Evidence.

Capture More Payments 

When a customer’s payment isn’t authorized, a merchant may miss out on a legitimate payment. Issues like expired card information or security concerns can be fixed by merchants or PSPs that identify the reasons that legitimate payments get denied. Here are two of the tools we think can make the biggest difference for your transaction authorization:  

Network Tokenization  

Payments made with network tokens are more likely to be approved and are eligible for lower interchange fees. Improving transaction authorization rates will increase a merchant’s revenue as they are enabled to capture more customer payments. If you’re interested in enabling network tokens for your merchants, you can learn more here.  

Account Updater 

Merchants can reduce false declines by receiving refreshed card data when cards expire. Recurring transactions can continue smoothly, without requiring customers to reenter their card information with tools like Account Updater. If you’re interested in learning more about the technology that enables account updater, you can learn more here.  

Manage Chargebacks 

While no merchant wants to receive chargebacks, managing them is important. As a merchant decides how to manage a chargeback, having extensive up to date information is incredibly important. Here are two of the tools all merchants need: 

Chargeback Alerts  

Chargeback alerts warn merchants that a customer has disputed a transaction and that a chargeback will be issued without action by the merchant. This gives the merchant the ability to review the dispute and respond accordingly in a timely manner. PayShield provides a complete set of both Mastercard/Ethoca and Visa/Verifi alerts as part of their chargeback alerts products.

Order Insight/Consumer Clarity  

When a consumer has more information about a transaction, chargeback disputes can be solved quickly. Making detail available to the issuing bank or the consumer upon request is known as Order Insight (VISA) or Consumer Clarity (Mastercard). Payshield offers access to both Order Insight and Consumer Clarity.

If you’re struggling to prevent fraud, help merchants manage chargebacks, or improve payment authorization rates, we hope this list of tools has provided inspiration as you continue to evolve your payment stack. Utilizing some, or all, of these proven payment technologies can give your service an additional edge in the marketplace. If you’re ready to connect with a real person to discuss recommendations for your specific payment use case, you can contact a TokenEx representative or a Payshield representative with your questions.