Understanding chargebacks and how to prevent them
We are excited to announce that we have added three new markets to our acquiring solution.
Now, in addition to the US and Europe, we also connect into Visa and Mastercard directly in Brazil, Australia and Hong Kong, extending our reach to five continents.
This means businesses operating in these regions can process credit cards locally via Adyen’s platform.
This is a huge benefit. But to fully understand its impact, we need to start from the beginning:
Traditionally the process between this point, and the moment the payment arrives in your account looks a bit like a pinball game:
The payment is bounced from the gateway, to a risk management solution, to the acquirer. Sometimes it hits the target and is approved; sometimes it gets stuck due to a connection failure, sometimes it is refused for unknown reasons, and it may even disappear completely.
In a traditional payment flow, the payment is bounced from the gateway, to risk manager, to acquirer.
If you are a global business this process is duplicated for every region. This means multiple contracts with different acquiring banks in different countries. And if you are operating in store as well, you have the additional technology and hardware providers required for point of sale payments to contend with as well.
The whole thing is time-consuming and inefficient. You have no way of knowing what is going on under the hood and all your payment data is fragmented across different markets and channels.
This is hardly conducive to a frictionless customer experience. Not only are payments interrupted, but the overall experience is inconsistent across channels and regions. It is hard to build meaningful relationships with your shoppers and your customer retention suffers.
Payments are interrupted and the shopper experience suffers.
It’s a big old mess.
The Adyen value chain vs the Traditional value chain
But Adyen has a solution. Adyen removes this entire headache by managing the entire payment flow, includes gateway, risk management, and acquiring, on a single platform.
Adyen removes the headache by managing the entire payment flow.
An acquirer processes credit and debit cards on behalf of the merchant. It sends the payment request to Visa and Mastercard, and then releases the funds, if the request is approved.
This is a pretty fundamental part of the process. And numerous factors can affect the success or failure of the payment request.
For example, with local acquiring capabilities, you can connect with Visa and Mastercard on a local level, which typically delivers much higher authorization rates.
In addition to benefiting from local conditions and higher authorization rates in the US, Brazil, Hong Kong, Australia and Europe, Adyen customers have total visibility into the entire payment flow, including the reasons behind card refusals. This allows them to make adjustments to the process to improve the results.
And, with all data across all channels and regions managed in a single system, businesses have a 360-degree view of shoppers no matter where they are or the device they are using.
Shoppers benefit from a streamlined, personalized experience across every touch point.
This means shoppers benefit from a streamlined, personalized experience across every touch-point, helping to build loyalty and ultimately grow revenue.
We don’t do this through acquisitions or partnerships; everything is built by us. This means we have full control over development and release cycles, and can guarantee fast access to the latest industry innovations.
Accelerate your global expansion and optimize your payments, while exceeding shopper expectations.
As a result you can accelerate your global expansion and optimize your processes, while continuing to exceed the rapidly evolving expectations of your shoppers.
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