Finance

Disadvantages of taking card payment online

To take card payments online is a good thing, but there are also some negative things to it sometimes when a customer pays for the things that he or she wants then it might fail due to some technical error or due to insufficient funds in the customer’s bank account.

Many times the customer might try to pay for the things which he has brought using a stolen or a lost debit or a credit card, and due to the innovation of tap to pay cards the thieves have more chance to fraud, everyone, as they can buy anything they want and just tap the card on the POS machine to complete the transaction.

These are the disadvantages of online card payment

  • If your business receives payment from any of the customers then it might have charges deducted from it such as the provider might take interest charges, he can also take monthly charges. Also, you will have to pay some amount of money as maintenance charge etc.
  • By accepting to take card payment online, you choose that your business will now be able to take payment from customers online, and there are more increased chances of fraud when you are taking payment online. You or your business can become the bait of a card payment that is stolen or is lost, which should be returned to the bank which has issued it.
  • There is an issue that if you want to take payment from another major business card you will have to enter into an agreement with them and will have to pay monthly fees to them and also will have to pay interest on every transaction taken these major cards are American express and Diners club.
  • It will take you an extra charge because you will have to train your staff in how to work on the application or website and also you will have to give them training on technical as well as an administrative problem so that if any issue occurs, you or your staff can automatically solve it.
  • Many of the system that businessman use is relying on technology, especially online payment. If anything happens to the website or the payment gateway then there a chance that the transaction may not process and if there is a cyber attack on it then all transaction will be ceased immediately without asking the shop owner or customer which bring down the income of the business.
  • If you have a business that takes payment online very rarely, then it is not that much costly for them, but if you have a business where all your transactions are happening online, then you will have to pay the provider to keep a payment terminal which might cost you a big amount as you will also have to pay to get a gateway and also appoint staff to look after the customers who have paid the amount and save and check the payment done by them.

I hope this article has provided you with all the information about the disadvantage of taking card payment online.

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