DirectPayNet

Blog

  • Mastering Abandoned Cart Emails

    Mastering Abandoned Cart Emails

    Abandoned customer carts are a common problem for ecommerce businesses, with an average cart abandonment rate of 69.57% across all industries.

    When potential customers add items to their cart but leave without completing the purchase, it represents a significant loss of potential revenue. However, abandoned cart emails can be a powerful tool to recover these lost sales.

    STOP LOSING SALES, START MASTERING THE CART

    No Email, No Sale

    Sending cart abandonment emails is not just a good idea—it’s a necessity for any ecommerce business looking to maximize its revenue potential. When a potential customer takes the time to browse your online store, select products, and add them to their cart, they’re demonstrating a clear interest in what you have to offer. However, for various reasons, many of these potential customers will leave without completing their purchase.

    This is where abandoned cart email marketing come in. By reaching out to these individuals with a timely, well-crafted email, you can remind them of their interest, encourage them to return to your site, and ultimately convert that abandoned cart into a successful sale.

    The numbers speak for themselves. According to recent studies, businesses that actively send abandoned cart emails recover between 3% and 14% of otherwise lost sales. This means that if you’re not sending these emails, you’re essentially leaving money on the table.

    Moreover, the revenue generated from each abandoned cart email is significant. On average, businesses see a revenue of $5.81 per recipient. While this may not seem like a huge amount on an individual basis, it quickly adds up when you consider the volume of abandoned carts most ecommerce sites experience.

    IMPROVE YOUR CHECKOUT FLOW

    Securing Email Addresses for Abandoned Carts

    To launch a successful abandoned cart email campaign, the first step is to obtain the email addresses of potential customers who have left items in their carts without completing the purchase.

    Fortunately, there are several effective strategies you can employ to capture email addresses and set the stage for your abandoned cart email sequence.

    Require an Email Address Early in the Checkout Process

    One of the most straightforward ways to secure email addresses is to make it a required field early in your checkout process. By asking for an email address upfront, you ensure that you have a means of contacting the customer even if they abandon their cart later on.

    To implement this marketing strategy effectively:

    – Place the email field prominently on the first page of your checkout process

    – Make it clear that an email address is required to proceed with the purchase

    – Consider using microcopy to explain why you need the email address (e.g., “We’ll use this to send you an order confirmation and shipping updates”)

    Offer Incentives for Providing an Email Address

    Another approach is to offer incentives to encourage potential customers to provide their email addresses willingly. By offering something of value in exchange for their contact information, you can increase the likelihood that they’ll complete the checkout page process and make a purchase.

    Some incentive ideas include:

    – A coupon code for a percentage off their first order

    – Shipping costs are nixed on their current order

    – Access to exclusive content or resources related to their interests

    Be sure to clearly communicate the incentive and make it easy for customers to redeem it once they’ve provided their email address.

    Use Exit-Intent Popups to Capture Email Addresses

    Exit-intent popups are designed to detect when a visitor is about to leave your site and display a targeted message to encourage them to stay. By using exit-intent popups strategically, you can capture email addresses from potential customers who are abandoning their carts.

    To make the most of exit-intent popups:

    – Design an eye-catching popup that clearly communicates the benefit of providing an email address

    – Offer a compelling incentive, such as a discount code or free shipping

    – Make the email field prominent and easy to fill out

    – Include a strong call-to-action (CTA) that encourages visitors to submit their email addresses

    STAY COMPLIANT TO KEEP YOUR BUSINESS RUNNING

    Bare Minimum Abandoned Cart Emails

    You need to send at least one abandoned cart email—that’s the bare minimum. This initial marketing email should be sent within a few hours of the cart abandonment, while the customer’s interest is still fresh. The goal is to remind them of the items they left behind and encourage them to complete their purchase.

    To create an effective abandoned cart email:

    -Start by clearly reminding the customer of the specific items they added to their cart.

    -Include high-quality product images of each product along with their names, prices, and any relevant options (such as size or color).

    -Make it easy for the customer to return to their cart and complete the purchase by including prominent links to the abandoned products. These links should direct them straight to the relevant product pages, where they can review the items and add them back to their online shopping cart with minimal effort.

    -Arguably the most important element of your abandoned cart email strategy is a clear, compelling call-to-action (CTA). Your CTA should stand out visually and use action-oriented language to encourage the customer to click through and complete their purchase. Examples of effective CTAs include “Complete Your Purchase,” “Finish Checking Out,” or “Buy Now.”

    -Finally, don’t forget to offer customer support in your abandoned cart email. Recognize that some customers may have abandoned their carts due to questions, concerns, or technical issues. By providing a means of contacting your support team (such as an email address or phone number) or prominently displaying your return policy, you demonstrate your commitment to helping them complete their purchase and fostering a positive customer experience.

    Abandoned Cart Email Sequence Example

    While sending a single abandoned cart email can be effective, a series of emails that are well-timed and strategically crafted often yields even better results. By reaching out to potential customers multiple times, you increase the chances of convincing them to return to your site and complete their purchase. The best part is marketing automation allows you to set up and send automated emails from most site manager software, payment gateways, or CRMs.

    Here’s an example of a three-email sequence that can help you recover abandoned carts.

    Email 1: Gentle Reminder (2-4 hours after abandonment)

    Send the first email in your sequence within 2-4 hours of the shopping cart abandonment. This email should serve as a gentle cart reminder, focusing on the items the customer left behind.

    – Craft a friendly, non-pushy email subject line that mentions the abandoned shopping cart

    – Include high-quality visuals of the abandoned products

    – Provide a clear call-to-action (CTA) button that directs the customer back to their cart

    – Offer customer support in case they have any questions or concerns

    Email 2: Follow-Up with Urgency (24 hours after abandonment)

    If the customer hasn’t completed their purchase after the first email, send a follow-up email approximately 24 hours after the abandonment. This second email should create a sense of urgency while still maintaining a helpful, customer-centric tone.

    – Use a subject line that conveys urgency, such as “Your cart is about to expire”

    – Remind the customer of the specific items they left in their cart

    – Include a clear CTA button that encourages them to complete their purchase

    – Consider offering a small discount or incentive to nudge them towards conversion

    Email 3: Final Reminder with Incentive (48-72 hours after abandonment)

    If the customer still hasn’t completed their purchase, send a final reminder email 48-72 hours after the abandonment. This email should include a stronger incentive and emphasize that the offer is time-sensitive.

    – Craft a subject line that highlights the special offer, such as “Last chance: 20% off your abandoned cart items”

    – Remind the customer of the products they left behind

    – Clearly showcase the discount or incentive you’re offering

    – Include a prominent CTA button that encourages them to take action

    – Stress that the offer is only available for a limited time to create a sense of urgency

    AUTOMATE YOUR EMAIL SEQUENCES WITHIN THE GATEWAY OR CRM

    Don’t Sound Desperate!

    When crafting your abandoned cart emails, you need to strike the right balance between encouraging customers to complete their purchases and maintaining your brand’s integrity. You want to convey a sense of urgency and value without coming across as desperate or pushy.

    One effective approach is to align your brand values with the customer’s values based on the contents of their abandoned cart. For example, if a customer has left eco-friendly products in their cart, emphasize your brand’s commitment to sustainability and environmental responsibility.

    Another way to avoid sounding desperate is to offer a unique, time-sensitive discount code. This provides a compelling incentive for the customer to complete their purchase while also creating a sense of exclusivity and urgency. However, be cautious not to overuse this tactic, as it can devalue your products and train customers to always expect discounts.

    When writing your email copy, use friendly, conversational language that focuses on the benefits of the products rather than simply pushing for a sale. Highlight how the products can improve the customer’s life or solve a specific problem they may be facing.

    Finally, aim to provide value in your cart recovery emails beyond just promoting the abandoned items. Consider including personalized product recommendations based on the customer’s browsing history, showcasing social proof or customer reviews and testimonials, or linking to helpful content related to the products (such as blog posts or how-to guides).

    SECURE ABANDONED CART RECOVERY SALES WITH DIRECTPAYNET

  • What Is a Virtual Credit Card and How to Accept It for Subscriptions

    What Is a Virtual Credit Card and How to Accept It for Subscriptions

    Virtual cards are revolutionizing the way consumers shop online and manage finances. These digital-only payment methods offer a secure, convenient alternative to traditional plastic credit cards.

    In this post, we’ll explore what virtual cards are, how they benefit both customers and merchants, and their role in the world of subscriptions and recurring payments.

    PROTECT YOUR SUBSCRIPTION BUSINESS FROM DECLINES

    What is a Virtual Card?

    A virtual card is a unique, randomly generated credit card number that cardholders can use for online purchases without exposing their actual credit or debit card details. It functions exactly like a traditional plastic card, complete with a 16-digit number, expiration date, and CVV security code. It also runs on the same credit card network as the main account (i.e., Visa, Mastercard, etc.). The key difference is that a virtual card exists only in digital form – there is no physical card associated with the number.

    When an account holder create a virtual card, it is linked to their real credit card or bank account, but acts as a secure middleman for transactions. The virtual card number is what they provide to the merchant, keeping the primary account number hidden. This adds an extra layer of protection against fraud and data breaches, as sensitive financial information is never directly shared with the seller.

    Virtual cards can be generated instantly through a card issuer’s mobile app or website, and can be set for single-use or recurring transactions. Some providers even allow users to set custom spending limits and expiration dates on each virtual card, giving them granular control over their online spending.

    One of the most significant advantages of virtual cards is their disposable nature. If a virtual card number is ever compromised in a data breach or unauthorized charge, that specific card can simply be canceled without impacting the primary account. This is much more convenient than having to cancel and replace a main credit or debit card.

    START ACCEPTING ALL TYPES OF CREDIT CARDS YOUR CUSTOMERS USE

    How Do Virtual Cards Benefit Customers?

    Virtual cards offer a range of compelling benefits that make them an attractive choice for security-conscious shoppers and savvy financial managers alike. Let’s explore some of the key advantages in more detail:

    Enhanced Security Through Unique, Disposable Card Numbers

    One of the most significant benefits of virtual cards is the added layer of security they provide. When someone uses a virtual card number for an online purchase, the actual credit card or bank account details are never exposed to the merchant. This means that even if the seller’s database is hacked or the virtual card number is stolen, the primary account remains safe and secure.

    Moreover, virtual cards are often one-time use or merchant-specific, meaning they can only be used for one transaction or with a particular seller. This disposable nature makes them ideal for online payments where you may not fully trust the merchant or want to avoid potential recurring charges.

    Simplified Budgeting with Spend Controls and Category-Specific Cards

    Virtual cards can also be a powerful tool for budgeting and expense management. Many card issuers allow cardholders to set custom spending limits on each virtual card they create, helping them stay within their budget for specific purchases or categories.

    For example, you could create a virtual card with a $500 limit for online shopping, another with a $50 monthly limit for streaming subscriptions, and a third with a $1000 limit for travel bookings. By compartmentalizing spending in this way, you can easily track and control your expenses without the need for complex spreadsheets or budgeting apps.

    Easy Subscription Management and Cancellation

    Managing multiple subscriptions can be a headache, especially when it comes to updating payment details or canceling services. With virtual cards, however, subscribers can create a unique card number for each subscription service they use. This not only helps them track their subscription spending more easily, but also simplifies the cancellation process.

    If they decide to cancel a subscription, they can simply close the associated virtual card without affecting their other services. This is much more convenient than updating their payment details across multiple accounts or risking unwanted charges on their primary credit card.

    Instant Card Lock and Replacement if Compromised

    In the unfortunate event that a virtual card number is compromised or used for an unauthorized transaction, the cardholder can respond quickly and decisively. Most card issuers allow them to instantly lock or cancel a virtual card through their mobile app or website (e.g., Apple Pay, Google Pay, Capital One, American Express), preventing any further fraudulent charges.

    Moreover, a new virtual card can easily be generated to replace the compromised one, ensuring that legitimate subscriptions and transactions are not interrupted. This is a significant advantage over physical credit cards, where a single compromised number can necessitate the cancellation and replacement of the entire card.

    How Do Virtual Cards Benefit Merchants?

    While virtual cards are primarily designed to enhance security and convenience for customers, they also offer significant advantages to the merchants who accept them. Let’s explore some of the key ways virtual cards create value for online sellers:

    Reduced Fraud Risk Due to Masked Account Details

    One of the most significant benefits of virtual cards for merchants is the reduced risk of fraud. When a customer uses a virtual card number for an online purchase, their actual credit card or bank account details are never exposed to the merchant. This means that even if the merchant’s database is compromised in a data breach, hackers would only gain access to the virtual card numbers, which can be easily cancelled and replaced without impacting the customer’s primary account.

    This added layer of security helps protect merchants from the costly consequences of fraud, such as chargebacks, fees, and reputational damage. By accepting virtual cards, merchants can minimize their liability and maintain a more secure transaction environment for their customers.

    Increased Sales from Security-Conscious Customers

    Today, consumers are increasingly aware of the risks associated with online shopping, such as identity theft and unauthorized charges. By accepting virtual cards, merchants can tap into the growing market of security-conscious customers who prefer to use these secure payment methods.

    Suggesting and promoting the use of virtual cards can be a competitive advantage, attracting customers who prioritize security and peace of mind when making online purchases. This can lead to increased sales and customer loyalty, as shoppers feel more confident in transacting with merchants who actively work to protect them.

    Opportunities for Data-Driven Insights and Targeted Offers

    Virtual cards can provide merchants with valuable data insights into customer spending habits and preferences. While the actual account details are masked, virtual card transactions still generate data on purchase amounts, frequencies, and categories.

    Merchants can leverage this data to gain a better understanding of their customers’ needs and behaviors, enabling them to create targeted marketing campaigns, personalized recommendations, and loyalty programs. By analyzing virtual card transaction data, merchants can optimize their product offerings, pricing strategies, and customer engagement efforts to drive growth and profitability.

    Streamlined Recurring Billing with Automatic Card Updates

    For merchants who offer subscription-based services or recurring billing, virtual cards can significantly streamline the payment process.

    Moreover, the use of virtual cards for recurring billing can help reduce the incidence of friendly fraud or chargeback abuse. Since customers are actively involved in setting up and managing their virtual cards for subscriptions, there is less likelihood of disputes arising from forgotten or unrecognized charges.

    YOUR PARTNER FOR SEAMLESS RECURRING TRANSACTIONS

    Which Data Levels Can Be Associated with Virtual Cards?

    Virtual card transactions, like traditional credit card payments, can be processed at different data levels depending on the amount of information provided. Understanding these data levels is important for merchants, as higher levels of data can lead to lower interchange rates and more detailed insights into customer spending habits.

    Level 1: Basic Card Details for Standard Processing

    Level 1 is the most basic level of data required for standard credit card processing, including virtual card transactions. At this level, merchants typically capture and submit the following information:

    • Cardholder name
    • Card number (virtual card number in this case)
    • Expiration date
    • Transaction amount
    • Merchant category code (MCC)
    • Date of the transaction

    This fundamental data is sufficient for most consumer-level transactions and is the minimum requirement for processing virtual card payments. However, providing only Level 1 data may result in higher interchange rates for the merchant.

    If you opt to accept even more details, like the customer’s billing address, CVV code, and phone number, then your relationship with the payment processor improves.

    Level 2: Additional Customer Info for Lower Interchange Rates

    Level 2 data includes all the information from Level 1, plus additional details that can help merchants qualify for lower interchange rates and improve the likelihood of chargeback disputes. The specific data requirements may vary between payment card networks, but generally, Level 2 data includes:

    • Customer code (for business/purchasing cards)
    • Sales tax amount
    • Merchant postal code
    • Merchant tax ID number
    • Invoice number
    • Order number

    By providing Level 2 data, merchants demonstrate a higher level of transparency and risk mitigation, which can lead to reduced interchange fees. This level of data is particularly beneficial for merchants who process a significant volume of B2B transactions using virtual cards.

    Level 3: Line-Item Details for Large B2B Transactions

    Level 3 data is the most comprehensive level of information that can be associated with virtual card transactions. This level is typically required for large B2B or government transactions and includes all the data from Levels 1 and 2, plus detailed line-item information such as:

    • Item description and product codes
    • Item quantities and unit of measure
    • Item price and extended amount
    • Freight/shipping amount
    • Duty amount
    • Destination postal code
    • Discount amount and VAT/tax rate (if applicable)

    By providing Level 3 data, merchants can access the lowest possible interchange rates for virtual card transactions. This granular level of data also enables more accurate reconciliation, spend analysis, and VAT/GST reclamation for B2B and government customers.

    It’s important to note that not all virtual credit card issuers and payment processors support Level 2 and Level 3 data. Merchants should work closely with their payment partners to ensure they have the necessary systems and processes in place to capture and submit the required data levels for virtual card transactions.

    LEARN MORE ABOUT DATA LEVELS

    How VAU and MAU Help Ensure Successful Recurring Payments

    Visa Account Updater (VAU) and Mastercard Automatic Billing Updater (ABU/MAU) are powerful tools that help merchants ensure successful recurring payments and subscriptions when customers use virtual cards. These services work behind the scenes to keep card details current, reducing payment declines and involuntary churn.

    Seamless Updates of Expiration Dates and Card Numbers

    One of the primary challenges with virtual cards is their often short expiration dates and frequent card number changes for security purposes. VAU and MAU automatically provide merchants with updated card details, including new expiration dates and card numbers, when virtual cards are renewed or replaced by the issuer.

    This means that even if a customer’s virtual card expires or is replaced, the merchant will receive the new card information without any action required from the customer. This seamless updating process ensures that recurring payments can continue uninterrupted, reducing the risk of declined transactions due to outdated card details.

    Reduced Declines and Involuntary Churn

    Payment declines are a major source of involuntary churn for subscription businesses. When a recurring payment fails due to expired or invalid card details, the customer’s service may be interrupted, leading to dissatisfaction and potential cancellation.

    By keeping virtual card details up-to-date, VAU and MAU significantly reduce the incidence of payment declines. Merchants are less likely to lose customers due to failed transactions, as the updated card information allows for successful recurring charges. This helps maintain steady cash flow and reduces the costs associated with customer reacquisition.

    Improved Customer Experiences Through Uninterrupted Service

    From the customer’s perspective, VAU and MAU ensure a seamless subscription experience when using virtual cards. Customers don’t have to worry about updating their payment details every time their virtual card expires or is replaced, as the merchant automatically receives the new information.

    This means that customers can enjoy uninterrupted access to the services they’ve subscribed to, without the hassle of manually updating their billing information. This convenience and reliability can lead to higher customer satisfaction and long-term loyalty.

    Operational Efficiencies for Merchants

    Managing expired or invalid payment details can be a time-consuming and costly process for merchants. Without automatic updating services like VAU and MAU, merchants would need to reach out to customers individually to obtain updated card information, which can strain customer service resources.

    By automating the card updating process, VAU and MAU help merchants streamline their operations and reduce the administrative burden associated with managing recurring payments. Merchants can save time and money that would otherwise be spent on chasing down updated payment details, allowing them to focus on delivering value to their customers.

    DIRECTPAYNET IS YOUR PARTNER FOR SECURE, SEAMLESS SUBSCRIPTIONS

  • Credit Card Decline Code 51: Insufficient Funds (and how to save the sale)

    Credit Card Decline Code 51: Insufficient Funds (and how to save the sale)

    Are you an online business owner tired of losing sales due to credit card declines? One of the most common reasons for a payment not going through is decline code 51, which means the customer’s card has insufficient funds. But don’t worry – you can turn these declines into opportunities with the right approach.

    In this post, we’ll explain exactly what credit card decline code 51 means and provide actionable steps to handle it effectively. Implement these best practices to save sales, improve your customer experience, and boost your bottom line. We’ll also discuss the key benefits of properly managing code 51 declines for your business’s long-term success.

    CONNECT WITH A MORE POWERFUL GATEWAY

    What Does Credit Card Decline Code 51 Mean?

    Credit card decline code 51 is one of the most common decline codes and indicates that the customer’s payment method has insufficient funds to complete the transaction. This code applies to both credit and debit cards as well as to all credit card networks (Visa, Mastercard, Discover, American Express), but the specific reason for the decline varies slightly between the two types.

    Insufficient Funds for Credit Cards

    When a credit card transaction receives a response code 51, it means the purchase amount exceeds the card’s available credit limit. This can happen even if the card is not maxed out, as factors such as pending transactions, holds, or recent payments can temporarily reduce the available credit.

    Insufficient Funds for Debit Cards

    For debit card transactions, decline code 51 signifies that the cardholder’s bank account does not have enough money to cover the purchase. The available balance is lower than the transaction amount, so the payment cannot be processed.

    Common reasons for insufficient funds declines include:

    • Customer’s account has reached its credit limit or balance
    • Recent payments or deposits have not yet cleared in the customer’s bank account
    • Holds, pending transactions, or activity limits are reducing available funds
    • Unexpected fees or charges have depleted the customer’s credit card balance

    CLICK HERE FOR A FULL LIST OF CREDIT CARD DECLINE CODES

    How Online Businesses Should Handle Decline Code 51

    When a customer’s payment is declined with error code 51, act quickly to save the sale and maintain a positive customer experience. Implement these strategies to turn declines into successful transactions.

    Disable Automatic Retries

    Turn off automatic retries from your payment gateway immediately after receiving a decline code 51. Continuing to attempt charges on a card with insufficient funds will only result in additional transaction fees without a successful payment.

    Communicate with the Customer

    Notify the customer about the declined transaction due to insufficient funds through a clear, friendly message. This can be an on-screen popup, email, or text message. Politely request that they try again with a form of payment. Use helpful phrasing like:

    “It looks like the card you entered has insufficient funds at the moment. Would you like to complete your purchase with a different card?”

    Offer Payment Plan Options

    Present the customer with payment plan options to make the purchase more manageable. You can offer installment plans directly through your business or integrate with a third-party service like Klarna or Affirm. Breaking the total amount into smaller, scheduled payments can help the customer afford the purchase even if they are short on funds.

    Provide a One-Time Discount

    Consider offering a one-time discount to incentivize the customer to complete their purchase. While this may slightly reduce your profit margin, securing the sale is often better than losing it entirely due to the decline. Frame the discount as a special offer to help them afford the product or service they need.

    By implementing these strategies, you demonstrate understanding and flexibility to your customers facing temporary financial challenges. This approach not only saves sales but also puts a positive spin on a negative event.

    AUTOMATE YOUR DECLINE FUNNEL WITH A POWERFUL GATEWAY

    Benefits of Properly Handling Decline Code 51

    Implementing a smart process to manage payments declined with code 51 offers significant advantages for your online business. By turning these declines into opportunities, you can improve your bottom line while strengthening relationships with customers and payment partners.

    Increase Revenue

    Properly handling decline code 51 helps you save sales that would otherwise be lost. By offering alternative payment methods, installment plans, and targeted discounts, you encourage customers to complete their purchases despite temporary insufficient funds.

    Reduce Chargeback Risk

    Preventing repeated attempts on cards with insufficient funds lowers your risk of chargebacks. Customers are less likely to dispute transactions when you communicate clearly about the reason for the decline and provide helpful solutions.

    Improve Standing with Payment Processors

    Demonstrating proactive fraud prevention measures, like promptly stopping automatic retries on declined cards, enhances your reputation with credit card processing companies. This can lead to better terms, lower fees, and a more collaborative relationship. It also indirectly improves your relationship with card issuers and issuing banks.

    Enhance Customer Experience

    Properly handling decline code 51 provides a better experience for your customers at checkout. By clearly explaining the reason for the decline and offering useful alternatives to complete the purchase, you show empathy and build trust with your customers.

    Foster Long-Term Success

    Implementing best practices for managing insufficient funds declines sets your business up for long-term success in online sales. You’ll cultivate loyal customers who appreciate your flexibility and understanding while establishing a track record of responsible online payment processing.

    By viewing declines as opportunities rather than lost causes, you can boost your bottom line while strengthening key relationships. Embrace these benefits by implementing a strategic approach to handling credit card decline code 51.

    SCALE YOUR BUSINESS WITH MERCHANT ACCOUNT FROM DIRECTPAYNET

  • Best Stripe Alternatives for International Sellers

    Best Stripe Alternatives for International Sellers

    Are you an international seller looking to expand your online business and reach customers in the United States? If so, you’ve likely encountered the challenges of finding a reliable payment processor that caters to your unique needs.

    Stripe and PayPal, two of the most popular options, may not always be the best fit for merchants based outside the US.

    OPEN A MERCHANT ACCOUNT DEDICATED TO YOUR INTERNATIONAL BUSINESS

    The Needs of International Sellers

    As an international seller, you face a unique set of challenges when it comes to accepting payments from US customers. To succeed in this competitive market, you must first understand your specific needs and prioritize them in your search for the perfect payment processor.

    First and foremost, consider the importance of accepting multiple currencies. By allowing your customers to pay in their local currency, you create a more seamless and convenient shopping experience, which can lead to higher conversion rates and customer satisfaction. Look for a payment processor that supports a wide range of currencies and offers transparent exchange rates WITHOUT exorbitant processing fees.

    Next, think about the payment methods preferred by your target audience. While credit card payments are widely used and accepted in the US, some international markets heavily rely on local payment options. For example, in Germany, customers often prefer to pay with direct debit. Choosing a payment processor that supports these local payment methods can significantly boost your sales in those regions.

    Compliance with regional regulations is another crucial aspect to consider. If you’re selling to customers in the European Union, you’ll need to ensure that your payment processor is compliant with the Strong Customer Authentication (SCA) requirements, which include 3D Secure (3DS) for card payments. Failing to comply with these regulations can result in declined transactions and lost sales.

    Finally, focus on optimizing your conversion rates for non-domestic transactions. Cross-border payments often face higher scrutiny from banks and are more likely to be declined due to fraud concerns. To mitigate this, choose a payment processor that employs advanced fraud detection and prevention measures while still maintaining a smooth checkout process for legitimate customers.

    Key Features to Look for in a Payment Processor

    When evaluating Stripe alternatives for your international business, keep an eye out for the following key features:

    1. Global coverage and supported countries

    Ensure that the payment processor supports transactions in the countries where your target customers reside.

    Look for a provider with a wide global reach to accommodate your future expansion plans.

    2. Multi-currency support

    Choose a payment processor that allows you to accept payments in multiple currencies.

    Verify that the provider offers competitive exchange rates and transparent fees for currency conversions.

    3. Local payment method integration

    Seek out a payment processor that integrates with the most popular local payment methods in your target markets (credit card, debit card, ACH, digital wallets, Apple Pay, Visa, Discover, etc.)

    Ensure that these payment options are seamlessly integrated into the checkout process to maximize conversions.

    4. Fraud protection, prevention, and security measures

    Prioritize online payment processors that employ robust fraud detection and prevention tools.

    Look for features such as 3D Secure, tokenization, and advanced risk management to protect your business from chargebacks and your customers’ sensitive data.

    Use a payment gateway that has PCI compliance built-in (like authorize.net).

    5. Ease of integration and setup

    Consider the technical aspects of integrating the payment processor into your existing e-commerce platform or website.

    Opt for a provider that offers well-documented APIs, SDKs, and plugins to streamline the integration process.

    6. Competitive pricing and fees

    Compare the pricing structures and fees of different payment processors to ensure you’re getting the best value for your money.

    Be aware of any hidden costs, such as setup fees, monthly fees, or transaction fees, that could impact your bottom line.

    The Top Stripe Alternative for International Sellers

    As an international seller, you need an online payment processing solution that can support your global business for the long haul. While popular payment service providers (PSPs) like Stripe, PayPal, and Square offer international features, they may not be the best fit for your long-term needs.

    The only real solution for international sellers is a dedicated merchant account. With a dedicated merchant account, you have the flexibility to negotiate terms that align with your small business requirements. You can work directly with your payment processor to customize your account, ensuring that you only pay for the features you actually need.

    In contrast, PSPs often bundle features into their pricing plans, forcing you to pay for extras that you may never use. Additionally, the fees associated with international transactions and currency conversions can quickly eat into your profits. PSPs typically charge higher rates for these services, which can have a significant impact on your bottom line.

    A dedicated merchant account allows you to avoid these unnecessary costs and optimize your payment processing for your specific business needs. You can negotiate lower rates for international transactions and currency conversions, saving you money on every sale.

    Moreover, a dedicated merchant account provides a level of stability and reliability that PSPs cannot match. With a PSP, you are essentially renting your payment processing capabilities, which means that your account can be suspended or terminated at any time, often without warning. This can be devastating for an international business that relies on consistent credit card processing to maintain cash flow and fulfill orders.

    With a dedicated merchant account, you have a direct relationship with your payment processor, giving you greater control over your account and reducing the risk of unexpected interruptions to your payment processing.

    While Stripe and other PSPs may seem like an attractive option for international sellers, the reality is that a dedicated merchant account is the only solution that can truly support your global business in the long run. By negotiating your terms and avoiding unnecessary fees, you can optimize your payment processing and focus on growing your international sales.

    OPEN A DEDICATED MERCHANT ACCOUNT TODAY

  • STEL Aggregation Is Destroying Your Business!

    STEL Aggregation Is Destroying Your Business!

    When you process customer payments through a third-party aggregator like Stripe or PayPal, the charge may appear on credit card statements as coming from the aggregator instead of your business name. Hence, “STEL Aggregation”. Customers don’t recognize it, assume it’s fraudulent, and dispute it, resulting in costly chargebacks for you.

    STEL aggregation can wreak havoc on your online business, causing lost revenue, upset customers, and damage to your reputation. While STEL aggregation is a major challenge, you can take steps to fight back and protect your business.

    AVOID CHARGEBACKS, SAVE YOUR BUSINESS

    What is STEL Aggregation?

    STEL aggregation is a payment processing method that combines multiple transactions from different merchants into a single, larger transaction. It’s commonly used by third-party payment processors like Stripe, PayPal, and Square.

    How STEL Aggregation Works

    Here’s how STEL aggregation typically works:

    1. A customer makes purchases from multiple merchants on the same day.
    2. The payment processor, such as Stripe, collects these transactions.
    3. Instead of processing each transaction individually, the processor groups them into a single, larger transaction.
    4. The issuing bank receives this aggregated transaction for processing.

    Why STEL Aggregation Exists

    STEL aggregation exists primarily to simplify payment processing for banks. By bundling multiple transactions together, it reduces the number of individual transactions banks need to process. This can help:

    • Streamline account reconciliation for banks
    • Reduce the risk of overdrafts
    • Lower processing costs for banks

    However, while STEL aggregation offers benefits for banks, it can create challenges for merchants and customers. On bank statements, the transaction may appear as “stel payment aggr”, “stel aggregation”, “eea stel aggregation”, or “stripe eea stel aggregation” instead of the merchant’s name. “EEA” stands for “European Economic Area” and likely appears when customers make a purchase from a company in Europe—but not always. This can confuse customers, leading them to dispute charges they don’t recognize.

    For merchants, STEL aggregation can make it difficult to track sales by cardholder. It can also lead to increased chargebacks if customers don’t recognize the transaction on their bank account statement.

    GET A REAL MERCHANT ACCOUNT TODAY

    The Dangers of STEL Aggregation for Online Businesses

    While STEL aggregation may simplify payment processing for banks, it can wreak havoc on your ecommerce business. Here are some of the biggest dangers to watch out for.

    Increased Risk of Chargebacks

    When customers see a charge from “STEL Aggregation” on their statement instead of your business name, they may not recognize it and dispute the transaction. This leads to costly chargebacks, where you lose the sale and get hit with chargeback and extra card processing fees from your payment processor.

    With over $20 billion in chargeback losses for merchants annually, this is a huge financial risk.

    Difficulty Tracking Sales by Customer

    STEL aggregation bundles multiple transactions together, so you may not receive full details on each individual purchase. This makes it challenging to track which customers bought what, hurting your ability to manage customer relationships and analyze sales trends.

    Damaged Customer Trust and Relationships

    Customers feel frustrated and even deceived when they see a strange “STEL Aggregation” charge instead of your business name. This erodes their trust in your brand and makes them less likely to purchase from you again. Damaged customer relationships are devastating for any business.

    Increased Customer Service Demands

    Confused customers might contact you to ask about the mysterious “STEL Aggregation” charge if they don’t create a chargeback first, increasing the workload on your customer service team. You may need to devote more resources to customer service to handle the influx of STEL-related inquiries.

    Reputational Risk

    If STEL aggregation frequently appears on your customers’ statements, it can make your business look less transparent and trustworthy. This negative perception can spread, deterring potential new customers from buying from you and harming your brand’s reputation.

    Distorted Business Analytics

    When multiple transactions are lumped together, it skews your data on sales volume, average order value, and customer buying patterns. This leads to inaccurate business insights that can result in misguided decisions. You need clean data to make smart strategic choices.

    STRIPE WILL HARM YOUR BUSINESS, DIRECTPAYNET WON’T

    7 Strategies to Prevent STEL Aggregation from Harming Your Business

    Now that you understand the risks of STEL aggregation, let’s explore some powerful strategies you can implement to protect your online business. By being proactive and making smart choices, you can minimize chargebacks, maintain strong customer relationships, and keep your revenue flowing smoothly.

    1. Get a Dedicated Merchant Account

    One of the most effective ways to avoid STEL aggregation is to open your own dedicated merchant account instead of relying on a third-party aggregator. With a merchant account, your business name will appear clearly on customer statements, reducing confusion and disputes. Plus, you’ll have more control over your billing processes and customer communications.

    2. Customize Your Billing Descriptor

    If you do use a payment aggregator, customize your billing descriptor to make it crystal clear that the charge is coming from your business. Include your company name and a brief description or order number. Aggregators like Stripe allow you to modify your descriptor and provide helpful plugins to optimize it for fewer chargebacks.

    3. Proactively Notify Customers

    Don’t leave your customers guessing about potential STEL aggregation charges. After each purchase, send an email receipt that includes a screenshot of exactly how the charge will appear on their statement. Explain any unfamiliar descriptors or charge amounts so they know what to expect. This proactive communication can go a long way in preventing disputes.

    4. Only Schedule Large Transactions

    Consider only using the charge scheduling feature for large transactions over a certain dollar amount, and process smaller ones normally. Breaking up larger charges into multiple scheduled payments can also help prevent STEL aggregation. Just be sure to clearly communicate the payment schedule to your customers.

    5. Educate Customers on Your Billing Process

    Be transparent with customers about how your checkout and billing processes work, especially if you’re in a high-risk industry prone to chargebacks. Explain what online payment methods you accept (credit, debit, Visa, Mastercard, ACH, etc.), what third-party processors you use, and how charges will appear on their statements. Include this information in your FAQs, Terms of Service, and post-purchase emails.

    6. Choose a Payment Processor That Avoids Aggregation

    When selecting a payment processor, look for one that doesn’t use aggregation or charge STEL transaction fees. Merchant service providers generally don’t aggregate transactions, so working with one can help you steer clear of these issues altogether. Do your research and ask potential processors about their aggregation practices before signing up.

    7. Invest in Excellent Customer Service

    Even with all these preventative measures, you may still encounter some customer confusion about STEL aggregation. That’s why you need to invest in responsive, helpful customer service. Train your support team to handle STEL-related inquiries with care and empathy. The faster you can resolve these issues, the less likely they are to turn into chargebacks.

    By implementing these strategies, you can dramatically reduce the negative impact of STEL aggregation on your online business. It may take some extra effort, but it’s well worth it to protect your hard-earned revenue and customer relationships. Don’t let STEL aggregation catch you off guard – take action today to safeguard your business for the long run.

    AVOID STEL AGGREGATION WITH A DEDICATED MERCHANT ACCOUNT