Your Payment Processors Letting You Down?
May 2, 2016
Your marketing and sales departments have done a great job. Your sign-ups are growing daily and all your platforms are ready for trades. The final stage of your client acquisition is the account funding process. If that let’s you down, all your good work is going to waste. If your clients can’t fund their accounts, they can’t trade and a brokerage with no traders isn’t going to generate any volume commissions or profits.
The funding process is fundamental to your success. Not only by making it easy and cost-effective for your clients to deposit money into their accounts but also by offering fraud and charge-back protection. Good intentions aside for a minute, there will be occasions where people will try to deposit using fraudulent financial details such as stolen credit cards, so if your payment solutions aren’t picking up on these, you may be open to costly charge-back procedures. If you don’t have effective fraud controls in place, credit card processors may put a surcharge on your transactions or even worse, ban your processing altogether.
Your funding options need to be secure with effective fraud controls in place, but they also need to be efficient and easy for your legitimate clients to deposit. Traders today demand instant results. When they make a deposit, they expect the funds to be available in their trading accounts immediately. Make your traders jump through too many hoops and your deposit numbers will fall.
Traders also expect a choice of deposit options. Credit cards are of course a given, as are bank wire transfers, but you need to offer e-wallets as well. Not only the main e-wallets, but also those most popular in your target countries. Potential clients will look for localised payment solutions, so if a particular region has a preferred payment gateway, you need to offer it to your traders from that region.
Charges on transactions are also vitally important. If your processing fees are higher than your competition, your potential clients will drop-off. The Internet is a big place, but news travels very quickly. Your potential clients will be comparing their deposit fees with other brokers and as good as your systems are, if your charges are too high, you conversions will suffer.
Fall-back also comes into play here and can have a very big impact on your deposit figures and conversions. If a client comes to your funding page and your credit card processor is off-line for whatever reason, the client deposit will fail. Brokers very rarely get the benefit of the doubt, so your client will blame you if the transaction doesn’t go through.
If you have a backup credit card processor in place though, if the main processor fails for whatever reason, the transaction will automatically flip to the secondary. Your clients will see better deposit flows and your brokerage will see better results.
Setting up an optimized payment flow will do wonders for your bottom line. Make sure to talk to one of our on-boarding experts and see how Apexum can optimise your payment processing through our integration expertise and network of partner processors.