Welcoming the holidays and navigating its challenges: Insights for Merchants and Issuers

What is the first thing that pops up when thinking about Black Friday or Cyber Monday? Is it the opportunity to achieve online sales records, or is it the challenges the online customers might face that lead to business goals failure?

The 2024 online shopping peak season is here, and the biggest expectation from the payment stakeholders is to enable a delightful online payment experience for customers.

Companies are strengthening their teams to maintain client service at the highest level. The main goal of a fintech is to provide professional service and to meet its client expectations while maintaining seamless business operations.

In parallel, merchants and issuers must enable the best way to a successful transaction for their cardholders.


Learning from the past to improve the future.

The figures analyzed by the National Fraud Intelligence Bureau showed that shoppers across England, Wales and Northern Ireland were scammed out of £15.3m between November 2021 and January 2022 and that the age group most likely to fall victim was 19 to 25-year-olds.

Between 1 November 2020 and 31 January 2021, the average loss per person was £549, including reports with no financial loss, while for the same period last year, that figure increased to £775.

The findings from the same reports revealed that almost half of the scams reported to Action Fraud mentioned one social media platform, showing that this is by far the most likely medium for shopping and auction fraud to take place. One victim lost £480 when trying to purchase shoes via a seemingly reputable social media account.

Of the 19,744 reports, 20% were related to purchasing electronics and 13% to mobile phones.

The information from Kaspersky says that the growth of phishing attacks mimicking e-payment pages was spotted in the run-up to the Black Friday period. The total number of financial phishing attacks disguised as e-payment systems more than doubled from September (627,560) to October 2021 (1,935,905), indicating a 208% increase.

Over Black Friday weekend, payment fraud rates in the USA increased across multiple verticals, with surprising YoY surges in digital wallets, B2C goods/services, and PSPs.


What does an online shopper need?

Imagine having two clicks only, and payment is made, instead of the tedious process of filling in all fields repeatedly and ending with the feeling of insecurity about your data. Would your consumers return to your store if they face insecurity? Would You go back to that kind of e-store to spend your money?

Instant and secure is what the consumer expects, and there are several technical prerequisites to be considered to achieve this. On top of it, this is what leads to great customer relationships and becoming their first choice for online shopping. That consumer’s feeling of great experience, easiness, and security of the personal data after clicking the “Pay” button is the crucial factor that makes them return to your e-shop repeatedly.

What do issuers and merchants face?

Managing Increased Transaction Volume

Transaction volumes can double or even triple during Black Friday and the holiday season. Merchants must be prepared to handle a surge in online and in-store sales. In contrast, issuers face the challenge of processing more transactions, which can strain their systems. To address this challenge, merchants should optimize their payment processing systems for peak traffic and consider load testing before the season begins.

Issuers must ensure their infrastructure can handle increased transaction loads.


Fraud Prevention and Security

The holiday season is prime time for fraud. Fraud attempts increase, and both merchants and issuers must be vigilant. Merchants should invest in robust fraud prevention systems and keep their security measures up to date. Issuers must monitor transactions closely, look for suspicious activity, and implement security measures.


Payment Processing Delays

As transaction volumes spike, payment processing delays can frustrate merchants and consumers. Slow checkouts can lead to cart abandonment and lost sales. Merchants and issuers can collaborate to minimize this issue and, when supported by the payment processors, ensure fast, reliable payment processing.

Issuers can optimize their systems to approve transactions quickly, using monitoring tools that detect suspicious activity and send notifications to the security team.


How do we stop rosing of the losses?

Understanding the online payment trends that push shoppers toward action can make quite a positive difference and make you forget about cart abandonments or unfinished payment processes.

Click to Pay is a digital payment solution that aims to simplify and streamline online payments. It breaks down the payment process to one click only and secures the shoppers’ privacy, which, in the end, leads to a comfortable shopping zone, one that the customers wish to come back. With its revamped user experience, widespread adoption by major networks, and compelling statistics demonstrating benefits for consumers and merchants, Click-to-pay is now a hot topic.


Investment in security adds authentic value to the business.

High protection of your customer’s sensitive data and speeding up the conversion characterize network tokenization. You’ll be surprised by the unique benefits coming with the invisible security of the e-COM Tokenizer. Finally, the frictionless flow of the transaction process is something that needs a strong background, and 3-D Secure can offer you that support. Relying on the 3-D Secure has brought significant improvements to online payments. It is a wise investment when running an online payment business. Remember that not every solution is the right one for you. The second thing to know is that You don’t have to start big. Take a flexible 3DS Server SaaS solution that fits your needs and helps you grow. One that is created according to the latest regulatory standards and is managed by a proven expert in the industry. 

Let’s offer this season an unforgettable and delightful experience for all the customers who contribute to the progress of e-commerce.


Netcetera is dedicated to providing the finest technical and advisory services to address potential challenges and safeguard your overall business.

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