As businesses have digitised, payments had to follow suit. The only option for taking these remote payments, to date, has been with credit and debit cards. But cards are expensive and increasingly complex to support operationally, and fraught with fraud. New open banking payments regulation and technology has allowed innovative regulated payments institutions like Ordo, regulated by the FCA, to deliver attractive new alternatives. These services allow businesses to collect payments for only a small, fixed fee, and without the customer experience difficulties of cards, the exposure to fraud, or the waiting days for collected funds to clear.
Innovative e-commerce and real time request for payment (contact centre) solutions are exploit the following key features of open banking:
- Faster Payments Service low cost base – unlike global card schemes, bank charges are only a small fixed fee per transaction irrespective of the value of that transaction;
- reduced flow of account details between parties; and
- irrevocable Faster Payments – once a payer pays, there’s no reversing or clawing back the payment, eliminating the risks of fraudulent payments for the collecting business.
And it virtually eliminates fraud. Push Payment Fraud – frauds against the senders of payments, usually sent through the Faster Payments Service, where a payer has been persuaded, tricked or misled into either sending a payment for a fraudulent service, or a legitimate payment to a fraudster’s account – in the first half of 2020 caused £207.8m of losses. Only £73.1m was returned to customers, meaning £134.7m had to be absorbed by the impacted consumers and businesses.
Isn’t it time you protected your business, and implemented an efficiency drive that delivered results?