Reduce Fraud, Increase RevenueBy Sofía Hanna | Fri, 07/15/2022 - 09:02
Q: What dangers do businesses face today regarding chargebacks or fraudulent transactions?
A: Latin America is the region with the greatest amount of fraud and chargebacks, resulting in a very low acceptance rate among payment processors. There are many layers of complexity when it comes to the dissemination of cards and regulations and little transparency as to how banks manage each payment.
A common type of fraud in Latin America occurs when customers make purchases using stolen cards, but the most common type is "friendly fraud," which occurs when customers dispute a charge in their bank statement, claiming they do not recognize the charge. This forces companies to accept all payment processors and hire fraud solutions, but despite them, sellers have to deal with a large number of rejected payments. We try to solve this problem by giving sellers access to many previously available solutions to large e-commerce players like Amazon.
Q: Today, almost 40 percent of sales opportunities are lost due to a payment failure. What are the key actions or strategies to prevent this?
A: Reducing payment rejection is the primary solution. In Mexico and Latin America, e-commerce has an acceptance rate of about 60 percent, which is good. Every single payment processor is different. There are many unknowns in the industry, so those who do not know how their payment processor works are always looking for the perfect solution that will allow them to get to a 100 percent acceptance rate. But this does not exist.
Retrypay combines different sets of payment processors because each one gives us an advantage in a specific industry. We are also trying to fight "false positives," which are legitimate transactions rejected by banks. We aim to achieve the highest possible acceptance rate by combining the characteristics of different payment processors into a single solution.
Q: Retrypay has closed an investment round of US$1.5 million. What will the company use that investment for?
A: We are supporting eight countries in Latin America and have at least one partner in each of those, which helps us address payment issues there. With this investment, we want to grow our presence to 12 countries and enter Central America. We will also focus on strengthening and providing better tools for our partners outside of Mexico and on advancing features that larger customers are waiting for. We needed more resources to provide companies with better services.
Q: Retrypay announced it will launch the best solution in online payments since PayPal. What can you tell us about this solution?
A: Retrypay’s background lies in the hospitality industry, which deals with large amounts of fraud. Our solution for hotels will be better than PayPal’s because it will allow them to deal only with one provider to solve everything payment-related. We are running a pilot project in Latin America that will be a life-changing solution for them.
Q: How is Retrypay contributing to the economic and e-commerce ecosystem?
A: The pandemic brought many opportunities for e-commerce and payment companies to grow and expand their business, allowing them to achieve in 12 months what would have taken three to five years. The world is moving toward e-commerce and we try to help new entrepreneurs and companies enter this market. Before, companies could only choose one payment processor or one payment provider; finding the right one could take a long time. By using Retrypay, companies can access many payment processors locally, regionally and internationally and change providers with a single click.
We are helping e-commerce payments surpass the 90 percent acceptance rate by recovering close to 50 percent of rejected transactions and getting that money back to our customers.
Retrypay is a transaction router for multiple online payment options that is helping e-commerce companies to increase their acceptance rate, decrease rejection rates and boost sales through a single technical integration.