Whether it is paying salary to numerous employees, initiating refunds to e-commerce customers, giving the prize money for online gaming websites, payouts play a significant role in facilitating business transactions in this digital era. But people still face certain problems while processing payouts. Issues related to global currencies, regulations, customer concerns, etc, listed below are the common challenges businesses face while processing payouts.

Frauds

There are various kinds of frauds like-

  • Friendly frauds in which the customer will make credit card transactions and issue a dispute for various reasons through the credit card issuer.
  • Triangulation frauds happen in unreliable online transactions. The fraudster steals payment details after the first transaction. Then they use it for stealing money, or will sell the information to buyers online.
  • Identity thefts are frauds in which the fraudsters use the information of the customer wrongfully.

Technical integration 

Most businesses face issues with the technical integration of payment systems. There are often issues like the payment system not supporting or rejecting the payments because it cannot process them, API errors, incorrect email recipients and issues with integrating user data to the payment gateway.

Errors & inefficiency of manual transactions

When processing payouts to multiple recipients, manual bank transfers are inefficient and cumbersome methods. It may cause unnecessary risk of errors and financial loss. The process also requires more time and resources.

Issues with processing bulk transactions

Companies that require multiple transactions to be done at regular intervals face a lot of challenges. Whether it is inland or transactions from other countries, most wallet services and banks can’t process bulk transactions or costly.

Recipient payment details verification

One of the common issues with payouts and transactions is wrong recipient information or claims about not receiving the payment. For businesses that deal with many transfers every day, manually verifying the recipient information is ineffective.

High chargebacks or processing fee

High processing fees and chargebacks can waste a lot of resources for your business. Bank transfers and ordinary wallet services that are not suited for your needs may charge a little extra because they are aimed at individuals and does not have the infrastructure to support bulk transactions and multiple recipients.

Delay in processing

Business transactions in large numbers and international transactions may take a lot of time. There are often two to three days of delay in international bank transfers. Even wallet services may sometimes cause a delay while dealing with international transactions.

Operational involvement

Bank transfers require a high level of operational involvement, and wallet services also offer claim withdrawals. Operational involvement requires more effort from the business and makes it ineffective for payouts.

Foreign inward remittance statement FIRS

International transactions require Foreign inward remittance statement FIRS. This document serves as proof of a foreign transfer to the recipient from India. Transactions without this document may face difficulties in export-related incentives, custom duty exemptions, refunds on service tax or other financial assistance.

Charges for recipients

In some cases, payment processing services may charge the recipient for the processing. In some businesses, this may cause a loss of customers and issues with customer satisfaction.

Need for a Payment support team 

Customers expect the business to offer payment support. They want to talk or reach out to someone if there are any queries or issues with the payment. Creating a payment support team that can monitor and support all transactions is inefficient for small and large businesses. Small businesses can’t afford to run payment support most of the time.

Using a payment service that can handle global transactions and bulk transactions can help businesses. One of the best payment service providers that offer global and bulk payout services is Cashfree. You can check out their services at https://www.cashfree.com/payouts

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