Online payments require the participation of multiple parties. The entities communicate with card networks and banks to ensure payment completion, and both the issuing bank and the one getting credited get involved during the process.
With so many stakeholders involved, there are chances of delays in completing a payment. That is because the late response from any one of the parties can reduce the speed of the entire process and affect business operations.
It exceedingly impacts businesses that deliver products or services based on the payment end-state.
The problem that we mentioned above is the reason behind the use of Real-time Reconciliation. It helps your business deliver its products or services faster and reduce the payment uncertainties that delay the process.
It allows you to get to a decisive terminal state for transactions within a short and predefined time. It can enable you to decide on whether the product or services should get offered or not.
This feature can be especially beneficial for those of you who offer products or services with dynamic pricing. For merchants like you, delays in payment confirmation can affect your business more profoundly.
Real-time Reconciliation can help you evade this problem and receive payments within a specific time.
Read on to find out how it can benefit you and your customers in other ways -
To understand the advantages more clearly, let us take the example of a travel agency.
For a business like this, which books flight tickets to customers, any delay in the payment confirmation can affect the booking due to fluctuating ticket rates.
If you run a travel agency, you can understand how ticket prices are highly dynamic and susceptible to quick price changes.
Therefore, in such a case, you should be able to get a payment confirmation within a specific time to proceed with the booking. RRT can help you do that. You may wonder how?
It allows you to define a specific SLA and the platform offering the payment gateway makes sure that the payment’s end-state arrives within the requisite period. The SLA can be anytime between 10 minutes to one day.
One of its significant features is that you get notified as soon as the transactions arrive at the terminal state. That can be incredibly beneficial as it allows you to ensure that your products/services get fulfilled without any payment uncertainties.
With Real-time Reconciliation, you get a definite response about your payment status within the predefined time frame.
You can view the real-time status of each payment and provide the service accordingly
In case any transaction fails, the customer can get their money back automatically, saving you from a lot of hassles like processing process etc.
You do not need to pay any TDR charges for transactions that fail to become successful. In short, you can enjoy zero cost refunds
However, there is one thing you must keep in mind. That even though Real-time Reconciliation offers a definitive terminal state for payments much faster, it can sometimes marginally affect the transaction success rates.
That usually happens if the reconciliation time is kept very low. So if you want to enjoy the benefits of Real-time Reconciliation and improve customer experience, you should set your reconciliation time configuration accordingly.
Allowing at least ten minutes for delayed but successful payment confirmations to reflect can help you optimise your success rates effectively.
Let us now look at the benefits that it offers to customers -
Your customers who make a payment and cannot see a successful payment status usually do not have access to view the transaction status. Real-time Reconciliation allows them to do that by providing complete visibility on the transaction status.
For example, if a customer makes a payment at your e-commerce store using their UPI ID, the money gets deducted from their bank account. But let us say the order does not get successfully placed at your online store.
Now, a situation like this can leave a customer confused as it does not give them clarity about the status of their payment and whether they should go ahead and place a new order or not.
Most often, they have to wait for the expenditure to show up. In other words, it can frustrate them and lead to a bad customer experience.
However, with Real-time Reconciliation, your customers can get complete visibility of the transaction status within a specified time.
They can know whether their payment was a success or not and decide on their next course of action based on that.
If you opt for a platform like North Loop, you can enjoy this feature automatically. The default reconciliation time is 24 hours, but you can change the time frame according to your convenience and choice.
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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.