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StreetSmarts

Stop losing chargebacks

Different origin stories, but the same formula for No merchant should be afraid of accepting foreign credit
success: cards in the 21st century; we need to do a better job of
helping them manage risk. The card brands have always
• One merchant ID for local and global pay- said that we're in a global economy, but they certainly
ments. don't treat chargebacks that way.

• Smart routing that finds the best processing Right now, if a U.S. merchant accepts a card from another
path every time.
country and the cardholder initiates a chargeback, there
• Integrated risk tools designed for global com- is a zero to 1 percent chance of that merchant recovering
merce. the funds.

• Merchant-first design, removing complexity I had a merchant sell $20,000 of makeup to a company
at every turn. in Japan, and the company claimed it never received the
package. My merchant had proof of delivery, and it didn't
• That’s why traditional providers are losing matter. The chargeback went through anyway and that
ground, and unless ISOs and MLSs act quick- was that.
ly, the erosion will continue.
I've seen this happen again and again, especially here in
So, competitive products need to be better, not just South Florida where international tourists buy things in
equal. That means: person, which are not as easy to charge back as ecommerce
and key-entered transactions, but that doesn't stop them
• Higher payouts and fairer margins so agents from trying.
don’t lose money on international accounts.
Stop wasting time
• Chargeback systems that work globally, giving
merchants confidence to accept foreign cards With more players coming into the U.S. market, ISOs need
without fear. to figure out intelligent routing for international pay-
ments. Time is of the essence. We can't sit back anymore
• Streamlined onboarding and support, so even and watch these companies take away all that business.
small merchants can go global without extra
IDs or apps. Agents, stop sitting around and waiting for the interna-
tional option to be available. We can't sell what we don't
• AI-powered routing and data-driven insights have, and we're losing too many sales. Send emails, bring
that match or surpass what Stripe and Adyen it up at meetings and show management the deals you are
already provide. losing.

ISOs need to invest in orchestration technology, forge ISOs, stop treating international payments as a solution
partnerships with acquirers worldwide, and view for large volume merchants. Shopify, Stripe, Ayden and
cross-border not as a perk for high-volume merchants, Checkout certainly don't see it that way. They offer simple,
but as a baseline service for everyone. single-account payment processing to all clients, includ-
ing mom-and-pop stores.
If Shopify, Stripe, Adyen and Checkout can make
cross-border payments invisible and profitable, so Let's end the restrictions, elitism and dual-merchant-num-
can you—if you choose to act. ber madness and make international payments available
to U.S. ISOs, MLSs, merchants and consumers. Let's solve
this issue once and for all.
would enable us to create a single merchant ID for all
transactions. These technologies use algorithms, data and Want to know more? Keep reading The Green Sheet and
AI that run in the background, directing each transaction consider following me on LinkedIn, where we can share
to the best possible payment processor, gateway or ideas and support each other.
acquiring bank.
Smart routing capabilities dynamically assess transactions Allen Kopelman, a serial entrepreneur, is co-founder and CEO of
by amount, currency, location, card type, issuer bank Nationwide Payment Systems Inc. and host of B2B Vault: The Biz
behavior, regulatory environments, degree of risk and to Biz podcast. Email him at allen@npsbank.com and connect on
per-transaction fees. All of this happens instantly and LinkedIn https://www.linkedin.com/in/allenkopelman/ and
invisibly, creating a better experience for everyone in Twitter @AllenKopelman.
the chain, from processor and acquirer to merchant and
consumer.
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