Payment methods to improve customer experience

Payment methods to improve customer experience refers to using a variety of secure and easy-to-use online payment options like credit and debit payments and ACH payments. By offering these choices, businesses make transactions quicker and simpler, helping customers feel more comfortable and boosting loyalty. This approach improves the shopping experience, leading to fewer abandoned carts and higher sales.

You’ve spent great time and effort working on a user-friendly website with innovative products. Don’t disappoint your customers with a poor payment experience at the last step. Providing a wide selection of easy-to-use, secure payment methods ensures that your customers have a good experience throughout the payment process.

Below are a few tips to help you improve the customer experience of your payment process.

1. Understand shopping cart abandonment

To solve the unique problems your customers might be experiencing, it’s first helpful to examine the reasons behind shopping cart abandonment. So, why do customers put items in their cart only to navigate away from the page? Here are a few frequently mentioned reasons:

• The payment method of choice is unavailable

• Forgotten password

• Required site registration

• Payment method declined

• Redirection to a third-party website

• Lack of trust in payment security

You must solve these issues with your payment process to improve the customer shopping experience.

2. Choose the right types of payment methods

What happens if a website only accepts PayPal, which the customer has had a bad experience with? They’re unlikely to complete the sale. If you want to provide the best possible customer experience, you need to offer a variety of payment methods to choose from. 

For this example, along with PayPal, you should enable card payments and electronic bank transfers at a minimum. Compare payment processors carefully to find out which payment methods are supported.

You could ask our customers which online payment methods are preferred using a quick survey. This can help you simplify and streamline your payment solution.

3. Enable multi-currency payments

You must consider currency exchange if your business sells to an international client base. Is your payment gateway capable of handling payments in multiple currencies? Are the exchange rates easy to understand and fair? Are there added fees? 

Does your website display products in the local currency? If not, it’s time to change payment methods. Accepting payments in multiple currencies builds trust and makes the process run more smoothly for customers abroad.

4. Fight declines with alternative payment methods

Many websites only accept credit card payments, but what happens when a credit card is declined? This is a major reason for a customer to abandon their sale. To solve this problem, you should ensure your payment processing form is easy to understand. 

One of the primary reasons for declined card payments is incomplete card details. Ensure your payment technology is compatible across multiple devices to ensure your checkout process works quickly and well, regardless of the smartphone make and model.

However, in addition to finding ways to prevent declined payments, you should also look at offering alternative payment methods. If one method is declined, the customer can change payment methods with secondary options to fall back on. With digital technology, there are now more outlets than ever, including QR code payments, mobile wallets, and payment apps.

GoCardless offers a genuine alternative, with natural advantages for businesses and consumers, in the form of an ACH bank payments option. ACH payments offer merchants lower fees, more automation and higher payment success rates, which means time and money saved.

5. Ensure payment methods are secure

Security is paramount to a user-friendly checkout experience. If your website is suspicious, customers are unlikely to return. At a bare minimum, add an SSL certificate and Digital Secure Remote Payments (DSRP) with cryptography to protect card details. Display these certifications clearly on your website to build trust. Consider building in layers of biometric authentication if selling via mobile apps, such as fingerprint scans and facial recognition. This also helps solve the problem of a customer forgetting their passwords.

Key takeaways

To mitigate the problem of shopping cart abandonment, businesses must focus on improving their online payment methods. 

Key issues to address include: 

• the unavailability of the customer's preferred payment method, 

• forgotten passwords, 

• required site registration, 

• payment declines, 

• redirection to third-party websites,

• lack of trust in payment security. 

By offering a variety of payment methods, including bank payments, businesses can cater to customer needs and preferences for trusted and secure payment options. 

For companies with an international client base, enabling multi-currency payments can further enhance the customer experience by offering local bank payment options that are more familiar and more trusted. 

It's also critical to ensure that the payment methods are secure, leveraging technologies like SSL certificates, Digital Secure Remote Payments (DSRP), and biometric authentication. 

Offering a range of secure, convenient online payment methods can streamline the process for customers, thereby enhancing their shopping experience and fostering repeat business. 

Learn more about how GoCardless can provide your customers with a seamless subscription payment experience while saving you and your business time and money.

PremierePC Technology Group’s case study

PremierePC Technology Group significantly improved customer experience by transitioning clients to ACH debit via GoCardless from traditional credit card payments. This South Carolina-based IT service provider saved over $14,000 in payment fees as a result, freeing up resources to better support staff, services, and clients.

Matthew Rydzfski, Managing Partner of PremierePC, noted,

The decision led to an impressive 90% of clients switching to ACH, reducing credit card payments from 85% of their revenue to less than 3%.

Customers were quickly convinced of the benefits. As Rydzfski explains,

The convenience of setting up ACH mandates either over the phone or online further improved the customer experience.

Rydzfski praises GoCardless for its simplicity, saying,

This case study reveals how PremierePC's shift to ACH payments via GoCardless significantly reduced payment processing fees and, more importantly, enhanced the customer experience by providing a more secure and convenient payment method.

We can help

GoCardless is a global leader in bank payments processing £30b worth of transactions for 75,000 businesses. By automating payment collection with GoCardless, businesses can provide a secure and flexible payment option for customers whilst reducing manual finance admin and late and failed payments.

GoCardless offers local bank payment options in over 30 territories, including the USA, EU, UK, Australia, and New Zealand. Offering local payment methods has been shown to increase sales in overseas markets.

It's quick and easy to start with GoCardless, and as no contracts or long-term commitment is required, you have no risk. You can connect to GoCardless via over 350 partner apps like Xero and Quickbooks.

GoCardless implements several robust security measures to protect customer data. Access to bank payment systems is provided by major banks, which have thoroughly vetted and approved GoCardless systems. GoCardless also holds ISO 27001 certification, an internationally recognized standard for information security. Lastly, GoCardless partners with banks to ensure that all collected funds are securely held in a client's monies account in accordance with safeguarding provisions.

Discover how GoCardless can help optimize the customer payment experience, making it easier to concentrate on what matters most - your business growth.

Frequently Asked Questions — FAQs

What are the methods for improving customer experience?

Improving customer experience in payments involves providing a variety of options, including ACH for direct debits, BECs for secure business transactions, and standard credit/debit card processing. Enhancements such as mobile payments, user-friendly interfaces, and fast-loading payment pages help reduce cart abandonment. Transparent pricing, installment options, and strong security measures like SSL encryption and two-factor authentication further elevate the customer experience.

How can I improve my payment experience?

To improve your payment experience, diversify your options with ACH for direct debits, BECs for secure business dealings, and standard card processing. Invest in mobile payment capabilities and user-friendly interfaces for seamless transactions. Speed up your payment pages to prevent cart abandonment. Promote transparent pricing and installment options to build customer trust. Lastly, bolster security with SSL encryption and two-factor authentication, enhancing overall payment safety and experience.

What are customers preferred payment methods?

Customer preferences in payment methods vary based on factors such as convenience, speed, and security. Credit and debit cards are often favored in the US due to their wide acceptance and ease of use. ACH transfers are also popular for their low-cost and direct bank-to-bank transactions. Mobile payment solutions like Apple Pay or Google Wallet are gaining preference due to their convenience for on-the-go transactions. Lastly, methods such as BECs are valued for their added layer of security and authentication for business transactions.

What is the most effective payment method?

The most effective payment method depends on the specific needs of both businesses and customers. For businesses aiming to streamline operations and minimize fees, ACH (Automated Clearing House) transfers can be ideal, enabling low-cost, direct bank-to-bank transactions.

However, for customers, convenience, speed, and security are paramount. This often makes credit and debit cards the most effective due to their wide acceptance and ease of use. Mobile payment solutions like Apple Pay or Google Wallet are becoming increasingly effective due to their convenience for on-the-go transactions.

What are the 3 main components of customer experience?

The three main components of customer experience are interaction, environment, and perception. Interaction refers to the ease and quality of communication between customers and businesses, particularly during support inquiries or transactions.

Environment relates to the platform or space where customers engage with the business, including the usability of a website or app, especially during the payment process.

Perception represents how a customer views a business overall, influenced by factors like pricing transparency, service quality, security of payment methods like ACH, Direct Debit, or BECs, and their past experiences.

What are the 4 P’s that improve customer service?

The four P's that improve customer service are Product, Price, Place, and Promotion. 'Product' involves tailoring your offerings, including payment methods like ACH, Direct Debit, or BECs, to meet customer needs and expectations. 'Price' refers to providing value for money, which includes transparent pricing and potentially offering payment plans for higher-priced items. 'Place' entails making your product or service easily accessible, which is an online context refers to a user-friendly website or app with a seamless checkout experience. 'Promotion' covers communication strategies to reach and engage your customers, such as via informative content or effective SEO practices to make your product or service more visible in search engine results.