Podcast: Payment Optimization with Rey Pasinli

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webmaster-radio-1.jpgIn this episode of Landing Page Optimization, Tim Ash chats with Total-Apps Executive Director Rey Pasinli about checkout best practices and the future of payment processing.

Payment Processing Challenges

Tim begins the discussion by pointing out that payment companies can be an obstacle to conversion. Typically, a Content Management System (CMS) allows you to use WYSIWYG to reconfigure the whole site except the checkout process, and so you can’t try different versions of it. Rey recognizes that this is a problem because as a web master, you need to do A/B split testing to optimize the checkout process. He stresses the importance of checkout optimization and shares that he’s seen clunky checkouts kill conversion ratio by 90% .

Rey notes that the challenge is, if you’re not doing payments day in and day out, you’d have a hard time optimizing the address verification system (AVS) and the card verification value (CVV), and identifying which form fields you can eliminate.

Archaic Verification Method

AVS, Rey explains, ties the street address and the zip code of the cardholder’s billing address to the transaction to ensure the transaction is not fraudulent. However, he points out that with the pervasive amount of stolen credit card information, AVS is useless.

Tim cites, as an example, the data breach at Target where 70 million customer records, including home information, were stolen. Rey adds that credit card data is available in the net black market for about 8 cents a complete record. He says AVS was put in place many years ago when there wasn’t any other fraud scrubbing technologies. Today, however, there are more robust solutions, that AVS has become more of a hindrance than a benefit.

Payment Processing Best Practices

Rey observes that a lot of customers don’t know what CVV is, and so web masters should put where to find the CVV with the button that shows the blown up picture of a credit card circling in red the 3 or 4-digit security code on the back of the card.

He also suggests putting a simple script onto the checkout page that identifies whether the customer is using a Visa, Mastercard, or American Express based on the first digit of the card number. This way you can eliminate the radio button asking the customer what type of credit card they have. He says every extra step or every extra form field that needs to be filled out kills conversion.

Tim, however, says that although minimizing the number of required fields in forms and checkouts is generally a best practice, tests show that having a radio button with the picture of the Visa, Mastercard, or Amex symbol ahead of the card entry field performs better than when the radio button is removed.

Mobile Optimization Techniques

Mobile transactions are expected to exceed a hundred billion in 2017, so mobile checkout optimization should be a priority. The problem, though, is that people hate filling out forms on mobile because of the very limited space to type into form fields.

Rey says one simple way to eliminate the need to input the vast majority of data is by getting the customer’s permission to log into their Facebook account via the API, so you can pull the information that you need for the checkout. You then present the information to the customer and ask them if it’s correct. Though some people might be hesitant about using social log-in for fear of the application getting all their information, the inconvenience of having to manually type in the information generally makes people decide to log in.

The key to mobile checkout optimization is eliminating as many fields as possible. Example, if you’re selling digital or non-physical products or services (e.g. e-tickets, crowdfunding, e-books), it makes sense for you not to require the billing address information. You can simplify the checkout process by just asking for the name, the credit card number, the expiration date, the CVV, and the e-mail address.

The Future of Payment Processing

Rey shares that Total-Apps is advocating for the no-click checkout. This means that once the customer registers, they can seamlessly checkout at any point in time without logging in and without entering any credit card data.

He says the Amazon system recognizes the IP and the computer every time a customer logs in. This enables the customer to have an expedient checkout process. Total-Apps plans to use geo-tagging and geo-fencing to allow them to identify a smartphone and where it’s physically located. Rey says this is important because, for example, if someone is making a transaction in Los Angeles, California, then a month later their credit card is geo-located in Nigeria, then you’re obviously going to have fraud concerns around that.

Rey mentions that the availability of device finger printing makes it possible to identify a specific device (through their MAC address, hardware configurations, software settings, etc.) and separate it from every other device connected to the internet. It’s a digital finger print, so if a customer registered with a certain phone, and they’re using that phone and the credit card they registered on it, then you know they're the right person, unless that person lost his phone or lost the password for their mobile.

Total-Apps is also in the process of creating a no-click checkout through a biometric voice checkout for mobile. The idea is when the customer comes to a mobile checkout page, they’ll be asked if they want to pay with a credit card, with PayPal, or with voice. They can register at that time, and they’ll be presented with five pre-selected sentences that they would use as their code word. The next time the customer comes to a mobile checkout, all they need to do is say their pre-recorded message, then Total-Apps will biometrically identify the person, match it to the credit card on file, and match it to the cellphone that the customer originally registered with.

First Air Date: March 17, 2014

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