The credit and debit card industry thrives on payment processors and the services they offer; unfortunately, customer service and support seem to be taking a backseat to other factors for many companies. At Host Merchant Services, we believe there is an unfortunate financial motive at play that explains why this is happening.
Consolidation is one of the reasons customer support seems to be lacking these days among the biggest payment processors. Investment bankers see great potential in this industry, and they are approaching big players to make them even bigger players. And therefore customer service has become a big challenge for payment processors.
Once an investment banking firm starts working with a payment processing firm, the prospect of a merger is never far behind. This is how Wall Street operates, and this is how major payment processors acquire their peers and get bigger. Unfortunately, this is also how customer support goes away.
The problem with these consolidated giants is that their customer support platform begins to suffer through growth. Value-added services start piling up, and the smaller merchants will take them because they are bells and whistles, which are always very appealing. The problem is that these features are offered at the expense of customer support. These companies become so large they have to use call centers where you are put on hold for a long period and speak with representatives who aren’t very helpful or knowledgeable about the industry and your account.
Granted, there is nothing wrong with a processing firm offering some bells and whistles for their customers such as free equipment. This would be a very valuable feature for a smaller business that is either starting or expanding to add a new location. In this case, the merchant would love to get new credit card terminals for free, but what about support for this service?
When payment processors offer too much and get too big, they tend to become merchant technology companies. This is when Wall Street investors recommend scaling back on customer support, which is a costly proposition for processors. This is also when online help desk packages are rolled out to replace call centers. There are some large credit card processing companies out there that don’t even have a phone number to call if you need help or would like to sign up. It’s not even an option, which we don’t think is right.
At Host Merchant Services, we believe that customer support is of greater value than the gimmicks the big guys offer. We also believe that customer support will be the next frontier of the credit card processing industry. Once big processors start losing market share due to inadequate merchant support channels, the industry will once again pay attention to this important aspect of the business.
The Importance of Customer Service In The Payment Processing Industry
In the dynamic world of payment processing, customer service plays a crucial role in ensuring smooth transactions and building strong relationships with merchants and consumers. Why is it so important? A knowledgeable customer care representative can handle difficult customers efficiently and help in the growth of the company. On the other hand, a bad customer care executive can ruin the deal and also destroy the company’s reputation.
Good customer service helps to build trust and confidence in the merchants as well as the customers. And especially when it is about any financial information trusted customer support is crucial. With a skilled customer support team any payment processor can easily develop a sense of reliability and enhance reputation.
Efficient customer service reduces frustration for all parties involved. Imagine waiting endlessly on hold or receiving generic automated responses when you need urgent help! Payment processors that prioritize personalized support not only save time but also ensure that issues are resolved quickly.
Outstanding customer service can lead to increased loyalty from both merchants and customers alike. Building long-term relationships requires going above and beyond mere transactional interactions. By delivering top-notch support consistently, payment processors can create lasting partnerships based on trust.
Any payment processor depends on fast and better payment processing and a strong and reliable customer support and service mechanism.
Quality Customer Service: Biggest Challenge for Payment Processors
1. High call volumes: For any customer service team high call volume is not a positive sign. If the call volumes are high then delays are natural. The delay starts with the call of the customer when no executive is free to take the call. The second part is resolving the issue after understanding the query or problem of the customer. This can lead to long wait times and frustrated customers.
2. Complex technical issues: Payment processing systems are complex, and when something goes wrong, it can be challenging to troubleshoot and resolve the issue quickly. Technical glitches or system downtime can significantly impact customer satisfaction.
3. Lack of communication: Effective communication between payment processors and their customers is crucial for providing quality service. However, there are often gaps in communication channels, leading to delays in resolving issues or providing updates on account statuses.
4. Fraud prevention: Payment processors must constantly stay vigilant against fraudulent activities that could potentially harm their customers’ accounts. Balancing security measures while ensuring a smooth user experience can be difficult.
5. Limited support hours: Many payment processors have limited support hours, which may not align with the needs of all customers who require assistance outside traditional business hours.
6. Language barriers: After globalization, many payment processing services provide their services globally. Language in different regions of the world varies and it leads to a strong language barrier. Language barriers become a significant challenge for customer service representatives trying to assist non-native speakers effectively. For the company, it adds more expenditure to hire and train customer support staff to cater to customers of different languages.
7. Ongoing training requirements: Customer support and services are always evolving. Therefore it is important to update the staff with proper training and orientation regularly. With evolving technology and industry regulations, payment processor staff need continuous training to stay updated on best practices for handling customer inquiries and concerns.
8. Integration issues with third-party software: Some merchants use third-party software that integrates with payment processor systems but may encounter compatibility issues or difficulties during implementation or troubleshooting processes.
9. Slow response time from other stakeholders: Occasionally, resolving certain customer queries requires coordination with external parties such as banks or card networks; however obtaining timely responses from these stakeholders can sometimes pose challenges
Strategies for Improving Customer Service in the Payment Processing Industry
1. Prioritize Training: One of the most effective strategies for improving customer service in the payment processing industry is to prioritize training for your customer service representatives. Ensure that they are well-versed not only in the technical aspects of payment processing but also in providing excellent customer support.
2. Enhance Communication Channels: Customers want quick and easy access to the customer service representative. By offering multiple communication channels like phone, email, live chat, etc can lead to a good customer experience. Additionally, a comprehensive FAQ page on your website can help to answer the most common questions for your customers. Make sure these channels are easily accessible and staffed by knowledgeable representatives who can quickly address any concerns or issues.
3. Implement Self-Service Options: Empowering customers with self-service options can significantly reduce wait times and enhance their overall satisfaction. Provide online portals where customers can access account information, make payments, or initiate refunds without needing to contact a representative.
4. Monitor and Analyze Customer Feedback: Customer feedback is crucial for any company for improvement and growth. Therefore, payment processors should regularly monitor and analyze customer feedback to identify areas of improvement within their customer service processes. Use this valuable information to proactively resolve issues, streamline workflows, and enhance overall satisfaction.
5. Invest in Technology Solutions: Technology is ever-evolving. You should be ready to accept and implement new technologies in your customer service system. AI can easily reduce the burden on your staff by handling customer inquiries efficiently. Technologies such as artificial intelligence (AI) chatbots or interactive voice response systems (IVRs) to automate routine inquiries or provide instant responses outside regular business hours.
By implementing these strategies, payment processors can strengthen their relationships with merchants while fostering loyalty among end-users who rely on seamless transactions every day
