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Balancing growth & Fraud prevention in APAC with online merchant account

Friday, 24 Jun, 2022

The APAC economy is emerging as a new leader in global trade. Ecommerce in this region has flourished extraordinarily leading to the booming of digital payments and cross-border transactions via the internet. However the fraud trends also evolve simultaneously, resulting in the need of balancing business growth and fraud prevention. Now e-commerce companies in APAC can leverage the advantages of online merchant accounts to approach the new solution.

Balancing growth & Fraud prevention in APAC with online merchant account

Balancing growth & Fraud prevention in APAC with online merchant account

Topic Discussion

Asia Pacific is expected to outperform the rest of the globe in terms of ecommerce spending, accounting for 64.3% of worldwide spending.

However, as ecommerce expands, so does fraud. According to a FIS survey, 84 % of merchants in APAC have experienced revenue losses as a result of payment fraud, with synthetic identity and account takeover being the most common causes of operational and revenue losses.

What are the best practices in fraud detection that won’t scare away the customers while protecting the organization from large financial losses?

APAC digital payments trends

Several factors (selectively captured below) had provided a clear path for continuing payments growth across Asia as we approached 2020.

The rapidly growing number of connected and digitally active consumers was the most important of these, with flourishing e-commerce markets increasing the need for digital solutions. With the advent of tough new companies such as telecommunications corporations, fintechs, "big technologies," and other conglomerates, the competitive landscape was heating up at the same time, prompting incumbents to step up their own innovation efforts.

Meanwhile, policymakers worked to standardize infrastructure while encouraging competition, promoting real-time payments, digital know-your-customer (KYC), and a variety of local payment schemes.

Promoting real-time payments, digital know-your-customer (KYC)

Promoting real-time payments, digital know-your-customer (KYC)

According to a research of McKinsey & Company, There are 7 emerging payments trends across emerging and developed Asia:

1. Digital wallets and QR codes will be the norm in the future.

The current momentum gained by e-wallet providers and QR-enabled solutions is projected to accelerate the shift away from cash, especially in emerging economies, with contactless payments serving as a driving force in developed Asia. Account-to-account transfers are also projected to become more common.

2. The battle between banks and platforms will become more intense.

Banks have a “bonus”: they can win developing Asia by using their e-wallets. Platforms surpass at providing a positive consumer experience. In developed markets, experts view digital ecosystems (e.g., Kakao in South Korea) and big tech players (e.g. Google, Facebook) as better positioned to prevail, given the superior user experience and ubiquitous reach of “super apps” (which address the full array of consumers’ digital needs) offered by these players and increasingly connected to funding sources like bank accounts and credit cards.

3. Current-account relationships will decouple.

Due to the reduction of friction and transfer time, many users have chosen e-wallets rather than current accounts. As a result, banks in other regions have already begun the rebundling process, offering more added value to the product features which are not necessarily relevant to financial service in order to enhance customer experience.

4. With new business strategies, acquiring will see a return.

Lower merchant discount rates (MDRs) and faster settlement will enable smaller merchants to adapt quicker in online business. There will be more medium and large enterprises join the online acquiring industry, leading to an intensive competition between local legacies and global providers.

5. Physical infrastructure will become less important.

Banks can pursue a utility model, outsourcing, or pooling ATMs when cash demand drops. Banks, on the other hand, might serve as a service provider for digital currencies by offering local clearing and settlements.

6. Bilateral cross-border partnerships will accelerate.

Cross-border payments in Asia are expected to wide spread like SEPA (Single Euro Payments Area) in European countries. In addition, regional ecosystem players could provide comprehensive cross-border services to other neighboring countries or regions.

7. Consolidation could drive value-chain “horizontalization”

64% of survey respondents expect consolidation along the value chain. For instance, ecosystems purchasing issuers and payment gateways will combine together.

The challenges digital payments

As a survey information of Business Insider India , the payment industry in APAC region is facing huge challenges in tackling fraud trends.

  • According to a new survey by FICO in Asia Pacific, four out of five banks believe that the advent of real-time payments has resulted in an increase in fraudulent transactions.
  • More than half of the financial institutions polled believe fraud will rise in the coming year.
  • Social engineering is a typical approach for hackers to go around the system by tricking people into disclosing sensitive information.

The nine most common examples of social engineering are:

  1. Phishing: is a method of stealing information using false emails, websites, and text messages.
  2. Spear phishing: Email is used to carry out targeted assaults on individuals or businesses.
  3. Baiting: is a type of social engineering attack that promises a reward to the victim.
  4. Malware: Victims are duped into believing that malware has been installed on their computer and that it will be deleted if they pay a fee.
  5. Pretexting: is the use of a fictitious identity to deceive people into divulging personal information.
  6. Quid pro quo: uses an exchange of information or services to persuade the victim to take action.
  7. Tailgating: is a method of gaining physical entry to a secure structure or region by relying on human trust.
  8. Vishing: urgent voicemails persuade victims that they must respond immediately to avoid arrest or other danger.
  9. Water-Holing: is a sophisticated social engineering assault that uses malware to infect both a website and its users.

New Security Standard for Asia’s E-Commerce

With the rise of online commerce, Asian banks and payment service providers have shown a strong desire to implement 3-D Secure 2.0, or 3DS2. This is an enhanced version of the 3DS authentication protocol for card payments that provides higher security and a more seamless shopping experience.

The rise of e-commerce in APAC countries has impacted significantly on merchants. Nowadays, online businesses need to care more about the rate of cart abandonment, friction in online payment and customer experience. Therefore, seamless flow in checkout payment is very crucial. Online transactions are safer and smoother with the new version of 3DS, improving both consumer experience and income for merchants.

New Security Standard for Asia’s E-Commerce - Online merchant account

New Security Standard for Asia’s E-Commerce - Online merchant account

Gain trust with online merchant account

Operating an internet business comes with massive difficulties that every leader has to confront. It is more challenging when it comes to protecting personal data of customers and exceeding customer expectations.

Gain trust with online merchant account

Gain trust with online merchant account

What is merchant account?

Online merchant accounts are indispensable parts of e-commerce. Normally, we understand the definition of “What is merchant account?” only on the surface. In deep, an online merchant account is more than just a user account for merchants to manage online transactions from customers.

An online merchant account is a business bank account or company bank account that enables an online business to accept and process credit/debit card payments. Online merchant accounts require a partnership between a company and a merchant acquiring bank, which handles all communications in an electronic payment transaction.

Apart from accepting payment cards, online merchant accounts also support e-commerce firms that handle more types of payment methods such as e-wallets, cryptocurrencies, internet banking transfers and more.

Online merchant accounts are key components of e-commerce. They act as fund management tools that enable merchants to collect electronic payments on their e-commerce websites and withdraw funds to their bank accounts. Besides, online merchants can also track transaction reports in real time, chargeback rates, etc. in detail.

How does a merchant account work?

When customers make a purchase, the funds must first be authorized and processed before they can be deposited into the merchant's account.

A few safeguards are in place to protect merchants from card fraud and to ensure that the consumer has the funds to pay for merchants. The money is paid directly to the merchant account after their customers' card payments are checked following the transaction.

Most merchants rely heavily on merchant accounts to run their businesses. When it comes to selecting a merchant account service provider, merchants have a number of options, with transaction costs playing an important role. Merchant acquiring banks, which work with merchants to facilitate electronic payments, provide merchant accounts.

If a brick and mortar business chooses not to accept electronic payments and only accepts cash, they do not need to open a merchant account and can instead rely on a basic deposit account at any bank. However, because electronic payments are the only option for online businesses, they must establish merchant account partnerships as part of their business operations.

Why do I need a merchant account?

In this part, we will help you to answer the question “ why do you need a merchant account?”. When you run an ecommerce business, you need to open a merchant account. If you apply for merchant account online, then there will be numerous merchant account benefits to discover.

Merchant account benefits

  • Improves cash flow
  • Increases sales
  • Remains competitive in a challenging market
  • Checkout Payment
  • Account Management
  • Custom Payment Page
  • Mobile and Tablet Payment Page
  • Risk Management
  • Real-time Risk Management
  • 3D Secure Transaction
  • Fully PCI DSS compliant
  • Tokenization
  • Multi Currency support
  • Diverse payment methods acceptance

Merchant account fees

There are various pricing packages available when you apply for merchant account online. At PayCEC, we offer some merchant account fees depending on your business needs.

Standard Premium Service
Overseas representative offices and international subsidiaries are available to experienced merchants looking to massively expand up their company. All in one solution for your business needs.
  • Everything you need for online business
  • Take advantage of hundreds of up-to-date powerful features
  • Optimize profits in the international market (including: USA, Europe, Middle East, India, Singapore, Hongkong…)
Learn more
  • Marketplace platform support
  • Incorporation & banking account consultancy
  • Ideal for startups and SMEs
  • Cost-Effective
  • Rich Ecosystem
Learn more

How to apply for merchant account online?

To apply for merchant account online, you can visit paycec.com and follow the simple steps below.

Step 1: Enter information

Sign up with PayCEC team by click to [Sign up] button on paycec.com

Step 2: Document submission

Prepare your company profile including:

  • Company website
  • Business information
  • Business activities

Step 3: Integration support

PayCEC Relationship Manager will contact and support you in onboarding and merchant account integration

Step 4: Go live

Use full features of payment service and ongoing 24/7 maintenance support

For more information, you can contact our relationship managers to have detailed consultation and online support via email [email protected].

Read more:

About us

PayCEC was established in response to the growing need of businesses to accept online payments more quickly and easily. In the new media era, our payment flow has evolved to work seamlessly and effectively across all platforms and devices. We pride ourselves on combining superior technology with first-class customer service.

PayCEC is a truly global payments platform that not only allows customers to get paid but also withdraws funds to their Business accounts in various currencies.

We have created an open and secure payments ecosystem that people and businesses choose to securely transact with each other online and on mobile devices.

PayCEC Team

Frequently Asked Questions

You'll need a merchant account to start accepting credit and debit card payments online. Not just any merchant account will do - you'll need one designed specifically for the rigors of ecommerce, from a service that allows you to take payments in a variety of currencies and with a variety of card kinds.

Besides, the customer experience is also crucial when it comes to eCommerce. To avoid cart abandonment, the merchant account must have the ability to accept various types of digital payment methods and protect customers' data with 3D secure.

Learn more about PayCEC merchant accounts.

You can accept credit and debit cards, as well as ACH payments, on your website with an eCommerce merchant account. Simply explained, a merchant account is a contract between a retailer and a credit card processing firm that allows you to accept payments quickly, easily, and securely.

Merchant account for eCommerce also plays as a business bank account for eCommerce companies to collect funds from customers payments and store funds for merchants. Online firms can withdraw money from merchant accounts to any designated bank account.

Merchant accounts include a merchant management dashboard to help clients keep track of their business status, purchasing trends from buyers and predict any propensity.

Simply fill out our application form to start a merchant account online, and our team of specialists will take care of the rest! Your safe account guarantees rapid payment settlement, whether you run an internet-based business, an online shop, or a number of small companies.

Learn more.

The answer is yes if you are looking to expand your business and also your customer base. By processing payments electronically, customers can freely shop online or in-store, and payments are received in just a second of time than cash, or other traditional payment methods.

If you wish to use a payment gateway to conduct transactions from your website, you'll need a merchant account. Customers who want to make a payment can use a payment gateway to connect with a bank or merchant account provider who will handle the transaction. It processes transactions with encryption and data protection.

In order to process payments, you'll need a merchant account as well as a payment gateway. Here's a quick rundown of the major distinctions between the two. A merchant account is a type of holding account that collects information about payment transactions.

There are some erroneous conceptions commonly about the difference between payment gateway and merchant account, the business only requires one or the other. Actually, they serve 2 specific different functions: while the payment gateway brings a desired condition for online transactions and allows merchants to process them, the merchant account is a holding account which those payments first being sent to before being deposited into the regular bank account.

Learn more.

A merchant account is a sort of company bank account that lets companies accept electronic payments like debit and credit cards. The merchant account serves as a link between the online card payment and the money being deposited into a business account.

  • How does the merchant account work?

When customers make a purchase, the funds must first be authorized and processed before they can be deposited into the merchant's account.

A few safeguards are in place to protect merchants from card fraud and to ensure that the consumer has the funds to pay for merchants. The money is paid directly to the merchant account after their customers' card payments are checked following the transaction.

Most merchants rely heavily on merchant accounts to run their businesses. When it comes to selecting a merchant account service provider, merchants have a number of options, with transaction costs playing an important role. Merchant acquiring banks, which work with merchants to facilitate electronic payments, provide merchant accounts.

If a brick and mortar business chooses not to accept electronic payments and only accepts cash, they do not need to open a merchant account and can instead rely on a basic deposit account at any bank. However, because electronic payments are the only option for online businesses, they must establish merchant account partnerships as part of their business operations.

The price of a merchant account depends on different payment service providers. And the fees are subject to change from time to time.

To get the most updated information in terms of Fees and charges, please visit here!

A merchant account is a type of business bank account that allows a company to accept and process credit card transactions electronically. A merchant account necessitates a partnership with a merchant acquiring bank, which handles all communications related to an electronic payment transaction.

While a business account is simply a banking account opened for companies to make transfers or receive money from other accounts via domestic fund transfers or wire transfers, not acquire credit or debit card payments.

A merchant account is a bank account that has been set up expressly for business use and allows businesses to accept and process payments. For instance, merchant accounts enable businesses to accept credit cards and other electronic payment methods.

Merchant account examples:

PayCEC merchant account is an example of merchant account for your reference.

The secure payment gateway from PayCEC was created in response to the expanding demand from international internet businesses to take payments more swiftly and conveniently. Our payment process has developed to operate effectively and effortlessly across all platforms and devices in the digital age. We take great satisfaction in combining cutting-edge technology with outstanding customer support.

PayCEC’s secure payment gateway for online businesses is a truly global payments platform that not only allows customers to get paid instantly and securely, but also withdraws funds to their business accounts in various currencies.

Entrepreneurs and businesses may safely transact with each other online and on any device thanks to the open and secure payments infrastructure we have built. In the industry, we proudly uphold the highest standard of client advocacy.

PayCEC Team

When a credit card or debit card transaction is processed, the following procedures are taken:

1. A payment gateway is used to complete the transaction.

A payment gateway is a distinct system from a merchant account that checks to determine if the cardholder has enough money to complete the transaction. A payment gateway is required if your firm accepts credit card payments over the phone or through an online portal: A keyed-in or card-not-present transaction is completed online with the help of a payment gateway that connects to the credit card company.

2. The customer's account gets debited with money.

If the transaction is accepted, the merchant account deducts the purchase amount from the customer's bank or credit card account, after deducting the transaction charge, which is normally 3% to 5% of the total. The fees differ based on the method of payment. For example, transaction costs for American Express are often greater than for Visa or Mastercard.

3. Funds are transferred to your business account.

The money is then deposited into your company's bank account by the merchant account. Instead of being made immediately after a transaction, these deposits are normally made in batches at the end of the day – or even less often.

4. Customers have a problem with the purchase.

If a client disputes a transaction, the merchant account will need to pull transaction data to verify it. There is usually a charge for this. If a refund is necessary, the merchant account provider will handle it, taking money from your account and placing it into the customer's one. Often, there is an additional charge for this stage.

Merchant Account Providers enable businesses to accept debit and credit cards as a form of payment for goods and services. This can be done in person, over the phone, or over the internet.

PayCEC is a global merchant account provider that can help your store set up online business via the internet. Learn more.

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About us

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We are honored to serve as your reliable business partner and financial service provider in the industry and other business-related services. With the help of our professional staff, to help merchants to achieve their goals for the development and expansion of the international business market.

Our payment flow has developed in the e-commerce world to perform seamlessly and effectively across all platforms and devices. We take pleasure in combining technology with customer service, to solve your concerns at the moment.

PayCEC is a fully worldwide payment network that not only allows merchants to be paid immediately and securely, but also allows them to withdraw money in multiple currencies to their company accounts.

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