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Digital payments and Merchant Challenges

Written by  Siddarth Tuesday, 30 May 2017 12:06

Let’s accept it. While we keep hankering for digital payments at every merchant, the merchant faces a lot of challenges. Some of the common ones are:


  • Technical Knowledge
  • Lack of clarity in the risks involved and their relevant mitigation
  • Lack of knowledge on security standards
  • Lack of proper communication between the payment processor and the merchant And more.

Let’s take up the first two for discussion in today’s blog.


Most of the merchants lack technical knowledge of payments system and require a third party for assistance about these terms. The same is applicable for merchants who use a hardware device (EDC,Swipe etc) and online payment options such as gateways etc. Most of these merchants are small and cannot afford to have a full time technical team.

Some of the challenges include

  1. How do I ensure that there is network connectivity on my EDC machine?
  2. If I am using a dongle, where do I hook it on to my phone?
  3. If I don’t have a smartphone, how will my dongle work?
  4. What if the transaction is in process and the machine switches off?
  5. How should I enter the amount in the machine? Is there a button for decimals?
  6. How do I integrate a payment gateway?

These and more are very basic questions that a merchant ends up asking. Any payment service provider would do good if they are able to answer all of the above and more, also helping the merchant with a very simple easy to use guide.


Any digital payment has the element of risk involved. The most common risk involved is when the instrument used does not belong to the customer who is purchasing the product. In such cases, the person whose card has been charged raises a complaint with his/her bank to cancel the transaction. This scenario occurs both offline and online as well. Such transactions lead to disputes and charge backs.

Another form of risk that materializes is security of the device and the portal.  Merchants must ensure that the devices that they use (swipe machines , computers etc) do not have any card skimmers, malware etc that can compromise the security of the payment system.

Merchants would be well advised to use a payment system that
  1. Is certified by PCI , the de-facto security standard for payment processing.
  2. Is regularly audited by external security auditors to ensure the integrity of the system.
  3. Has immediate support available, in-case of any issues.

Are you a merchant who is accepting digital payments? If yes, do share your concerns as well. If no, do share the same with a merchant that you know.  We’d like to hear from them on their concerns and the remedial measures they adopt.

Read 1547 times Last modified on Tuesday, 30 May 2017 12:14