Real-time refunds are necessary! 58% of British consumers are deeply affected by this feature

The refund issue is a cruel and realistic problem for e-commerce practitioners, but in the fierce e-commerce environment, how to turn the refund issue into a favorable factor?

Checkout.com's VP of Product spoke about the importance of payment options for online shopping and outlined the various ways e-commerce platforms can increase customer loyalty when it comes to refunds .

As the e-commerce industry continues to develop, online payment is an issue that companies need to pay special attention to. As a cross-border e-commerce company , you need to have a special understanding of the local payment ecosystem and establish systems and processes to optimize the entire payment process .

Although the issue of returns and refunds is unpopular with sellers, it cannot be ignored. Klarna's research found that 84% of shoppers said they would not shop online again if they had a bad return experience .

Therefore, a simple return and refund process is very important for merchants , and a convenient and fast refund process can better ensure customer loyalty .

Ensuring refunds are returned to customer accounts in full and in real time is extremely important and a key driver of consumer loyalty, with 86% of European e-commerce retailers also stating that this is an issue that provides a significant competitive advantage.

However, in the reality of refunds, many businesses still use traditional payment methods such as bank transfers to refund consumers. As a result, most payments, especially cross-border payments, are still slow, expensive, and fall short of the standards that consumers now demand.

So how can businesses deliver on these customer expectations and use refunds as a driver of customer loyalty and sustainable revenue?

The speed of refunds determines customer loyalty and the number of repeat purchases. A survey by Raconteur found that 58% of British consumers said they would spend more at an online store if the refund was received in real time.

However, traditional payment methods such as cheques and bank transfers cannot provide consumers with the instant refund they need . Therefore , businesses should consider alternatives, which may include using real-time bank payments such as SEPA Instant. Or using card payments using Mastercard Send and Visa Direct rails.

An easy-to-use refund process, leveraging cross-border payment channels built for the 21st century, provides the best chance for payment success. Doing so will reduce the burden and costs associated with exception handling for payers and ensure that payees have no reason to have a negative perception of the brand.

Companies must also consider how to make payments quickly, transparently and efficiently, especially to consumers overseas. Get it right, and the prize is reduced costs, increased brand loyalty and customer lifetime value, all of which translate into more sustainable revenue.

Cross-border e-commerce

The need for real-time refunds

Influencing consumer behavior