Ecentric manages the card payments for two-thirds of South Africa’s listed retailers and has made significant inroads into medium-sized retailers with both online and in-store payment solutions. Through this experience, we realised we needed to develop an API-driven solution that would fundamentally transform the refunds process.
Why?
Any retailer will know that buying a product is just one part of the equation. People make mistakes, and sometimes the product is just entirely wrong. When this happens, the customer asks for a refund.
Yet, ask any retailer and they will tell you that because purchases are far more complicated than ever before, along with significant changes in customer behaviour, managing refunds across different sales channels has become increasingly complex.
Out in the field, most retailers struggle with inefficient systems which create administrative burdens and customer frustration when it comes to refunds. Let’s assume for a second that someone needs a refund. In most cases, they need to go to the physical store, with the card they used to purchase the goods, and navigate complex administrative procedures. In many cases, they don’t get the refund and walk out with a gift card instead.
The refunds process is awash with pain points for both the retailer and the customer. The retailer needs to manage intricate stock movement, manage administrative paperwork and deal with a customer on the verge of making a public scene. On the other hand, the customer is experiencing frustration through a complex returns procedure.
Card-not-present refunds
Ecentric’s goal was to arrive at a simple solution that is obvious to customers but exceedingly complex for retailers: By leveraging online payment gateways, the solution can process refunds directly into the original payment method. This is achieved using advanced tokenisation to ensure secure transactions, allowing retailers to manage card data more efficiently, which ultimately creates more customer-friendly return experiences.
This capability is an evolution of the current payments ecosystem paradigm. API-driven processes enable retailers to send refund references, verify original transactions and complete the entire process online. This dramatically reduces the administrative overhead associated with traditional returns, providing a more efficient and, importantly, secure mechanism for handling customer returns.
The paradigm shift moves the goal posts when it comes to strategic advantages for retailers. The technology allows for innovative transactions such as instant loyalty programme sign-ups and seamless payment experiences. It’s about creating more adaptive, customer-centric experiences that bridge online and offline sales channels. By implementing advanced security protocols and creating flexible transaction management systems, retailers can transform their approach to customer interactions and payment – and refunds – processing.
The potential is exciting, especially for retailers looking to implement endless aisle strategies, but this depends very much on the current technical capabilities of individual retailers. Contact our team today to learn more about how we can seamlessly overhaul your payment and refund processes based on where you are on your digital journey.
Alternatively, speak to one of our team to learn more about how our API-driven refund process, which implements secure tokenisation, alleviates the pain most retailers take for granted when they hear the dreaded word: refund!
