What's Happening?
Eric Horgan from Elavon discusses the importance of optimizing payment strategies for retailers facing challenges such as rising fraud, shrinking margins, and increasing customer expectations. He emphasizes treating payments as critical infrastructure
rather than just operational processes. Horgan highlights the expected 40% surge in chargeback volumes by 2026 and advises on improving approval rates through Transaction Risk Analysis (TRA). He also points out inefficiencies in payment strategies that could lead to immediate financial gains if addressed. The conversation underscores the shift towards consolidated payment providers, balancing efficiency with the risk of over-reliance.
Why It's Important?
The insights shared by Eric Horgan are crucial for retailers looking to navigate the evolving landscape of payment processing. As fraud and customer expectations rise, optimizing payment strategies can protect against financial losses and enhance customer satisfaction. Retailers that focus on payment-driven revenue growth rather than solely cutting costs can unlock new opportunities for profitability. The shift towards consolidated payment providers offers efficiency but requires careful management to avoid over-reliance, which could pose risks if a single provider faces disruptions.
What's Next?
Retailers are encouraged to proactively engage with their payment providers to optimize solutions and ensure resilience in their payment ecosystems. Continuous improvement and partnership with providers like Elavon can help retailers stay ahead of disruptions and hidden costs. As the industry evolves, retailers may need to adopt new technologies and strategies to maintain competitive advantage and meet customer expectations.
