Curbside “Pick Up & Pay” Lowers Costs

Last year, merchants of all types and sizes demonstrated agility and resilience as they dealt with the unforeseen impact of the pandemic. Most business owners quickly pivoted to update operational practices that conformed with health regulations and satisfied a shift in consumer behaviors.

As a result, merchants turned to contactless payments and curbside service to keep themselves, their staff, and their customers safe. And even more importantly, they were able to keep their businesses viable and operating.

Contactless & Curbside Are Here to Stay

While businesses will experience a surge of in-person interactions as retail opens, many of the new contactless interactions will remain because it is convenient. According to a study from Visa, nearly 80% of consumers worldwide changed how they pay in order to reduce contact at the point-of-sale.

And these new ways to pay are a must for merchants to continue to stay viable. Contactless payments are fast by making processes more streamlined; are secure by protecting vital data collection; and good for the bottom line. Transaction pricing does not vary based on how payment information is captured – swipe, insert, tap, phone or wearables – which means there is no impact to contactless payment acceptance costs.

Curbside Is a Must but Comes with Increased Risk & Costs

For merchants who offer online ordering and payment before curbside pickup, they are subject to increased security risks. Criminals steal a victim’s data, make a fraudulent purchase, and when the actual cardholder disputes the charges, it leaves merchants on the hook for the cost of the product and the fees associated with the chargeback. Additionally, the card brands charge high card-not-present interchange rates since the transactions are riskier. But merchants can combat this fraudulent trend by supporting online ordering and collecting payment curbside but in-person.

Curbside “Pick Up and Pay” – Helps Reduce Costs

Merchants should continue offering the convenience of curbside service for customers while making slight adjustments to their business model and payment acceptance practices to help reduce costs. The result is lower transaction costs, fewer fraud-related chargebacks, and a more profitable bottom line.

Here is a closer look at how a curbside “pick up and pay” solution benefits businesses:

1. Eliminate Third-Party Platforms

Third-party ordering and delivery platforms helped keep many merchants operable during the pandemic. As things start to improve, businesses should stop giving 20-30% of sales to these third parties. Instead, merchants can build relationships with customers directly and eliminate the extra cost by using their website and social channels to promote direct orders made via phone, online, or through an app. Offer a “pick up at store” option and consider adding incentives for a subsequent purchase.

2. Lower Payment Acceptance Costs

Encourage contactless payments as much as possible and utilize these practices to reduce costs:

• Use a portable Wi-Fi connected payment terminal at curbside to capture card details quickly and securely.
• Disable signatures and receipts.
• Allow customers to pay with a credit card, debit card, or digital wallet like Apple Pay or Google Pay.
• Use portable curbside terminals to help qualify for more affordable card-present rates.
• Save money on each transaction vs. card-not-present methods because card details are securely captured in-person.

3. Reduce Fraud and Chargebacks

The chances that a fraudster will show up in-person with a counterfeit EMV card are slim since the data contained on the card’s chip is dynamic and virtually impossible to clone. Therefore, EMV card-present transactions are much more reliable and authentic than those payments entered through a website or over-the-phone. In addition to lower interchange rates, chargebacks due to counterfeit cards are also reduced or eliminated. This extends peace of mind while saving merchants both time and money.

Learn More About i3 Commerce Technology’ Payment Solutions:

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