When a merchant receives a payment authorization from a client, it engages the order fulfilment process. However, the merchant is uncertain about the future outcome of the payment. There is a risk of failure. Hence, to make sure all true clients get their orders fulfilled, the merchant needs to have full trust in its clients.
Several pathways to raise the level of trust are:
- engineering of trust;
- payments methods with two-factor authentication; and
- request unfalsifiable proofs of address or identity.
|Engineering trust||Trust may be engineered by suggesting that clients link their social media accounts and verifying the client’s phone number and email address.|
|Use 2-factor authentication||Another option is to switch to push payments or to 3D Secure. However, those approaches tend to reduce checkout velocity and conversion.|
|Request unfalsifiable documents||Finally, merchants may request unfalsifiable proofs of address or identity, e.g., signed QR codes such as 2D-Doc. However, the request process by definition also reduces checkout velocity and conversion, but also buying satisfaction.|