Online checkout: what you should consider for your payment process

As an online retailer, you need to consider payment options. This includes not only the question of which payment methods you offer, but also the payment process flow. If it is too cumbersome, you risk losing customers.

What does the payment process entail?

The payment process starts the moment a customer comes to the checkout to purchase a product from you – either with cash, card or mobile phone (e.g. using the Swiss payment app TWINT). Similarly, the online payment process begins as soon as the buyer clicks on the “Checkout” button. In the checkout area, customers can choose from the various payment methods that you offer in your online shop. They then enter their address and account details and press “Buy” to complete the transaction.

Why are a simple payment process and the right payment method so important?

If the payment process is too complicated, customers may abandon the purchase. Possible obstacles may be, for example, that the customer’s preferred payment method is not available (e.g. if it is not possible to pay by card). "Checkout Flex" and "Checkout All-in-One" from PostFinance offer good solutions for the optimum payment process. You should only ask for customer authentication (e.g. with the 3D Secure process when paying by credit card) when it is absolutely necessary.

In addition, many customers find it annoying when they are redirected to a new window in their Internet browser. Many customers find an in-app payment – i.e. the option to pay within the app itself – to be more convenient. This kind of solution also gives customers the option of using the alias method to save their payment details in the online shop, which saves time when they next make a purchase. On the other hand, too many clicks or an overcomplicated transaction can cause the customer to abandon the purchase. The TWINT mobile payment system and the PostFinance App are also very popular systems in this context, as they make it possible to pay by scanning a QR code.

Setting a payment deadline – and sending reminders when necessary

A payment process is complete when the customer’s money arrives in your account. To avoid delays, you should set a payment deadline for payments by invoice. There is no clear legal definition as to how long this deadline should be. 10 or 30 days are usual deadlines in Switzerland. But what if the customer doesn’t meet the specified deadline? In this case, you can send a payment reminder, which is best done in writing and with reference to the relevant invoice.

As a rule, companies send three reminders before initiating debt collection proceedings. You can define for yourself the intervals at which you send the payment reminders. If you use  "Checkout Flex" payment solution, you can also use the The link will open in a new window MF Group’s Power Pay service for your invoices at favourable conditions and won’t have to worry about unpaid bills.