August 24, 2016
Study: U.K. CNP Merchants Too Reliant on Manual Reconciliation
Sept. 30, 2010
CNP payments processor Chase Paymentech Europe Limited this week announced results from a survey that found U.K. organizations are failing to avoid the hidden costs of conducting e-commerce. The survey of 200 U.K. businesses, conducted by Dynamic Markets, found that 79 percent of financial directors thought that their CNP payment capability had developed “in a less than ideal way.” The research also found that 68 percent of merchants still relied on manual CNP payment processing, requiring staff to process and reconcile CNP data manually. If a merchant traded internationally, that figure rose to 92 percent, the report said. “The results from the survey underline that merchants are not aware of the hidden costs connected with e-commerce,” said Shane Fitzpatrick, President and Managing Director, Chase Paymentech Europe Limited. “Most organizations outside of e-commerce are looking to cut overhead and become more streamlined. It is surprising that U.K. merchants are still opting to continue with manual reconciliation and patch-work payment systems.” The survey also found that CNP systems were affecting customer service levels. For example, if a customer had a problem during the checkout process, merchants were unable to automatically advise them why their card had been declined and how to resolve the issue. Finance staff at 87 percent of merchant companies surveyed felt that a negative customer experience exists where CNP payments are reconciled manually, the study said.