As consumer preference shifts from credit to debit in some key markets, while remaining the primary option in others, online adult merchants are continuing to incorporate this payment method into their websites in an effort to better serve customers while increasing sales.
One provider of robust debit billing solutions is Epoch, with the company’s Harmik Gharapetian telling XBIZ that it offers the industry’s widest range of payment platforms, which cover approximately 60 currencies and 40 payment types available through Epoch’s LogoGPS feature that automatically presents customers with the ideal payment options — including localized options such as debit cards that target users in specific regions or using specific languages.
Unfortunately, with the new lower rates for the debit arena comes the downside of the banks and card associations trying to find other avenues to make up their losses. —Doug Wicks Payze
Gharapetian, Epoch’s vice president of sales and marketing, highlighted the importance of offering alternative billing methods today, by noting that “Epoch’s clients safely complete more sales from more consumers throughout the world.”
Payze CEO Doug Wicks, told XBIZ that the increasing pressure being put on the banks by the big retailer groups around the world has been a good thing, because they have been able to drop the debit rates over the past two years — but notes that every silver lining comes with a dark cloud.
“Unfortunately, with the new lower rates for the debit arena comes the downside of the banks and card associations trying to find other avenues to make up their losses,” Wicks says. “We see this in the form of banks demanding contract termination fees and other fees that were not there a few years ago.”
“Do not be surprised to see new fees popping up in 2017,” Wicks added, underscoring an ongoing trend, and expense point for merchants.
One company to popularize adult-friendly online debit billing is Webbilling.com, with B2B sales manager Eva Zankel explaining that due the constant changes of the chargeback thresholds for credit cards and the high risk management of those chargebacks, debit billing is becoming more popular for merchants.
“I see even more reasons for merchants to use localized billing options, such as SEPA Direct Debit,” Zankel told XBIZ. “They will not only increase their possibilities of generating more revenues, they will also simplify their risk management, and help their business and their customers.”
Zankel says that SEPA Direct Debit offers the same advantages as credit cards, such as re-bill options, and are usable for cross-border and cross-sale transactions across the European market, making SEPA and SOFORT “definitely Europe’s top payment methods next to credit cards.”
“The time for using alternative payments is now more than ever,” Zankel says, adding “We at Webbilling are the specialists that can help you and make it happen as we work for your business.”
CCBill’s Gary Jackson calls debit billing an interesting segment which is so often overlooked by so many companies, and perhaps with good reason — but updated technology has made it an attractive option.
“To be fair, that omission is not without some justification,” Jackson, CCBill’s managing vice president of sales, told XBIZ. “As one of the few remaining providers offering ACH, and SEPA Direct Debit as part of our larger package of payment tools, the trend towards better and faster settlements is making ACH and direct debit more viable today than ever before.”
“Faster settlements and qualifying funds can remove some of the hesitation when a business is offering instant gratification to its consumer,” Jackson explains. “The work is being done to minimize the risk on debit transactions, and that progress is returning direct debit options to the desirable list.”
It is clear from these conversations that debit billing options remain an important part of many online merchants’ billing strategies — an importance that is poised for continued growth.
