The Impact of Customer Service Quality on Payment Providers’ Merchant Risk

Customers seldom contact customer service to give praise. Usually, they need help with something, or there’s an issue to resolve. With 74% of consumers experiencing problems with products and services, it’s safe to say customer service quality matters¹.

When customers connect with service representatives, they want timely resolutions. If done poorly, it could result in:

• Increased chargebacks and disputes

• Damage to brand and customer loyalty

• Operational inefficiencies and increased costs

• Loss of competitive advantage

• Increased risk of fraud and financial loss

How merchants provide customer service can significantly influence their risk. A decline in public perception can lead to dissatisfied customers acting against merchants, potentially indirectly impacting payment providers. Notably, customers seeking retribution through public shaming, either in person or online, have increased to 9% in recent years.

To avoid negative customer service collateral damage, here are a few ways payment providers can be more proactive:

• Invest in a single merchant risk platform to own the end-to-end merchant lifecycle

• Conduct regular customer satisfaction surveys

• Implement a quarterly analysis of negative feedback

• Assign a dedicated team to address customer concerns

• Enhance customer service visibility on the company’s website

In addition to taking proactive steps, payment providers must select the right risk vendor. Without a high-quality merchant risk solution, the risk of fraudulent activity increases. If left unaddressed, it could result in poor public perception and an overworked customer service team.

To learn more about our merchant risk solutions, click here.

_{¹2023, Mar. https://www.wsj.com/articles/as-customer-problems-hit-a-record-high-more-people-seek-revenge-2ab8fc74}