Digital payments

Understanding your Payment Order Status (MYMOID)

By May 24, 2018 No Comments
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The Payment Order Status can help you decide what actions need to be taken next in the processing of a transaction. Should you proceed with the packaging and shipping, or does the payment need to be refunded? Sometimes, orders can also expire due to the lack of action on behalf of the customer.

As a merchant, you need to be familiar with the possible variations of the order status so you can understand the behavior of your customers, and react immediately depending on the case.

Many gateways underestimate the importance of implementing a payment order status scheme, focusing exclusively on transactions. However, knowing the status of your order is actually extremely important for your business, because it allows you to take control over the payment process without the intervention of the payment network.

For this reason, as opposed to other gateways, we have developed a payment order status scheme that will not only allow you to have a better control over your internal processes, but will also help you understand your customers and react accordingly to any change that might affect your business.

In this article, we will explain the different status orders as defined by MYMOID for our Payment Gateway users.

Payment Order Status

A payment order is an instruction generated by the merchant to the customer in order to pay a certain amount of money for the product or service associated with the payment. When an order is generated, the Payment Gateway sends a secure form which the customer needs to fill out with his credit card data.

Of course, the direct intervention of the customer is not always necessary for a payment to be successful. Because MYMOID is fully compliant with the highest level of PCI-DSS, merchants can tokenize credit card data and use it to process recurring payments without making customers fill-in their card details every single time.

Available

A payment order status Available means that the customer has initiated the payment process at checkout (in the case of recurring payments, it is the merchant who initiates the process), the Gateway has returned the secure form, but the payment itself hasn’t been done yet by the customer. Or put simply, he hasn’t filled out the form with his credit card details to finalize the purchase.

Orders remain Available for payment during a period of time. At MYMOID, this is 24 hours by default, and it can be extended to a maximum of one week. We provide tools so that our clients can personalize this period and extend the availability of the order.

When an Available payment order is not paid in this time period, it becomes Expired.

Expired

Expired orders are a common problem for many digital businesses. They lower the effectiveness ratio (paid orders vs. total number of generated orders) and can be a sign for poor commerce experience, complex checkout process, lack of trust indicators, and others. Payment orders can also expire if the customer wasn’t convinced about the purchase in the first place.

In fact, a high volume of expired orders can be an indicator of customer abandonment, meaning that the checkout page hasn´t been optimized for an easy and trustworthy payment. To improve conversion, MYMOID provides companies with a secure and user-friendly form, specifically designed for a smooth customer payment experience.

Merchants can apply a personalized expiration time that gives them the opportunity to take advantage of a previous order that has not yet been used, but is still available (and not yet expired because the expiration time was extended).

This increases the effectiveness ratio of the merchant and reduces the number of retries in the payment network. An excellent effectiveness ratio allows businesses to optimize the use of payment orders without generating new ones, reduce operational costs and bandwidth use, and have a better control over the order activity.

Paid

A payment order with the status Paid means that the payment has been authorized by the acquiring bank, the funds of the customer have been verified by the issuing bank, and the transaction has been completed successfully.  

Cancelled

A payment order can be Cancelled by the merchant for various reasons, such as stock inconsistency or fraud suspicion.  It is only possible to cancel a payment before it has been processed by the payment network and changes it status.

Refunded

When the payment order has been Refunded, it means that the financial institution has completed the reimbursement to the customer.

There are many reasons why a customer would ask for a refund. In the case of services, it can be dissatisfaction with the service because it didn’t meet the expectations, lack of clarification concerning pricing, or a mismatch between price and quality.

In the case of products, some reasons for a refund include an incorrect order or wrong size, mismatch between the description on the website and the real product, late delivery, or he just changed his mind about the product.

Refunded payment orders are important for capturing feedback from customers and identifying the reason behind their request. As a merchant, you should always try to get informed about the decision of your customer to return a product and ask for his money back: it helps you identify weak points in your business strategy, which gives you a better perspective on how to improve them.

Partially Refunded

When a payment order has been Partially Refunded, it means that only one part of the payment has been returned to the customer.

This can happen for various reasons. Some companies, such as travel agencies, allow the partial refund of a hotel room or an airplane ticket when certain conditions apply: for example, if you cancel in a specific period of time, or if your experience didn’t meet the expectations.

As in the case of fully refunded orders, do not forget to capture feedback and use it to improve your products or services.

payment order scheme

Changing an Order Status

In MYMOID Payment Gateway, order statuses are applied automatically as a result from a specific action in the system, without the need for manual changes by the merchant.

Do you have more questions regarding the status of Payment Orders? Do not hesitate to contact us!

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