So now that the general landscape and marketing insights have been discussed (part 1) lets move on to the technical stuff that is very important when it comes to online retailing.
Several eCommerce solutions are available so there will be one to suit your business’s needs. To get started have a look at the eCommerce modules that are supported by PayFast, we have also provided a bit of info explaining them :-)
Fraud detection and protection:
Many online retailers and payment gateways make use of 3D Secure to protect against fraudulent transactions.
What is 3D Secure?
3D Secure stands for Three Domain Secure – the payment industry’s internet authentication standard which has been developed by the major card associations.
3D Secure can be thought of as an online version of “Chip and Pin” technology, whereby the cardholder has a personalised password registered with their card that is entered during the checkout process. The main advantage for cardholders is that there is a decreased risk of other people being able to use their credit cards fraudulently on the Internet & the advantage for merchants is the reduction of “unauthorized transaction” chargebacks.
eCommerce Laws (POPI, ECT)
I’m not going to get into all the technicalities because that would result in several pages of ‘law talk’. The important thing to know is that there is a motion underway to pass the Protection of Personal Information (POPI) act. For the mean time the only act in place affecting the online space is the Electronic Communications and Transactions (ECT) act.
The changes on the horizon involve the protection of consumers’ personal data. These motions are being put in place because South Africa is in actual fact behind the times when it comes to laws of these kinds. The ECT act includes the intricacies of agreements and communications online.
Fun fact: any email correspondence you have with a customer is deemed to be a binding contract.
Here are only some of the details of the ECT act:
- An organisation providing goods or services online (via an electronic transaction) must provide relevant information on their website. This information needs to include information about the business, information about the goods or services provided and information about dispute resolution.
- A customer has the right to cancel a transaction within seven days of receiving the product or service.
- Suppliers can be held responsible for any damage experienced by the customer as a result of failing to provide a secure payment system (that passes certain acceptable standards) for them to make payment via.
- Data protection
This can be summed up by the following: “the communication of any personal information that has been wrongfully collected is unlawful”. The data protection regulations are in place temporarily until the POPI act is passed.
For more information on these intricacies click here
Legislation is cracking down on the collection of customers’ personal information which if not monitored carefully can result in an infringement of the law. Make sure you know the ins and outs of this, it does not merely refer to the dodgy acts of selling information but also refers to the way you store the information you have gathered with consent.
The act of buying customers information (mostly used in spam marketing) which is generally taboo is now enforced by law.
I hope you could benefit from a few of these topics discussed. Please feel free to comment on the topics you found most useful or suggestions on topics you’d like more information on :)