Online payments in e-commerce: Restore customers confidences

DNHN - On e-commerce platforms and B2C e-commerce websites, it is currently extremely common for sellers and buyers to lack mutual trust. Due to the high rate of return on e-commerce orders, the e-commerce market's online payment system still faces many obs

Due to the high rate of return on e-commerce orders, the e-commerce market's online payment system still faces many obstacles. Buyers typically have second thoughts after placing an order; The buyer is too busy to accept delivery of the goods; The shipping unit's poor service causes the seller to lose customers; The buyer received counterfeit merchandise, which does not match the description. goods damaged during transport; In addition, e-commerce platforms have a mechanism to protect consumers, but not shop owners, nor do they have a formal or convenient dispute resolution mechanism.

Expertise in resolving online payment issues internationally and in Vietnam

Buyers and sellers frequently use an intermediary stage, the Transaction Assurance System under the Dispute Resolution (Escrow)Escrow option, to overcome the challenges of online payment in the e-commerce market. In other words, two parties ask a third party to hold funds, documents, or other assets for a transaction until it is finalised. Thus, buyers and sellers on e-commerce platforms and B2C e-commerce websites can establish mutual trust.

The ESCROW plan's transaction assurance system will resolve the aforementioned issues with online payment on the e-commerce market by Constructing a trustworthy intermediary system, ensuring that all transactions comply with the rules. agreement between buyer, seller, and broker; The system stores the buyer's payment and only transfers it to the seller when the transaction has been confirmed as successful by all parties involved in the transaction chain. Offer the parties involved in the transaction an online dispute resolution platform.

The deployment of the Escrow.com system in the United States to provide transaction security services for payment in e-commerce transactions has contributed to the resolution of the aforementioned issues. Buyers, sellers, and brokers who conduct transactions on Escrow.com are subject to electronic trading and escrow laws.

Escrow is a transaction guarantee service provided by alipay.com for AliExpress e-commerce site payments in China. After making payment, the user can track the order's shipment, and the payment is only transferred to the seller once the buyer confirms receipt of the goods. This service is complimentary and included in the checkout process.

Article 58 of China's E-commerce Law encourages e-commerce platform providers to establish a mechanism to ensure the quality of goods and services, which promotes the growth of e-commerce. The proposed solution to help ensure the protection of consumer interests is the security deposit. (Law on Electronic Commerce of the People's Republic of China)

The Organisation for Economic Co-operation and Development - OECD has also provided countries with the following advice: "Governments and stakeholders should collaborate to establish a level of consumer protection for commercial payments. Regardless of the payment mechanism used in e-commerce, such protections should include regulation or industry-led limitations on consumer liability for unauthorised or fraudulent behaviour fees, as well as a chargeback mechanism, where applicable. Other payment arrangement innovations, such as secure payment services, that could boost consumer confidence in e-commerce should also be encouraged." Consumer Protection in E-Commerce, OECD (2017).

Some e-wallets in Vietnam, such as Ngan Luong and Bao Kim, also offer custody payment services using a similar model to Escrow. Detention payment at Ngan Luong is a method of payment in which, once the buyer confirms the payment by OTP sent to the mobile phone or payment password, the payment amount is "suspended" and not transferred to the bank account. The seller cannot withdraw funds from the buyer's account, and the buyer cannot use these funds for another transaction. Buyers and sellers typically have seven days to execute contracts (such as shipping, etc.). During the holding period, the funds are not transferred to the seller until the buyer clicks the approve button - agreeing to transfer the funds.

National e-commerce payment system (Keypay): constructing a safe and secure e-commerce payment ecosystem

Implement the National E-commerce Development Programme for the period 2014 - 2020 approved in Decision No. 689/QD-TTg dated May 11, 2014, and the Master Plan for E-commerce development for the period 2016 - 2020 approved in Decision No. 1563/QD-TTg dated August 8, 2016, which assigns the Ministry of Industry and Trade to "Build and develop a national e-commerce payment system". The Centre for Informatics and Digital Technology (Department of E-Commerce and Digital Economy, Ministry of Industry and Trade) has launched an online transaction support system to provide support for public administrative services. Integration of online payments in commerce and government services (KeyPay).

To monitor payment transactions, KeyPay is a national e-commerce payment system deployed by the Department of E-commerce and Information Technology - Ministry of Industry and Trade in collaboration with reputable payment organisations in Vietnam. Developing a safe and secure payment environment for e-commerce.

This is an online payment system that equips Ministries/Industries/Local units (Ministry of Science and Technology, Ministry of Planning and Investment, Business Registration Management Department, Food Safety Department, etc.) with the means to collect fees for level 4 online public administrative services.

The primary objective of deploying the KeyPay platform is to construct and develop a national e-commerce payment system and payment infrastructure to support public administrative services. This is also why KeyPay is so highly regarded for its exceptional advantages in building data on e-payments in e-commerce and for making a significant contribution to the implementation of Party and State policies to build and develop digital government and digital society.

In 2022, the KeyPay system assisted in the collection of 387,942 online public administrative service records from 24 ministries/sectors/localities, with a total transaction volume exceeding 41 billion dongs.

KeyPay is firmly based on safety and security standards, builds sets of procedures to assist units in deploying swiftly, and ensures the system will assist citizens and businesses in the event of business difficulties. payments. During the implementation process, KeyPay also updated several payment channels, including web and mobile payment gateways; mobile payment applications, QR codes, and smart point-of-sale machines...

In Decision No. 645/QD-TTg of the Prime Minister on approving the National E-commerce Development Master Plan for the period 2021 - 2025, the Prime Minister assigned the task of "Supporting enterprises in implementing and encouraging people and businesses to use payment solutions in e-commerce transactions" as one of the key strategies to develop e-commerce in Vietnam. Consequently, KeyPay has been assisting units and ministries in overcoming difficulties and obstacles in the implementation of online payment in level 4 online public administrative services, such as the collection of service fees. synchronise solutions and standards when paying for public administrative services online; share experiences in implementing level 4 online public administrative services; organise training, training for businesses inexperienced in online payment.

The Centre for Informatics and Digital Technology (Department of E-Commerce and Digital Economy, Ministry of Industry and Trade) is anticipated to launch a transaction assurance system for e-commerce participants in 2023. conduct transactions using secure online payment methods.

PV (T/h)