3 Big Benefits of Spendback
Recently, we’ve been getting a lot of questions from direct selling companies about our Spendback add-on feature. These are organizations that have spent the past few years (and no small amount of money) modernizing operations by incorporating online- and mobile-enabled technologies into their business structure, and now they’re looking for ways to get the most out of the tools they’ve put in place. So, when they hear that their commission provider can reduce the cost of fulfilling ecommerce transactions while simultaneously improving security and convenience, they understandably want to know more.
In the simplest terms, our Spendback add-on feature (which is free for all Hyperwallet clients) lets distributors use their Pay Portal funds to make purchases directly through your online store. On the surface, that doesn’t sound like a big deal—why can’t they just transfer funds to their bank or credit card and pay for products like everyone else? That’s a good question, and it’s why we’ve written this article.
Let’s look at each of the benefits of Spendback listed above—cost, security, convenience—in more detail.
As any online retailer knows, interchange fees—the fees that banks charge on card transactions in order to cover the cost of things like handling, fraud protection, and so on—are an unfortunate reality of doing business. And while the benefits of accepting card purchases clearly outweigh the relatively small interchange charges, it still hurts to watch as two or three percent of sales are lost by fees.
With Spendback, purchases made by distributors using their Pay Portal funds are assessed at lower merchant processing fees that standard credit card transactions. Bottom line? More money on your bottom line.
With the explosive growth of ecommerce business and the rapid adoption of mobile payment methods, we’ve seen a significant increase in card not present (CNP) payment fraud—that is, transactions where the cardholder is not required to physically present their card in order to make a purchase. Where regular credit card transactions see roughly $0.03 lost to fraud for every $100.00 in sales, CNP payment fraud is more than $0.38 on the same amount. That’s a huge difference.
One of the key advantages of ecommerce transactions made through Spendback is that they insulate you from that kind of risk. Hyperwallet authorizes all Spendback purchases in real-time to ensure the availability of funds and the legitimacy of every transaction. The result—again—is more money in your pocket.
A convenient alternative to other payment methods, Spendback lets distributors reinject their earnings into their independent businesses without needing to push them to a bank account or prepaid card first. Spendback also gives non-cardholding payees a new method of transacting with you online, expanding your company’s ecommerce opportunities.
The Spendback feature uses API functionality to seamlessly integrate directly into your online store’s shopping cart and auto-ship modules. Funds are credited to your Hyperwallet merchant account immediately after each purchase, and then are settled to your registered bank account on a daily or monthly basis. It’s never been easier to ignite your ecommerce potential.
As I mentioned earlier, the Spendback add-on is available for free to all Hyperwallet clients. This feature not only helps you recirculate funds back into your ecommerce ecosystem but also impacts field behavior in a positive way. If you’re interested in integrating Spendback in your online store, please reach out to your Account Manager.
Not on the Hyperwallet platform yet? Contact a Solution Expert today to learn more.