Knowledge Base

eBusiness Insight - When to Charge the Card

7/02/2009 by Jack Burnett

I was working with a customer who operates a store in Georgia plus an eBusiness operation.  We launched their new eCommerce website two months ago, and met to review how the website was working and how smoothly business processes were completed.  Initially, the eCommerce shopping cart was configured to only authorize the credit card when the shopper submitted the order.  After fulfilling the order, the shipping manager charged the card in the eCommerce administration website.  This ensures that a credit card is not charged before the order is fulfilled; a good eBusiness practice to follow.

The merchant wants to streamline fulfillment and be ready for the busy fall season by changing this process.  The requested change to the eCommerce website is to authorize and capture the charge when the shopper submits the order.  Inventory on the eCommerce website is kept up to date, they collect phone numbers with each order in case there is an issue, and their shipping policy gives them enough time to ship all the orders made each day.  The new process would mean a phone call to a customer if there happened to be an order that could not ever be fulfilled.

In the rare case an order could not be shipped that day or the next couple days, after speaking with the customer to discuss another product to order, the merchant then would go into the virtual terminal of his credit card payment gateway software.  Each virtual terminal tool has a function to credit the charge on a credtit card.  If the customer felt like they were not being treated honestly, the merchant risks losing them and maybe any friends.

Knowing their business, internal processes, customer service standards and after evaluating how the eBusiness operates, the merchant feels the odds of orders that cannot ever be fulfilled are very, very low.

Because it is just a database value change to us, this process change was made in less than a minute on the fly without taking the eCommerce website out of operation.  That's what I call a configurable eCommerce solution. We added the policy on his site in the FAQs section, under Terms and Conditions, and with the shipping and returns policies to be up front with customers.  After a couple months we plan to meet again to evaluate the change and make a final decision in time for the busy fall season.

If you are a consumer, the policy is well communicated and you have the customer service phone number and store address available to you on every page, does it matter to you that your card is charged before your order ships that same day?  What would you do if you received that phone call?

 

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