Undoubtedly, holding funds provides a business with many advantages and helps to improve performance indicators. For example, the holding mechanism can be one of the key factors in retaining existing customers. After all, it increases customer confidence in the brand and reduces payment defaults.
- A 5% increase in customer retention increases profits by 25% to 95%.
Still, it's worth mentioning that any technical integration can have some challenges.
Technical challenges
Integrating new technologies to manage custody can be accompanied by technical challenges, such as system failures or insufficient integration with existing platforms.
In order to ensure that the payment hold processes are properly integrated into the company's operating systems, the choice of a provider should be made very carefully.
Based on the example of many years of cooperation with businesses worldwide, Tranzzo minimizes the risk of technical failures. A reliable anti-fraud system and the latest technologies guarantee a minimal risk of technical failure during integration.
Regulatory challenges
Depending on the jurisdiction, by using a payment hold, a company may be subject to different legal requirements that may limit its use.
Companies may face the need to ensure that their practices comply with local laws and regulations, which may require the involvement of legal counsel and additional compliance costs.
The Tranzzo team has found a formula for effective technical integration regardless of external factors such as market jurisdiction. An individual approach to each company that uses Tranzzo's technical solution allows us to thoroughly study the peculiarities of the market and ensure minimal risks associated with legal difficulties.
In just 30 minutes, the Tranzzo team will provide a complete guide to creating a custom solution for your business goals.
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