Need to accept credit card payments online? Here’s your guide to navigating Singapore’s payment landscape.
Singapore is a hub for global credit card processing and international payments system innovations. The city-state has rapidly transitioned to an almost cashless society, pioneering real-time payment networks like PayNow and ewallets like GrabPay. With the rise in the cost of goods due to inflation, transaction costs and payment processing fees have become a growing concern for Singapore’s merchants. In this guide, you’ll learn how to choose a global payment gateway that offers the best combination of low processing fees, high approvals, and features.
Work with a Local Card Acquirer: While numerous payment processors allow credit card transactions, local acquirers often provide lower fees and higher acceptance rates. Local card acquirers also tend to have more flexibility to work with a wider variety of merchants who may have complex or hard-to-support use cases.
Offer Alternative Payment Options: Payment methods like PayNow not only cut down transaction fees, they also offer unparalleled convenience. Customers no longer need to tediously enter card details online, and merchants benefit from reduced chargeback risk.
Expect Built-In Tools for Fraud Management: Online transactions face higher fraud and chargeback risks. Your online payments processor should include built-in fraud monitoring and end-to-end dispute management to help reduce the number of chargebacks.
Look for Fast, Flexible Onboarding: Not all businesses are treated equally by payment processors. Some businesses with complex use cases or who are in regulated industries may find themselves rejected. If you’re facing high fees or have been rejected, seek a second opinion.
Think Globally: It’s easier to grow when you have one partner that processes payments worldwide. A global payment processing solution can support the needs of businesses in Singapore that cater to an international audience.
How to Lower Fees and Increase Approval Rates on Credit Card Processing
Not all payment processors are local card acquirers. If your payment processor is using a third-party card acquirer in Singapore, you could be getting charged higher fees than you need to pay. Make sure the solution you choose to accept payments online in Singapore comes from a local card acquirer.
Get the Best Approval Rates
In addition to providing lower fees, local card acquirers typically provide merchants with higher approval rates. A local acquirer in Singapore has a better understanding of the market, fraud risks and customer behavior. This translates into more approvals and more sales for you. Rapyd is a local card acquirer in Singapore and boasts some of the highest approval rates around. Find out more about our online payment solution for Singapore.
Pricing Transparency: How to Avoid Hidden Fees
Pricing transparency is also important. One pricing model that Singapore merchants should be aware of is Interchange ++. Unlike blended rate models, Interchange ++ breaks down the costs associated with each transaction, ensuring transparency. This model can help you avoid unexpected and hidden fees.
Managing Fraud and Chargebacks
Businesses in Singapore frequently engage in cross-border transactions, amplifying the risk of fraud and chargebacks. Chargebacks occur when customers dispute a transaction with their credit card issuer. They can result in a payment being refunded for merchandise you already delivered or not being compensated for services you already provided.
Singapore merchants should prioritize features like built-in fraud monitoring, chargeback management, and the ability to customize transaction descriptors on customers’ bank statements. These functionalities not only protect the business but also enhance the customer’s trust and clarity.
Rapyd’s Card Acquiring solution for Singapore includes advanced features to help merchants reduce their risk of fraud and chargebacks, including:
Built-In Fraud Monitoring: Protection that’s embedded into our platforms. Prevent fraud with no added costs or fees.
Advanced Chargeback Management: With our integrated Rapyd Dispute Management System you can efficiently manage and address disputes before chargebacks occur.
Dynamic Soft Descriptors: Customize the text displayed on customers’ credit or debit card statements to provide clarity and reduce chargebacks, so customers can easily recognize and remember their purchases.
Think Beyond the Card: Embrace Local and Alternative Payment Methods
Few countries compete with Singapore’s combination of affluent consumers and digital infrastructure. Singapore is one of the Asia-Pacific region’s top-three ewallet markets, with 23.3% of smartphone users embracing the technology. Real-time payment networks like FAST also offer an easy and low-cost way to accept payments.
Consumers in Singapore Embrace Ewallets, Real-Time Payments and a Variety of Payment Methods
Popular Payment Methods in Singapore:
eWallets: GrabPay, WeChat Pay
Real-Time Payments & Bank Transfers: PayNow, FAST, PayLah
Credit and Debit Cards: Visa, Mastercard, UnionPay, JCB, American Express
As the global economy faces uncertainties, consumers are becoming more price-conscious. This shift in behavior puts added pressure on merchants. High transaction fees can eat into profit margins. Working with a local card acquirer and offering ewallets and bank transfer payment methods can help merchants reduce costs and save on transaction fees.
Not all businesses are treated the same by payment providers. Some businesses in categories such as travel, financial services, online gaming and age-restricted and regulated industries might find themselves categorized as high-risk, leading to higher fees or the inability to accept card payments. However, card acquirers have varying policies. If you’re facing exorbitant fees with your current solution or you’re unable to find a solution, it might be time to seek a second opinion.
Accept Payments Online in Singapore with Rapyd
We might be biased, but we think Rapyd offers the absolute best solution to accept payments online in Singapore. With Rapyd, merchants in Singapore can accept credit cards and popular alternative payment methods in Singapore, South East Asia and Worldwide.
Fast onboarding: even for complex use cases and industries, including Travel & Hospitality, Health & Fitness, Online Gaming, and Financial Services.
Increase payment conversions: A trusted local card acquirer with some of the highest authorization rates globally.
Large transactions: Accept and send high payment amounts.
Localize checkout: dynamically optimize payment methods, currencies and languages to give every customer a local checkout experience.
Advanced chargeback management: efficiently manage and address disputes before chargebacks occur.
Easy integration: Choose our customizable hosted checkout pages, API or easy-to-install plugins. Built-in foreign exchange: Rapyd simplifies accepting, sending and exchanging money in multiple currencies.