Refunds, Rewards, and Real-Time Settlement: Unlocking Merchant Payments

The payments landscape is changing rapidly. For merchants, it's not enough to just accept payments; the real value comes from what happens after the transaction.

If you are a CFO managing profitability, a COO managing costs, an e-commerce manager or in marketing building customer engagement, staying on top of all those expectations, whilst no mean feat in the current landscape, is now fully achievable.

At Quidkey, we're making it easier for merchants to use Open Banking-powered payments that are seamless, predictable, rewarding and help businesses grow with confidence.

The Hidden Cost of Refunds

Refunds and returns have become a major challenge for merchant profitability. E-commerce returns rates average between 15% and 30%. This issue directly impacts margins. Each return can cost a merchant between $15 to $20 in processing, restocking, and lost value.

In addition to operational costs, fraud and abuse worsen the situation. Retailers incur losses exceeding US $103 billion on an annual basis due to fraudulent refund requests, which constitute approximately 13.7% of all returns.

Why Real-Time Settlement Matters

Even when a sale isn't returned, merchants often wait one to five business days for funds to clear in their accounts. During this time, goods are shipped, suppliers are paid, or partial refunds are issued — all while cash remains tied up elsewhere.

In contrast, merchants using real-time settlement see 15% to 30% improvements in cash flow management, enhancing their operational agility and resilience. It allows merchants to access revenue as soon as transactions complete, reducing working capital needs and accelerating reinvestment.

The Role of Rewards in Merchant Value

Rewards and loyalty programs add another important layer of value after a purchase. Research shows that loyalty members generate 12% to 18% more revenue annually compared to non-members, while 70% of customers say they are more likely to recommend brands with strong loyalty programs.

When coupled with instantaneous settlement, rewards transform into a powerhouse of effectiveness.

The rapid access to capital enables merchants to rejuvenate their connections with their customers, offering instant cashback, store credits, or rewards that cultivate trust and encourage recurring purchases.

Quidkey's Approach to Simplifying Merchant Adoption

At Quidkey, we're creating a bank-branded checkout system powered by Open Banking that combines refunds, rewards, and real-time settlement bringing together cash flow, trust, and convenience.

Our solution is simple to use, scalable, and secure. Merchants can easily integrate through Shopify plugin, WooCommerce, or iFrame, enjoying competitive and clear pricing with instant settlements that optimise cash flow.

By eliminating complexity from the payment process, Quidkey enables merchants to offer frictionless payment experiences - without any concessions. The trajectory of merchant payments is not solely changing; it is evolving to be smarter, faster, and more merchant-friendly.

At Quidkey, we're collaborating with banks, payment service providers, and e-commerce platforms to turn this vision into reality. We're simplifying merchant adoption and raising the bar for excellence in the payments sector.

Borderless. Bank-powered. Real-time.