Survey suggests manual payment errors hitting SMEs

Around 43 per cent of UK small and medium-sized businesses that accept manual payments have faced issues with customer error over the past year, according to a new survey from Tink, a part of Visa A2A, leading to SMEs facing extra costs and admin burden.

Faced with these issues, 27 per cent of SMEs polled say they are now prioritising “low-risk” payment methods. 78 per cent of consumers, meanwhile, say they would be more likely to complete a payment if they were able to verify details prior to confirming the transaction.

According to the survey, close to six in ten (59 per cent) Brits are concerned about entering the wrong details when paying via manual bank transfers. This is driving some to abandon transactions and lose trust in SMEs they are buying from, as a result of human errors causing failed payments.

In the report, Tink label this issue as the ‘Fear of Messing Up’ (FOMU), while the ‘Cost of Messing Up’ (COMU) references how businesses are impacted by payment errors in terms of sales, customer relationships and staff time.

Only 11 per cent of consumers polled said that they felt totally confident making payments in general. 37 per cent say they would rather abandon a transaction altogether than risk putting the wrong details in.

7 per cent say that they have previously mistyped payment details, resulting in funds failing to reach the correct account. 29 per cent of that figure have had to contact their bank to trace these funds, with 23 per cent saying the experience impacted their confidence about future payments.

For SMEs, meanwhile, 38 per cent of firms polled said that they had lost time because they had to track down missing funds, with 28 per cent saying they have had to dedicate staff solely to resolving the issue.

Ian Morrin, Head of Payments at Tink, said: “During one of the busiest shopping periods of the year, relying on manual bank transfers means all the pressure is on customers to get every detail right. When they don’t, it’s the UK’s small businesses that pay the price in lost sales, wasted time and eroded trust. The Cost of Messing Up (COMU) is something SMEs can no longer afford to ignore.”

Morrin added that utilising “secure, recognised payment methods” can significantly reduce the risk of payment errors, providing more confidence and certainty for merchants and consumers.


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laravel
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PUSHER_APP_KEY
""
PUSHER_APP_SECRET
""
EMAIL_TESTING
"true"
COMPANIESHOUSE_KEY
"u82ND42fnkdYxqCH945hvlmaflxDPIyT2sMcWLrj"
Key Value
APP_NAME
"Laravel"
APP_ENV
"local"
APP_KEY
"base64:6coDXzCRsacXGmkPvjvAXO03DG2dJJdkX6rr1+rpvVg="
APP_DEBUG
"true"
APP_LOG_LEVEL
"debug"
APP_URL
"http://localhost"
DB_CONNECTION
"mysql"
DB_HOST
"127.0.0.1"
DB_PORT
"3306"
DB_DATABASE
"bizsale_db"
DB_USERNAME
"bizsale_admin"
DB_PASSWORD
"+fUTe#g#3."
BROADCAST_DRIVER
"log"
CACHE_DRIVER
"file"
SESSION_DRIVER
"file"
SESSION_LIFETIME
"120"
QUEUE_DRIVER
"sync"
REDIS_HOST
"127.0.0.1"
REDIS_PASSWORD
"null"
REDIS_PORT
"6379"
MAIL_DRIVER
"smtp"
MAIL_HOST
"smtp.mailtrap.io"
MAIL_PORT
"2525"
MAIL_USERNAME
"null"
MAIL_PASSWORD
"null"
MAIL_ENCRYPTION
"null"
PUSHER_APP_ID
""
PUSHER_APP_KEY
""
PUSHER_APP_SECRET
""
EMAIL_TESTING
"true"
COMPANIESHOUSE_KEY
"u82ND42fnkdYxqCH945hvlmaflxDPIyT2sMcWLrj"
0. Whoops\Handler\PrettyPageHandler