Most Frequent Complaints About PSPs. Questions and Solutions

Payment service providers (PSP) have proven to be a practical and convenient alternative to traditional banking products. However, modern fintech has its weak points too. SPS Legal experts overview three most popular problems that PSPs’ clients complain about and look at their possible solutions.

1. Payment delays

One of PSPs’ main advantages is the high speed of payments. It usually takes only a couple of seconds for the transfer to reach its recipient – especially if the payment is carried out within the same system. Yet, some transactions take much longer to be executed, in some cases it can last up to six months. Such delays do happen, but they are an exception to the rule and always have an explanation.

credit card payment

When it comes to cross-border payments, there are several financial institutions that are involved in the process: from the payment system where you have your account to the correspondent bank and even the state regulator. All of these institutions are obliged to follow the AML policies and some other rules. To comply with them, trustworthy PSPs, neobanks and fintech startups have their own compliance teams. Before opening an account for a potential client, the compliance officers conduct KYC, AML and Due Diligence procedures. This helps to detect suspicious activity and reduce risks when making further transactions with correspondent banks and other payment institutions involved.

However, sometimes banks might still have doubts about the origin of the funds. This is when the transactions get stuck for a long period of time. All this time, our employees are in close contact with the correspondent bank, providing all the necessary documents in order to unblock clients’ funds as quickly as possible. The extensive experience of our specialists allows us to successfully conduct and rapidly complete such cases.

How to avoid it

In order to minimise the risks of transactions delays, it is vital for the client to have a good banking reputation and payment history. It is especially important for the correspondent bank. Not only does one have to simply carry out transactions, but also to always have enough funds available. The positive account balance serves as a sign of the client’s stability for the bank. Thus, there are fewer doubts about payments and they tend to arrive in time.

2. Poor support

Neobanks, PSPs and fintech startups successfully implement the latest tech solutions. However, sometimes they do not always inform their clients on time about the new features and how to use them. It happens when the platforms invest primarily in tech, not in support services and copywriting teams.

On the other hand, big banks that only have to adopt the innovative technologies of smaller players are ready to invest in PR tools and development of support services. Yet, recently this side of the industry has suffered, too. In order to optimise the spends, traditional financial companies are introducing bots to chats and phone lines. Very often, though, they are not able to replace the human operator, as bots follow standard pre-written scripts and can only solve the most popular issues without going deep into the problem.

How to solve this issue

Reliable payment services that value their reputation will always find time to answer their customers’ questions. Thanks to the development of messengers and apps, now mostly this can be done online. It is a good sign if the company has several support channels, as well as social networks – such organisations tend to be open and transparent. In case of a problem, one can appeal to all channels at once, but, as a matter of fact, most questions are resolved when the client is waiting for the response. How does that work? The client simply finds the answer on their own on the company’s website. Or, sometimes the issue just takes some time to be solved.

Lack of transparency

The absence of a website, a support team or feedback platforms usually speaks about company’s intention of hiding something and not being completely honest with its client or regulatory authorities. The payment service should always be transparent and user-friendly.

What should one pay attention to when choosing a PSP:

  • A website and/or a mobile app;
  • Easy-to-find information about the license;
  • Support team;
  • Own compliance department;
  • Multi-currency transactions, support for SEPA and SWIFT payments (this indicates the reliability of the service).

All of the above problems faced by customers of payment service providers and neobanks have long become an unattractive side for the entire industry. The only question is whether companies try to overcome them and do their best in order to help the client, or they prefer to leave the issues unresolved.

Charu decided to unite her Honors Degree in New Media and lifetime of geekiness to pursue a career in tech and gaming journalism. You can usually find her writing about a variety of topics and drooling over new gadgets and games.