allpago empowers Boleto Bancario Refunds in Brazil

BRAZIL | allpago international, payment service provider in Brazil, now enables merchants to automatically refund boleto bancario payments. Boleto Bancario is one of the most popular alternative payment methods for online shoppers in Brazil. Until now merchants needed to refund boleto's manually, which is prone-error and time consuming process. allpago's solution now has simplified the boleto refund proces for Brazilian ecommerce businesses.

Boleto Bancário: key alternative payment method in Brazil

According to allpago research, Brazil has a distinct profile when it comes to online purchases. Credit card is still the preferred payment method for 69% of Brazilians and Boleto Bancário is a key alternative payment method for customers who buy online. Depending on the sector, it ranges from 18% to 37% of all online purchases.

Context: what is Boleto Bancário?

Boleto Bancário is a payment slip with all relevant purchasing and payment information the online shopper receives when checking out using Boleto Bancario. Brazilian consumers can complete the online purchases using the payment instruction on the Boleto payment slip via their online banking system, ATM, post office, lottery agent, supermarkets or by paying directly at the counter of any given bank. Boletos have due dates up to which payment is possible. In ecommerce, due dates of 2 to 3 days are common. The bank normally settles the Boleto transaction within 1 or 2 workings days to the beneficial merchant. Additional advantages of the method include the fact that it fraud is virtually impossible.

Boleto works like a cash payment

Brazilians avoid bank transfers because of the costly interbank fees. Therefore, most of B2B payments are done through Boleto. Furthermore, Boleto works like a cash payment that allows customers who don’t have a credit card or are unable to make successful debits to buy online. 4 out of 10 customers that are unbanked have done online purchases thanks to the payment method.

Accept Boleto Bancario for more revenues

As Boleto targets a complete new portion of the market, this payment method doesn’t cannibalize the credit card payment option. allpago’s merchants have registered 20-40% additional revenues by introducing Boleto as a additional payment method. allpago figures show that around 50% of the issued Boletos are paid. Being partly an offline payment due to the interruption of the consumer impulse, the method accounts, on average, for around 24% of the market share. In industries with higher ticket sizes as software, marketing and ticketing, it is preferred by Brazilian customers as it is considered a safer payment method.

Boleto Refunds can be problematic

As the Boleto is only a payment slip, once the customer completes the payment, the merchant can only refund the customer via costly bank transfer. Until now refunds would be done manually. Merchants needed to first gather the customer data, search the respective transaction and relate the refund to the issued Boleto. One of main problems consists in matching the correct CPF number, the Brazilian tax registration number, with the bank account holder. In order to succeed with the Boleto Refund, all data from the bank holder should be correct. The customer data can only be checked after the transaction is completed, which means that the manual boleto refund process is prone-error and time-consuming, causes payment failures and rework in a significant number of cases.

Automated Boleto Refund Solution

allpago has now developed a convenient and pioneering automated solution in order to solve the matter, the automated Boleto Refund. The one step operation asks only for the customer bank data when submitting the refund to the system and includes automated check of the data. The refund is performed within 5 business days, which ensures full final customer satisfaction and saves merchant time and resources. For more information visit allpago's profile or visit the allpago website.

allpago profile

allpago international provides a full spectrum of payment services in the LATAM region. allpago works as a payment gateway, a white label payment service provider (PSP) or a product and service reseller for merchants and payment service providers interested in the LATAM markets. allpago‘s features include one-click payments, recurring payments and installments. Furthermore, the company offers a fully-integrated Risk-Management Solution as well as a Business Intelligence Platform with user rights management and user-logs. Level One PCI DSS Certification guarantees the highest levels of security and safety.

About the author

Javier Vallaure, Director Business Development of allpago international, holds a Douple Diploma from Universidad Pontificia Comillas and Reims Management School as well as a MBA from ESMT. Prior to allpago, he worked as an analyst for Morgan Stanley in London and in property asset management at Grupo Lar in Mexico.


Sourced from allpago news, June 10th, 2014

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