Part 1.
The hidden costs of poor payment handling, and how an OMS can fix them
Retail margins are tighter than ever. So why are so many retailers still losing money on avoidable payment errors?
Payment processing may seem like a small cog in the retail machine, but in reality, it touches everything from fulfilment to refunds to customer satisfaction. In tough economic times, the cracks become painfully visible. Poor payment handling can lead to failed captures, mismatched order values, refund delays and manual rework—all of which quietly erode your margins.
This is where a modern Order Management System (OMS) like OIL steps in.
Where the costs creep in
- Mismatched payments and order lines: If the net amount doesn’t match the payment, legacy systems often push it downstream, resulting in fulfilment errors or stalled orders.
- Manual refund handling: Without automation, your team is stuck manually deciding refund sources, managing customer expectations and checking balances. (This kind of manual rework slows down operations, increases errors and adds unnecessary labour costs).
- Refund prioritisation: Want to refund to a gift card before a credit card? Or reverse it? If you can’t configure it, you’re wasting time and money!
-
- In France, strict consumer protection laws require retailers to process refunds quickly and transparently. With high volumes of returns, particularly in fashion and department stores, the ability to prioritise refunds, such as issuing store credit before card refunds, can help retailers preserve margin while staying compliant with legal timeframes under the Code de la consommation.
- Failed captures: Inflexible systems that can’t differentiate between debit card and credit card timing lead to premature or failed transactions.
How OIL changes the game
- Validates payments against order line totals before fulfilment begins
- Automates refund logic, including multi-source priorities (e.g., gift card + credit card)
- Supports generic refund handling for returns, cancellations or customer service triggers
- Coordinates capture timing based on shipment status and payment method
- Integrates with PSPs to reduce manual hand-offs and avoid missed revenue.
A real-world example...
Let’s say a customer orders two items: €50 each. They pay €40 via gift card and €60 via credit card. One item ships, one gets cancelled. How do you refund? What do you capture? OIL automates the decision tree: split captures, partial refunds, all done according to your configured priorities.
The bottom line...
Payment handling might be the least visible part of your retail operations, but it’s often the most expensive if neglected. With OIL, you’re not just processing payments. You’re preventing costly mistakes, optimising refund logic and keeping your customers (and your CFO) happy.
“Payment mistakes might be invisible to customers, but they quietly destroy margin. In tight markets, precision isn’t optional, it’s profit.”
Find out how OIL connects orders, inventory and fullfilment across all channels so you can deliver what you promise, every time.
Want more ways to cut costs without compromise?
Read the other blogs in our OMS cost series for practical strategies retailers can use today.
