Why are DNH (do not honor) declines going up? Am I doing something wrong, or are other merchants in my peer group seeing the same trend? Is this happening across the board, or only with specific issuers and specific card products?
Vantiv has heard these questions countless times. The fact remains that for CNP transactions much of the transaction lifecycle and approval decision process is a black box with misalignment among different players in the payments ecosystem – acquirers, networks, issuer processors, issuers – resulting in far too high false positive rates.
Can you solve this? This is literally the multimillion dollar question. While there’s no easy “solution,” the first step is being better informed and gaining a higher degree of visibility into your “performance” with each issuer and card product with which you transact.
Vantiv’s new Issuer Insights service provides an unequaled amount of data on card characteristics, bank decline rates and reasons, and other key performance data for more than 210,000 card products offered by more than 75,000 issuing banks globally.
Issuer Insights tracks performance at the card product level – the account range – as opposed to the issuer (BIN) level. This is a critical distinction as a single BIN can represent multiple credit, debit, and prepaid card products which can have significantly different performance. Additionally, in greater than 10 percent of cases the account range does not match the BIN, i.e., the first 6 digits of the card. This incongruity is a result of card networks mandating issuers to conserve card numbers; the card brands reallocate unutilized account ranges to other issuing banks.
Here are just a few of the ways Vantiv merchants are using Issuer Insights card product and issuer performance data:
- A leading identity protection service provider uses the affluence and prepaid card identifiers to inform their customer segmentation and upsell strategy.
- A streaming media provider tracks trends in approval rates and reaches out directly to issuing banks when it identifies spikes in declined authorizations.
- A merchant in the gaming industry rapidly detected that a particular issuer was declining all of their auths and, with Vantiv’s assistance, helped the issuer identify and fix a system error.
- Multiple merchants with recurring business models use the indicator of issuer participation in Account Updater to inform their retry logic and customer outreach approach.
Many more merchants are identifying additional uses for this rich data every week.
Please contact your Vantiv Relationship Manager to learn how payments intelligence through Issuer Insights can help your business today.