3 ways to drive higher approval rates in online payments
With nearly four times as many declines for online payment authorizations than card-present authorizations (15 percent and 4 percent, respectively1), eCommerce merchants face a challenge their in-store counterparts do not—high false decline rates. Let’s take a look at three ways you can influence the conversion rates for your online site.
#1. Apply data to authorization attempts.
Another way to improve approval rates is by using data-informed services available through a leading payment processing company. By using historical transaction data in order to change key attributes in real time prior to submitting those transactions to the card networks for authorization, a payment processor can help you achieve better approval rates .
#2. Automate your card updating process.
Some payment processing providers offer automatic account updating and recycling services that can significantly boost revenue from recurring payments. These services allow merchants to submit transactions using the original account information obtained from the cardholder, while the provider ensures that the current account information is used for the authorization. While this is particularly useful for recurring or subscription billing, it can also apply to merchants who reduce friction in their consumers’ experience by storing their payment information for use in subsequent purchases.
#3. Get big data insights.
Payments data provided at a granular level provides insights into inefficiencies in your payments processing. By shining a light on issuer “performance”, i.e. the approval rates your company is realizing week-to-week at the level of the specific card products and issuers with which you transact, and comparing your rates against benchmarks of your peers and rates from other issuers of similar card products, you can identify problem areas and work with your payment processor to develop strategies to overcome them.
To find out more about how you can use advanced payments data and analytics to achieve higher approvalrates for your eCommerce business, download our new eBook.