28th March 2024
Letting a travel shopper pay when they are willing to do so calls for a certain preparedness. One of the worst experiences is the case of a false decline.
A travel merchant can’t mess up a moment, when a consumer is about to pay and a decline happens. This is especially considering the fact that effort is being made to offer the right payment option, plus ensuring that the overall user experience is top-notch.
When a consumer is unable to pay owing to a false decline (or a false positive), a brand possibly has gone a slipper road. Not just the frustration of being denied a transaction, be it for losing out on a fare/ price and that too for a product category like travel or an emotional buy not coming through, but the future repercussions can be dodgy, too.
According to Visa, when a customer experiences more than three declines on a card, they are 2.5 times less likely to use that card again. A fraud prevention system or an automated fraud prevention software can’t falter heavily on this count. According to Forter’s first-party data, in such instances, consumers feel alienated and less likely to return – with over 40% of shoppers stating that they won’t retry a purchase if it’s declined on the first try.
The most critical part to solve this conundrum is relying on data and insights from artificial intelligence (AI) and machine learning data models. Overcoming the limitations of a rules-based fraud prevention system in this regard is a given. The focus is on counting sets of declined transactions to find patterns and how to validate decisions going forward.
Also, in the absence of past shopping data, the possibility of false declines is higher, and this was an opportunity to secure the consumer’s lifetime value that is being lost.
The team at checkout.com also recently highlighted the significance of ensuring that financial processing systems are ISO 8583 compliant. This standard specifies a message format that describes credit card and debit card data that is exchanged between devices and card issuers. When a cardholder uses a payment card, the electronic transaction data is exchanged throughout the network using ISO 8583 data elements, messages and code values.
What is being done to ascertain a travel shopper’s legitimacy in a seamless manner?
Hear from experts at the upcoming #ATPS2024 in London (22-23 May):
https://www.aiconnects.us/atps-2024/
By Ritesh Gupta, Ai Events
