22nd January 2024
Travel merchants detest cases where a legitimate shopper is denied completion of a transaction. Frustration, be it from the perspective of a merchant or a shopper, is the best way to describe such a situation, also termed as the case of a false decline.
Consumers buying for the very first time are often the victims of false declines. It could be that defence mechanism unnecessarily views a particular transaction as suspicious, or a red flag is raised during the manual review. Other than merchant-related issues, banks have their own reasons while declining a transaction, and in case of the travel industry, think of the ticket value and cross-border transactions.
What is being done to sort it?
Organizations are trying to do away with inflexible rules-based fraud prevention and overall tedious work, including manual reviews. The challenge of dealing with payment authorization or a transaction not coming through must be looked at, especially considering the fact payment networks are more diverse now and the complexity of moving funds is only intensifying.
Evaluate, plan and execute on ongoing basis
- How to count on real-time messaging with the goal of letting the customer retry in the same shopping session? Payment validation APIs come into the picture by authenticating particulars against payment and compliance rules in real-time, during the payment set-up process.
- What solution would be the best solution at that point of time, say spreading the cost of a payment via buy now pay later in case lack of funds being the reason behind the decline?
- How to manage the authentication process (fingerprints, facial recognition etc.)? How to deal with recurring payments?
- Identifying anomalies in buying patterns
- Facilitating the transaction via judicious routing
- Managing and modelling payments data -attaining a high approval rate is a long-term process and for this, entities have to assess customer usage data, and end-to-end transaction performance metrics.
The goal is straightforward: how to recover revenue that would otherwise have been needlessly declined.
Even the minutest of positive modification can have a huge impact on the merchant’s bottom line.
By Ritesh Gupta, Ai Events
