27th June, 2022
Transaction declines aren’t new and they can’t be ruled out. But knowing what tends to result in the same, and with advancements in technology (think of ways to authenticate a legitimate customer) and data, it is time merchants strive to create a new benchmark or rather target a lower decline rate than ever.
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 #buynowpaylater 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
