How to lower the Credit Card Decline Ratio and increase Authorization Rates?

How to lower the Credit Card Decline Ratio and increase the Authorization Rates?

An Introduction Many businesses count on seamless credit card payment solutions from top merchant processors to accept credit card payments to streamline their sales processes. However, top credit card processors often have security tools put in place to prevent fraudulent transactions that may inadvertently cause legitimate transactions to be declined. Let us find out more about the common causes where even legitimate transactions get declined.

We will also be reading about different ways to lower the credit card decline ratio and increase the authorization rates.

How and why do legitimate transactions get declined by credit card processors?  Transactions that deviate from regular spending patterns may trigger a fraud alert.  Making several transactions in a short time frame may trigger fraud alerts, resulting in declined transactions.  Some credit cards have transactional or daily limits. Exceeding those limits can lead to declined transactions.  Transactions in foreign currencies or those originating from foreign countries may be flagged for review as they can be indicative of fraudulent activity.

Issues caused by the declining status of legitimate transactions  Customer frustration can cause a negative customer experience and a loss of trust, leading to a loss of orders and sales. The business may also lose the customer forever as customers who are unable to complete transactions may choose to take their business elsewhere, resulting in a direct financial impact on the company.  Managing and resolving issues related to declined transactions can be time-consuming and resource-intensive for businesses. This is primarily because resources will have to be diverted to handle inquiries, identify and address the root cause of the declines, and may leave businesses with no option but to offer discounts to attract customers.

How to lower the Credit Card Decline Ratio?

• Soft Declines usually happen because of temporary issues such as insufficient funds.

They can be easily sorted out by informing or encouraging customers to try a different card or put in funds before placing the order again. An intelligent retry policy that focuses on retrying credit card processing after a certain time may also be useful.

• Hard Declines usually happen because of authorization issues such as the use of expired cards, mismatches in billing addresses, or incorrect CVV numbers. They can be easily sorted out by providing crystal-clear messages on the exact reason(s) behind the decline and guiding customers on how to rectify the issue.

How to lower the Credit Card Decline Ratio?

• False Declines usually happen when a legitimate transaction is flagged as fraudulent. They can be easily sorted out by implementing additional and out-of-the-box layers of customer authentication. The use of advanced analytics and behavioral analysis tools to understand typical customer behavior may also be beneficial. Furthermore, immediate confirmation emails or messages should always be sent for successful transactions to reduce customer anxiety and avoid unnecessary retries. Businesses should also focus on providing a variety of payment options (or even installment plans or flexible payment terms) to increase the likelihood of successful transactions and enhance the overall customer experience.

How WebPays Help with Authorization Rate Optimization?

At WebPays, we offer a wide range of credit card payment solutions and processing tools to help clients minimize declined transactions and retain additional cash flow. From the second you start working with our team, a dedicated account manager will help you out with everything that it takes for you to be a successful and profitable merchant. Our innovative credit card payment solution to accept credit card payments is characterized by a fraud detection system, account updater software, smart routing, and a host of other outof-the-tools to seamlessly authorize legitimate credit card transactions.

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