As consumers around the globe continue to shift from shopping in-person at brick and mortar stores to online channels instead, retailers must be able to optimize their payment options and the digital experiences they offer. However, the payments ecosystem is complicated and many merchants experience failed transactions for legitimate customers across the payments flow. Why do these transactions fail? Jordan McKee, Research Director for 451 Research, discusses some of the sources of failure, which can include:
- When undue friction is introduced on the checkout page, leading to cart abandonment
- If 3-D Secure isn’t leveraged for a transaction where the associated issuing bank requires it
- If your business is serving a local market with a local acquiring partner on a cross-border transaction
- …and in many other scenarios
With all of these potential sources of failure for legitimate transactions, merchants can see major losses from revenue leakage as well as a losses of customer lifetime value from consumers who have been wrongfully declined. In fact, 451 Research has found that 28% of consumers have experienced a false positive decline in the last six months, and one in five of these consumers have had this happen to them two or more times during that time period.
Furthermore, 30% of consumers that have experienced a false positive decline say that it will influence their decision to shop with that merchant again in the future.
With so much at stake, merchants must find a way to eliminate false declines, boost conversions and approvals, and increase their bottom line. To learn more, download the new report from 451 Research here: Moving Payments from Commodity to Commerce Catalyst through Optimization and Orchestration.