The payments ecosystem is incredibly complex, and e-commerce transactions need to flow through multiple parties in the payment ecosystem before they are approved. Merchants, payment gateways, processors, acquiring banks, and issuing banks all have a role in the payment process, and each party is responsible for making their own risk assessment to prevent fraud.
However, these assessments are based on each parties’ siloed and limited data, which results in legitimate transactions being declined by various parties throughout the payment flow. These declined transactions can result in merchants losing out on more than 10% of their total revenue as well as the lifetime value of a customer due to poor customer experience.
Merchants have limited options to increase their approval ratios today, and many have no solution to recover legitimate transactions that are ultimately declined.
The Business Impact of the Current Payment Process
Inability to Boost Bank Approval Ratio
Some merchants manually configure payment routing rules to try and improve their bank approval ratios, but this often fails because they lack the data to determine the best payment routing decisions and don’t have the resources to manage all of these rules effectively.
Reduced Conversion Due To Risk or Compliance Requirements
The need to manage risk or meet compliance regulations often introduces authentication and additional friction into the payments experience. Current systems today see merchants applying 3-D Secure (3DS) on more transactions than necessary, resulting in a poor user experience and higher checkout abandonment rates.
High Payment Processing Costs
Costs and fees associated with payment processing such as fraud prevention costs and processing fees paid to various parties in the payment flow eat into your bottom-line.
Introducing Forter’s Smart Routing Solution
“Forter’s solution delivers automated decisions throughout the entire payment flow and determines the best action or routing for a transaction to ultimately be approved and successful. This represents a major advancement in optimizing the entire payment flow for merchants.”
Co-founder and CEO, Forter
Forter Smart Routing is an automated decision engine that identifies the best action and routing for a legitimate transaction to be approved – what payment method to offer, where to route a transaction, when to apply 3DS, how to recover declines, and more. Forter Smart Routing enables merchants to boost revenue by improving conversions and approval rates, minimizing high payment processing fees, and recovering transactions that would otherwise have been declined — all while ensuring full global compliance requirements and regulations are met.
“Improving our approval ratio is a major focus for us, especially because we have legitimate transactions that are potentially being declined during the payment flow. With Forter, we have automated decisions that provide us with the best ways to process each transaction to boost approvals.”
Senior Director of Finance, Priceline
Forter’s solution prevents fraud chargebacks and ensures a best-in-class customer experience by mitigating unnecessary friction with real-time decisions, streamlining the entire payments process. The solution powers merchants to expand their businesses into new markets with no added friction or fear of fraud and risk.
Optimizing your payments process is critical to your business. Read our Solution Brief to learn more about how Forter can help you capture more revenue, eliminate unnecessary friction, and improve your payment flow.