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Episode two of The Ecommerce Minute: Quick Tips for Online Sellers details how to strategically use payment cascading and routing to increase payment approval rates.
episode 6: industry standards for payment declines
Today, we're going to be talking about industry standards for payment declines. Declines are measured using two main metrics: decline rate and chargeback rate. The decline rate measures the percentage of payment transactions that are declined by the payment processor or financial institution, while the chargeback rate measures the percentage of payment transactions that result in chargebacks.
Merchants use these metrics to monitor and optimize their payment processing performance, identify potential issues and take necessary actions to minimize declines and chargebacks. By regularly monitoring their payment gateway, merchants can ensure that all transactions are processed correctly and that there are no technical issues or errors that could cause declines or other payment processing issues.
Merchants can also optimize payment gateway settings such as routing strategies, fraud detection rules and payment method availability to reduce the likelihood of declines and improve the payment processing experience for customers. Finally, working closely with their payment gateway provider can help merchants understand new features and capabilities, optimize payment processing settings and resolve any issues or concerns.
By monitoring and optimizing their payment gateways, merchants can improve payment processing performance and reduce declines, chargebacks and increase customer satisfaction and revenue.