In the fast-paced world of digital commerce, maximising profitability is a constant pursuit. Every lost sale due to checkout issues or fraudulent activities can significantly impact a business’s bottom line. To help you improve your digital commerce profitability, we’ve outlined three key payment acceptance strategies that can make a world of difference.
1. Improve Card Authorisation Rates
When it comes to payment acceptance, card authorisation rates play a pivotal role in ensuring that genuine customers complete their transactions. Here’s how you can enhance this crucial aspect:
a. Utilise Payment Vendors with Authorisation Optimisation Capabilities
Select payment vendors that offer sophisticated authorisation optimisation services. These vendors leverage rule engines and machine learning to improve authorisation rates, helping you get more “yes” responses from issuing banks.
b. Actively Manage Payment Declines
Don’t passively accept payment declines. Actively monitor and manage them using the tools provided by your payment vendors. This proactive approach can help you recover potentially lost sales.
c. Demand Transparency
Insist on transparency from your payment vendors regarding decline reasons, mitigation strategies, and results. Understanding why payments are declined and what steps are being taken to address the issue is essential for optimisation.
d. Share Data with Issuing Banks
Sharing data with issuing banks, either through vendor networks or “data only” 3D secure flows, can provide the bank with a more comprehensive view of the customer’s transaction history, improving the chances of approval.
While some transactions may still be declined, analysing the decline data and potentially resubmitting transactions with modified data or through different acquirers can increase success rates. Select fraud detection vendors that work closely with issuing banks for better results.
2. Increase Conversion Rates by Improving Customer Experience
A smooth and personalised customer experience is key to higher conversion rates. Here’s how to optimise the payment process for your customers:
a. Personalise the Payment Process
Tailor the payment process to suit individual customer preferences. Personalisation enhances the customer’s journey and makes them feel valued.
b. Reduce Effort during Checkout
Simplify the checkout process, particularly for mobile users. A streamlined and user-friendly checkout experience reduces the likelihood of cart abandonment.
c. Support Local and Alternative Payment Methods
Considering that major credit and debit cards account for less than a third of all eCommerce transactions, supporting a variety of payment methods is essential. This includes local and alternative methods, which can significantly influence conversion rates.
d. Offer “Buy Now, Pay Later” Options
The rising popularity of “buy now, pay later” (BNPL) services can make purchases more accessible to a broader customer base. Integrating BNPL options can lead to increased order values and higher conversion rates.
3. Maintain the Integrity of the Payment Acceptance Process
Preventing fraudulent activities and abuse in the payment acceptance process is vital for safeguarding your profits. Here’s what you can do:
a. Deploy a Vendor-Supplied Fraud Detection Product
Choose a reliable vendor-supplied fraud detection product over a homegrown solution to ensure heightened visibility and accuracy in identifying potential threats.
b. Refute Non-Fraud Coded Chargebacks
Implement tools and processes to dispute chargebacks categorized as non-fraud, especially those attributed to “friendly fraud.” This proactive stance can have a significant impact on your win rate and profitability.
c. Address Policy Abuse
Implement controls to address policy abuse, such as misuse of promotional codes and excessive returns. Some fraud detection vendors now offer solutions to combat these abuse scenarios, further protecting your revenue.
By implementing these payment acceptance strategies, you can enhance your digital commerce profitability, reduce customer churn, and safeguard your revenue streams. Don’t miss out on potential sales and opportunities to improve your bottom line. Make the right payment acceptance choices and empower your digital commerce business to thrive.