Actionable steps for success
Falsely declined payments are causing growing revenue deficits for merchants, a consequence of the dynamic landscape of digital payments and global ecommerce.
86% of merchants say their PSPs do not provide machine learning solutions to help them better reduce fraud or increase authorization rates.
Despite the growing demand for high-performing payments, we know that many merchants lack the powerful data and technology needed for optimization. The majority of businesses are yet to benefit from machine-learning solutions, which are proven to transform payment efficiency. In fact, 86% of merchants say their PSPs do not provide machine learning solutions to help them better reduce fraud or increase authorization rates.
Most businesses struggle with the daily operations required for payment optimization, but machine learning payment tools are changing the game. These solutions not only ease the burden on merchants by accurately optimizing payments across the entire payment flow but also provide control over specific stages of the transaction journey. Merchants can choose to maximize acceptance rates, lower transaction costs, or achieve both objectives.
In the final part of this series, we'll explore four challenges to high-performing payments and discuss how to overcome them, turning challenges into revenue opportunities
✔️ Network Tokens: Initiate realtime and dynamic responses to rescue revenue
Each of the payment schemes – such as Visa, Mastercard, and American Express – has their own varying rules, but they have all been leaning more and more towards the use of Network Tokens rather than Permanent Account Number (PAN) details on card payments.
The introduction of Network Tokens provides merchants the opportunity to lower processing costs and drive higher acceptance rates. However, the implementation of Network Tokens is a strategic and evolving process. While the solution, which substitutes a customer's PAN with a secure token, offers advantages, it isn't uniformly accepted by issuers. To tackle this challenge, our Intelligent Acceptance solution harnesses extensive transaction data and leverages robust issuer relationships to determine the ideal moments to utilize Network Tokens as opposed to conventional PAN information.
✔️ Turn SCA to your solid advantage
Although SCA serves as a crucial defense against fraud and, notably, chargebacks, its hasty implementation can result in unwarranted customer friction and an abundance of declined payments. To rectify this situation, deep data and expertise prove invaluable. Intelligent Acceptance seamlessly administers optimal SCA exemptions, enhancing each transaction with the requisite SCA data, all prior to reaching the issuer, thus mitigating these challenges.
✔️ Balance optimum fraud mitigation with optimized acceptance rates
Online payment fraud surged by 285% in 2021 due to increased online commerce and vulnerabilities in fraud defenses. To combat this, businesses can no longer rely on static, one-size-fits-all solutions. Fraud Detection Pro's Machine Learning feature, trained on extensive data from Checkout.com's merchant network, effectively identifies and prevents suspicious activity in real-time. In 2022, this solution saved merchants over $1.95 billion in potential fraudulent losses.
✔️ Unlock global reach with localized payments
43% of ecommerce merchants faced new market demands, highlighting the need for appropriate payment methods. Beyond this, understanding local shopping and payment preferences, navigating diverse regulations, managing foreign exchange rates, and securing local acquiring options all impact costs and acceptance rates. Optimizing these aspects is crucial for expanding into new markets. Enhancing global access to goods and services through improved payment systems can significantly benefit communities, small businesses, and micro-entrepreneurs, ultimately contributing to a more inclusive global economy.
Explore how to master the strategies for high performance in today's complex ecommerce landscape. Download the 'High-Performance Payments' white paper here.