Failed payments from genuine customers mean irrecoverable revenue for eCommerce businesses. This guide will explore effective strategies to boost your payment authorization rates, helping you accelerate revenue and improve your bottom line.
Why authorization rates are a problem for online businesses:
- Lost customers: current consumer benchmarks highlight that tolerance for declined payments is increasingly low with 42% of consumers walking away after experiencing a payment error
- Mitigating risk without losing sales: About half of the merchants report difficulty balancing fraud prevention with customer experience.
Benefits of optimizing authorization rates:
- Maximize revenue by increasing successful transactions
- Improve customer experience and reduce cart abandonment
- Expand global reach with localized payment solutions
According to our latest research, European eCommerce businesses could lose around $25B this year just to false declines, but only around $12B to fraud. At Nuvei, we understand the complexities of payment authorization. Our global reach, combined with human-led expertise and a flexible tech stack, allows us to provide tailored solutions that drive real results for businesses.
Key strategies for authorization optimization:
Implement smart routing technology
Smart routing technology can effectively convert declined transactions into approvals. By intelligently routing payments through the most optimal pathways, businesses can see significant improvements in authorization rates.
Data point: Our smart routing technology has been shown to convert up to 5% of declined transactions into approvals.
Utilize decline recovery tools
Proprietary decline cascading technology can help recover potentially lost sales. This approach attempts alternative authorization methods when an initial attempt fails, increasing the chances of transaction success.
Through our data-backed solutions, businesses have increased revenue by 19% by converting potentially lost sales into approved transactions.
Leverage advanced authorization tools
A comprehensive suite of authorization optimization tools can significantly impact approval rates. Features such as partial approval and intelligent routing work together to maximize transaction success.
Switching from legacy systems to our modern payment platform increased North American approval rates by 2% and EMEA rates by 1.5%.
Implement real-time transaction monitoring
Every 1% counts when it comes to authorization rates. Real-time transaction monitoring allows for immediate identification of issues, enabling quick responses to maintain optimal performance.
Curve — a customer success story: Curve, a UK-based financial services super app implemented Nuvei's authorization optimization suite and saw remarkable results. Between March 2023 and March 2024, Curve:
- Processed £1.5 million more a month
- Approved 55,000 more transactions a month
- Saved £720,000 in processing
Optimizing payment authorization rates is crucial for businesses looking to accelerate revenue and improve customer satisfaction. By leveraging Nuvei’s advanced technology, global expertise, and data-driven strategies, companies can unlock the full potential of their digital payments.
Ready to transform your payment performance? Discover how Nuvei's revenue acceleration platform can help optimize your authorization rates and drive business growth.
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