Focusing on digital "last mile" and the payment experience can help increase transaction authorization rates - and revenue - while maintaining customer satisfaction and reducing customer churn.
Everyone in your organization is focused on growing your bottom line. From product offerings and marketing channels to website design and customer experience – it all leads to that final stage: checkout and payment. But if payment isn’t authorized, the transaction goes uncompleted and you may lose a customer and go unpaid. In the case of fraud, this may result in unnecessary transaction costs.
A successful checkout experience relies heavily on a streamlined end-to-end process for your customers. Each transition represents an opportunity to increase efficiency and boost conversions:
A fast, user-friendly front-end experience should include:
An efficient, secure back-end conversion process can then help bring transactions down the final stretch, and increase transaction authorization rates.
A declined payment does not automatically translate into a lost sale. In fact, if you correctly identify the source of the decline, provide customers with helpful feedback, and offer payment alternatives, you can quickly put a transaction back on track.
In a recent win, PayPal lifted the PayPal user approval rate for an online payment business which resulted in a 2.8% increase in authorizations.14 When an authorization fails, PayPal helps you clarify the cause of the declines, along with the specific authorization decline code.
There are four main types of transaction authorization declines:
PayPal can help you optimize every stage along the way with a unique mix of data, tools, technology, and relationships. Use our solutions to help drive authorization rates, capture lost sales, and drive revenue, while providing customers with a fast, easy, and secure checkout.
As one of the first and largest Network Token Service Providers, PayPal has already tokenized more than 200 million cards on its payments platform.18 This can provide visibility and insight across the entire payment ecosystem. We apply machine learning to our vast proprietary data set to analyze decline codes, and can provide you with hands-on analysis and expertise – all to help you:
Beyond offering our popular digital wallets, PayPal provides end-to-end payments processing services that enable digital, mobile, and in-person payments on behalf of consumers and businesses worldwide. Through a combination of innovation and strategic partnerships, our platform helps create better ways to manage and move money, and offers choice and flexibility with modular, enterprise-grade solutions.
Want to learn more? Download and read the full Optimize Authorization Rates report.
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