This is why your card acceptance rate matters
Protecting your business against payment fraud does not have to come at the expense of missed revenue and customer loyalty. Read on to find out how card acceptance rates affect your bottom line and what you can do to keep your customers happy.
The ultimate letdown for your customers? That’s easy. It’s when they finally – after much deliberation – decide to purchase a product or service they really want, but their credit card is declined for no apparent reason. That’s what happens when inadequate fraud protection casts too wide a net and blocks legitimate transactions because of ‘potential’ fraud, rather than actual fraud.
The true cost of poor card acceptance rates
When looking for ways to protect your revenue, it is crucial to examine your card acceptance rate. In the ecommerce industry, the focus tends to be on preventing payment fraud, but it’s unfortunate when fraud prevention leads to payment prevention.
Sadly, card acceptance rate is an often overlooked metric. Did you know that a 5% difference in AR can easily cost you over €2.5 million euros* in missed revenue? It really doesn’t do any good if a company charges extremely low fees for chargeback protection, yet blocks legitimate purchases from going through.
Did you know that a 5% difference in AR can easily cost you over €2.5 million euros in missed revenue?
A low acceptance rate means that trustworthy customers wanting to do business with you are getting blocked. Once they realize the issue only occurs on your platform, all trust is lost. Needless to say, once these potential customers go over to your competitors, they may never return. The result is measured in missed revenue and customer lifetime value.
Add to that, the cost of customer care, as well as the time and resources spent on the handling of these blocked transactions, and it becomes clear that the true cost of poor card acceptance rates is astronomical.
*Based on 1 million transactions, AOV of 50
Prevent fraud, not payment
In a world where competitors are always trying to gain an advantage with better service or lower prices, customer loyalty is more important than ever. The easiest thing you can do to preserve loyalty is to make sure that your customers can complete the checkout process easily and secure, without friction.
At Alphacomm, we are proud that we have an average acceptance rate of 99%. We work hard to identify and separate potential fraud from actual fraud. In doing so, we eliminate friction at checkout and help your customers get what they came for. We achieve our results by having in place state-of-the-art fraud engines as well as a team of experts that is continuously monitoring transactions and tracking fraud trends.
Recommended reading: How reducing friction at checkout boosts conversions
Ready to talk AR?
For more information regarding how Alphacomm’s Protectmaxx anti-fraud solution prevents false positives and improves user experience, get in touch with Lisa de Vreede. As our Protectmaxx Product Owner, she knows all the ins and outs of how card acceptance works and can help you identify if your checkout process needs an upgrade.
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