Ways to Increase Transaction Approval Rates

A transaction approval rate is the percentage of transactions that are approved. To increase a merchant’s transaction approval rate, people should ensure their product or service is competitive, provide easy returns, offer clear and transparent pricing, and be confident in the quality of their product.  This article will provide a list of ways to increase transaction approval rates for firearms merchants.

Make use of a variety of different payment gateways

Through dynamic routing, a business can utilize numerous payment gateways, routing transactions to the payment gateway with the highest acceptance rate. You should look for payment gateways for high-risk merchant accounts that can enhance approval rates for at least one type of transaction when you shop around. Therefore, one of the most critical responsibilities of a firearms merchant service provider is to help clients increase their transaction approval rates.

Automate the process of updating account information

By utilizing tools for updating account information, you can update any out-of-date cardholder information that may be contained inside your system. This will assist your company boost customer retention and reduce the number of denied transactions it experiences.

Include foreign currency

Adding currencies for nations whose payments you receive a significant volume could increase the number of approved cross-border transactions. When a card is charged with the same currency as the card issued, the likelihood of the accepted transaction is significantly increased.

Indicate the types of payments that are acceptable

Customers can be prevented from inputting incompatible payment information if it is made abundantly clear which means of payment are accepted by your business (Visa, Discover, American Express, etc.).

Increase the scope of data access beyond what is allowed

The approval of a transaction through the authorization stream that occurs between a merchant and an issuer often involves the usage of very modest data, even though merchants employ a wide variety of methods to prevent fraud and verify identities. It is common practice for the issuing bank to only compare the purchase data to the address listed on the card owner’s account. This can lead to inconsistencies if a customer attempts to ship an order to a different address than their primary residence. Because of this, businesses need to supplement their decision-making processes with additional data sources to understand their customers’ actual risk profiles better.

Utilize resources and competencies that can determine risk levels

In today’s world, retailers supplement their address verification skills by utilizing restricted data, such as data from email addresses, information about devices, and other technologies that are stored in silos. The problem with these tools is that each evaluates the risk associated with a different aspect of the transaction or the individual. In areas where integration is inadequate, the number of false positives increases.

Final Note

In today’s competitive world, it is not enough for companies to simply produce a product. They must also compete for sales. Therefore, the goal of any marketing campaign is to increase the number of transactions, which in turn helps increase revenue. Various methods can be used to boost conversion rates and profits, but some have proven more effective than others over time.

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