Online businesses face unique challenges when managing card declines. The authorization rate – the percentage of transactions that you submit and are accepted by the cardholder’s bank – can be 10% lower for online transactions compared to in-person. Issuing banks use more conservative logic to approve or decline an online transaction because of the increased risk of fraud, even if it’s a legitimate sale.
Having a perfect authorisation rate – with zero declines – is nearly impossible, especially if you process substantial payment volume. However, if you closely monitor and compare the authorisation rates of your Payment Processors, you’ll be able to identify the best processing partner that gives your business the highest payment success and sales conversion.
We’ve built a recipe to easily set up an A/B experiment that helps you understand and continuously monitor iterate to the highest authorization rate for your business. Based on the results, you can decide what’s the best payment provider for your business. Even small improvements can have a big impact: Some large businesses have increased their authorisation rate by just 0.5% and captured millions of dollars in additional revenue each year.