Failed payments can immediately lead to lost sales and disappointed customers. A 2017 survey of 200+ merchants found that 76% experienced at least one complete outage in their payment services and 42% experienced six or more partial outages in the 12 months prior to the survey being taken. Worse still, 39% of these outages occurred during peak sales periods, 73% of which lasted between 15 minutes to 1 hour.
Understanding what failed payment means and how to minimize it can help increase your sales and provide a better experience for your customers. You can start by making sure that you get notified when a customer payment failed so you could easily resolve the issue and prevent it from blocking your customers through their conversion journey.
What is a failed payment?
Failed payments means there's an issue with your Payment Service Provider that prevents them from properly assessing your authorization. Not to be confused with declined transactions, payments where the status returns as failed, are not caused by your customer, or the status of the payment method they're trying to use, rather an issue with your Payment Service Provider.
Why is it important to notify internal users about failed transactions?
Knowing when and why your customer’s payments failed gives you actionable insights on your payment flows so you can quickly investigate and troubleshoot any issue. This will help you adapt to your customers’ payments experience and provide them with a more optimized solution.
However, building a communication system around this is often complex and expensive especially if your business model calls for a custom solution. You might find payment service providers that support email notifications when a payment fails but it’s not alway the best solution to your payment needs.
What’s the solution?
We've built this next gen automation template to help you adapt to your payments communication needs faster so you can restore your payment operations quickly to minimize downtime and lost sales.
Growth means constantly adapting to ever changing customer and business needs. Having the insights that you need at the right place and time without too much of the traditional heavy lifting can streamline your processes and help you scale faster.
This is what WhenThen is all about! Checkout our reroute automation template, which includes pre-defined logic that will automatically route your transaction to a fall-back payment service provider when a payment failure is detected.