Understanding what your payment acceptance rate is and why can help you develop a strategy to improve the payment experience for your customer, and therefore ensure revenue to your business.
Chargeback rate
Sometimes buyers will see duplicate purchases on their credit cards. Or perhaps something they ordered didn’t arrive. Again, fraud can be an issue here. There are a number of reasons a chargeback can occur on a purchase. If that happens, a buyer will often dispute the charge and need to have a refund.
This is a key metric to consider because there are fees sometimes associated with a chargeback. Not only are you losing money on the purchase by issuing a refund, but there’s a small added cost as well with a provider that may add up over time if you have a substantial chargeback rate.
Payment processing systems not only argentina mobile database need to be reliable but they also need to be efficient. Speed, authorization, and capture rates are crucial components of an efficient payment processing system to ensure customers are getting through checkout as fast as they need, and your tech is able to handle it.
Processing speed
One of the most important metrics you’ll need for your payment processing KPIs is processing speed. It’s the time it takes to receive a response from the API to the payment gateway about a purchase. This is especially necessary for peak shopping periods, like Black Friday Cyber Monday, when there’s a high volume of purchases. Flash sales, too, or limited-edition drops need a steady processing speed so it doesn’t dampen the customer experience.
Authorization rate
Getting payments authorized by your buyers’ banks or credit card issuers is important. This metric captures the percentage of successful transactions that those institutions have approved. This process, which can seem fairly fast and under the radar, involves a few steps to ensure your customer has the funds for the transaction and those can go into your business’s account.