Debit and credit cards play an important role in online transactions allowing customers to ensure a better shopping experience. At the same time, declined transactions will impact the business in many ways which result in loss of clients and termination of a merchant account to a great extent. Merchants should consider following some best practices for reducing the card declines significantly. Besides that, they will help a lot to improve business in the markets thereby helping to obtain optimal results.
Here are some tips businesses can follow to lower declined card transactions.
1. Ensuring smart payment routing
Businesses can consider choosing smart payment routing from high-end payment processors because it contributes more to enhance the transaction flow effectively. Moreover, it gives ways to get high conversion rates enabling merchants to increase their cash flow. Having a smart payment routing provides methods to experience more protection from potential threats.
2. Implementing 3D secure protocol
Merchants should focus on preventing CVV from fraudsters and hackers because they will result in a high ratio of declines due to unauthorized access. The card value verification value is a 3-digit or 4-digit number printed on the backside of a card. A retail store should check the authenticity of a cardholder before processing a transaction. A 3D secure protocol is ideal for this purpose enabling merchants to eliminate denied transactions. It provides an additional layer of protection to both national and international transactions by addressing the essential needs.
3. Widening payment options
The card payment industries are undergoing a lot of developments over recent years due to advanced technologies. As a result, merchants should consider widening their payment options for customers which pave ways to reduce CVV decline rates. On the other hand, they should ensure high protection to shoppers for minimizing potential threats. Furthermore, it will help improve the reputation of a store among consumers that grow sales.
4. Capturing CVV numbers
Some card brands don’t prefer a CVV number in card processing during the checkout process and merchants should avoid the practice. This is because it needs one more data field in the checkout form. Also, studies reveal that sending more data to a merchant will lead to high conversion rates enabling retail stores to accomplish goals.
5. Staying in touch with customers
A bank will decline card transactions due to insufficient funds, card expiration, unethical purchases, or exceeding transaction limits. It is imperative to evaluate the reasons for card declining in detail to fix them as soon as possible. Merchants should contact the cardholders directly to know the issues that will help reduce the declined ratios.
6. Using a powerful gateway
Although several tools available for reducing denied transactions, merchants should consider using a powerful gateway for preventing CVV from threats. They should choose a PCI compliance gateway to build an own payment that gives ways to have control over card transactions. Additionally, it lets merchants evaluate the buying pattern of customers with data analytics to implement strategies based on them. It is essential to know the PCI compliance requirements before setting up a payment gateway.