Hello and welcome to our Give Me 5 Series! where we share five useful eCommerce tips to help improve your strategy and pave your way to success.
In our new release: Katalin Dragic, Product Owner of 2Checkout (now Verifone), the importance of permit rates was discussed. The permit rate is a percentage approved transactions that the merchant may receive during the authorization process.
Naturally, the higher your rates, the better. Even a small percentage increase in your permit rates results in significant returns.
This brings us to ours five tips we’re going to share with you today to get high approval rates:
1. Optimize your payment flows
If you think about it, getting them to pay is the last step in your customer journey, so it should be easy, fast and seamless.
Save your checkout or checkout page as as simple as possibleand includes only the most relevant information. This means payment details, final price and possibly add-ons that can enhance their purchase. And that’s without a doubt responsive design is important regardless of what device the customer is using.
Of course, we all know that sometimes mistakes can appear. It’s very helpful to have a system that detects and highlights missing or incorrect information before a customer attempts to finalize a purchase. The page should also include a customer service chat or automated phone option if they need additional support.
2. Accept different payment methods
Offering alternative payment methods like digital wallets can also increase your authorization rate. You won’t have to deal with lost, stolen or expired cards, so there’s less chance of failed transactions.
It is also important to offer localized payment options, like SEPA, Sofort, Bancontact or iDEAL. For example, around 80% of iDEAL payments are authorized by the customer using their mobile banking app. This means low frictionwhich then naturally leads to higher conversion rates.
Another thing to consider is accepting other payment methods such as cryptocurrency or Buy Now Pay Later (BNPL) offered by companies such as Klarna. They can work really well for certain businesses and customers.
3. Manage your fraud percentages
We all know that fraud exists and that it comes in many forms. Fraud affects the permission level because, depending on the risk settings you’ve set up to prevent fraud, it can also affect transaction volumes that are authorized.
High-risk settings can result in fewer well-intentioned buyers, while low-risk settings can open the way for fraudulent transactions.
We recommend a combination preventive measures, including authentication keys, negative client flagging, and device information. It also helps if your team is trained to detect and prevent phishing attacks.
Adopting these measures helps improve your authorization rate by getting rid of fraudsters without losing legitimate customers. And while we’re on the subject of knowing your customer, this brings us to tip #4.
4. Improve Your Authentication Mechanisms
Using authentication processes is another good way to ensure your authorization rates. Having authentication is a good approach knowing your customer and ensuring that valid transactions are sent for authorization. It can also go a long way in giving buyers more peace of mind and bringing them in closer to the conversion point.
When it comes to authentication, you have several options.
First, there is markingwhere your customer’s personal information is converted into a token made up of a random string of characters.
Multi-factor authentication is another option where the customer is required to verify their identity in more than one way, usually through a password and a push notification.
Comparisons is an authentication step that simply compares your customer’s information with their bank’s information to confirm their validity.
Finally, authentication keys can be very useful. These are phone calls, texts or emails. are emails that give the customer a code to use that will verify their identity.
5. Use a reseller model
What many people don’t realize about permit rates is that they are greatly affected by them. payment processors they work backwards. If you work a Payment service providerthe transaction is processed based on the location of the business.
So if you Cross-border sales With these types of providers, your clearance rates may not be as high as when using local processing, for example.
In contrast, online businesses that operate as a reseller or a Record of Merchant: model can really see their validation rate improve dramatically. As the MoR works with local acquirers and processors, payment is more likely to be made and approved.
Here you are Now there are five key features you should evaluate when considering how to improve your online business approval rate.
Thank you so much for watching! If you have any questions or suggestions, feel free to share them in the comments section. We wish you the best of luck and see you next time with more innovative new tips.
Now that you’ve learned the best practices for improving your approval rates, it’s time to start optimizing your checkout flow to hypercharge your online sales.
Check out our previous one “Give me 5!” episode here to discover five best practices that will help you optimize your checkout flow, increase your conversion rates, and ultimately generate more sales.
