In the fast-paced world of e-commerce, transaction acceptance and optimisation are crucial for maximising revenue and enhancing customer satisfaction. Ensuring a seamless payment process can significantly reduce cart abandonment and boost conversion rates. Discover below several strategies that can greatly help you increase your conversion rate as an e-commerce merchant.
Strategies to optimise transaction acceptance
Multi-Acquiring
Multi-acquiring, the practice of partnering with multiple payment acquirers to process transactions, is crucial for online businesses, as it provides several key benefits for merchants. It allows to open different activities with different acquirers based on their industry and risk appetite and enables the possibility to leverage Smart Routing and Cascading – both detailed below in the article – in order to increase conversion rates. This also increases the resilience of the acquiring channels in case of technical outage or changes in the politics of an acquirer. Working with a Payment Facilitator (PayFac), such as PayXpert, partnering with several acquirers can be a great strategy to leverage the benefits of multi-acquiring.
Smart Routing
Smart Routing is a technology that dynamically directs transactions to the most suitable acquirer based on predefined rules. This approach ensures that each transaction is processed through the optimal route, increasing the likelihood of approval and reducing cost by prioritising the most cost-efficient acquirer. By leveraging real-time data and advanced algorithms, smart routing can be tailored according to various factors such as transaction amount, card type, and geographical location. This flexibility allows businesses to choose the best parameters to optimise their payment processes, reduce transaction failures, and improve overall conversion rates.
Cascading
Cascading is a great complement to Smart Routing. It ensures that if one payment processor fails to approve a transaction, that transaction is rerouted to another processor, based on the error code that occurred. Cascading increases the chances of transaction approval by providing multiple opportunities for the payment to be processed successfully. By implementing it, businesses can therefore minimise the risk of transaction declines and enhance customer experience by ensuring a higher acceptance rate.
Multiple Payment Methods and Currencies
Supporting multiple payment methods on all channels, including a wide range of cards and Alternative Payment Methods (APMs), as well as multiple currencies, is essential for catering to diverse customer preferences and reducing cart abandonment. This flexibility ensures that customers can pay using their preferred method, enhancing their overall shopping experience. Indeed, consumers tend to prioritise the payment methods they’re the most used to, whether when shopping online, going to the restaurant or even travelling abroad. Moreover, accepting several currencies enables both merchants and their customers to optimise costs and to avoid high exchange rates.
Orchestration
Through payment orchestration, businesses can leverage merchant-specific information to decide the best bank or processor for each transaction, ensuring optimal acceptance rates. This approach not only improves transaction success rates but also enhances operational efficiency.
Fraud Management and Chargebacks Reduction
Effective fraud management is crucial for protecting both the business and its customers, ensuring a secure and trustworthy transaction environment. In order to prevent fraud, merchants should rely on fraud rules and specific transactions restrictions that will protect their transactions and ultimately, their business. Moreover, leveraging Verify (Visa) and Ethoca (MasterCard) could help to enhance fraud management and support to prevent chargebacks while maintaining security without compromising sales or user experience.
Subscription Engine
For merchants working with a model based on recurring payments, a Subscription Engine can be a powerful tool. It can enable merchants to process transactions at regular intervals automatically, based on previously scheduled parameters. The Subscription Engine can be activated after processing a first immediate payment, which will become periodically recurring. Merchants also have the flexibility to skip the initial payment, for instance when activating a free trial, and enable the recurring payment later, at interval previously defined.
Importance of Transaction Acceptance
A study by Paul A. Pavlou demonstrates that consumer acceptance in e-commerce is significantly influenced by perceived usefulness, ease of use, and trust. Embracing strategies that ensure the best data security, an optimised and seamless user experience is therefore essential for staying ahead in the competitive e-commerce landscape.
In conclusion, optimising transaction acceptance can be done by relying on several strategies that complement each other. Implementing technologies like smart routing and cascading can significantly enhance your e-commerce business’s performance. By offering multiple payment methods, lowering risks, and leveraging payment orchestration, businesses can improve their conversion rates, reduce cart abandonment, and provide seamless and secure shopping experience for their customers, increasing their revenue and fostering loyalty towards their brand.
Would you like to know more about how to improve your transaction acceptance? Contact our experts, here: Contact with PayXpert, payment solutions for your business.
