TABLE OF CONTENTS
- What is the payment success rate?
- What affects a payment success rate?
- How can we improve the payment success rate?
What is the payment success rate?
As a merchant, your payment success rate is an essential metric that indicates how successful your transactions are. It is the ratio of the total number of successful transactions to the total number of attempted transactions over a specific time period. For example, if you attempted 100 transactions and 93 of them were successful, your success rate would be 93%.
What affects a payment success rate?
Several factors can affect your payment success rate. One crucial factor is your targeted audience and marketing strategy. Your customer segments should be motivated and interested in your product. Otherwise, you may experience a low number of transactions and a high rate of people attempting to subscribe to a trial with an expired card. For instance, clients may use a valid card to receive a free trial but then block it for internet payments, causing recurrent charges to fail.
The answer to this question is a tricky one, and it lies in a few entities. First of all, a success rate depends on your marketing and targeted audience. Your customer segments should be motivated or at least interested in your product. Otherwise, you will experience fewer transactions and a higher rate of people trying to subscribe to a trial with an expired card. Or for the first payment, for instance, your potential clients may use a valid card to receive a free trial, but then block it for internet payments, so recurrent charge will not succeed.
Another significant factor is the location of your bank-acquire. If your targeted location is different from your bank-acquire location, it can significantly affect the success rate of card payments.
How can we improve the payment success rate?
So, let's assume your marketing team did a good job, targeted an audience interested in your product, yet your payment success rate does not look good. We do have a few quirks and features to offer:
Local Processing: Solidgate offers local processing in almost every part of the world. Local processing can significantly improve your payment success rate by reducing the risk of cross-border transactions.
Alternative Payment Methods: Offering alternative payment methods such as Google Pay, Apple Pay, or PayPal on your checkout page can boost confidence in your product and increase the likelihood of successful transactions.
Connect with Regional Payment Brands: If your primary location is in the USA, Solidgate can connect you with Amex and Discover card brands. If you have business interests in the Asia Pacific region, we can connect you with Alipay and WeChat.
In conclusion, the payment success rate is a critical metric for every merchant. By focusing on your targeted audience, using alternative payment methods, and connecting with regional payment brands, you can significantly improve your payment success rate and increase your revenue. If you have any questions or need assistance in improving your payment success rate, please contact our support team.