Could AI be instrumental to increasing your approval rates and your revenue?

When it comes to approval rates, you're already familiar with the frustration false declines can cause within your fraud prevention strategy. Especially because the reasons behind false declines are often unclear or complicated. But take a look at these numbers:

• Card present transactions have a 99% approval rate.¹
• Card not present transactions have a 92% approval rate.¹
• False declines cost businesses $443 billion a year—far more than credit card fraud.²

Ouch.

Missing out on revenue plus reputational damage certainly makes false declines even more compelling. So, is it possible to address this issue within your payments ecosystem to increase the likelihood of a payment being accepted and give customers a better payment experience?

There are several factors that can lead to false declines: These include missing or incorrect information, unusual spending patterns, exceeding limits, and overly cautious fraud-detection algorithms. Having to manage responses from multiple processors also adds to the cacophony.

So businesses need to change the arrangement of their payments processes, in order to ensure more transactions get approved more frequently. And it’s got to be done without compromising your fraud strategies.

This is where payments orchestration comes in, with support from high-quality big data and AI.

Payments orchestration performs a series of functions, powered by artificial intelligence and machine learning, to improve authorization rates and drive higher revenue.

Coordinating these functions so they’re working within the parameters that help your business perform at its very best, requires a blend of automation, high-quality big data, artificial intelligence and human expertise.

And with the right configuration, your payments acceptance can become more resilient and responsive, optimizing revenue and fostering customer satisfaction.

A solution like Service Orchestration from Cybersource, a part of the Visa Acceptance Solutions family, brings together:

• Data Enrichment—enhances the authorization request by adding, updating or deleting information.
• Dynamic Retry—automatically retries a transaction with a different processor following a decline.
• Smart Routing—points a transaction to the processor most likely to approve it.
• Filtering—prevents avoidable declines.
• Payment Insights—to understand why a payment was declined and help you improve your chances of getting it approved.

All driven by machine learning and AI using VisaNet’s high-quality datasets—more than 269 billion transactions processed by rigorous analytics annually.³

Combining intelligent automation with insightful customization helps boost authorization and revenue, without compromising your fraud strategies.

But there’s also another unexpected gain to be had.

Let’s go back to the finding that told us 40% of consumers would never again shop with a merchant that falsely rejects one of their purchases.²

So it’s reasonable to expect that when a customer has a positive, seamless payment experience, this will generate repeat business and build your brand’s reputation for reliability and trust.

So final result: The sweet sound of increased approval rates, gained revenue and brand building.

Visit our Knowledge Center to explore more developments around AI in acceptance.