Are declined transactions harming your conversion rate? Here are 4 tips you can implement right now that will boost your approval rate overnight at no cost to you.
Declined transactions suck. No matter if it's because the customer entered their details wrong or their bank thinks the payment is suspicious, it harms your merchant account, relationship with your processor, and your bottom line. So here are the best no-cost ways to cancel out declined transactions.
1 - Use a domestic merchant account — Use an account where your customers are. Foreign transactions are always flagged as higher risk (even if you're in Canada selling to US customers).
More info on that here: 6 - What You Need to Know About Declined Transactions and How to Increase Your Conversion Rate by 5%
2) Lower the ticket size to less than $1000 — Banks flag high-ticket transactions above $1000. You should aim to lower each transactions to something less than $1k (like $997) and charge the customer once per month, if possible.
3) Check your MCC — Your MCC is your Merchant Category Code and it represents your business. You may be operating under a high-risk MCC (direct response is high-risk). The good news is that you can change your MCC or open another merchant account with a new MCC that matches your business as most businesses will fall under multiple MCCs.
More info on MCCs here: 13 - Simple Ways to Save Up to 3% in Merchant Account Fees Overnight
4) Scrub your merchant account — Clean it up. All of those declined transactions that get sent to your merchant account and payment processor are bad. The more negative things you send, the more likely transactions will get declined. Place limits on your gateway to stop declines from passing through.
Those are easiest, no-cost ways to prevent declined transactions from happening. Let me know in the comments your first-hand experiences with declines and how you managed to stop them.
Connect with Maria:
Maria Sparagis Website: http://mariasparagis.com
DirectPayNet Website: https://directpaynet.com