Payment conversion: 4 reasons that reduce the success of payments on your site and how to eliminate them



    Friends,

    Today we want to talk about payment conversion. What it is? For what reasons do failures occur most often? How to optimize patency of payments?

    Different people consider the conversion differently: according to the passability of payments (the ratio of successful payments to the total number of attempts), the number of successfully paid orders (regardless of the number of attempts required for successful payment), and even - in especially difficult cases - the number of transitions on the payment form. We consider the first option - for us, as for a payment gateway, the indicator of throughput of payments is the most important and amenable to optimization on our part.

    Payment conversion is the number of successful payments of the total number of transactions.Payment conversion can and should be analyzed, it can be optimized and - depending on the technological capabilities of the payment gateway - can be brought to maximum efficiency.

    The "average hospital" rate of Russian ecommerce payment conversion ranges from 60 to 75%, in Payler this indicator is in the range of 85-96%. According to our statistics, failures most often occur for the following reasons:

    • 3D-S authorization errors (user did not enter the code / entered with an error, the code did not come, the 3D-S authorization page did not open). This is the most common cause of failure. It accounts for up to 42-45% of failures.
    • Transaction rejected by the issuing bank / acquirer. This error accounts for about 29-33% of failures.
    • The buyer is suspicious and blocked by antifraud systems. Between 18 and 25% of failures occur for this reason.
    • Buyer's mistakes. The rarest cause is only 3-4% of failures.

    Most of these problems are due to the lack of flexibility / technical capabilities of the payment gateway. At Payler, depending on the specifics of the business, we offer our customers the following solutions:

    • Disable / vary the 3D-S level. To reduce the failure rate due to 3D-S authorization errors, you can either disable 3D-S completely, or set more sparing settings. For example, set limits on the amount and number of payments - in this case, the user will be able to pay without 3D-S purchase for an amount less than the established limit (as a rule, the amount is within several thousand rubles). You can also request 3D-S only from transactions from a specific list of countries.
    • Manual antifraud settings. For example, to allow payments if the IP address and the country of issue of the card do not match - most payment gateways automatically reject such transactions, but manual settings allow you to find the optimal balance between conversion and security.
    • Request Routing The ability of a payment gateway to conduct on-us transactions, in which the issuing bank acts as an acquirer, is practically a guarantee that the lion's share of potentially unsuccessful payments will nevertheless pass authorization.
    • Customization of the payment form. We want to dwell on this point in more detail. Everyone knows that the payment form should be as user-friendly as possible, but for some reason, such options are still encountered:



    And this is how the customized payment form of one of our merchants looks: The


    user is most likely to make a successful payment if the payment form will help him in this. The breakdown of the input field of the card number into blocks of four digits with automatic cursor transfer to the next block, visual imitation of a bank card, the absence of extra fields (the name of the card holder is unnecessary information, getting rid of this field affects the conversion only positively) and tips at each stage of filling payment form - these simple recommendations are suitable for almost all areas of activity.

    Conversion and Risks


    In theory, a payment gateway can completely disable 3D-S and set such antifraud settings that the conversion will tend to 100%. But you need to understand that these are risks, primarily for the merchant himself (chargebacks are not a toy). Also, the payment gateway itself and the acquirer bank are exposed to risks. Therefore, the main task in optimizing the patency of payments, we set the balance. Below we have arranged the most common categories of activity in order to reduce their risk:

    • High risk. Semi-illegal and illegal content. Here the risks are maximum and those madmen who nevertheless decide to turn off 3D-S and sparingly configure antifraud filters, as a rule, compensate their risks with sky-high service rates.
    • Ecommerce (physical goods). In the case of the sale of physical goods - gadgets, spare parts and other goods that can be quickly resold, the risks are maximum. Filters with restrictions on the amount / number of purchases and countries come to the rescue.
    • Ecommerce (non-physical goods). When selling legal content, subscriptions, cloud services and other services, access to which can be limited at the first suspicion of fraud, the number of fraud requests decreases sharply - here we can completely disable 3D-S, or connect recurrences and set the most flexible antifraud settings.
    • Housing and communal services, state and municipal services. Here the risks are the smallest - in our practice, there have not been a single scammer trying to pay utility bills or fines from a stolen card.

    Any problem has its own solution. The task of the payment gateway in optimizing the conversion of payments is to find an individual solution without crossing the threshold of acceptable risks.

    We will gladly answer your questions in the comments or in the mail - hello@payler.com

    With love,
    your Payler

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