Nearly 50% of top-performing subscription businesses admit that most failed payment transactions are due to payment processing software problems, according to a 2023 PYMNT report. For many merchants and e-commerce store owners, achieving an 80 to 100% payment acceptance rate seems impossible due to incessant false declines, delayed processing, and expensive transaction fees.
This means: accepting cryptocurrency payments in this highly competitive market is not an option but a necessity if you are looking to improve your payment acceptance rate. But how can cryptocurrency payments help you rise above these challenges and improve your revenue? Find out more in this article.
How The Traditional Payment Processing Providers Contribute to Cart Abandonment
Nothing is as frustrating as seeing potential customers fill their online shopping carts only to abandon them during the checkout process. One common cause of cart abandonment is the difficult payment process. To understand why customers abandon their cart during checkout as a merchant, you must understand the complexity of the traditional process of payment.
The payment cycle involves multiple participants, including traditional banks, card providers, and payment service providers. Each financial organization operates on a set framework to facilitate payment, and within this multiverse of complexity lies the reason for poor payment, which can affect your business payment acceptance rate.
False declines and failed payment transactions can be frustrating to customers. Usually, this decline may be attributed to inputting the wrong zip code, or date, or following a different formatting standard. But why should your customers bear the brunt of poor payment processing when an alternative payment option can automatically eliminate the need for inputting personal details and simplify their checkout process?
What is the Payment Acceptance Rate, and Why is it Important?
Your business payment acceptance rate is a measure of successful payment transactions authorized by your financial institution or payment service provider. It is the ratio of successful or approved transactions to the total number of attempted transactions over a given period.
The payment acceptance rate is an important business metric merchants study to improve customer retention strategies. Although there is no universal standard for a commendable payment acceptance rate, the higher it is, the more it signifies transaction success and customer satisfaction. Businesses must strive to increase their payment process to maximize customer satisfaction as it increases the likelihood of returning purchases. In addition, a higher payment acceptance rate improved revenue and increased profitability since consistent failed purchases can contribute to losses.
The data collected from calculating your business payment acceptance rate can provide valuable insight into successful payment options, customer locations with the most purchases, and more. This can help improve your business’s marketing for better results.
How to Calculate Your Business Payment Acceptance Rate?
Calculating your payment acceptance rate is an easy process. All you have to do is point out all successful payments and divide it by the number of attempted payments. Then multiply the result by 100. A payment acceptance rate of 80 to 100 indicates high customer satisfaction.
10 Factors that Affect Payment Acceptance Rate
Businesses looking to break even must understand factors affecting their customers’s checkout sessions. Your business’s low payment acceptance rate can be attributed to the following reasons:
- False declines, which demoralizes the customer’s urge to re-attempt to process the failed payment.
- Customers have little to no funds to process the payment.
- Inputting the wrong payment information. For example, the wrong cardholder name, zip code, or CVV.
- Fear of hacks and scams due to poor or sketchy checkout design.
- Payment risk assessment failure (e.g., 2-factor authentication (2FA), one-time password (OTP), which forces the card issuer to decline payment.
- Unforeseen technical glitch from the bank, card issuer, or payment service provider.
- Expensive shipping fee and transaction charges.
- Limited payment options.
- Poor network
- Unspecified “Do not honor” declines from the customer’s bank.
How Cryptocurrency Payment Processing Improves Payment Acceptance for Your Customers
If your payment acceptance rate slips way below the average level, there are new strategies to implement that can get it back to a good range. Here are some ways to improve your rate:
Offer user-centric checkout pages
A handful of customers have reported withholding purchases because of poor checkout experience. Merchants can maximize revenue generation by simplifying checkout pages. Business owners can perform a rental by adding multiple payment and shipping options, removing unnecessary features, and improving the website’s aesthetics.
Improve your website security
A good way to reduce false declines is to improve your website’s fraud monitoring systems. Fraud detection bots can repeatedly block legitimate transactions. Ensure you opt for a secured payment service provider or invest in machine learning engines to improve your website’s credibility.
Offer 24/7 customer support
When customers encounter troubles during payment, your website customer support becomes the next solution. Business owners should provide 24/7 customer support either through email, phone, live chat, social media, phone numbers, or an AI chatbot. The right customer support options can improve your customer satisfaction rate, and the best part is that the cost of maintaining a customer support channel is low.
Diversify your payment options by including a cryptocurrency payment option
Customers believe an e-commerce store offering diverse products for sale should also provide multiple payment options. It is quite common for customers to experience delays with their preferred payment options, but the availability of others can help them check out and process their purchases. While there are multiple digital payment solutions, including a cryptocurrency payment option is guaranteed to improve your revenue.
Reports revealed that cryptocurrency payments are projected to experience a 17% increase from their initial 6% by 2029. One popularly cited reason for cryptocurrency adoption is the ease and security accompanying it. Customers expect convenience while shopping and any difficulty contributes to their cart abandonment problem. In addition, customers love to embrace modernity, and many are early adopters of technological advancements that promise comfort.
PTPShopy is a cryptocurrency payment gateway processor for merchants and business owners looking to provide cryptocurrency payment options for customers. Merchant owners cannot accept Bitcoin, Ethereum, and 400 other cryptocurrencies by simply integrating the PTPShopy API into their existing system. New and existing PTPShopy merchants enjoy fast transactions and low fees when compared to regular payment options.
Ready to Improve Your Business Payment Acceptance Rate?
PTPShopy are experts in cryptocurrency payment provisions to businesses, improving their revenue and customer retention. We are the go-to solution for merchants who value the importance of providing secure and flexible payment options for their customers. Our merchants enjoy smooth transactions without experiencing limitations. Let PTPShopy increase your business’s payment acceptance rate today.
