Industries with High Authorization Decline Rates
Some industries are experiencing high rates of authorization declines, impacting businesses negatively. Here are the sectors facing challenges:
- Recurring Payments: Approximately 15% of credit card payments are being declined, with some industries seeing rates exceeding 30%.
- Online Businesses: Challenges include incorrect card information and fraudulent activities.
- Subscription Services: About 15% of subscription payments are being declined, affecting businesses in this sector.
- E-commerce: Decline rates are as high as 17% in the e-commerce industry.
- Luxury Goods: Businesses selling luxury items may experience more declines due to the nature of their products.
It is essential for businesses to identify the reasons behind these failed transactions, such as insufficient funds, outdated card details, or suspicious activity. Collaborating with reliable payment partners can help improve approval rates and reduce declines, leading to increased customer satisfaction and revenue.
If your business operates in recurring payments, online services, subscriptions, e-commerce, or luxury goods, it is crucial to address authorization decline issues. By addressing these challenges and partnering with reputable payment providers, businesses can enhance transaction approval rates and drive financial success.
#openbanking #identitymanagement #verifiablecredentials #paybybank
