PayPal has found that between 5% and 10% of ecommerce store payments are declined.
There are several reasons why this could happen:
The customer doesn’t have enough funds on their card.
The customer may have tripped a bank’s fraud warning because they’re making more purchases than normal, or making an unusual overseas transaction
There could be a temporary issue with the payment gateway and this might be preventing them from successfully charging their card.
The good news is, most customers will assume the fault is with them and not with the site. They will re-enter their details and hopefully on the second or third try they will be successful.
But the bad news is, after one or two more tries the customer will usually abandon their cart. An estimated 2% to 5% of ecommerce sales are abandoned because the customer thought there was a fault with the site.
A simple way to prevent declines leading to abandonment is having a prompt message, so when a transaction is ‘declined’ it will prompt the customer to use a different credit card or payment gateway on their next attempt.
For example, if your main checkout collects credit car payments via DPS, extend your account so that you can also provide Account2Account, which is a secure bank-to-bank transfer system similar to POLI. If a credit card is declined, direct the customer to using A2A instead. This is an excellent way to overcome any blocks as a result of too many online purchases, but it doesn’t solve the problem of the card being declined due to a payment gateway experiencing issues.
This can be resolved by creating an account with an alternative payment gateway, such as PayPal and by showing this as an alternative payment option if the card is declined. The bad news with this is that you are paying higher transaction fees compared to DPS, but on the other hand you are getting as sale that might otherwise have been abandoned.
If you have any questions regarding cart abandonment feel free to contact the team at FatWeb, we are happy to help.