Ever seen this? Ever seen this? "Transaction Declined" "Transaction Declined" "Transaction Declined" Your card's fine. Your money's real. So...???? You're not alone (hopefully!). Welcome to the invisible leak no one talks about - credit card authorization failures. Welcome to the invisible leak no one talks about - credit card authorization failures. It's not just a customer annoyance. It's a revenue black hole. And businesses are bleeding silently at the point of payment. So, what should we do? What we do is to peel back the curtain. 🧵 How Common Are Credit Card Declines? How Common Are Credit Card Declines? [ ]undefined15% of recurring card payments fail

[ ]undefinedSome industries see 30%+ decline rates

[ ]undefinedIn 2023, $157B in e-commerce revenue was at risk

[ ]undefined$81B of that? Gone. Never recovered. [ ]undefined15% of recurring card payments fail [ ] undefined15% of recurring card payments fail 15% of recurring card payments fail [ ]undefinedSome industries see 30%+ decline rates [ ] undefinedSome industries see 30%+ decline rates Some industries see 30%+ decline rates [ ]undefinedIn 2023, $157B in e-commerce revenue was at risk [ ] undefinedIn 2023, $157B in e-commerce revenue was at risk In 2023, $157B in e-commerce revenue was at risk [ ]undefined$81B of that? Gone. Never recovered. [ ] undefined$81B of that? Gone. Never recovered. $81B of that? Gone. Never recovered. All because the system said "no" to legit money(Whoa!!) "no" Top 10 Reasons Cards Get Declined Top 10 Reasons Cards Get Declined “The False Decline Epidemic” Banks declined $118B in legit purchases last year. That's 70x more than what was actually stolen via fraud. Banks declined $118B in legit purchases last year. That's 70x more than what was actually stolen via fraud. legit So yeah — it's like turning away every customer because maybe one is shady. And now, who pays the price? maybe “The merchant.” The merchant The Real (and Painful) Cost of Declines The Real (and Painful) Cost of Declines Let’s talk about what actually happens when your customer’s card gets declined. 💸 Lost Revenue That Should've Been With the Merchant Here’s the wild part: just a 1% bump in authorization rates can unlock millions in extra revenue. No exaggeration. Every time a customer clicks “Pay Now” and gets blocked for no good reason, that’s money walking out the digital door. And guess what? They don’t always come back. millions 🛒 Abandoned Carts = Broken Trust The checkout flow is supposed to be the easy part. But when payment fails? easy 79% of users bail completely.
1 in 4 don’t just leave — they head straight to your competitor.
40% won’t even try that same card again. Why? Because they think it’s your fault. 79% of users bail completely. 79% of users bail completely 1 in 4 don’t just leave — they head straight to your competitor. 1 in 4 40% won’t even try that same card again. Why? Because they think it’s your fault. 40% won’t even try that same card again. And sometimes… it is. is 🔁 The Silent Killer: Involuntary Churn You know what’s sneakier than a visible decline? One that happens in the background. Think recurring subscriptions that quietly fail. The customer doesn’t get a ping. No alert. Nothing. Just — poof — their subscription vanishes, and you’ve lost a loyal user… without either of you even realizing. poof 😤 Declines Wreck UX and Brand Trust When a card fails, users don’t blame their bank. They blame you — the brand. you They feel confused. Maybe even a little embarrassed. And that frustration? It lingers. ☎️ Say Hello to Support Hell Every unnecessary decline creates a ripple effect. Suddenly, your support team is flooded with calls that sound like this: “Uh, why didn’t my card work?” And there goes your time, your resources, and your support budget. All on something that could’ve been avoided. It's Bigger Than Just "Payments" It's Bigger Than Just "Payments" This isn’t just about finance or technology. Declines are a full-blown product problem. A data problem. A user experience problem. product data user experience Codes like 05 – Do Not Honor tell your customer absolutely nothing. It’s like showing a 404 error when someone tries to open a bank vault. Useless! 05 – Do Not Honor What’s Going On Under the Hood? Here’s where it gets messy: Outdated fraud rules written for another era.
Cross-border paranoia — especially in LATAM and parts of Asia.
Disconnected infrastructure that varies wildly across markets.
Regulations (looking at you, SCA) that add friction without always adding value.
Banks and merchants that don’t talk to each other — or when they do, it’s not pretty. Outdated fraud rules written for another era. Outdated fraud rules Cross-border paranoia — especially in LATAM and parts of Asia. Cross-border paranoia Disconnected infrastructure that varies wildly across markets. Disconnected infrastructure Regulations (looking at you, SCA) that add friction without always adding value. Regulations Banks and merchants that don’t talk to each other — or when they do, it’s not pretty. Banks and merchants that don’t talk to each other These aren’t customer or merchant mistakes. These are systemic cracks!!! These aren’t customer or merchant mistakes. These are systemic cracks!!! What's Next? (Get Ready for Part 2) What's Next? (Get Ready for Part 2) In the next part, we’ll dive into how smart merchants are flipping the script. A quick preview: ✅ They track whydeclines happen (don’t fight an invisible enemy).✅ They retry soft declinesstrategically.✅ They use tools liketokenization and account updatersto stay one step ahead.✅ They time retries — and yes,post-paydayretries really do work.✅ They invest inissuer collaboration to fix things upstream. why strategically tokenization account updaters post-payday issuer collaboration upstream

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