COVID-19 has inspired many merchants to look for new ways to transform their processes in order to make them more efficient. This of course includes payment processes. Since the start of Corona, online shopping rates have soared and merchants are aware now, more than ever before, of the need to keep fraud to a minimum, while reducing the number of declined transactions, in order to continue to grow.

Cross-border challenges

The merchant in question was thriving in every area – its clothes were globally adored, its customer engagement was high, and its marketing strategy was pristine.

After successfully expanding its sales around the world, the merchant noticed an elevated number of transaction declines in specific regions. Customers from certain countries wanting to make purchases from the merchant were often being rejected at the checkout, for no clear reason.

A client purchasing Clothing with successful card transaction

This is where Credorax stepped in

 Credorax’s ePayments department ran a full value-added assessment on the merchant’s payment data.

After comparing the data to benchmarks, we immediately understood that the implementation of an alternative, relevant and applicable MCC – the four-digit business classification number that tells banks what type of products or services are provided by the merchant company – would likely result in a significant reduction in the occurrence of declined transactions, improving the merchant’s bottom line as a result.  

 So, how can an MCC help in reducing declined transactions rates, or improve approval rates?

 Some MCCs are treated as higher risk by acquirers and payment providers since they’re more likely to result in chargeback disputes and fraud. Because of this, stricter approval conditions and higher processing fees are imposed. However, this can also lead to accidental blocking of genuine transactions.


Optimisation: the key to increased revenues

We immediately assisted the merchant by running A/B testing on a variety of relevant MCCs. This helped us identify which code was best at preventing banks from flagging genuine transactions as fraudulent and ultimately rejecting them.

We were thrilled to see that, as a result of our intervention, the fashion merchant’s payment authorisation rates increased by 12% globally, and by 14.5% in the specific area it was targeting – equating to a monthly affected volume of $1.8m


 Why value-added payments services mean a higher bottom line

This fashion merchant case study illustrates the importance of having experts on your side to collaborate with when it comes to understanding the finer details of processes and implementing solutions that solve specific problems. As with thorough monitoring and analysis, and early problem area detection, cash-loss is reduced to a minimum.

Credorax offers a wide variety of value-added ePayment services to reduce transaction declines by optimising approval rates, and minimise lost purchases, from gateway log monitoring to system rule optimisation, false-positive minimisation to issuer behaviour examination, request-log analysis to decline-response identification. We take action quickly to help transform our merchants’ payments processing, fully optimising it, as quickly as possible.


Want to reduce your number of declined transactions? Get in touch with us to find out how we can help. 

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