We’ve been hearing a lot about false positives lately as it relates to coronavirus tests. Such outcomes always result in stress and frustration.
But there is another kind of false positive that predates the pandemic – they happen when a legitimate credit or debit card purchase is mistakenly flagged and rejected. Result? Also stress and frustration – both for the person being declined and the business that has to relay the news.
Why Does It Happen?
As fraud detection tools screen every transaction more carefully, their filters sometimes catch legitimate sales as well, because of characteristics and patterns deemed suspicious. Having been burned too often in the past, merchants are now erring on the side of caution.
What Is The Result?
Start with the obvious – you just lost a sale for no reason. A 2017 Global Fraud Survey found that 3.1% of incoming orders of more than $100 were mistakenly declined. That can add up to several thousand dollars over the course of a year.
Did you lose a customer as well? In a 2015 survey of U.S. consumers, 32% said they wouldn’t shop with a merchant again following a decline. And angry customers are the ones most likely to tell the world what happened on social media. As a result, one declined transaction may result in dozens of customers taking their business elsewhere.
What Can You Do?
Obviously protection against fraud is essential, and every retailer should have advanced tools in place to keep them safe. But the challenge is separating the sales that are legitimately declined from the false positives.
Doing so begins with a secure and dependable payment processing solution. For any size business and any industry, the Cliq team can customize a payment solution that fits exactly what your company needs in order to help meet your business goals – including accurate results and satisfied customers.