Reasons Why The Transaction Success Rate Is Important For Your Business

Online payments are an integral part of today’s digital world. Payment for everything you buy, from clothes to daily groceries, is done via online payments.

Consumers love online payments as they don’t have to deal with cash anymore. However, online payment consumers don’t like failed transactions, which can lead your business to lose some serious money.

For example, a customer attempts to send you money through an online method. However, due to technical failure, the transaction doesn’t go through. What if the customer isn’t comfortable with the COD option? The next thing the customer decides is to drop the purchase.

Your business needs to have a high transaction success rate.

What is the Transaction Success Rate?

The Transaction Success Rate, aka TSR, refers to the percentage of attempted transactions that customers successfully completed. 

Here’s the formula for calculating the transaction rate.

TSR = Successful transactions / Total transactions attempted

For example, If your consumers made 100 payments to you in a day, and just 80 went through successfully, then:

The transaction success rate = 80/100*100 = 80%

Why is a high transaction success rate important for your business? 

A high transaction success rate:

• Indicates that a company can process customer orders and payments efficiently.
• Help to build customer confidence in a company and its ability to deliver on its promises. 
• Leads to repeat business from satisfied customers. 
• Help attract new customers looking for a reliable company to do business with. 
• Improves a company’s bottom line by reducing the costs associated with processing customer orders and payments.

Nowadays, customers demand a smooth online paying experience. Therefore, any irregularity faced by them in the journey from selecting the goods to checking out results in cart abandonment. 

Payment failure also plays a significant role in cart abandonment. In addition, it impacts your business as every failed transaction means revenue loss. 

For example, your business receives 100 orders for 900 pounds each. Out of those 100 payments, 85 get approved while the rest fails.

Therefore, TSR = 85%

If your business uses a payment solution with an inbuilt retry mechanism to improve success rates, it retries 15 transactions, out of which three were successful.

Then, TSR = 88/115*100 = 76.52%

The TSR dropped from 85% to 76.52%.

Hence, failed transactions cost your business 12 sales and disrupt the customer experience.

Here are the factors that affect transaction success rates.

1. Technical glitch
2. Bank server’s issue
3. Checkout page flaws — design, irregular flow, etcetera
4. Stolen card payment

To avoid these factors, you must look for a gateway service with high transaction success rates.

Scale your business with a 99.97% transaction success rate using OmniPay Gateway

Smooth Checkout

OmniPay provides a smooth checkout process or flows, reducing the likelihood of the user cancelling the payment or abandoning the cart.

Multiple Payment Options

OmniPay provides 100+ payment modes and e-wallets on the checkout page. In addition, it offers abundant options for customers to pay how they like.

Saved Payment Information using Tokenisation

No one likes to fill in the payment information every time they check out from your website, and saved payment information can be an absolute blessing for your business.

OmniPay uses tokenisation to save your customer’s payment details.

Once the customer fills in the card details, it gets saved as a Token on the checkout page except for CVV. In the future, the same customer needs only enter the CVV, CVC or CCV number when making a payment.

To reduce failed transactions, you should use a payment gateway that assures a high success rate in the industry.

Sign up for the OmniPay payment gateway!