Pagos

Stripe published a blog post in August (https://lnkd.in/ey72hN3J) highlighting how US issuers often view transactions processed with 3D Secure (3DS) as a risk signal. As a result, approval rates for transactions using 3DS tend to be lower when compared to that of non-3DS transactions. We decided to dig into the data ourselves—and with over 3 billion transaction events processed through the Pagos platform in 2024 alone, that’s quite a bit of data to play with. Looking specifically at US Visa and Mastercard credit transactions processed through three popular processors (Processors A, B, and C) and made with cards issued by the top 5 US issuing banks (Bank of America, Capital One, Citibank, JP Morgan, and Wells Fargo), we saw similar trends. Approval rates for 3DS transactions are, on average, lower than for non-3DS transactions. But there’s more to the story: the gap between 3DS and non-3DS approval rates depends heavily on both the issuing bank and the payment processor. For instance, for cards issued by JP Morgan and processed through Processors B and C, the approval rate for 3DS transactions is nearly half that of non-3DS transactions—a striking difference. This underscores the importance of tailoring fraud prevention and authentication strategies not just to regional trends, but also to the specific dynamics between issuers and processors. One-size-fits-all? Not in payments. Of course this visualization shows more than this one correlation. We also see that Processor A across the board seems to do a better job processing 3DS transactions than the other processors—another trend worth researching more. The data journey continues! #payments #paymentsdata

If you’ve been tagging along with the lessons and insights from our ABC’s of payments processing series, we’ve got more content you might like! Check out the latest episode of the Fraud Boxer podcast where Jordan Harris interviews Klas B?ck about payments strategy and optimization: https://lnkd.in/gnAbbUSq

Our CEO and co-founder, Klas B?ck, is speaking tomorrow at the Merchant Acquiring Conference hosted by PSE Consulting. Check out “Payments Data as a Strategic Asset” at 11:20AM (GMT) and let us know what you think! #MAC2024 #payments #paymentsdata

The latest episode of the Fraud Boxer podcast features someone you might recognize: our very own Klas B?ck! Learn how your business can drive authorizations and revenue while simultaneously finding opportunities to cut costs—all through the power of payments data. Check it out and let us know what you think: https://lnkd.in/gyPZ2t3U - Apple: https://lnkd.in/gea_zg2r - Spotify: https://lnkd.in/g8_XXuVi - YouTube: https://lnkd.in/gEtQv-rM #FraudBoxer #Payments #Fintech #PaymentOptimization

For letter L in our ?? ABC's of Payments ?? series, we're talking "Loyalty". Customer loyalty is the lifeblood of any seller, as loyal customers drive revenue and can act as ambassadors for your brand. In today's online marketplace of seemingly limitless competition, customer acquisition can be expensive and customer loyalty/retention is paramount. Our last lesson in this series—knowing your customers—is the first step towards inspiring loyalty. You need to analyze your historical payments data to identify where customers are, what payment methods they want to use, and what currencies they make purchases in. Catering to customer needs will help ensure repeat and (hopefully) larger orders moving forward. Your payments data also informs how customer loyalty impacts your bottom line. The images below are pulled from the Pagos payments data visualization platform for a single business. When looking at total approved transaction volume broken down by stored credential, this business experiences significantly higher revenue from card-on-file-vault transactions (i.e. transactions made with payment credentials the customer previously saved on file) than any other payment flow. Clearly the merchant's marketing and promotional programs targeted at prior customers are paying off! The second image is a custom data visualization created in the Pagos platform, demonstrating average order value (AOV) over time for transactions made with each stored credential type. Once again, we see the impact of customer loyalty on your bottom line: repeat customers who stored their cards on file with this merchant spend more than new customers or those purchasing in a physical store. That's the power of loyalty! Ready to start exploring your payments data in this level of detail? Contact us today to get started!

Every seller needs to keep track of: - Visa chargeback rate (calculated using Visa's formula) - Mastercard chargeback rate (calculated using Mastercard's formula) - Chargeback lag by customer segment - Seasoned chargeback rate Do you have values for each of these bullets for your business? Do you have an easy way to pull or calculate those values? If the answer to either question is no, we've got everything you need to get back on track when it comes to chargeback monitoring. Learn more in our latest blog post, The Chargeback Challenge: https://lnkd.in/gvty-Uvh #payments #paymentsdata #chargebacks

Pagos’ co-founder and CEO, Klas B?ck, is heading to the Merchant Acquiring Conference in London next week, organized by PSE Consulting. If you’re going to be in attendance, don’t miss his session on Wednesday, Nov 20th @ 11.20AM (GMT), where he’ll demonstrate the ways you can turn payments data into a strategic asset for your business ?? #MAC2024

For the letter K in our payment processing educational series, we're exploring the idea of ? Knowing Your Customers? . Understanding who your customers are and how they interact with your business is crucial for payments optimization. The best way to gain that knowledge is to look into—you guessed it—your payments data! By leveraging a payments data visualization tool like ours, you can analyze customer behavior through various lenses—payment methods, stored credentials, BIN data, and more. This data helps identify purchase trends, customer preferences, and even potential growth opportunities. And with these insights, you can tailor your payments setup and marketing strategies to improve customer experiences and drive revenue growth. Tracking payment methods is a great starting point. When you analyze transaction volume, approval rates, and average order values (AOV) for each payment method, you can hone in on what customers want to pay with and how much they'll typically spend. These insights empower you to promote high-value payment options, adjust your payment mix, or even test new methods to attract different customer segments. Similarly, researching your stored credential breakdown reveals patterns across first-time and repeat customers, helping you drive loyalty and reduce churn. Knowing your customers also means knowing who among them represent a potential risk to your business. While most insights help cater to genuine customer needs, some reveal problematic trends, such as refund fraud or return abuse (i.e. friendly fraud). In essence, getting to know your customers—both the good and the challenging—enables you to create a more strategic, customer-focused payments ecosystem. For more information on getting to know your customers, see our blog post on the topic from earlier this year: https://lnkd.in/emYGdx8m

We've launched some new features in our data visualization platform, designed to make your payments data analysis easier than ever. Check out how Focus and Charts (coming soon!) can help you hone in on insights and opportunities in your payments data with minimal effort: https://lnkd.in/gZhCFe8K #payments #paymentsdata

The letter J in our ?? ABC's of payments series stands for "Juuuuuuust enough." Payments optimization often comes down to striking the right balance between efficiently processing the most transactions to drive revenue growth AND protecting your business from things like fraud and crippling costs/penalties. Identifying and maintaining that balance requires you to monitor and analyze your aggregate payments data with a data visualization platform like that available through Pagos. Here are just a few examples of how you can use payments data to determine just the right balance in your payments optimization strategy: - Requiring *just enough* authentication from customers - If you require 3D Secure authentication on all transactions in countries where it isn't required, you might be rejecting legitimate transactions with this added layer of friction. Review your payments data to compare the decrease in approval rates caused by 3DS declines to the increase in fraudulent transactions you experience when you don't require 3DS authentication. - Accepting *just enough* payment methods - You want to have enough variety in your accepted payment methods to provide your customers with all their preferred options while also avoiding overwhelming customers with options at checkout. Additionally, you must also monitor the costs of accepting certain payment methods to determine if the revenue they drive outpaces the cost of acceptance. - Putting in *just enough* effort fighting chargebacks - When customers dispute transactions, you get to decide whether you want to fight the chargebacks or not. This is a strategic decision, as fighting chargebacks takes time and can be expensive, costing anywhere between $10 to $50 USD. An optimized chargeback-management strategy involves striking the right balance between fighting chargebacks and either fighting them or simply refunding the customer for the original transaction. - Performing *just enough* retries - Designing an optimized retry strategy requires you to spend some time with your retry data. With data on both approvals and costs, you can identify the right number of retries to perform in an effort to increase approval rates while also avoiding penalties and other costs associated with excessive retries. Are you ready to start digging into your payments data to determine the *just right* actions to take in your payments setup? Contact us today to get started! #payments #paymentseducation #paymentsdata