How to detect eCommerce payment failures?
Now that we talked about the importance of understanding the errors that occur in ecom payment processing and making the necessary improvements, let's talk about how you can detect these errors!
If you want to track the failed payment recovery process and make the right moves, all you need is heybooster. Thanks to heybooster, you can be sure that your users do not encounter any problems during the purchasing process. In this way, you protect both your revenue and the authority of your brand.
Moreover, heybooster doesn't just give you one-time reports. Monitoring your data for 24 hours, heybooster notifies you instantly when there is any change in your data. In this way, you can take action quickly and make the necessary improvements.
Let's see how you can detect eCommerce payment failures with heybooster!
1. The first thing you need to do to join the magic world of heybooster is to register.
2. In the second step, click on the Integrations title on the left and connect heybooster and data sources.
3. In the third step, click on Insight Categories and run the Measurement Problems package and click on Event Tracking.
4. That's it, you can start creating the necessary strategies for failed payment recovery now!
What is a payment failure?
When a payment transaction fails and no money is transmitted from the payer to the payee, it is referred to as a payment failure. This may occur for several reasons, such as insufficient funds in the payer's account, problems with the payer's payment method or failures with the technology used to process payments.
Payment failures can also happen if the payment information is inaccurate, such as the account number or expiration date being entered incorrectly, or if fraud is suspected. The payer may be able to fix the problem and finish the payment, or the payment may need to be canceled and retried later, depending on the reason for the failure.
Why is it important to understand payment failures?
1) Avoid financial losses!
Failures in eCom payment processing due to problems experienced by both the user and you can lead to serious financial losses. In this case, you will lose users who chose you among dozens of websites and products. Especially if the failed transaction is caused by technical problems on your side, perhaps hundreds of users will have to turn to rival companies. This will result in a huge loss of income.
Therefore, it is important that you realize the losses that the payment gateway processing error will cause you if it affects your business marketing performance with a snowball effect.
In order not to experience this situation, you need to understand payment failures correctly and make the necessary optimizations.
2) Learn from your mistakes!
Once you detect the problems that cause failure in eCom payment processing and make the necessary improvements, things will become much easier. You will be more prepared when you experience the same problem again, so you will prevent payment failure from being a problem for your users for a long time. Because the longer this problem continues, the greater the loss of income will be.
So, analyzing causes and patterns of payment failures can help you take steps to prevent them from happening in the future.
3) Eliminate the 'High Cart Abandonment' problem!
If you are looking for reasons why your business marketing performance is below expectations, one of them is probably high cart abandonment. Failed transaction may be the reason behind your high cart abandonment rate. If you detect online payment process failures and make the necessary improvements, you will see this rate decrease. In other words, you will remove the barrier between you and the users.
4) Protect your authority!
We all know how tough the competition is in the ecommerce world. To get ahead in this race, you need to please your users and make as few mistakes as possible. If users encounter any failure in ecom payment processing, they will probably immediately turn to other brands. In this case, both your authority will be damaged and the probability of the same user to shop from you again in the future will decrease.
Therefore, it is very critical that you understand the reasons for the failed transaction and create the right strategies.
How does the online payment process happen?
- Your customer chooses the product they want to buy from your website and adds it to their cart.
- Your customer enters the relevant part of their credit or debit card information. These are usually card number, expiration date, and security code.
- The payment information is sent from your website to the payment processor, which serves as a bridge between you and the customer's bank.
- To receive authorisation for the transaction, the payment processor automatically transmits the payment details to the customer's bank.
- The payment processor receives a response from the customer's bank, which either authorizes or rejects the transaction.
- The response is then forwarded by the payment processor to your website, which either verifies the transaction and completes the purchase or notifies the consumer that the transaction was rejected.
Why do online payments fail?
Online payment failure from the consumer’s side.
1) Incorrect information or password
One of the most common factors that cause a failed transaction is that users enter the required information incorrectly. For example, if a user enters wrong card information or one-time password (OTP), an error will occur in ecom payment processing.
2) Insufficient balance
Another problem caused by the user in online payments perpetrators is insufficient balance. In this case, the purchase is not approved by the bank and the online payment processing does not proceed to the next stage.
Online payment failure from the merchant’s side.
3) Technical problems
When there is a technical or security problem that the seller is responsible for, these kinds of failures may occur.
For example, the bank may not approve the purchase due to a security problem on the website, or the purchase transaction may not be transmitted to the bank due to technical reasons.
Tips to avoid payments failing
1) Choose your Payment Service Provider carefully!
The first method you should apply to prevent ecom payment processing failures caused by technical problems on your website is to choose a reliable PSP. A price-only analysis would be quite wrong when making this choice.
Because a payment service provider that does not have a strong support system will not be able to provide you with the help you want in case of payment failing. Because the important thing is not only to prevent these failures, but also to be able to get support quickly in case of any failure.
Another thing to consider when choosing a payment service provider is to choose a secure PSP with high security measures. Choosing a PSP just because it's fast and cheap can lose a lot of your revenue. Therefore, we recommend that you make sure that it is in compliance with PCI DSS Level 1 when choosing a payment service provider.
2) Provide a secure payment environment!
Of course, by choosing a secure PSP, you eliminate many problems. But there is also something you can do to ensure a secure payment environment. One of these methods is to implement a payment gateway with 3d secure. Payment gateway without 3d secure can cause you problems as it can create a security vulnerability.
After the recent changes, you, as the seller, must also serve in accordance with Strong Customer Authentication (SCA) requirements.
In order for your website to provide a secure environment, it will need to be SSL certificate compliant. Protecting the privacy of each party involved in the payment process is crucial while processing payments to fend against hackers and scams. An SSL certificate is a piece of code that protects user data as it travels between the roleplayers. We absolutely suggest you get an SSL certificate if your website does not already have one if you ever consider receiving payments or doing any form of online commerce.
3) Offer a wide range of payment methods!
Of course, it is very important to offer popular payment methods to your users. In this way, you can keep up with the dynamics and satisfy the vast majority of users. However, by creating a wide range of payment methods, you will not encounter errors such as payment gateway processing error. At the same time, you will eliminate other similar failures that will occur in ecom payment processing.
Thus, if users encounter a failed transaction in any payment method, they can turn to other reliable payment methods.
Now it's time to get to know heybooster better!