To first understand how FlexPay can increase your business revenue, it is important to grasp why you are losing so much of your transactions and how it can be reduced significantly leading to your revenue increase via FlexPay.
In the card payment industry, there are two main types of transactions: Card Present (CP) Transactions and Card Not Present (CNP) Transactions. With CP transactions the decline rate is 2% across global networks and with CNP transactions that number is significantly higher with 13-35% (3 to 9 times more declines). It is estimated according to Javelin Research that $1.9 billion transactions are falsely declined every year globally, which represents $118B in lost transactions. These $118B of transactions are flagged as "suspicion of fraud" in comparison to the $9B of actual fraud transactions.
If you are asking yourself, why are so many transactions declined for "suspicion of fraud" and who is actually declining them, well we can tell you it's not the acquirer (merchant bank) or the card associations (VISA, MC etc.) but the issuer (card issuing bank). Card issuers are using out dated ISO standards from 1987 and as such make imperfect decisions based on inadequate information.
How can FlexPay help with this? FlexPay reverse-engineered the Risk Decline System (RDS) used by card issuing banks and with our AI machine-learning technology, analyzes billions of historical CNP transactions. Data is constantly being fed into FlexPay's system, keeping it informed of changes to the issuers constantly evolving RDS.
The FlexPay learning machine, uses a statistic based failed payment recovery and risk balancing strategy. It also uses over 70 data points to best determine when, where and how to process each transaction. The FlexPay system easily integrates into your CRM and is certified with over 120 payment processors.
With all these measures utilized by FlexPay, we are able to recover between 30% and 50% of your declines, therefore increasing your revenue.