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  • Alot of Declined Transactions Daily

    At least 50% of attempted orders are declined at our store daily usually due to an AVS mismatch. Is this normal? This is occurring when our customers try to checkout by credit card through our Authorize.net payment gateway.

    We also offer Paypal on our site however most users opt to checkout by credit card directly on our store and 50% of the time it fails due to an AVS mismatch so we lose a lot of sales daily. Many times customers call in and say that they entered their address correctly, stating that they have called their bank and confirmed that they put in the correct billing address so I am not sure why it could be failing if the billing address is correct. Anyone else have this problem using Authorize.net?

    Because of this, I have been thinking about adding Google Checkout or Amazon Checkout just to see if this will make a difference. Anyone using any of those checkout options and if so how is that working out for you?

    I have tried adding information on the checkout page to let customers know that the billing address must match what is on file with their bank but I recently removed it because it doesn't seem to make a difference. It still happens and I don't think most customers even read it anyway.
    Gro-aut Solutions

  • #2
    Originally posted by Msgroaut View Post
    At least 50% of attempted orders are declined at our store daily usually due to an AVS mismatch. Is this normal? This is occurring when our customers try to checkout by credit card through our Authorize.net payment gateway.

    We also offer Paypal on our site however most users opt to checkout by credit card directly on our store and 50% of the time it fails due to an AVS mismatch so we lose a lot of sales daily. Many times customers call in and say that they entered their address correctly, stating that they have called their bank and confirmed that they put in the correct billing address so I am not sure why it could be failing if the billing address is correct. Anyone else have this problem using Authorize.net?

    Because of this, I have been thinking about adding Google Checkout or Amazon Checkout just to see if this will make a difference. Anyone using any of those checkout options and if so how is that working out for you?

    I have tried adding information on the checkout page to let customers know that the billing address must match what is on file with their bank but I recently removed it because it doesn't seem to make a difference. It still happens and I don't think most customers even read it anyway.
    One of my clients use authorize.net and we had to alter their AVS checks to stop this from happening so often. Its just a matter of finding the right balance of security. None of us want a fraudulent transaction but we do need sales. I cant recall exactly which ones we turned off.

    Its funny because my other clients dont have any issues with their avs on other gateways. It seems to be just authorize.net

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    • #3
      It has been a while since I used Authorize.net, but at the time I think the fraud detection settings were supposed to be B E A N. I don't remember what those mean, but I remember the settings screen and you chose those letters and it worked fairly well for us.

      FWIW, we used to allow Google Checkout and Amazon. They both require big buttons saying you accept them and have different required placements for those buttons. When you include PayPal, there are three giant buttons screaming for the customers attention before the "Pay with a credit card" one.

      We had a lot of customers get confused by whichever button they saw first and jump to the conclusion that we only accepted that method and either leave, or call and complain.

      We use PayPal Pro as our main processor so we HAVE to have the PP button, but I would ditch it if I could.

      Another HUGE issue with those methods is that they bypass your checkout questions (if any). So, if you have an important question in checkout, they won't see it.

      Finally, with Amazon especially, you could not set a handling time setting. We sell a lot of customized made to order items on our main site and if we were busy and running in our typical lead time, Amazon was constantly emailing me saying they would cancel if the order didn't ship. Even worse on a special order (pre paid) item.

      I realize these aren't issues for anyone, but something to think about.

      DaveW

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      • #4
        Getting Paid

        I did have Google Checkout and liked it but it was discontinued in 2013. It was replaced by Google Wallet, which I have not yet tried but plan to.

        My customers do make use of my Paypal Express option but when I had PP Pro I had headaches - they declined tons of orders because people wanted to use their credit cards rather than PP accounts. This seemed to happen on a frequent, random basis. PP customer service was horrible with this issue so I switched my processing to Authorize.net in Oct 2013 and have not had any problems with declines.

        Google, Amazon & PP all like to stick their buttons on the "view cart" page. The best way I found around it is to put a notation on the top of the page letting people know they can click the "proceed to checkout" button to use their credit cards.

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        • #5
          I think the fraud detection settings were supposed to be B E A N. I don't remember what those mean, but I remember the settings screen and you chose those letters and it worked fairly well for us.
          We only have B A & N

          This works just fine for us.

          We also have CVV2 (card code verification) activated.

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          • #6
            Well this could very well be the problem for us. We have BERNAZW selected. I will say that with these settings we rarely have a chargeback (maybe 2 to 4 a year) and if we do we always win. I think I will try reducing the settings some at least for the next 3 months and then re-evaluate to see if declines have decreased but most importantly if chargebacks have increased based on the new settings.

            I remember way back at some point we were having a lot of chargebacks and we always lost the cases so I do remember increasing our settings for that reason. I guess I will have to test some settings to see which ones work best for us over the long run because with 50% of attempted sales declining everyday the chargebacks we were receiving is no way nearly as bad as all of the sales we are losing based on our current settings. Thank you for everyone's feedback.
            Gro-aut Solutions

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            • #7
              The setting of only B and N makes the most sense to me. That way you can approve customers who screw up their street address or their ZIP code, and decline customers who get them both wrong entirely. You can always contact customers with a partial match to get address corrections.

              Codes are here:
              https://www.authorize.net/support/CN...stem_(AVS).htm
              - Dean P. e-commerce and small business consulting

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