Explore the impact of false declines in ecommerce and learn how to balance fraud prevention with legitimate transactions in this great article by Vesta.
As partners in the fight against fraud, we are excited to share a great post from our partner Vesta, a company that specializes in providing end-to-end transaction guarantee solutions to merchants. In their recent article, “False Declines and False Positives Are Costing You Revenue,” Vesta explains the impact of false declines on eCommerce businesses and how they can ultimately win the battle against fraud.
False declines occur when a legitimate transaction is flagged as fraudulent and rejected by a merchant, payment processor, or financial institution. They have significant consequences for both customers and merchants, including lost sales, damaged reputation, and lost customers. False declines are particularly common for online transactions, where there is often less information available to verify the identity of the buyer.
Vesta’s article explains the causes of false declines and the damage they can have on brand reputation, causing customer churn and costing ecommerce businesses revenue. According to Aite-Novarica, the cost of false declines comes to $443 billion annually, far outweighing actual credit card fraud.
If you’re interested in reading more about preventing false declines for your ecommerce business, you can read more at Vesta: False Declines and False Positives Are Costing You Revenue