Riskified Deco enables merchants to address payment authorization failures
Riskified announced the launch of the latest version of Deco, a real-time solution for recovering orders lost to card-not-present payment authorization failures.
As many as one in seven attempted eCommerce transactions fail payment authorization, according to The Economist, leading to lost revenue and upset customers. Deco converts up to 20% of those declined transactions into immediate sales, delivering a significant ROI to merchants and boosting customer satisfaction.
Payments need to be authorized by multiple financial institutions in order to be successfully completed. Many of these institutions have not kept pace with the rapid changes in online shopping and consumers’ purchasing behavior, making payment authorizations an especially hard challenge for eCommerce merchants.
According to Riskified’s research, as many as 72% of online shoppers whose payments fail authorization are actually legitimate customers who should have been approved.
Riskified developed Deco with design partners including The Level Group, a leading global eCommerce partner that builds and manages end-to-end online experiences for luxury, design, and fashion brands.
With Deco, a luxury European brand that is one of The Level Group’s partners, has recovered 9.62% of Deco-eligible US credit card payments annually, and saw more than half of its Deco users double their spend on return shopping trips.
“High authorization failure rates are a common pain point in cross-border sales, especially for non-US merchants that have growing US sales volumes,” said Andrea Ciccoli, CEO and co-founder of The Level Group.
“It’s an even bigger pain point for brands with high average order values, and Riskified allowed us to recover significant amounts of revenue that would otherwise have been needlessly declined while also gaining a cohort of loyal, repeat customers.”
“Payment authorization failures are a significant, often hidden, source of revenue loss for eCommerce merchants,” said Eido Gal, CEO of Riskified.
“Deco enables merchants to address payment authorization failures in an automated fashion. We believe that Deco represents a key step forward for merchants looking to address the challenge of payment authorization failures.”
How Deco works
Merchants have traditionally been unable to affect payment authorization failures as the process happens outside of their systems. Deco is a fast payment option that was created to address authorization failures in a novel manner.
Immediately after a payment failure, eligible shoppers receive a pop-up that simply asks consumers to re-enter the credit card details. Without any credit checks, additional fees, or applications, Deco completes the payment on the shoppers’ behalf.
What happens behind the scenes is Deco uses Riskified’s AI-powered decisioning platform and the breadth of its merchant network to identify the legitimacy of the shopper behind the transaction.
Once confirmed as legitimate in real-time, the transaction is intelligently submitted for payment authorization to increase the overall approval for the merchant.
Deco is currently available from Riskified for US merchants and non-US merchants that have a significant amount of US-based sales.