Payments efficiency KPIs
Posted: Mon Feb 03, 2025 10:42 am
This is a key metric to consider because there are fees sometimes associated with a chargeback. Not only are you losing money on the purchase by issuing a refund, but there’s a small added cost as well with a provider that may add up over time if you have a substantial chargeback rate.
Payment processing systems not only need to be reliable but they also need to be efficient. Speed, authorization, and capture rates are crucial components of an efficient payment processing system to ensure customers are getting through checkout as fast as they need, and your tech is able to handle it.
Processing speed
One of the most important metrics you’ll need for your payment processing KPIs is processing speed. It’s the time it takes to receive a response from indiatelegram screening the API to the payment gateway about a purchase. This is especially necessary for peak shopping periods, like Black Friday Cyber Monday, when there’s a high volume of purchases. Flash sales, too, or limited-edition drops need a steady processing speed so it doesn’t dampen the customer experience.
Authorization rate
Getting payments authorized by your buyers’ banks or credit card issuers is important. This metric captures the percentage of successful transactions that those institutions have approved. This process, which can seem fairly fast and under the radar, involves a few steps to ensure your customer has the funds for the transaction and those can go into your business’s account.
High authorization rates are great because that means your customers have been approved for the transaction. Causes for lowered authorization rates include fraud and security, the performance of the payment gateway, and how reliable or efficient the payment processing system is overall.
Capture rate
High capture rates tell you that most of the transactions happening on your online store are approved and successfully completed. Captures occur when the funds from a customer’s account have settled into a business’s account after authorization. Lowered capture rates tell you that checkout and payments aren’t happening smoothly or efficiently for a customer, which can lead to decreased revenue.
Payment processing systems not only need to be reliable but they also need to be efficient. Speed, authorization, and capture rates are crucial components of an efficient payment processing system to ensure customers are getting through checkout as fast as they need, and your tech is able to handle it.
Processing speed
One of the most important metrics you’ll need for your payment processing KPIs is processing speed. It’s the time it takes to receive a response from indiatelegram screening the API to the payment gateway about a purchase. This is especially necessary for peak shopping periods, like Black Friday Cyber Monday, when there’s a high volume of purchases. Flash sales, too, or limited-edition drops need a steady processing speed so it doesn’t dampen the customer experience.
Authorization rate
Getting payments authorized by your buyers’ banks or credit card issuers is important. This metric captures the percentage of successful transactions that those institutions have approved. This process, which can seem fairly fast and under the radar, involves a few steps to ensure your customer has the funds for the transaction and those can go into your business’s account.
High authorization rates are great because that means your customers have been approved for the transaction. Causes for lowered authorization rates include fraud and security, the performance of the payment gateway, and how reliable or efficient the payment processing system is overall.
Capture rate
High capture rates tell you that most of the transactions happening on your online store are approved and successfully completed. Captures occur when the funds from a customer’s account have settled into a business’s account after authorization. Lowered capture rates tell you that checkout and payments aren’t happening smoothly or efficiently for a customer, which can lead to decreased revenue.