The latest product from global payments solution provider Checkout.com, Intelligent Acceptance, was just released to assist merchants in increasing acceptance rates and revenue.
An AI-driven optimization engine is called Intelligent Acceptance. It is trained using trillions of transactional data points from the worldwide network of Checkout.com. Insights from the company’s subject expertise after a decade at the vanguard of the digital economy are also included.
During beta testing, the new product has thus far produced significant results for retailers. It made transactions possible that brought in about 750 million dollars in new revenue. Additionally, it raised the acceptance rates for more than 30 retailers by up to 9.5 percentage points. These include Sunday, Sunday, Ant Group, NordVPN, and Klarna.
“Since Intelligent Acceptance became live, the authorization rate of processed payments climbed by over 10%. This performance gain is enormous for our company in a game where little changes have a large impact. But significantly for our client’s bottom line as well,” said Melissa Pottenger, Reach’s head of key partnerships.
“We really believe in removing complexity for organizations so they can easily optimize their payments. For the first time at scale, machine learning enables us to provide this to our merchants, according to Meron Colbeci, chief product officer at Checkout.com.
“We can use our vast global transaction data to deliver real-time insights, whereas merchants alone lack the data necessary to train an AI program. We created an adaptive AI-powered payments engine to continually optimize acceptance rates because of this. It increases cost controls, frees up more revenue, and saves merchants time.
Creating a business solution with machine learning and trillions of data points
Intelligent Acceptance optimizes the entire payment procedure, including post-processing with adaptive retries and pre-processing elements like messaging and routing. Additionally, merchants have complete control over the criteria that Intelligent Acceptance optimizes for and the stage of the transaction path that is improved.
Increasing acceptance rates, decreasing transaction costs, or doing both fall under this category. Intelligent Acceptance continuously unlocks new optimizations to give incremental performance gains through constant live modifications, learning from performance data throughout Checkout.com’s global network, and direct partnerships with issuers, schemes, and regulators.
Optimisation case studies
Acceptance: Network Tokens may provide higher acceptance rates, decreased interchange fees, and a more secure method of exchanging card information. But not all issuers use this credential-sharing technique simultaneously. Network Tokens are only used by Intelligent Acceptance if the issuer supports them and the expected cost is less than PAN credentials or the possibility of success is higher. Additionally, Intelligent Acceptance will automatically arrange payments according to the preferences of the scheme and issuer by amending, adding, or updating SCA, ISO data, among other things.
Cost: In markets with several debit, local, or international payment networks available, like the US, intelligent acceptance can also be utilized to save costs by dynamically routing transactions to the network with the lowest rates.
In order to verify that a transaction is compliant, Intelligent Acceptance rapidly determines whether it needs 3DS authentication. If it wasn’t already triggered in the initial payment request, any accessible 3DS authentication data is promptly appended to the payment request.
False declines cost firms $50.7 billion annually
The debut occurs at a time when corporate executives are looking to expand their companies’ revenue streams and reduce costs. They are making this adjustment to account for rising operating costs. Intelligent Acceptance can be set up to cut transaction costs and operating costs while also reducing the number of transactions that are wrongly denied through continuous testing.
According to research done by Checkout.com and Oxford Economics, misleading declines would cost $50.7 billion in lost revenue in 2022. When a customer has enough money in their account to make a purchase, the transaction is rejected. As a result, over 25% of customers abandoned a transaction because of excessive friction, costing retailers a sizable amount of money.
As we rethink the restaurant customer experience, payment friction may hurt sales. According to Sunday’s VP of payments, Daniel Hosking, Checkout.com is helping Sunday avoid a bad first impression with early adopters.
The newest option in Checkout.com’s Payments Plus lineup is Intelligent Acceptance. It comes after the most recent launches of:
- Amplifications for authentication
- Issuing customizable physical and virtual cards
- Fraud Detection Pro can assist retailers in preventing fraud and increasing sales.
- In a growing digital economy, Integrated Platforms offers a completely flexible solution to accommodate markets and payment methods.