Authorization Rate Optimization

Authorization rates impact overall revenue capture and customer satisfaction for ecommerce merchants. A small (~1%) increase in authorization rates can increase revenue by hundreds of thousands or even millions of dollars depending on the size of the merchant. The goal of authorization rate optimization is to enable approval of as many legitimate transactions as possible while efficiently detecting and declining fraudulent orders.

Issuing banks lack key transaction data and other additional context, yet must approve/decline transactions based on limited information - often just the payment details. Issuing banks generally take a conservative approach to authorizing ecommerce transactions, where the threshold of fraud suspicion required to decline a transaction is relatively low. For these reasons, issuing banks frequently decline legitimate transactions. Research has found that up to 56% of orders declined for fraud by banks are false positives.

Signifyd has developed a fraud detection machine learning solution that leverages data from our industry-leading Signifyd Commerce Network to filter out fraudulent transactions before they are sent to issuing banks for approval.

Signifyd has partnered with 5 of the top 10 credit card issuers and issuer processors, building a partner ecosystem that includes Capital One, Discover, Synchrony, and many more. 25% of all U.S. credit transactions are covered by Signifyd.

Signifyd continuously captures and processes data through its industry-leading Signifyd Commerce Network, the world’s largest network of ecommerce merchants, and uses it to refine our fraud detection algorithms and ARO capabilities. Our ability to unite shopper intelligence at scale has made Signifyd a trusted ecommerce protection platform.

Merchants selling on major ecommerce platforms can implement ARO in a matter of minutes by installing our ready-made plugins. For other merchants, implementation requires a single low-complexity API integration.