Six Ways to Optimize Credit Card Transactions to Reduce Involuntary Churn
and Increase your MLM Company Revenue
You may think you can’t do anything about credit card declines and the involuntary churn they cause. After all, credit cards are only declined if they’re lost or stolen, expired, or have insufficient funds, right? What most direct sales company owners don’t realize is how many of your declined transactions are false declines. These false declines are transactions declined arbitrarily despite being one hundred percent valid.
Outdated Banking Formulas and How to Overcome Them
unique customer behavior,
the increasing popularity of online shopping, or
changing economic trends created by recent world events.
False declines are frustrating for you and your customer. That’s because they impact your bottom line. (Mastercard estimates false declines cost more than 440 billion to the US economy each year). And we can’t even calculate the emotional toll on your customer. A false decline puts a roadblock in the customer’s way to the purchase. It erodes their trust in you as a merchant. As a result, you have a greater chance of losing the sale. That means you will spend more time and money earning their trust again, and their business.False declines impact your bottom line, while taking an emotional toll on your customer. The result? Frustration and erosion of trust in you. Click To Tweet
Up to 87% of credit card declines fall in this category of “false declines.” You depend, on e-commerce and recurring revenue streams like auto-ship and auto-renewal. It’s no wonder companies like yours are losing customers and profits.
This information may shock you or frustrate you. Honestly, it should. Your company and your distributors shouldn’t lose revenue because of an out-dated approval process. You can limit your involuntary churn and increase your profits. In fact, if you can increase your customer retention by 5%, says Fred Reichheld, you can produce more than a 25% increase in profit. All you need are a few simple strategies for optimizing credit card transactions.
As Direct Selling Consultants, ServiceQuest is all about turning fails into customer wins. Read here how to retain happy customers even with direct sales shipping delays.
Six Ways Our Direct Sales Companies Reduce False Declines and Increase Their Profits
Understand your Approval Ratios
Use Account Updater
Process Payments During Business Hours
Evaluate Your Acquiring Bank
merchants hit by a fraud network, or
carrying a large number of high-risk merchants.
Review the Merchant Category Code for your MLM Product
It determines the processing rate you receive for credit card charges; and
It communicates the risk profile of your account.
Integrate with FlexPay
Increase your Approval Ratios, Increase your Profit Margins
Partnering with FlexPay reduces your false declines. That means you’ll be able to do more than just recover lost revenue. With your increase in profit margin, you can:
- Invest in your MLM products
- Bring better value to your customers
- Payout shareholder dividends
- Invest in better customer service
- Gain better retention for distributors
For more ways you can boost distributor retention and create the best MLM compensation plan in 2021, read here.
Are you ready to stop losing money on false declines? Set up an appointment to see how FlexPay can meet your unique needs. FlexPay can help you retain customers and increase your profits.
A note from Terrel: Darryl Hicks introduced me to False Credit Card declines. More transactions happen online than ever before and—thankfully—it’s not slowing down. That’s why I’ve invited Darryl to share his insight with you.
As your online revenue grows, you will require a strategic plan for recovering lost revenue and using best practices to do so.
Schedule a call with FlexPay. Let their team begin recovering your lost revenue today!