Businesses often focus on sales, but what happens at checkout can make or break revenue goals. Each transaction represents not only a purchase but also a test of whether your payment systems are working optimally. When a payment is declined, you don’t just lose a sale — you risk customer confidence. Improving authorisation rates and reducing declines should be a priority for every finance and payments leader aiming to capture revenue consistently.
The authorisation rate shows how many payment attempts actually go through successfully. In simple terms, it’s the percentage of transactions that issuing banks approve compared to the total number of tries. For example, if your business runs 1,000 transactions and 920 get approved, your authorisation rate would be 92%.
A strong authorisation rate means more customers are completing their purchases, which directly helps your revenue. On the other hand, if the rate is low, it could point to issues in the payment process, leading to lost sales and unnecessary costs. That’s why businesses often track this number closely. Improving it not only reduces declines but also keeps cash flow steadier and more predictable.
Payment authorisation is the step where the payment provider checks with the customer’s bank to make sure the account is valid and has enough funds to cover the purchase. This happens before the transaction is finalised and the money is actually moved. With card payments, the issuing bank quickly reviews the request and either approves or declines it. For digital wallets and bank transfers, the authorisation follows the same principle: confirm the details, verify the funds, and send a response.
Every authorisation request comes with a small fee. The exact cost depends on the payment method, the card network, and the provider you use. While each fee is only a fraction of the transaction amount, the total can become significant for businesses handling large volumes of payments. That’s why efficiency and strong authorisation rates matter — not just for customer experience, but also for protecting profit margins.
When authorisation fails, the result is a decline. The customer will usually see a decline message at checkout and may be prompted to try another card, re-enter details, or select a different payment method. In some cases, such as recurring billing, the system may retry the transaction automatically after a short delay.
For merchants, declines can come with additional costs. Some payment processors charge small fees for each declined attempt, and repeated failures can increase overall processing expenses. On top of that, declines create friction: customers may abandon the purchase entirely, switch to a competitor, or reach out to support for help.
Delays in the payment flow or issues between the payment provider and issuing bank can trigger declines. These failures are often beyond the customer’s control and result from connectivity or system downtime.
If a card has expired or the account details are no longer valid, the payment authorisation will fail. Declined transactions caused by outdated credentials are common in recurring billing models.
When the account balance or credit limit cannot cover the transaction, the issuing bank will decline the payment.
Issuing banks use fraud detection tools to identify potentially fraudulent activity. If a transaction triggers alerts, it may be declined under a general “do not honour” response. While this protects customers, it can frustrate legitimate buyers.
Integration errors, incorrect configuration of payment methods, or problems at the payment provider level can also reduce authorisation rates. These technical causes of declined transactions can usually be mitigated with better monitoring and support.
Routing transactions through local acquiring partners improves the likelihood of approval. Issuing banks are more inclined to approve local transactions, reducing unnecessary declines. Choosing a payment provider with strong regional acquiring can increase authorisation rates.
Using a token instead of raw card data keeps payment details secure and up to date. Tokens are less likely to be declined because they automatically update when a card is reissued. This method is particularly effective for subscription and recurring billing models, improving authorisation rates over time.
Instead of retrying declined transactions immediately, advanced systems use intelligent retry logic. By considering factors like time of day, payday cycles, and user behaviour, retries are more likely to succeed. This reduces decline ratios and recovers revenue without burdening the customer.
Implementing modern authentication methods, including two-factor verification, helps reduce fraudulent transactions and increases trust with issuing banks. Under PSD2 and PSD3 regulations, strong customer authentication is increasingly required, making this a critical part of improving authorisation.
Declines linked to suspected fraudulent activity can be reduced by deploying effective fraud prevention tools. Risk scoring, velocity checks, and dynamic rules improve approval payment solutions by distinguishing between genuine and fraudulent transactions. Reducing fraudulent attempts means more legitimate payments are authorised.
Offering multiple payment methods, including digital wallets, credit cards, and local bank transfer options, gives customers more choices. Some customers prefer wallets or alternative methods over cards, leading to fewer declined transactions and higher authorisation rates.
A capable payment provider helps optimise the payment flow by offering smart routing, tokenisation, retry solutions, and fraud tools. With their expertise, you can improve authorisation rates while also managing costs effectively.
Authorisation rates are central to payment performance. Every decline represents lost revenue, but proven techniques such as local acquiring, tokenisation, retries, stronger authentication, and expanded payment method coverage can improve authorisation rates. By refining your payment flow and working with a trusted payment provider, you can reduce declines, protect your conversion rate, and support long-term growth.
For businesses seeking higher authorisation rates and fewer declined transactions, Antom provides advanced solutions tailored to your needs. Contact us to learn how we can help you improve authorisation rates and strengthen your payment success.