How to Boost Conversion Rates, While Lowering Merchant Account Fees!
Using an Address Verification System (AVS) when processing your online credit card transactions can help to reduce the number of fraudulent transactions you receive. However, most online merchants don't know that using AVS can also reduce your number of legitimate orders.
Using AVS can hurt your conversion rates in two main ways.
1. If you set your AVS rules to reject all transactions that do not match both street address and zip code, you may be loosing legitimate sales from customers who do not understand that the billing address needs to match the address that their credit card statement is mailed to.
2. The more troublesome problem with AVS occurs when your customer has recently moved. Even if you update your billing address with your credit card company after you move, it can take up to 6 months or longer for them to update the AVS database with your new information (even though they make sure that the bill arrives at the right address!)
The worst part about this delay is that often customers will blame the merchant if their card gets rejected for this reason. If their credit card bill arrives at the right address, they assume that their credit card company updated their information. When a card that they know should work gets rejected by your website, they often become angry with you, not their card provider!
This happened to me recently. I moved my family into a larger home over eight months ago and the debit card that I use for most of my online purchases still gets rejected unless I use my old billing address, even though the bank statement has come to our new address from day one!
The solution to the first problem is quite easy. Simply make sure that you use a statement near your "Billing Address" fields telling your customers something along the lines of, "To speed processing of your order, please ensure your billing address matches the address on your credit card statement."
Include this type of statement near your "Billing Address" fields and your AVS matches will improve.
In markets with historically low attempted fraud rates, you can also try loosening your AVS rules a bit. Most AVS systems check both the number in the street address and the zip code. By setting your AVS rules to accept transactions that match for only one of the two AVS numbers, but still rejecting transactions that do not match for both, you can improve the number of successful transactions. If you attempted fraud rate is very low you can even try accepting transactions that fail both AVS checks, but flag the transactions for additional follow up before shipping.
Before loosening your AVS rules, you need to understand that most merchant account providers classify transactions that do not match for both street address and zip code as "non-qualified" transactions. These transactions usually get charged a higher discount rate than your normal discount rate. Depending on you merchant account agreement this penalty can add up to an additional 2% above your normal discount rate, so check with your merchant account provider before accepting "no match" transactions.
The solution to the second problem take a little bit more work to implement, however it can significantly reduce the number of AVS mismatches you receive. For this solution you can keep your AVS system set to reject "no match" transactions, however you need to modify your "Card Rejected" error page to include a brief educational statement, such as the one below.
"We're sorry, your credit card has been declined. This can happen for several reasons. Your billing address* should match the address on your credit card statement. Please check your billing address, card number and expiration date and try again.
*NOTE: If you have recently moved, your credit card company may not have updated your billing address in their Address Verification Database. It can take up to 6 months or longer for some credit card companies to update your address, even if they send your bill to your new address. If you have recently moved, try using your previous billing address when you check out."
By making just a few changes in the way you use AVS at your web site and by educating your customers about address verification, you can boost your conversion rates and sales, while lowering your merchant account fees!
Copyright 2004 Eric Graham
About The Author
Eric Graham is the owner and CEO of several successful online and offline businesses. Recognized as one of the top authorities on eCommerce and Internet Marketing, Eric is a sought after speaker and consultant. To boost YOUR conversion rates and gain an unfair advantage over your competition visit www.web-site-evaluations.com.
Shenzhen wants to become a global live-streaming e-commerce hub South China Morning Post
Singapore police warn of jade e-commerce scams on TikTok, at least $95,000 lost - Yahoo Singapore News
Singapore police warn of jade e-commerce scams on TikTok, at least $95,000 lost Yahoo Singapore News
Great Expectations: Consumers Demand Most From Ecommerce, Plus Smartphone, Auto Brands 03/27/2023 - MediaPost Communications
Great Expectations: Consumers Demand Most From Ecommerce, Plus Smartphone, Auto Brands 03/27/2023 MediaPost Communications
Deep Dive on Payment Channels and Types of Transactions Business Insider
Survey: Apparel shoppers seek leading-edge tech Chain Store Age
The future of e-commerce will be about ‘rediscovering the joy of shopping’: Pinterest CEO - Yahoo Finance
The future of e-commerce will be about ‘rediscovering the joy of shopping’: Pinterest CEO Yahoo Finance
Speaker Spotlight: Tom Funk on growing B2B and B2C ecommerce Digital Commerce 360
12 New Ecommerce Books for Spring 2023 Practical Ecommerce
The Future of Ecommerce: How a Product Becomes a Purchase Andreessen Horowitz
SKUPREME Launches Platform for Fully-Automated Ecommerce and Supply Chain Management - Yahoo Finance
Ecommerce, food-delivery firms face new trouble as government eyes related party services ban - Economic Times
Ecommerce, food-delivery firms face new trouble as government eyes related party services ban Economic Times
A tire maker rolls out a new ecommerce platform Digital Commerce 360
Bright Cellars Adopts DRINKS on Shopify to Streamline Compliance and Scale Ecommerce Operations - wineindustryadvisor.com
Bright Cellars Adopts DRINKS on Shopify to Streamline Compliance and Scale Ecommerce Operations wineindustryadvisor.com
Is Your eCommerce Business Missing Out on the Power of AI and Data to Reduce Returns? - Marketscreener.com
Is Your eCommerce Business Missing Out on the Power of AI and Data to Reduce Returns? Marketscreener.com
Snap Partners With Kargo To Develop Offerings For Ecommerce ... MediaPost Communications
Actually, Ecommerce Excelled in 2022 Practical Ecommerce
Ecommerce upstarts navigate pandemic shopping reset Financial Times
Ecommerce Product Releases: March 15, 2023 Practical Ecommerce
EnvisionB2B Speaker Spotlight: ChemDirect’s Dave Haase on overcoming ecommerce barriers - Digital Commerce 360
EnvisionB2B Speaker Spotlight: ChemDirect’s Dave Haase on overcoming ecommerce barriers Digital Commerce 360
United Kingdom B2C Ecommerce Market Opportunities Report 2023: Gross Merchandise Value (GMV) will Increase from $289.9 Billion in 2022 to Reach $405.5 Billion by 2027 - Yahoo Finance
United Kingdom B2C Ecommerce Market Opportunities Report 2023: Gross Merchandise Value (GMV) will Increase from $289.9 Billion in 2022 to Reach $405.5 Billion by 2027 Yahoo Finance
5 charts showing what resale ecommerce growth means for your ... Insider Intelligence
Google Suspends Chinese E-Commerce App Pinduoduo Over ... Krebs on Security
Vehicle Subscriptions Gaining Traction Practical Ecommerce
Ecommerce Product Releases: March 1, 2023 Practical Ecommerce
What are the Financing Solutions for Ecommerce? London Post
Facebook's Advantage+ shopping campaigns: Are they worth the ... Search Engine Land
Mentorship Matters: Paving the Way for Future Leaders in ... Little Black Book - LBBonline
Southeast Asia Retail Ecommerce Forecast 2023 Insider Intelligence
Finding today’s best B2B ecommerce teams Digital Commerce 360
Behind Paramount’s Ecommerce Push: A Chat With Consumer Products Chief Pam Kaufman - Hollywood Reporter
Behind Paramount’s Ecommerce Push: A Chat With Consumer Products Chief Pam Kaufman Hollywood Reporter
Livestream ecommerce takes off in Latin America Insider Intelligence
Ecommerce return rates rose in retail's longest holiday season yet Insider Intelligence
4 steps to a better ecommerce strategy Insider Intelligence
Temu is seeing unprecedented ecommerce growth—how seriously ... Insider Intelligence
Ecommerce platform launched by ex-Amazon exec raises £75m UKTN (UK Technology News
Costco ecommerce sales drop despite total sales increase Digital Commerce 360
The rise of ecommerce in the coffee industry Perfect Daily Grind
Vietnam's eCommerce moves towards sustainable development The Star Online
7 Steps to B2B Ecommerce Excellence Digital Commerce 360
Retail and eCommerce news from the week beginning 20 March - Enterprise Times
Ecommerce SEO Trends and Insights for 2023 Entrepreneur
Role of IoT in Ecommerce in 2023 Customer Think
Keep it simple if you want to win at eCommerce BusinessCloud
Retail eCommerce Platform Market By 2031 Digital Journal
2023 Consumer Trends Impacting eCommerce Profitability Supermarket News
Latin America poised for standout digital ad spending and ... Insider Intelligence
E-commerce continues to grow in the EU European Commission
2023 B2B & B2C Ecommerce Platform Trends and Strategies Digital Commerce 360
What is most important when designed UI for eCommerce? Rebellion Research
Top Ecommerce Web Hosts Global Village space
What ChatGPT can Teach Ecommerce Companies About the Future ... Retail TouchPoints
3 Ways E-Commerce Businesses Can Continue to Thrive Total Retail
The Global Wine E-commerce Market is forecast to grow by $12062.31 mn during 2022-2027, accelerating at a CAGR of 8.15% during the forecast period - Yahoo Finance
The Global Wine E-commerce Market is forecast to grow by $12062.31 mn during 2022-2027, accelerating at a CAGR of 8.15% during the forecast period Yahoo Finance
#BizTrends: South African e-commerce continues to thrive Bizcommunity.com
Chinese E-Commerce Flourishes on U.S. Soil The Wall Street Journal
Home Sweet Home Page
"Your home page is the world's introduction to you and your company. Make it COUNT!" - Heidi RichardsThink of your home page as the cover of your brochure.
Choosing on Order Fulfillment Service
When your eCommerce business grows to the point where you can no longer package and ship the orders yourself, it's time to begin outsourcing your order fulfillment. Although all order fulfillment centers offer the same basic services, their individual methods and costs will help you choose one over the other.
What Are The Barriers of Implementing E-Commerce Solutions
What is electronic commerce?"Electronic commerce is about doing business electronically. It is based on the electronic processing and transmission of data, including text, sound and video.
Top Ten Qualities to Look for in an Online Pharmacy
As you may have noted, there are thousands or even hundreds of thousands of websites selling pharmaceutical products or drugs. These are called ONLINE PHARMACIES or PHARMACIES ONLINE.
Looking For Free Advertising, Here It Is!
There are lots of ways to advertise for free but they are time consuming so I guess technically, they are not free because your time is worth something! But if you have the time and not the money this is for you.I posed the question of "free advertising" to a few forums and they all can back the same, but with new links to check out.
Ecommerce Comes from Customer Satisfaction
Online shopping is convenient, but many companies whose web sites do brisk sales often leave consumers wanting. That's according to ForeSee Results, a research company that studied customer satisfaction among Internet shoppers.
A Tale of Two Revolutions - Ecommerce: A Historical Perspective
The World As It Then WasThe dynamic economic growth of the late 19th century placed greater and greater demand on horses to deliver manufactured goods between train and local destinations. Horses pulled stagecoaches, buggies, omnibuses, cabs and even shipping barges in canals.
The Ecommerce Business Plan
Simply put, business plans can make or break your business. Starting a Drop Ship business online is no different from starting a traditional non-online business.
Six Components Of A Good E-Commerce Site
Businesses, which are still sitting on sidelines and not doing business on the Internet, should think seriously about their position! If you are one of them, chances are there, that you have to pay dearly for your indecision as you might lose significant market share to your more proactive competitors in a very short period of time.Apart from the fact that e-commerce is growing at the rate of more than 25 percent a year, the use of online features can bring efficiency to virtually every aspect of business process, be it supply chain management or customer support management.
The Essential Christmas Web-store Makeover
Ten great tips to turn online holiday shoppers into eagerbuyers - and satisfied customers.When meeting potential clients, you wouldn't dream ofshowing up late in a mismatched outfit, hair disheveled,with food on your tie and no business card, would you? Andif they asked for testimonials or explanations about yourcompany policies you'd hardly say, "Sorry, I don't give outthat information.
Projecting Your Image
Whether you sell a product or merely sell time to your employer in your labor, your main product is you. You sell yourself with every move you make, every word you speak or write, every attitude you display.
Start doing online business using B2B Portals in Six Steps
I registered with a B2B site but what's next?This is a question many first time users of B2B marketplaces ask themselves. A few expect that the registration itself will bring them a number of new customers.
Top 5 Dot Com Myths Debunked
Most people who get into business know what's involved. They have completed hours of research before getting into it.
7 Must Have Scripts to Look for When Shopping for E-commerce Hosting
When shopping for e-commerce hosting there are a lot of things you need to keep and mind. When you know what to look for it is a lot easier to ensure you get exactly what you need and not leave any important information out.
How To Eliminate Credit Card Refunds From Digital Thieves
Can you encounter the number of times where a Credit Card Sale was generated, only to receive a "Refund Notification" from your contracted e-commerce processor on behalf the "customer"?Welcome to the electronic world of "cyber-shoplifting".Unscrupulous surfers, disguised as potential "customers", systematically opt to ordering goods (using credit cards) in electronic form of delivery, only to request a refund minutes or days later after receiving the product.
Implications Of E-Commerce For Tax Legislation
As e-commerce develops ambiguities in the current tax code in which it may be exposed. It would not be regarded as too early to take premature steps for undertaking such a review at a time when detailed international legislation are going on to promulgate acceptable standards laws for imposition taxation in this regard.
Mr and Mrs Smith Go Online, as Internet Technology Moves from Fantasy to Normality
According to NOP World, 48% of all Internet users have researched or purchased financial products such as insurance and loans on the internet, or used online banking facilities. In April, NOP World had already recorded estimates of 28 million people online in Great Britain, with 13.
Getting Started in ECommerce - Part One
In 2004, Enquiro.com conducted a study of the search behaviors of men vs.
Merchant Account Insider Secrets - Accept Credit Cards Online
The process of learning how to accept payments on the Internet is similar to the course of figuring out how to launch a business. What at first seems puzzling and intimidating may be viewed as straightforward and easy to understand if one has the right guide or manual.
The Lowdown On ECommerce: Making All The Pieces Fit Together
The Lowdown on EcommerceEcommerce is truly the most confusing aspect of purchasing web design services. This is unfortunate since most (if not all) businesses online would like to provide their customers and potential customers with easy access their products or services.
|home | site map|