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Payment Card Fraud Prevention: A Must for E-Commerce Businesses in Tanzania

As e-commerce businesses in Tanzania continue to grow, the threat of payment card fraud remains a significant concern. In this article, we will explore the types of credit card declines, common reasons for failed transactions, and three effective tactics to reduce credit card declines.

Types of Credit Card Declines

There are two main types of credit card declines: Soft Declines and Hard Declines.

  • Soft Declines occur when the card issuer approves the payment but the transaction fails at another step in the process.
  • Hard Declines, on the other hand, occur when the card issuer rejects the payment.

Common Reasons for Failed Transactions

The most common reasons for failed transactions include:

  • Insufficient Funds: The customer does not have enough money available to complete the transaction.
  • Temporary Hold: A temporary hold has been placed on the card due to suspicious activity or a security check.
  • Restricted Card: The card is restricted from making online payments.
  • Invalid Card/Account Number: The card number or account information entered is incorrect.
  • Expired Card: The card has expired and cannot be used for transactions.
  • Card Not Activated: The card has not been activated for use.
  • Fraudulent Activity: The transaction is suspected to be fraudulent.

Decline Codes

Credit card issuers use decline codes to summarize the reason a transaction has been declined. The most common decline codes include:

  • CV
  • 51
  • 65
  • 54
  • 57
  • 63

Prevention Strategies

To reduce credit card declines, businesses can implement the following strategies:

  1. Leverage Dunning Campaigns and Account Updaters: Send email alerts to customers when their payment fails, encouraging them to update their payment information.
  2. Implement AI-Powered Payment Retries: Use machine learning to schedule retry attempts when they are most likely to succeed.
  3. Work with a Robust Fraud Management Platform: Partner with an effective risk management tool to identify and prevent fraudulent transactions.

Benefits of Reducing Credit Card Declines

Reducing credit card declines can have significant benefits for e-commerce businesses in Tanzania, including:

  • Increased Revenue: Reduced declines mean more successful transactions and increased revenue.
  • Improved Customer Satisfaction: Customers are less likely to be frustrated by failed transactions, leading to improved satisfaction.
  • Reduced Churn Rates: Fewer declined transactions mean fewer customers leaving due to frustration with payment issues.
  • Enhanced Reputation: A reputation for reliable and secure transactions can enhance your brand’s image.

Conclusion

In conclusion, payment card fraud prevention is a critical concern for e-commerce businesses in Tanzania. By understanding the types of credit card declines, common reasons for failed transactions, and implementing effective prevention strategies, businesses can reduce credit card declines and improve their bottom line.