It is essential to identify the payments that fail; to search for the root cause of failures; to see if those causes are sporadic; and, if they are not, to attempt prevent their reoccurrence.
Tracking failure codes
Usually, when a charge on a credit card fails, the payment service provider returns a failure code that provides some information. Ideally, each failure code is tracked by its own KPI so that a posteriori analyses can reveal the roots of the payment failures.
It’s also possible to create compound KPIs that aggregate individual KPIs per failure code into a single, meta-KPI. One way to do so would be to sum up all the payment failure reasons into a single payment failure KPI.
KPIs to measure payment failure reasons
Several instances of payment failure reasons are reported in the following table.
|1||The customer cancelled the transaction.|
|2||3D Secure failed.|
|3||The 3D Secure server was down.|
|4||The card is not 3D Secure enabled.|
|5||The funds are insufficient.|
|6||The card is blacklisted.|