Chase Paymentech’s research indicates that there are three main inhibitors to successful shopping cart conversion.
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Mike Duffy, Chase Paymentech |
Recent research commissioned by Chase Paymentech indicates that, globally, online shopping cart abandonment rates can be as high as 75%. That means a staggering 75 out of 100 consumers who add at least one item to their online shopping cart, will then abandon the process before completing the checkout. Imagine the impact on your bottom line if only a small proportion of these customers went on to successfully complete their purchases.
Brick-and-mortar merchants clearly understand the importance of channeling the customer’s in-store experience right through to the moment of payment. It’s a lesson that online merchants understand, but often fail to put into practice.
Fundamentally, the fewer online pages your customers have to visit to complete a transaction, and the smoother the checkout flow, the more likely they are to convert their shopping cart into an actual purchase.
The key to maximizing online shopping cart conversion rates is keeping it simple for the customer. Chase Paymentech’s research indicates that there are 3 main inhibitors to successful cart conversion:
- The need to visit another site to gain payment authorization can be frustrating to the customer and lead to lower cart conversion rates.
- Making customers re-key card details because they’re out-of-date is time consuming and tiresome – ensuring customer card information is automatically updated will prevent this.
- Too many steps between item selection and payment – this can be streamlined by implementing solutions such as tokenization
Chase Paymentech offers a number payment tools and services to help the online retailer resolve these issues? Account Updater and Authorization Recycling, and Tokenization, are a set of solutions available to Chase Paymentech merchants that support successful customer path from browsing, through selection, to completed transaction.
Account Updater – automatically manages customer card account details.Chase Paymentech’s Account Updater addresses the problem of stored card information becoming out-of-date, requiring the merchant having to request updated card details from their customer. Merchants may not know when a registered card has expired, as payment solution providers usually host that data on their own servers.
Account Updater provides merchants with updated Visa® and MasterCard® cardholder account information when issuing banks make changes to the card data. The service results in a seamless customer experience for recurring payments to ensure that merchants reduce the number of expired cards on stored customer profiles.
Authorization Recycling – keeps the checkout flow moving.
Shopping carts are often abandoned when a customer’s card is declined. The vast majority of declines are due to ‘soft’ reasons and simply re-entering the details gets the process moving again. Authorization Recycling allows the merchant to re-submit the authorization request when a specific decline reason has been received – keeping the customer at the checkout. This is achieved through a series of response codes that provides the merchant with intelligence on what is causing the card rejection. Authorization Recycling is a particularly powerful tool for recurring merchants to reduce declines, and recover the checkout flow, by having the information required to advise the customer on next steps to complete the purchase.Tokenization – manage and protect cardholder data.
With Chase Paymentech’s tokenization solution merchants don’t need to store the credit card details of their customers in their own systems, and registered customers don’t have to continually re-key their credit card details. Instead, all cardholder details are safely stored in the Chase Paymentech secure system, and replaced to the merchant with a unique ‘token’. All related cardholder transactions then use the assigned token to represent that customer in the transaction request message. Tokenization combined with the merchant’s own on-site encryption, helps merchants comply with data security standards required by PCI-DSS and other compliance regulations. Chase Paymentech estimates that its tokenization solution can alleviate up to 90% of the PCI compliance effort.All three Chase Paymentech services deliver substantial benefit for online merchants, and can dramatically increase online shopping cart conversion rates.
