Solving the CNP False Decline Puzzle: Collaboration is Key

To combat the rise in fraud, both card issuers and merchants alike are deploying multi-layered fraud tools more aggressively to stem the tide of losses and damage to the customer relationship, while effectively controlling operational expenses. The unfortunate and unintended consequence is false declines: good transactions wrongly turned down due to the suspicion of fraud, leading to lost customers.

Ethoca’s research demonstrates the true nature of this problem goes far beyond declines due to suspicion of fraud, and as an industry we must work together to solve this problem more holistically. 

In this report we explain:

• The size of the false decline problem.
• The destructive impact on customers who are wrongly turned away.
• Why transactions are declined.
• How the industry currently manages declines from both a card issuer and merchant perspective.
• What solutions exist – including pilot programs that Ethoca currently has underway.