Visa’s VAMP Program: Why 3D-Secure is now essential for PSPs
Visa's 2025 Acquirer Monitoring Program (VAMP) represents one of the most significant changes to payment fraud monitoring in over a decade.
In today’s world of digital payments, improving card authorization rates is paramount to building a healthy business. Bluntly speaking, high authorization rates translates to increased revenue and happier customers.
As we head into 2025, here are five practical ways to boost your card authorization success rates.
Network tokenization is a powerful tool for reducing declines and improving security. Instead of using actual card details, this approach swaps them out for secure tokens, which keeps things safer and minimizes issues such as expired cards.
Notably, network tokens are better than traditional tokenization solutions because they auto-update whenever cards are replaced.
Businesses that use network tokenization have seen their authorization rates jump by 2-3%, with some reporting as much as a 6% boost for recurring payments.
By using data to guide how transactions are processed, businesses can cut down on unnecessary declines. Typically, this involves:
Companies adopting smart routing have seen authorization rates improve by 1-2%, especially for payments across borders.
Outdated card details are a common reason for declines. Network tokens are a stab at this problem; however, if you use a traditional tokenization strategy or store card details in-house, there are also credit card account updater services offered by payment providers.
Businesses using account updater services report a 1-3% improvement in recurring payment approvals.
Good data is the foundation of smooth transactions. Small changes in how you manage payment information can lead to noticeable improvements. Focus on these areas:
Better data management can give you an edge, with improvements of 0.5-1.5% in authorization rates, especially for riskier industries.
Balancing security and success is tricky, but risk-based authentication helps. This means customizing your security checks based on the potential risk of a transaction. This includes:
This approach can improve authorization rates by 1-2% while keeping fraud under control.
Getting better authorization rates is about finding the right mix of technology and data-driven decision-making. By applying these five strategies, businesses can expect to see real improvements—think a 3-5% overall boost. That means more revenue and fewer headaches for both you and your customers. The key? Take it one step at a time, and keep an eye on how things evolve in the fast-moving world of payments.