The challenge:
NSF (Non-Sufficient Funds) declines are a persistent issue for card issuers, with industry data showing that 60% of failed payments occur due to insufficient funds. These declines contribute to billions in lost transaction volume annually, reducing interchange revenue and damaging customer relationships. In addition to revenue loss, issuers face increased customer frustration and higher contact center costs due to declined transactions.
When a payment is declined, customers often turn to a competitor’s card or alternative payment method, reducing the issuer’s top-of-wallet status and long-term card usage. This shift not only results in lost transactions but weakens customer loyalty. To remain competitive, issuers need a real-time solution that minimizes declines and ensures a seamless payment experience, helping them retain customers and sustain transaction volume.
Why Issuers Benefit from Kipp:
Kipp enables issuers with real-time authorization insights, reducing unnecessary NSF card declines and unlocking significant business benefits. By leveraging Kipp, issuers have achieved up to a 30% reduction in NSF declines, resulting in higher transaction approvals, improved customer retention, and increased interchange revenue. [Read more in our case study]
- Higher Authorization Rates: Reduce avoidable declines and approve more transactions without adding risk.
- Generate a New Revenue Stream: By enabling merchants to pay a premium for approved transactions, turning previously declined payments into successful ones.
- Top-of-Wallet Retention: Keep your card as the preferred payment method by providing a frictionless payment experience.
- Improved Customer Satisfaction: Prevent frustrating declines that push customers toward alternative payment methods.
With these advantages, issuers can enhance their competitive edge while strengthening relationships with both customers and merchants.
The technology:
Kipp is designed for quick and secure integration with issuers, ensuring minimal development effort for issuers. Here’s how it works:
- Selective Transaction Processing: Kipp only receives API calls for transactions that are about to be declined, ensuring that issuers do not delay transactions but instead have an opportunity to recover them in real time.
- Ultra-Low Latency: Our system processes requests in under 150 milliseconds, ensuring real-time decision-making without disrupting payment flow.
- Secure and Reliable Communication: Kipp ensures that all transaction data is transmitted securely using industry-standard encryption and authentication protocols. Our system is designed to protect sensitive financial information while enabling seamless real-time communication between issuers and merchants.
- API Request: This API enables your system to inquire about the availability of a premium for a transaction that is about to be declined. You simply send a few transaction details to Kipp (no PII data required), and we’ll respond with a recommendation to approve or decline the transaction. It’s a straightforward request-response mechanism that requires minimal development effort.
Easy Integration
Kipp is designed to integrate seamlessly with issuer systems, requiring only minimal development effort. Our straightforward API setup ensures that issuers can implement the solution without major infrastructure changes. Additionally, Kipp provides comprehensive documentation and dedicated technical support to guide issuers through the integration process, making it fast and hassle-free.
