Card declines are a critical performance concern for acquirers, especially as merchants increasingly compare approval rates across providers. In this competitive landscape, even small differences in performance can drive churn. Today, 57% of merchants already use multiple acquirers to improve conversion and reduce risk. Another 40% of merchants using a single provider plan to add or switch acquirers within the next year (source).
NSF (non-sufficient funds) declines, although outside an acquirer’s direct control, still affect approval metrics and influence how merchants assess their providers. Frequent declines can erode trust, lower transaction volumes, and create openings for competitors.
Improving authorization performance is no longer optional, it’s a strategic priority. That’s where Kipp comes in. With two possible approaches, acquirers can reduce NSF declines, increase approval rates, and strengthen relationships with merchants.
1. Acquirer-Funded Approval Model
This model helps acquirers steadily improve approval rates. The acquirer connects directly to Kipp and funds the approval of NSF transactions on behalf of their merchants. Everything runs in the background, with no changes required on the merchant’s side. By helping merchants convert more transactions and increase approval rates, acquirers reinforce their value as partners and support broader portfolio performance. This also reduces checkout friction, improves authorization metrics, and strengthens long-term merchant relationships.
For acquirers, it’s a clear and practical way to deliver measurable results and stay competitive.
2. Merchant-Led, Acquirer-Supported
In this model, the acquirer doesn’t connect to Kipp or cover any approvals. Instead, they introduce Kipp’s solution to their merchants, who then decide whether to activate it. Once activated, the merchant connects directly to Kipp and chooses to approve NSF transactions for the acquiring traffic. Kipp manages the full process, from onboarding to setup to support, while the acquirer earns a share of the revenue from approved transactions. There’s no integration or ongoing work required on the acquirer’s side.
This option is quick to scale and helps acquirers support merchant outcomes without changing their existing systems.
Final Thoughts
NSF declines are a challenge for acquirers, but also a chance to stand out. Whether acquirers choose to take a direct role or simply refer/resell the solution, Kipp provides flexible models to help increase approval rates and enhance the overall merchant offering.
