Reduce Do-Not-Honor card declines
When automated fraud filters for credit card transactions are overzealous, legitimate purchases end up being declined. These “false declines”—when a legitimate card transaction is rejected by mistake—hurt the merchant’s bottom line and customer loyalty.
For example, a false decline may occur when a card is used for the first time on a merchant’s website, as the issuer is unaware that the customer has been making purchases on that site for years using a card from another issuer.
With Kipp, issuers can approve some transactions they would otherwise decline through collaboration with Kipp’s registered merchants. These merchants are prepared to share additional data points that they collect, such as device ID, fraud score from their anti-fraud provider, and other data points that an issuer does not receive in the standard network authorization request. When you provide the card issuer with enriched data, false declines can be minimized.
Benefits
Significant conversion uplift
Experience higher transaction success rates by ensuring more payments are approved
Increase transaction volume via issuer collaboration
By paying issuers a premium, merchants can avoid NSF declines
Maximize customer acquisition efforts
Merchants only incur fees on transactions that would have been declined, ensuring cost-efficiency while maximizing approvals
Avoid the decline
Ensure more purchases are approved the first time, without the need for a post decline recovery flow
Ask kipp
Answers to the most common questions about Kipp
What actions must a merchant take to approve transactions that would have otherwise been declined?
Merchants can onboard with Kipp by providing their Merchant Identification Numbers (MIDs) and signing a brief agreement. The onboarding process is fast and typically completed within a few hours. The integration involves submitting a few data points, which can also be managed by the merchant’s fraud prevention provider.
How much does the merchant pay for transactions to be approved?
Merchants set their own premium amounts, and this pricing remains confidential from the issuer, ensuring that the model cannot be exploited.
Is Kipp relevant for both customer-initiated transactions and merchant-initiated transactions?
Yes. Kipp can authorize both MIT and CIT transactions for its merchants and issuers. When it comes to recurring and subscription models, our merchants see incremental approvals way beyond their success rates with retry mechanisms.
As a merchant, how do I know that the issuer will not abuse the model and send more transactions to Kipp to benefit from increased premium revenue?
Merchants can be confident that the model will not be abused, thanks to Kipp’s continuous monitoring and the terms outlined in the issuer agreement. Additionally, you can track the approval rates by the issuer before and after partnering with Kipp to monitor performance levels. It’s also highly unlikely that an employee of an issuing bank would manipulate the system for minimal gain, given the safeguards in place.
What data does the merchant need to share with Kipp?
Merchants can choose to share user data, behavioral data, transaction data, and SKU-level (Level 3) data based on the individual use case.
