False Declines occur when legitimate transactions are incorrectly rejected by payment processing or fraud prevention systems, resulting in lost sales and negative customer experiences.
Impact Areas
- Revenue loss
- Customer frustration
- Brand reputation
- Customer loyalty
- Market share
Common Causes
- Risk rules
- System errors
- Data limitations
- Threshold settings
- Model inaccuracies
Detection Methods
- Decline analysis
- Customer feedback
- Pattern monitoring
- Performance metrics
- Transaction review
Prevention Strategies
- Rule optimization
- System tuning
- Data enhancement
- Process improvement
- Customer communication
Best Practices
- Regular monitoring
- Rule refinement
- Customer support
- Performance tracking
- System updates
False declines can significantly impact business revenue and customer relationships.