Improving the credit authorization customer experience in Latin America

Financial institutions invest millions of dollars every year to create digital customer experiences and grow electronic payments in their markets. However, in Latin American countries, our data suggests a general lack of focus on a key piece of the digital customer journey–credit authorization. 

In certain Latin American countries, three out of 100 “Card Present” (face-to-face) transactions are declined, yet a surprising two out of 10 “Card Not Present” (e-commerce) transactions are declined1. This can result in customers no longer actively using that card. 

 

Transaction approval rates in Latin America (overall)1

 

Improving the credit authorization customer experience in Latin America

*Denotes only cross-border spending authorizations for Mexico

Credit authorization declines are caused by a variety of issues ranging from high-risk transactions and credit limits to operational problems. Whatever the cause is, we can help you identify and optimize your authorization performance for a better customer experience.  

There is an opportunity to increase payment volume and cardholder engagement by improving online transaction authorizations. By increasing the number of transactions, you may also increase card usage, as transactions declines impact the relationship a cardholder has with the product.

 

Keys to success

We can help you improve authorizations by creating a multifunctional team that will identify, analyze and design actionable recommendations including risk algorithms, a process gap analysis and best practices and industry benchmarks. 

We customize and deliver our solutions in several forms that go beyond management dashboards: from one-day executive workshops to multi-week engagements. The solutions cover a wide variety of the most important topics and opportunities in authorizations, such as: 

Strategy

  • Alerts
  • Segmentation
  • Shared goals
  • Customer Relationship Management (CRM) – A/B testing

Risk

  • Credit line algorithms
  • Credit policies
  • Risk scores (transaction based)
  • Software
  • Collections policies
  • Operations
  • Product set-up
  • VIP policies (i.e., select cardholders that require special treatment)
  • Contact center
  • Real-time messaging 

 

Contact us for more information.

Sources 

1 VPS authorization dashboard based on Visanet data, April16-March17. 

Disclaimer 

Studies, survey results, research, recommendations, opportunity assessments, etc. (the ‘Information’) should be considered directional only. The Information should not be relied upon for marketing, legal, regulatory or other advice. The Information should be independently evaluated in light of your specific business needs and any applicable laws and regulations. Visa is not responsible for your use of the Information, including errors of any kind, or any assumptions or conclusions you might draw from their use.

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