Intelligent Acceptance
Last updated: July 2, 2024
Our Intelligent Acceptance solution uses an optimization engine run on artificial intelligence models to optimize your payments and help increase your acceptance rates.
We can work with you to define an Intelligent Acceptance strategy that aligns with your business goals.
For Intelligent Acceptance to be a good fit for your business, you must:
- use Checkout.com's acquiring services
- have a minimum monthly volume of 5,000 transactions
To enable Intelligent Acceptance, or if you have questions, contact your Account Manager or our [email protected]. You can choose to enable the solution for certain or all of your Checkout.com products.
When Intelligent Acceptance is enabled, it will immediately begin to optimize your transactions, without the need for additional integrations or configurations.
Intelligent Acceptance acts on legitimate transactions after they've been approved by your fraud detection flow. Using machine learning, some fields are dynamically adjusted to maximize the chances of payment conversion.
A small percentage of transactions are intentionally not optimized. This allows us to maintain a control group in order to assess the overall payment performance.
The optimized and unoptimized transactions are sent to the issuers for them to accept or decline.
The performance of both groups is compared to calculate performance metrics.
The optimizations applied on your payments include:
| Optimization | Description |
|---|---|
| Network Tokens | We request a network token representing a card's details from Visa or Mastercard. As the card details that a network token represents can be updated, the tokens are not bound by the card's expiry date. This reduces the number of declined transactions you experience from expired cards, which improves your acceptance rates and protects your customers from fraud. For each transaction, we decide between using the network token or actual card details (FPAN) based on the issuer's adoption and preferences. |
Smart payment routing | Smart payment routing dynamically selects the most efficient path for a transaction's successful completion by evaluating and adjusting payment factors. For example, it may optimize the authentication method or payment metadata to increase the acceptance rates of routed transactions. |
3D Secure (3DS) configurations | A 3D Secure (3DS) transaction has three main components that we optimize to increase the chances of approval:
We use automated strategies to find the most successful request format for each issuer, configuration protocol, and SCA requirements. This reduces unnecessary declines due to an incorrect 3DS configuration or invalid exemption request. |
Adaptive messaging | Adaptive messaging automatically updates payments with relevant data such as those related to SCA and ISO. This ensures that your payments are formatted to the schemes' and issuers’ unique preferences. |
The Dashboard enables you to visualize your business' payment performance using relevant metrics.
To view your Intelligent Acceptance metrics on the Dashboard, go to Payments > Analytics > Intelligent acceptance. Then, select your preferred time period to view data.
Information
Data may not be available on the Dashboard until a few days or weeks after Intelligent Acceptance has been enabled. This delay allows calculations to reach statistical confidence, so that we can accurately indicate where a boost in acceptance rates was caused by Intelligent Acceptance optimizations.
The Dashboard provides daily, weekly, and monthly views of your data. If a view is unavailable, this may be due to one of the following reasons:
- your account does not have sufficient optimization data to build an accurate view
- the time period selected is too short or too long to build the selected view – for example, there are not enough days selected to display a monthly view
You can monitor the following metrics on the Dashboard:
| Metric | Description |
|---|---|
| Acceptance rate | The percentage of all transaction attempts that were successful, within the selected time range. This includes Intelligent Acceptance's optimization impact. |
Standard acceptance rate | The percentage of successful transaction attempts if no optimizations were applied. |
Boost from optimizations | The percentage increase in acceptance rate as a result of the applied optimizations. This is the difference between the boosted acceptance rate and the standard acceptance rate. |
Optimized transactions | The number of transactions that were optimized during the selected time period. |
Estimated revenue boost | The estimated increase in revenue as a result of the optimizations applied, during the selected time period. |
To assess the impact of Intelligent Acceptance's optimizations, we compare the acceptance rate of the optimized transactions to a small portion of transactions to which we do not apply any optimizations (control group).
We know which transactions were optimized and if they were successful. However, we do not have insights into the issuer's decision process to say if the transactions were successful because of the optimizations applied.
Therefore, the best way to assess Intelligent Acceptance's impact is to compare the aggregate of optimized traffic to the control group. We do this by allowing time for data to be statistically confident, and demonstrate that the improvement in acceptance rate is not due to randomness.