What is Transaction Success Rates (TSR)? Why is it Important?

Transaction success rates are essential for calculating the number of approved transactions facilitated by a secure payment gateway. Since transaction failures often result in loss of revenue for a business, considering its importance is highly crucial. Therefore, having a higher transaction success rate is essentially a validation of the payment gateway’s robustness and the ability to provide a stable service for online business owners.

Understanding Transaction Success Rates:

It’s straightforward to determine the concept of transaction success rates. The quickest way to do this is to divide the number of successful transactions by the number of total transactions in a given period. The higher the success rate, the better it is for your online business. 

Therefore, you must choose a service provider who can handle multiple simultaneous transactions successfully, even on a busy day. This ensures that your transaction success rates are on the higher end.

The Importance of Transaction Success Rates: 

Transaction success rates are directly responsible for an overall positive customer experience. If many transactions fail, then customers are more likely to abandon their carts and move on to competitor sites to buy the products. 

This can be detrimental for the business. It becomes even more crucial for first-time consumers. If these customers are faced with a negative experience when trying to transact, the chances are that they may never return. 

Your business will take a hit as revenues will drop unless you can rectify the error and register higher transaction rates for successful sales to take place.

Therefore, you must choose a payment gateway service provider who can offer you higher transaction success rates. So, always make it a point to compare this crucial parameter across service providers to choose one that does indeed provide you with a higher TSR (Transaction Success Rate)

Possible Reasons for Lower Transaction Success Rates:

Lower transaction success rates could be a result of multiple factors at play. Some of the most common reasons may include:

• It could be a direct result of server downtime
• Technical glitches may result in lower transaction success rates

So, even though you should keep this factor in mind while choosing a payment gateway provider, it should not be your only criteria. There could be numerous other reasons beyond the control of your payment gateway service provider.

You can discuss these things outright before forging a partnership with the selected payment gateway service provider; these points could be: 

• Reliability and Cost: Reliability and cost are two factors that you must keep at the top of your list. A payment gateway service provider who’s known for both reliability and cost-effective services should be your ideal choice. 
• Technical Support: Ensure that the service provider you choose as your payment gateway partner has a solid technical team to help you in crisis. There can be many technical issues, as is the case with any tool or technology. So, having a quick turnaround time regarding fixed technical glitches is a great way to evaluate a payment gateway service provider.
• Load Handling: By load handling, we mean the ability of a payment gateway service provider to handle multiple simultaneous transactions. Not every payment gateway can handle tons of transactions taking place simultaneously. It may end up facing downtime because the servers simply can’t keep up with the volume of transactions taking place over the network. Therefore, ensure that your service provider can handle an increase in the volume of transactions before making a selection.

Plural Gateway is one of the top online payment platform in the country, known for offering exceptional services. From handling a large volume of multiple transactions at the same time to offering industry-leading technical support, they are known for providing maximum value proposition. So, if you are looking for a high-value service provider that can offer you the highest transaction success rate, do check them out!