Payment solutions for eCommerce businesses to reduce failed payments

All eCommerce businesses should be monitoring their failed payments. Why?

Astoundingly, in a 12-month period, more than 1 in every 10 online transactions processed by the average eCommerce firm failed. Then, in the US alone, $81 billion was lost in 2023 due to failed payments.  

For the sake of longevity and enhancing your bottom-line, finding eCommerce payment solutions to recover this lost revenue is vital.  

The split payment methods that reduce failed payments for eCommerce

Split payments, simply put, allow customers to split the payment at checkout when shopping online. This could be between multiple cards or multiple individuals.  

This empowers the customer with more ways to pay, which is crucial for boosting conversion rates and decreasing abandoned carts. Almost 1 in 5 shoppers abandon their carts when their preferred payment method isn’t available, showing how multiple ways to pay is key for successful purchases.  

However, what’s crucial is the impact this has on reducing failed payments by recovering this lost revenue- either before the transaction is made or at the point of decline.

With Hands In, 1 in 10 failed payments are recovered when using split payments as a decline recovery method

Reduce failed payments with Group Payments

You can enable your customers to split the payment seamlessly as a group at checkout with Hands In’s Group Payments. This involves a lead booker starting this process and then sending payment links to their remaining group members to complete the transaction. All funds are then reconciled by Hands In and sent to the merchant.  

Group payments are tipped as an emerging eCommerce payments solution because:  

• Failed payments due to insufficient funds are reduced

• The payments process is streamlined

• Individuals only pay their share (in customisable amounts), increasing the amount of funds they still have available and reducing the likelihood of a payment decline

• The responsibility for collecting funds is on Hands In - not the merchant or customer

• Customers have more options to pay as, with Group Payments, you can pay via payment links, QR codes, email, or SMS

Reduce failed payments with Multi Card

Similarly to Group Payments, Multi Card allows customers to split the payment. However, this time, it’s between multiple cards. Customers can simply enter the details of both cards and then split the payment in customisable amounts between their cards.  

This is a groundbreaking eCommerce payments solution because:

• Credit limits are removed as a cause of failed payments

• The user experience is enhanced, and payment processes are streamlined  

• Customers are given more choices for how to pay  

• Higher value purchases are more accessible to customer, increasing your average order values

Reduce failed payments with Decline Recovery

Decline recovery means that you can use either Multi Card or Group Payments at the point of a card decline to recover a transaction. If a customer doesn’t select a split payment option, but faces a card decline via the traditional route, they are able to continue their transaction by using a split payment method.  

By giving a customer the option to split the payment at the point of a payment decline, you provide a more seamless user experience as the customer doesn’t need to start their transaction all over again. By eliminating this frustration, customers are more likely to be retained and failed payments are reduced.

When it comes to eCommerce payment solutions that will truly make a difference to your business’ incremental revenue, split payments should be your first port of call. Don’t just take our word for it though, check out some of our merchants’ results:

• 10,000 new customer profiles added through Group Payments from a single merchant

• 86% conversion rate with Group Payments

• 92.5% conversion rate with Multi Card

Speak to the team to find out more about the revenue you could recover by allowing your customers to split the payment.

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