Solving the CNP False Decline Puzzle: Collaboration is Key

This whitepaper examines the growing problem of false declines, which occur when legitimate transactions are erroneously rejected due to the suspicion of fraud and in turn leads to purchase abandonment or customers attempting alternate payment methods. Here, Ethoca explores the size of the false declines / false positives problem, the difference in decline rates for physical merchandise versus digital goods, and why cardholders are actually declined by both issuers and merchants. The whitepaper concludes with a look at back-up funding sources and how interested parties may participate in pilot programs Ethoca has underway with card issuers and merchants to mitigate false positives.