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How to improve the transactions success rate for your payment gateway

The digital payment revolution has transformed how people pay for goods and services over the past decade. Customers now enjoy the flexibility of choosing their preferred mode of payment with an online payment system. It gives them the freedom to avoid keeping cash on them and finding the exact change to pay. An interesting pattern to note is how some customers embrace eWallets, and UPI payments over credit/debit cards since entering card details can be inconvenient for many.

That is why businesses are now looking for payment gateways with features that can truly help them increase their transaction success rate. Businesses can expect a loss of sales and cart abandonment if their payment gateway does not have a high transaction success rate.

A PwC survey reveals that 10 out of 30 top-rated banks in India reported a 3% failure rate in accepting UPI payments. This may happen due to a range of issues such as a payment volume surge or even technical glitches. Ultimately, this leads to unsatisfied customers which can translate into revenue losses.

What is a transaction success rate & why is it important?

This is the rate of successful transactions out of the total number of attempted transactions. The transaction success rate is a vital metric for online businesses. It helps them understand how many transactions are failing- a figure that can be shocking for many business owners. With a low transaction success rate, not only are businesses losing sales, but they are also losing loyal customers and hefty profits.

A simple way of calculating the transaction success rate is: divide the total number of successful transactions by the total number of transactions attempted and multiply it by 100.

For instance, if 500 transactions were tried by customers, out of which 450 were approved, the transaction rate will be 90%. While the figure does not look bad, a business must focus on why they lost 10% sales which could have been easily avoided.

We have curated a list of expert methods businesses can use to improve their transaction success rate to address this problem.

Ways of improving the transaction success rate

  1. Ensure a high system uptime

Zaakpay offers 99.9% of system uptime, which means the website can accept payments at any time of the day or night, even with high volume of sales. This will reduce the rate of declined transactions that happen due to system downtime. System uptime is the percentage of time that the system will be online and functional.

A high system uptime will also help merchants generate payment links quickly and send them to the customer for payments at any hour of the day.

Hence, it is critical to opt for a payment gateway that offers a high system uptime.

  1. Opt for Intelligent Routing feature

Integrated payment gateways make sure that different acquirers and processors perform better than others. If an acquirer is not able to process the payment, the transaction is routed to another acquirer.

Therefore, any failed transaction is intelligently passed on to another acquirer to process the payment successfully. This online payment system feature helps improve the transaction success rate for online businesses.

  1. Prompt handling of failed transactions 

If the user cannot pay using a specific card, the payment gateway must be capable of conveying this message to the customer. In addition to this, the customer must be prompted to use another card or payment mode to complete the transaction.

  1. Save card information

Merchants can facilitate one-click payments when they offer to save the customer’s card information. One-tap payment authorization can help reduce the risk of transaction failure by a huge margin.

  1. Avoid multiple redirections

To achieve a high transaction success rate, businesses must aim to reduce the number of times a customer is redirected to other pages. The ideal payment gateway must be equipped to avoid multiple redirections to complete the process.

  1. Try reducing the transaction time.

The time taken to complete the transaction should be as little as possible. The payment gateway service provider must process payment within seconds, even while they face high transaction volumes.

It is here that Zaakpay’s payment links come in. Payment links help reduce the transaction time. Consequently, merchants can quickly generate payment links using Zaakpay’s powerful API.

  1. Host multiple methods of payment

The number of payment methods on a payment gateway can be crucial in determining the transaction success rate. Higher the number of payment methods, the higher the transaction success rate.


The transaction success rate depends on a range of features built-in to an online payment system. As mentioned above, choosing a payment gateway with features like intelligent routing, multiple payment modes, quick transaction time, recurring payment mode, and high system uptime will contribute to having a high transaction rate.

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