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Late Authorization: Understanding and Managing Payment Delays

Introduction​

In the fast-paced world of online transactions, timely and accurate payment processing is crucial for maintaining customer satisfaction and operational efficiency. Sometimes, there can be delays in receiving transaction statuses from the host, which affects the ability to confirm the final status of a transaction. These delays can negatively impact both your customers' experience and your business operations.

Challenges Faced by Merchants​

1. Customer Experience Degradation​

When a transaction status is not promptly confirmed, your customers may remain stuck on the payment page, unsure of whether their transaction has been successful. This uncertainty is particularly problematic in time-sensitive situations, such as:

  • Purchasing at airport duty-free shops where customers are pressed for time.
  • Booking online movie tickets where availability may change rapidly.

2. Double Charging Risk​

If a transaction is re-initiated due to the absence of a timely response and the original transaction also completes successfully, customers might end up being charged twice. This scenario leads to:

  • The need for you to process refunds, adding administrative overhead.
  • Customers waiting to receive their refunds, which can further affect their satisfaction and trust in your services.

3. Inventory and Resource Allocation​

Without timely transaction confirmations:

  • Valuable inventory may be held unnecessarily, preventing sales to other potential buyers.
  • You may face difficulties in confidently managing stock levels, especially for limited or fast-moving items.

4. Financial Implications​

The inefficiencies of the payment gateway system may lead to financial losses for your business, including bearing the cost of Merchant Discount Rates (MDR) for refunds issued due to late authorizations.

Solutions Offered by Plural​

Plural addresses these issues by ensuring that a terminal state of the transaction is delivered to you within a predefined, configurable period. This solution empowers you to:

  • Promptly Inform Customers: Advise customers to retry their purchase if necessary, minimizing wait times and uncertainty.
  • Assure Refunds: Confidently assure customers of refunds in cases where debits occur without successful transaction confirmation.
  • Manage Inventory Efficiently: Free up inventory for other potential sales, improving resource allocation and reducing potential revenue loss.
  • Enhance Transparency: Provide customers with immediate visibility of the final transaction status, which is crucial for transactions involving time-sensitive decisions.
  • Avoid Unnecessary Costs: Shift the financial burden of MDR losses due to payment delays back to the payment gateway, protecting your bottom line.

Conclusion​

By partnering with Plural, you can significantly mitigate the risks associated with late transaction authorizations. This ensures that both your operational efficiency and customer satisfaction remain high, even in scenarios where external payment processing delays occur. Plural's commitment to delivering timely transaction statuses helps you maintain a robust, reliable, and responsive business environment.