50% card decline rate for my website visitors. why?

[etrader]

Greetings!
Anybody selling products online in the UK? For me over half of card transactions through Stripe get declined with the exact same reason:
3D Secure attempt failed
The customer failed 3D Secure authentication.

We are using a UK registered company. UK Stripe. Selling only in the UK.
Using Funnelish (funnel builder / website builder) connecting to Stripe. Stripe support said on their end there's no problems. We're taking only shipping address. But all checks pass on Stripe including address & 0% Block Rate. Declines coming from different banks within the UK.
No idea what's going on, any ideas?
Average transaction value ranges from 39 GBP to 200 GBP.
Value doesnt seem to affect decline likelihood.

Many people whose payments get declined attempt 3-5 times more, and it keeps declining (rarely in 1% of cases 3rd or 4th attempt will go through successfully though)

We previously sold with a UK company in USA and at most had 10% decline rate or so. Never 50%+

Anyone else getting this?
Anyone know what might be the cause?

Appreciate any insights.

 

[fisicx]

Possibly because the shipping address is different to the address on the card.

Do you get declined when you do a test purchase?

 

[etrader]

Possibly because the shipping address is different to the address on the card.

Do you get declined when you do a test purchase?

My test purchase went through fine, just like 50% of my customers purchases that succeed.

 

[japancool]

Are the customers UK residents, and are the cards UK-issued?

 

[fisicx]

My test purchase went through fine, just like 50% of my customers purchases that succeed.

What happens if you enter a shipping address different to that on the card?

 

[tertius]

Banks have been recently tightening up on verification protocol. For example in my business we were suddenly unable to book any thing on Airbnb using natwest cards and natwest said it was because the required level of verification wasn't being met. Many online purchases are requesting verification in the banking app or by text... Maybe the stripe connection doesn't support this?

 

[AlanJ1]

Banks have been recently tightening up on verification protocol. For example in my business we were suddenly unable to book any thing on Airbnb using natwest cards and natwest said it was because the required level of verification wasn't being met. Many online purchases are requesting verification in the banking app or by text... Maybe the stripe connection doesn't support this?

I would be shocked if Stripe aren't complying with this.

 

[etrader]

What happens if you enter a shipping address different to that on the card?

Haven't tried it, but what would that show me?

 

[etrader]

Are the customers UK residents, and are the cards UK-issued?

Yes, UK residents, UK issued cards, UK banks.

 

[fisicx]

Haven't tried it, but what would that show me?

If it fails then you know where the problem is.

 

[etrader]

If it fails then you know where the problem is.

Oh you mean a lot of people might have different billing and shipping addresses.
I actually tried collecting only billing address and only shipping address and both still get 50% declines.
In Stripe transaction details, all declined transactions always "Passed" address checks so I doubt its that

 

[Clinton]

Banks have been recently tightening up on verification protocol. For example in my business we were suddenly unable to book any thing on Airbnb using natwest cards and natwest said it was because the required level of verification wasn't being met. Many online purchases are requesting verification in the banking app or by text... Maybe the stripe connection doesn't support this?

This!

 

[Lucan Unlordly]

Take a look at a thread I started early 2022, particularly my post no 17.

Strong Customer Authentication and 3D secure?

A number of our customers are experiencing difficulty making online payments via Worldpay, due we are told to the governments roll out of SCA (Strong Customer Authentication) and 3D secure. I hadn't a clue about this happening and neither it seems does the general public so I'm trying to...

www.ukbusinessforums.co.uk

 

[japancool]

I use Stripe, and I'm not getting 50% declines.

 

[Porky]

Could be fraud issues, scam cards being used and it falling down on verification, could be incorrect fields of data passed over. Shipping address/ registered card address often causes issues for sure if not filled out right.
50% does sound high - you need to look at the ones declined. was any specific data field info missing, did the customer fill out all the details?
Don't know you business but you could add a second payment option like paypal but probably need to try and get hold of specific facts as to why the failure rate is so high so you can address it on your site.
Good Luck

 

[JEREMY HAWKE]

We take the cards over the phone and we have 3 ticks or crosses for 3 sections when entering details into the computer

name
card details
address

You are supposed to have 3 ticks but I know them to still go through when you have the address wrong The risk is with us if it is fraudulent though.

@etrader I'm guessing that due to the number of transactions you have the merchant will not put such a potentially high liability on you

 

[Paul Kelly ICHYB]

What did Stripe say when you asked them for a reason?

 

[Sparetoolparts]

Oct 2022, the Credit Card Companies increase protections on cards meaning that banking app verifications are needed for the majority of the sales. We have a similar issue with our site when I see the failures I call the customer and do it over the phone and it works 100% of the time that way. Good news is I'll have this fixed on my site next week

This is what I was told the issue was with mine:

Your integration needs to pass "challengeRequested: true" on the "verifyCard()" call or when invoking 3D Secure. Because these parameters are a part of your client-side integration, and because your client-side is handled by your integration, you will need to work with your website developers to ensure you are requesting a challenge


Hopefully this helps

 

[14Steve14]

We use Stripe on our website and whilst we are getting several payment declines with the 3DSecure attempt failed reason, nearly all payment are successful. We had to speak to Stripe to see what settings we should have on our Stipe payment settings. I think it was in the rules section.

In testing we cannot get the system to fail, but the few customers that we have spoken to seem to be paying using a phone app or a banks app which for some reason does not complete the transaction on the website with the reason given as 3dsecure attempt failed.

It may be worth speaking to Stripe support for guidance if you are using all their latest code version.

 

[od3d]

Hey, I have no idea what can cause it, but if you want some help debugging from the card issuer POV I'll be happy to help.

 

[UKOnlineServices]

One of my customers had a similar issue - not 50%, but some cards were declined on their online store, while they worked just fine over the phone. The best excuse we've found so far is that some customers simply missed a pop up window which opened up for 3d verification. This would happen to about 15% of customers over two weeks. Later the problem disappeared. I think perhaps the 3d verification system was somehow fixed.

In any case, it is not impossible that your store is targeted by card scammers. Perhaps they successfully completed a purchase in the past and decided to cash out on more stolen cards with your website.

 

[Waddy]

We had a similar decline rate on a physical machine about 5 years ago. After many months of trying everything I finally spoke to someone who suggested getting a new MID (Merchant ID).

Took about a week to fill out forms and get it changed, but it solved the problem, apparently MIDs can be recycled and may have been flagged as high risk in the past.

 

[kordun]

I used stripe for few months for catering business and it was nightmare, huge numbers of transactions were declined for no reason, customers were very annoyed.

 

[HFE Signs]

Have you spoken to your provider? 50% fail seem incredibly high

 

[Kumarvu]

I would guess it has something to to with 3DS V2 which is now mandatory in the UK. if your setup is still using version 1 you will get a lot of failed transactions.

 

[manojspsmobile]

are they UK customers ?

 

[etrader]

are they UK customers ?

yep

 

[Russ Michaels]

check your stripe reports and look at the failure reasons, it should tell you exactly why the transactions failed. If you cannot figure it out, get stripe support ton the phone. Don't email them, or you will go around in circles tearing your hair out.
Check your validation settings and see what you have enabled, you may have some settings that too harsh, like the location must match that card address, which often fails as it is base don the geolocation of the persons IP, which will often resolve to the ISP address not their address, plus they might be at work or elsewhere.
also make sure that your e-commerce system is actually properly supporting 3d secure, and that happens when you do test orders, You should get prompted to approve the transaction in your banking app.
also all the transactions that fail, are you sure that the same person has not just tried again and it went through the second time?
Some people just don't authorise it in time or maybe don;t know how.

 

[TimesOne]

I manage a donations portal on a WIX premium website plan for a non-profit in an international country.
We recently added a card provider to 'Accept Payments' by Credit & Debit Card & PayPal.
We are seeing more than 50% declined payments.
I have written to the card company who seem unable to do anything to remedy this and we are loosing a lot of good will and causing frustration to our donors and extra work for staff who need to follow up declined payments. I get it that donors or customers need to allow pop-ups but the whole 3DS system seems totally random in its implementation and cumbersome and inefficient in the task it is supposed to be doing.

 

[fisicx]

Stop using Wix.

We use Stripe on a self hosted site and rarely have issues with payments. If properly configured you don't need popups.

And I made payments this morning with all worked without popups - I just needed to approved the transaction on my banking app. All smooth and simple.

Stop using Wix. It will fix everything.

 

[TimesOne]

Sounds good thanks ... stripe still not available in the country however

 

[fisicx]

Sounds good thanks ... stripe still not available in the country however

Wix is still the root of the problem.

What country? Do you have a local payment portal you can use?

 

[TimesOne]

Israel. Yes we are using Isracard by PayMe. I get your point about WIX. Why is that specifically if I may ask?

 

[fisicx]

Because wix is well known for being pants as you are locked into their infrastructure and systems. The same applies to most site builder platforms (eg godaddy, ionos, shopify, squarespace etc).

With a self hosted site you have the freedom to configure the site anyway you want.

 

[Paul Kelly ICHYB]

If <enter name of platform> has issues or goes bust, you lose your business. You cannot create backups, migrate, adapt many features to your exact needs etc.

Also, ensure they are not your domain host - use a third party for that.

 

[TimesOne]

Thanks for the advice(s) fisicx & Paul; long term I am sure you are both correct.
We were planning a re-build of the site and this is a good motivator.
I appreciate your input.

 

[Talktime]

Please review your Stripe App to confirm the payment status. You will find successful payments marked as "Succeeded," while some may be marked as "Incomplete."

Could you clarify whether the "Incomplete" payments are showing as failed or declined? Typically, "Incomplete" means the customer accessed the payment form but chose not to proceed.

 

[TimesOne]

In my case payments are showing 'Declined', customers are not backing out but the 3DS is flagging them and Declining the transaction. This is particularly noticeable for larger payments.

 

[Talktime]

I typically avoid using Stripe for large payments due to its cost and prefer bank transfers for such transactions. However, Stripe is effective for online and automated payments.

To date, I have not encountered a 'Declined' payment on the Stripe App.

I suggest considering smaller amounts for Stripe payments while using bank transfers for larger ones. Alternatively, you could try a different Stripe account or explore a different website builder or script that better integrates Stripe into your system.

 

[TimesOne]

Thanks, again in my case I am not using Stripe at all but another payment portal, Isracard by PayMe, in Israel. I would imagine that the same principles apply as it's a global roll out of 3DS and 3DS version2.

Below is a summary of our blog research on this issue.

What does SCA mean for ecommerce?

Online shoppers will see more challenges for authentication to prove they actually are the card owner. With 3DS1, issuers typically require a password to be entered to verify the transaction.

3DS2 is far more sophisticated and improves the checkout experience compared to 3DS1. It can use over 100 data elements (such as the customer’s shipping address, device fingerprint, and payment history) sent to the issuer to assess its risk level. This all takes place behind the scenes within the checkout process, meaning a smoother, more secure payment flow. Based on this data, the issuer will either authorise the payment (frictionless-flow) or “step up” to a two-factor authenticated transaction by challenging the cardholder to provide additional information to authenticate the transaction by, for example entering a one-time passcode sent to their mobile device.

************************

An update from us on this, we removed our integration with Worldpay from our platform as they were so far behind in implementing 3DSv2 (SCA) that their gateway became incompatible with the current VISA and MasterCard standards.
Our clients needed to migrate onto a different payment gateway and since then have not had any issues.

*****************

Your integration needs to pass "challengeRequested: true" on the "verifyCard()" call or when invoking 3D Secure. Because these parameters are a part of your client-side integration, and because your client-side is handled by your integration, you will need to work with your website developers to ensure you are requesting a challenge


We had a similar decline rate on a physical machine about 5 years ago. After many months of trying everything I finally spoke to someone who suggested getting a new MID (Merchant ID).

Took about a week to fill out forms and get it changed, but it solved the problem, apparently MIDs can be recycled and may have been flagged as high risk in the past.

********************

I would guess it has something to to with 3DS V2 which is now mandatory in the UK. if your setup is still using version 1 you will get a lot of failed transactions.