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Case Studies
CMSPI Improves Transaction Success For Global Retailer and Delivers Savings
CMSPI leveraged its unparalleled expertise and insights to improve transaction success by over 10% while saving $1.5M annually.
Introduction
This global retailer with $80b in revenue across CIT and MIT traffic needed to optimize transaction performance across both current and emerging channels.
Key Achievement
Identified systemic data integrity errors from a key supplier that when addressed delivered
- 10%+ increase in gross approval rate
- $1.5m+ reduced cost annually
- 5% improvement in net approval rate and 3% in gross approval rate improvement for new mobile app customer check out channel
The Challenge
Optimize the merchant’s retry strategy to eliminate re-attempts with low success rate decline codes associated with network penalty fees
The Solution
CMSPI’s Transaction Success Optimization Process: Three Major Work Streams
- Identified Systematic Data Integrity Errors
CMSPI identified over $500m in instances where the acquirer’s assessment of transaction response code outcomes differed from the network. These discrepancies left the merchant exposed to retry logic being built on low‑accuracy data sets and created challenges in identifying the root‑cause drivers of declines. - Identified Retry Strategy Opportunities
CMSPI specialists identified scenarios where the existing retry strategy was not aligned with network rules and was therefore subject to subsequent penalties. Leveraging the Payments Intelligence Engine, CMSPI advised the merchant on where to adjust acceptance strategies. The team worked closely with the client and relevant third parties to update retry logic—informing when to retry and when not to—based on break-even analysis by network response type on problematic BINs. - Technical Processing Errors
During the discovery process, CMSPI uncovered an error in the way mobile app payments were being processed for in-store transactions. This issue resulted in up to $100k in declined transaction attempts per day from otherwise good customers.
The Results
The three key dimensions of the transaction success optimization work delivered powerful outcomes
Systematic Data Integrity Errors
CMSPI collaborated closely with the merchant and vendor to identify options to improve the accuracy of data sharing between all parties for future engagements with the suppliers making system wide enhancements to their reporting.
Identified Retry Strategy Opportunities
CMSPI’s informed the merchant on where to adjust their acceptance strategy. Our team worked with the Client and relevant 3rd parties as they made an update to logic on when and when not to retry transactions based on break-even analysis for each network response type (on problematic BINs.
Technical Processing Errors
CMSPI pinpointed the underperforming traffic and then aided the identification of the root cause issue. Subsequent workstreams with the merchant and their acquirer helped to find a low resource resolution to the underlying issue causing declines. With adjustments to their authorization processes, the gross approval rate increased 3% on average for this subset of traffic. Net authorization rate improvement approximately 1.5%.
Summary
We were able to leverage our Payments Intelligence Engine and industry experience to deliver business results that both improved transaction approvals by 10% gross and 1.5% net, while delivering annual savings of over $1.5M.