E331:🎙️HELPING ECOMMERCE MERCHANTS RECOVER UP TO 30% OF ORDERS LOST TO CREDIT CARD DECLINATURES
TRANSFORMING eCommerce WITH FlexCharge: AN INTERVIEW WITH PHILIP MCHUGH
In the competitive world of eCommerce, reducing payment declines can be a game-changer for merchants. Enter FlexCharge, a cutting-edge fintech solution that allows eCommerce merchants to recover up to 30% of orders lost due to payment declines. In a recent episode of the eCommerce Edge Podcast, host Jason Green interviews Philip McHugh from FlexCharge to discuss how this innovative technology is changing the landscape for online businesses.
THE JOURNEY TO FINTECH
Philip McHugh's path to fintech was not a straight one. With a 20-year history in banking, he started his career at Citigroup in Latin America, working in credit cards. This experience provided a deep understanding of payments, paving the way for roles at Barclays and later at Barclaycard, where he delved into the intricacies of payments and fintech. At Barclaycard, Philip was involved in one of Europe's leading payment platforms, which included significant experience in B2B solutions and retail payments. His subsequent roles at TSYS and Paysafe further honed his expertise in merchant acquiring and payment solutions, setting the stage for his current venture at FlexCharge.
WHAT DOES FlexCharge DO?
FlexCharge addresses a critical issue in eCommerce: payment declines. Here’s how it works:
1. Identify Declines: FlexCharge intercepts decline messages from payment gateways, grabbing transaction data before it's lost.
2. Augment Data: Using their Accept IQ platform, FlexCharge enhances the transaction data with information like credit bureau insights and geolocation, making it a richer, fuller profile.
3. Reauthorize Transactions: They then reauthorize the transaction, purchasing the invoice to guarantee payment to the merchant.
4. Seamless Customer Experience: The customer experience remains smooth, and they receive their product without any additional cost or hassle.
REAL-LIFE IMPACT
The impact of FlexCharge technology can be profound. Consider a scenario where a merchant operates with a 12% decline rate on transactions. With FlexCharge, that merchant could reduce declines by up to 30%, translating directly into increased revenue. For businesses it’s not just about the money; it's about customer satisfaction and brand loyalty.
EXAMPLES OF THE PROBLEM
Jason shared his frustration with payment declines through personal anecdotes:
* Booking Flights: He faced numerous challenges while booking flights, with multiple declines forcing him to try different combinations of addresses and cards.
* Using Uber: Adding a new card to Uber was a headache due to repeated declines, despite the card being valid.
* International Gifts: When buying gifts for international friends, Jason encountered declines that made the process cumbersome, eventually abandoning some attempts.
FlexCharge VS OTHER SOLUTIONS
How does FlexCharge stack up against other payment technologies like Signifyd and ClearSale? While those services provide chargeback guarantees and fraud prevention, FlexCharge specifically targets post-authorization declines. This focus makes FlexCharge an ideal complementary service rather than a direct replacement, adding an extra layer of security and ensuring that legitimate transactions are not lost.
TECHNICAL INTEGRATION
One of the strengths of FlexCharge is its flexible integration options. Whether dealing directly with CRM platforms, shopping carts, or payment gateways, FlexCharge can intercept decline messages and process transactions with minimal friction. This flexibility makes it easier for merchants to adopt the service without major overhauls to their existing systems.
CONCLUSION
The conversation with Philip McHugh sheds light on how vital it is for merchants to tackle payment declines head-on. FlexCharge offers a robust solution that not only recovers lost sales but also improves the overall customer experience. For eCommerce merchants looking to boost their revenue and enhance customer satisfaction, FlexCharge presents an opportunity that’s too good to pass up.
To learn more, check out the related THE ECOMMERCE EDGE Podcast episode below: