Transaction metrics you should focus on

Failed payments vs all payments ratio

A merchant’s life is inevitably filled with failed payments, but if their number falls below a normal threshold for your checkout, you can relax.

A sudden spike can indicate a more serious issue, e.g.,
Your primary processor is down; in such a case, switching to a backup processor helps to provide uninterrupted customer checkout.
Fraudsters are running a mass card test using your checkout to verify if a card still works; enabling fraud screening (NoFraud, Kount, Signifyd) and/or 3DS saves you a lot of transaction costs and headaches.

Refund rate

Refunds and churn are inevitable as well. Keeping it low is a beneficial way to run your business.

Operational issues or fraud could cause your refund rate to exceed your typical “low”. Watching this metric can help you spot trends early and take steps to safeguard your company and make better choices.

Authorization rate

Authorization of a transaction is when a payment gateway approves a transaction and allows to process it.

The authorization rate typically fluctuates, and if it stays within your normal range, everything is fine. If it drops too much or for a long time, you should take action because your payment processor likely has a problem. E.g., you can switch to a backup PSP while investigating and curing the issue with the major processor.

3DS Authentication rate

3D Secure (3DS) is a technology that can help keep online payments safe, but it can also reduce the conversion rate of your checkout.

We recommend enabling exemptions for low-risk transactions or frictionless flows for trusted users to ensure a seamless payment process while maintaining fraud controls.