According to a recent survey by Aite Group, 59% of millennials say that they would be very or somewhat likely to leave their financial institution due to a credit card false decline.
Boston, May 9, 2017 — Aite Group’s recent research report, Combating False Declines Through Customer Engagement, reveals that large-scale card compromises, particularly via point-of-sale malware, have made it much more difficult for card issuers’ analytical models to identify fraudulent transactions. The subsequent false declines directly affect the FI-customer relationship.
False declines occur when a good transaction by the authorized cardholder is erroneously declined, and it happens far more often than issuers and merchants would like. “False declines are a double whammy for FIs and merchants,” says Aite Group research director Julie Conroy. “They not only result in lost revenue opportunities but also create unhappy customers,” she says.
In January 2017, Aite Group surveyed 1,095 U.S. consumers to better understand the impact of false declines on the customer experience. The report looks at the likelihood that false declines at the POS will prompt consumers to leave their FI. The report also looks at technologies that can reduce false declines as well as consumers’ propensity to proactively engage with these technologies.
About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.