Payment KPIs

1st Chargeback Rate The 1st Chargeback Rate measures the percentage of initial chargeback disputes filed against successful Sales.

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2nd Chargeback Rate The 2nd Chargeback Rate measures the percentage of transactions that result in a second chargeback against successful Sales.

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3D Secure Abandonments 3D Secure abandonments occur when customers exit the checkout process during the 3D Secure authentication step, typically due to confusion, poor user experience, or delays in loading.

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3D Secure Challenge Rate Challenge rate refers to the percentage of 3D Secure (3DS) authentications that require strong customer authentication by the issuer.

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3D Secure Exemptions Rate 3D Secure exemption rates refer to how often transactions are approved without requiring customer authentication, thanks to regulatory exemptions like low-value or low-risk criteria under PSD2.

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3D Secure Failures 3D Secure failures occur when the customer is unable to successfully complete the 3D Secure authentication process during a transaction, leading to the payment being declined or abandoned.

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Acquirer Fees The Acquirer Fees KPI measures the total cost charged by an acquirer to a merchant for processing card-based transactions, typically calculated as a percentage of transaction volume, reflecting the expense of payment acceptance from an acquirer's perspective.

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Arbitration Rate The Arbitration Rate measures the percentage of Chargebacks that result in an arbitration case.

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Autorization Requests Measures the volume or count of requests sent to an issuing bank to verify and approve a transaction, ensuring the cardholder has sufficient funds, the card is valid and the transaction is legitimate.

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Average Order Value Average sales, or Average Order Value (AOV), measures the average amount a customer spends per transaction, helping businesses understand customer purchasing behavior and revenue potential.

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Blended Fees The Blended Fees measures the total flat fee charged to merchants by payment service providers (PSPs) for processing transactions, combining interchange, card scheme, and processing fees into a single rate, simplifying cost tracking for small to medium enterprises.

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Chargeback Fees The Chargeback Fees measures the total costs imposed on a merchant by payment processors or acquirers for handling chargeback disputes, typically ranging from $15 to $100 per chargeback, reflecting the administrative expenses of dispute resolution.

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Chargeback Rate The Chargeback Rate measures the percentage of transactions that result in chargebacks, calculated by dividing the number of 1st chargebacks by the total number of successful transactions processed in a given period.

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Conversion Fees Conversion Fees measure the total charges imposed by financial institutions or payment providers for converting one currency to another during transactions, typically a percentage (e.g., 1-3%) or flat fee, reflecting the cost of facilitating cross-currency payments.

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Gateway Declines Gateway declines (or rejections) occur when a payment gateway blocks a transaction before it’s sent to the bank for authorization, usually due to fraud rules, validation errors, or account settings.

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Gateway Fees The Gateway Fees measure the total costs a merchant incurs for using a payment gateway to process card transactions, including setup, transaction, monthly, chargeback, and other miscellaneous fees, reflecting the expense of secure payment processing.

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Hard Declines The Hard Declines measure the percentage of transaction authorization requests permanently rejected by the issuing bank due to issues like expired cards, fraud, or closed accounts, requiring alternative payment methods or customer intervention to resolve.

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Interchange Fees The Interchange Fees measures the total costs paid by a merchant’s acquirer to the card issuer for processing card transactions, set by card schemes like Visa and Mastercard, typically ranging from 0.3-2% of transaction value, varying by region, card type, and transaction risk.

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Issuer Declines Issuer declines occur when a cardholder’s bank (the issuer) refuses to authorize a payment transaction, typically due to issues like insufficient funds, fraud suspicion, or other card related restrictions.

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Lost Chargebacks The Lost Chargebacks KPI measures the percentage of chargeback disputes that a merchant fails to reverse through representment, calculated by dividing the number of lost chargebacks by the total number of chargebacks received, indicating the proportion of disputes resulting in unrecovered revenue.

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Net Sales This KPI represents a company’s total revenue from sales after subtracting refunds, transaction costs, and disputes, providing a clear view of actual earned income.

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Payout Fees These are charges imposed by payment platforms or processors when transferring funds from the platform to the business's bank account.

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Processing Fees The Processing Fees KPI measures the total costs charged by payment processors to merchants for facilitating payment transactions, encompassing fees for software, equipment, and value-added services like fraud prevention and customer support, typically calculated as a percentage of transaction volume plus fixed fees.

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Refund Rate Refund rate measures the percentage of total number or volume of refunded transactions vs successful sales.

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Risk Declines Risk declines occur when a payment is blocked due to suspected fraud or security concerns, often triggered by risk engines using behavioral, transactional, or device-based signals.

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Sales Volume The Sales Volume KPI Sales volume looks at the gross sales of products or services sold by a merchant.

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Scheme Fees The Scheme Fees measures the total costs charged by card schemes (e.g., Visa, Mastercard) to issuers and acquirers for using their payment network, comprising fixed and variable fees based on transaction volume, card type, and services utilized.

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Soft Declines Soft declines happen when a transaction is rejected by the issuing bank, temporarily insufficient funds or the need for further customer action, like completing 3D Secure.

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Successful Authorization Rate The rate of all payment transactions that were successfully authorized by the issuer in a payment service provider request.

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Successful Authorizations The count or volume of all payment transactions that were successfully authorized by the issuer in a payment service provider request.

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Successful Sales The Successful Sales KPI measures the volume and percentage of sales that are successfully completed and finalized.

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Total Declines Total Declines refers to the overall number of payment transactions that were rejected or failed by the payment processor or issuing bank.

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Total Payment Fees Total payment fees encompass all charges incurred when processing payments, including gateway fees, processing fees, interchange fees, acquiring fees and other related expenses.

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Transaction Requests The Transaction Request KPI measures the total number of payment initiation requests sent to customers, via all available channels and payment methods.

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Transactions Volume The total volume of transactions processed by the payment processor, independently of the transaction’s outcome.

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Won Chargebacks The Won Chargebacks indicate the percentage of chargeback disputes a merchant successfully overturns through representment, determined by dividing the number of successful chargebacks by the total chargebacks received.

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