CASE STUDY: “Money, Money, Money: Acquiring and Acceptance Ratios”


(This is a business case study. It will be used to guide discussions during the session: “Money, Money, Money: How the Paysite Pros do Billing – Acquiring and Acceptance Ratios” with co-hosts Mitch and Thierry of Vendo at the Paysite Meetup.)


“Why should a bank get in the way of me and my customer?” Phil asked his analyst Laura, enraged, as he reviewed his acceptance ratio report. Phil continued, “If my customer has money and wants to give it to me then he should be able to!” Laura agreed. But there it was in the report: 5% of attempted transactions blocked because of insufficient funds. And yet…many more transactions were blocked. Why?

Phil discussed the problem with Laura as calmly as he could. “Is it happening at the acquirer level? Should we work with dozens of acquirers? Working with one acquirer is enough of a headache. What should we do Laura?”

She asked to clarify some questions and time to get answers. Here were the three questions she left Phil office on a mission to answer:

3 Questions:

  1. How do I get my acceptance ratio higher? What is the upper limit?
  2. How many acquirers should I work with?
  3. How do I evaluate performance of acquirers?

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