Best Practices to Increase Payment Approval Rates in 2025

Every successful payment is a moment of truth between your business and your customer. A single failed transaction can disrupt user experience, reduce trust, and send loyal customers to competitors, especially in markets where digital adoption is accelerating fast. According to the Merchant Risk Council’s 2024 Global E-commerce Payments & Fraud Report, merchants reject 6% of all e-commerce orders, but between 2% and 10% of those are legitimate orders placed by good customers.

This guide explores proven strategies to maximize approval rates, with a focus on how payment orchestration platforms can transform your payment performance.

What Are Payment Approval Rates?

Payment approval rates represent the percentage of payment transactions that successfully process without being declined. Approval rates above 95% are considered excellent, ensuring smooth checkouts and happier customers. Yet, with the global average at around 85%, up to 15% of valid transactions get declined, leading to lost revenue and lower customer satisfaction.

Why Payment Orchestration Platforms Are Essential for Higher Approval Rates

Payment orchestration platforms act as intelligent intermediaries between your business and multiple payment processors. Rather than relying on a single payment gateway, these platforms route transactions through the most suitable processor based on real-time data and performance metrics.

8 Best Practices to Increase Payment Approval Rates

1. Implement Smart Routing

Smart routing automatically directs transactions via alternative providers upon soft declines, recovering revenue that would otherwise be lost. Studies show such optimizations can yield 4–6% lift in success rates.

Key Benefits:

• Reduces declines by up to 12%.

• Optimizes for specific card types and regions.

• Adapts to changing processor performance automatically.

• Spend less on fees: With routing, you can steer transactions towards the most cost-efficient path without compromising on success rates. 

2. Optimize Transaction Data Quality

Incomplete or inaccurate transaction data is a leading cause of payment declines. Ensure your payment forms capture and transmit complete customer information.

Essential Data Elements:

• CVV verification codes.

• Accurate merchant category codes (MCC).

• Detailed product descriptions.

• Customer purchase history indicators.

3. Leverage Multiple Payment Processors

Payment orchestration platforms enable seamless integration with multiple processors, each with different strengths and approval characteristics.

Strategic Processor Selection:

• Choose processors specialized in your industry.

• Include regional processors for local markets.

• Maintain relationships with both premium and cost-effective options.

• Consider processors with strong performance for specific card types.

4. Tokenize and Update Card Data

Replacing sensitive card data with network tokens and using card updater services to maintain accurate details. Reduces declines from expired cards or changed account numbers, especially for subscriptions. Merchants using Visa network tokens report a 4.6% increase in approval rates compared to traditional PAN usage, demonstrating significantly fewer false declines and greater revenue protection

Implementation Tips:

• Use network tokenization (e.g., from Visa or Mastercard) instead of proprietary tokens.

• Enable automated card updater tools to maintain valid credentials.

• Pair tokenization with vaulting solutions that support multi-PSP use.

• Monitor token success rates and update logic as needed.

5. Utilize Advanced Fraud Detection Tools

Effective fraud prevention is essential to maintaining high approval rates without compromising security. By utilizing flexible rule-based systems and real-time monitoring, merchants can minimize false declines and safeguard their revenue.

Advanced Fraud Features:

• Rule-based risk scoring based on transaction patterns.

• Behavioral analysis and device fingerprinting.

• Real-time transaction monitoring and alerts.

• Customizable risk thresholds by region, transaction type, or customer profile.

6. Optimize for Mobile Payments

Mobile transactions often face higher decline rates due to network issues and security concerns. Payment orchestration platforms can optimize mobile payment flows specifically. According to Baymard Institute’s Checkout Usability research, each extra step in the payment journey can increase cart abandonment by up to 7%, highlighting the importance of a streamlined and efficient checkout experience.

Mobile Optimization Techniques:

• Implement mobile-specific payment methods.

• Optimize for network interruptions.

• Use progressive web app technologies.

• Implement biometric authentication where available.

7. Monitor and Analyze Performance Metrics

Payment orchestration platforms provide comprehensive analytics to identify improvement opportunities.

Key Metrics to Track:

• Approval rates by processor, card type, and region.

• Decline reason analysis.

• Revenue recovery through routing optimization.

• Customer conversion rates by payment method.

8. Implement Regional Payment Preferences

Payment orchestration platforms excel at managing regional payment preferences and local processor relationships.

Regional Optimization:

• Integrate local payment methods (SEPA, UPI, Alipay).

• Partner with regional processors.

• Adapt to local banking regulations.

• Optimize for regional card preferences.

The Future of Payment Orchestration

Payment orchestration platforms continue evolving with emerging technologies like artificial intelligence, blockchain integration, and real-time payment networks. These advances promise even higher approval rates and more sophisticated routing capabilities.

If you want to know more about how a Payment Orchestration Platform like UpGate can help you increase approval rates, book a free demo.