Glossary

Approval rate

Percentage of charge attempts approved by the issuing bank, relative to the total number of attempts processed.

Approval rate is the percentage of charge attempts that are actually approved by the card's issuing bank, relative to the total number of attempts processed in a period. An approval rate of 70%, for example, means 3 out of every 10 charge attempts are declined.

In international sales, the approval rate tends to be more sensitive than in the domestic market, because the issuing bank is evaluating a transaction in a foreign currency, often without recognizing the cardholder's purchase pattern in that context.

Approval rate is the number that decides the month. A ten point difference in that rate is ten percent of revenue you already paid traffic for and never collected.
Wellington CostaGlobal Payments Specialist

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Written by Wellington Costa Global Payments Specialist

Writes about payment infrastructure, checkout conversion and chargeback reduction. Works directly with digital product sellers, affiliates and creators selling to more than 40 countries through Mundpay.