Elavon debuts Transaction Risk Analysis to raise transaction approvals

Transaction Risk Analysis comes with a Strong Customer Authentication (SCA) exemption to low-risk transactions up to EUR 500 across Europe, which is double the typical SCA exemption limit according to the company’s press release. 

According to the same source, the typical SCA exemptions across the payments industry range between EUR 100 and EUR 250. Furthermore, the Average Transaction Value in the airline industry is around EUR 170, and between EUR 30 to EUR 50 for large retailers.

SCA was designed to make ecommerce more secure across the European Economic Area. In some cases, this extra protection layer can cause cart abandonment and reduced customer satisfaction. Through Transaction Risk Analysis, Elavon wants to ensure a frictionless payment experience for consumers while preventing fraud by using real-time risk analysis and scoring.

By improving transaction approval rates, TRA aims to reduce cart abandonment and increase revenue for merchants while improving the user experience of customers. The solution has the highest impact on entities that process high volumes of low-value transactions, such as large retailers and airline companies.

Speaking of large retailers, official representatives from Puma have stated in the company press release that Elavon’s solution brings an innovative technical approach to cover the downsides of PSD2 regulations.

According to the same source, TRA helped the German brand keep its authorisation rates at high levels and made sure that transactions are processed in a PSD2-compliant manner while reducing friction for payments which were validated to be secure.

Other developments from Elavon

In December 2021, Elavon partnered with embedded finance solutions company Liberis to offer funding for Small-to-Medium-sized enterprises in the UK. Through the partnership, Elavon’s SME customers were able to apply for Liberis’ business cash advance for personalised financing based on their projected sales.

Funding decisions could be made within 24 hours from GBP 2500 to GBP 300,000. The financing could be paid back at a pre-agreed pace and percentage of their monthly card transactions. According to Elavon and Opayo’s research for July 2021, 72% of UK small businesses have seen a rise in overall revenue compared to just 46% in April 2021. Despite this progress, many SMEs have faced difficulties to secure the financing they needed to grow.