What is the difference between authorization and conversion rates?
Although quite similar, authorization and conversion rates measure different steps on the payment flow.
- Conversion rates allude to the completion, by a customer, of a payment from its offer state until it is a finalized transaction. Conversion rates can be improved by offering less friction on the payment journey to the shopper.
- The authorization rate measures the amount of completed transactions that have been properly processed by the acquirers. Once the shopper has acted upon the payment flow, it is up to the connection with the acquirer to receive and process a payment resolution in a timely manner.