Authorization/Sale Recycling

Authorization recycling is the process of retrying declined authorization attempts. Every merchant, especially those with a business model that uses recurring or installment payments, should devise a strategy for dealing with declined authorizations. As part of optimizing their operations, merchants must devise plans for both the timing and number of recycling attempts before contacting the cardholder or risking interruption of service. If a merchant does not recycle enough, they risk losing customers and revenue; whereas, if the merchant recycles too often, they risk increasing their total cost of payments. Implementing an optimal recycling strategy aids customer retention and therefore yields higher revenues, while lowering the costs of payment acceptance and improving cash flow.