Twispay successfully processed over 600,000 transactions in H1 2023

Capital Financial Services S.A., the financial institution operating under the Twispay brand, successfully processed over 600,000 card transactions in the first half of 2023, which is more than a 20% increase compared to the same period in 2022.

The increasing volume of operations is due both to the expansion of the company’s merchant portfolio and the intensification of business activities of existing partners.

“For us, it’s a priority to help online stores increase their sales and, in doing so, to grow alongside them. That’s why we have a close, collaborative relationship with every B2B client we onboard, offering them highly customizable solutions tailored to their needs and audience,” said Augustin Dobre, CEO of Capital Financial Services.

Industries with the highest average transaction values were technology sales (294 Euros, 17% less than in the same period of 2022), insurance (214 Euros, up by 30%), and airline services, which remained relatively stable (179 Euros, compared to 187 Euros in the first half of 2022). Categories with high values also included the digital assets sector, with an average of 154 Euros/transaction, and retail stores offering specialty gastronomic products, with 102 Euros/transaction.

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In contrast, industries with the lowest values were courier services (8 Euros/transaction) and utilities (45 Euros/transaction), both consistent compared to January-June 2022.

Merchants in the Twispay portfolio also faced failed transactions in the first half of the year, which represented less than 6% of the total card payments made.

“In e-commerce, inevitably, there are payments that the consumer does not finalize. To convert them, we first need to know why this is happening. The Twispay analytics module provides online store operators with all the necessary information to address situations. For instance, according to our figures, about 60% of transactions fail due to incorrect card details, insufficient funds, or the use of expired cards. In such cases, merchants can automate emails inviting consumers to retry the transaction using a different card or paying more attention to the information provided,” added Augustin Dobre.

In 2023, Twispay strengthened its chargeback department

The financial institution strengthened its chargeback department to support the 400+ merchants using Twispay’s payment-acquiring services. Chargebacks enable cardholders to request the card-issuing institution to reverse a transaction if the online store did not fulfill its responsibilities or if products and services were not as described.

“Chargebacks are beneficial for the industry because they give consumers confidence in e-commerce and make them more open to exploring and discovering new brands and stores. However, there are cases where some buyers choose to initiate the chargeback procedure in situations that could be resolved directly by communicating with the merchant or by making a standard return. In these instances, chargeback abuse can be dangerous for the online store because it causes financial losses to the merchant and affects their relationship with processors and payment schemes, such as Visa and Mastercard. A high chargeback rate comes with proportionate processing fees. If it exceeds 0.9% for Visa and 1% for Mastercard, the merchant becomes undesirable. Therefore, operators need to respond to customer requests before they escalate into chargebacks,” says Capital Financial Services CEO Augustin Dobre.

For Twispay merchants, most chargeback requests were initiated by consumers who claimed they did not receive the ordered products or services. The institution managed each request with its B2B clients through its dedicated department.

“We have dedicated individuals working with e-commerce operators to help them prepare their files, collect and present evidence required for the delivery and compliance of products and services. Our team handles communication with payment schemes on behalf of the merchant. Moreover, we consistently strive to ensure that the online stores we work with know how to protect themselves from chargebacks. Sometimes, seemingly small things, such as allocating a person to handle customer relations, diversifying contact methods, checking the phone number displayed on the website, or inserting the brand and company name on an invoice, can significantly reduce payment declines,” added Augustin Dobre.