Yes, certain payment methods show significantly higher failure rates than others based on industry data:
- Digital wallets have an average failure rate of 11.5%, making them one of the most prone to failures.
- Credit cards are better but still see 7.9% average failure rates.
- ACH debit (used by GoCardless) demonstrates markedly lower failure rates at 2.9% globally, rising slightly to 4.1% in North America.
Recurring payments via cards or digital wallets face additional challenges, with failure rates reaching 14.6% for subscriptions compared to 11.35% for one-time transactions. These differences highlight how payment infrastructure (e.g., network stability, bank authorization rules) and customer-specific factors (e.g., expired cards, insufficient funds) disproportionately affect certain methods.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-specific-payment-methods-that-are-more-prone-to-failure-than-others/
