32.4% of Department Store E-Commerce Faces Payment Errors, Customers Shift to Competitors

Understanding Payment Approval Rates in Department Store E-Commerce

A new report titled "Department Store E-Commerce Payment Report 2025" was released by YTGATE, a Tokyo-based company that specializes in payment-related consulting. This report, based on a combination of payment approval rate diagnostics and consumer surveys, shines a light on challenges faced by e-commerce businesses, particularly in the department store sector. The findings reveal that the payment error experience rate for department store e-commerce is an alarming 32.4%, which is 2.9% higher than the general average across all industries, which stands at 29.5%.

What Does Payment Approval Rate Mean?

The payment approval rate refers to the percentage of successful transactions after a user adds items to their cart and presses the purchase button. For instance, if 100 payment attempts are made and 90 are approved while 10 are rejected, the approval rate is calculated at 90%. This metric is critical as it helps businesses understand how effectively transactions are being processed.

In recent years, card companies have become increasingly risk-averse, often strengthening authentication processes and chargeback management. As a result, many legitimate transactions are being unjustly denied. The disparity in approval rates can also be attributed to differences in industry practices, product pricing, and the risk assessment logic employed by various card companies, making it pivotal for businesses to delve deeper than mere average calculations for substantial improvements.

Key Findings from the Report

- The payment error experience rate of 32.4% for department store e-commerce highlights a significant area of concern for online retailers.
- Despite this, consumer purchasing intent remains robust. Remarkably, 80% of customers continue to show a willingness to shop elsewhere after experiencing payment errors, indicating that errors are likely leaking customers to competitors rather than simply causing them to abandon their carts.
- The report includes a detailed analysis of consumer surveys and highlights specific areas for improvement, emphasizing the need for businesses to fine-tune their transaction processes.

The findings underscore the importance of continuously optimizing payment systems to retain customers and reduce the risk of lost sales. YTGATE also mentioned plans to release subsequent reports focusing on specific sectors such as local tax donation programs and food-related e-commerce to further aid businesses in navigating their unique challenges.

For anyone interested in a deeper understanding of the payment landscape or looking for actionable insights, YTGATE’s "Department Store E-Commerce Payment Report 2025" is available for download, providing valuable data and recommendations for enhancing approval rates and overall transaction success.

About YTGATE

Founded on October 2, 2023, YTGATE focuses on optimizing payment solutions to create seamless connections around the globe. The company’s mission is to improve payment approval rates, assisting domestic and international credit card merchants by providing comprehensive services for payment efficiency, safety measures, and data visualization. Specialized in the payments sector, YTGATE aims to establish an optimized payment infrastructure that facilitates smoother business operations and enhances the overall consumer experience.

For more insights, visit YTGATE's official website or follow them on social media platforms.