Orum Debuts ‘No Code Verify’ to Combat Failed Payments
Payments firm Orum has debuted a tool to help clients prevent failed payments.
No Code Verify, announced Thursday (May 2), lets businesses and institutions determine if a bank account is open and valid before initiating payments, Orum said in a news release.
It’s an extension of the company’s Verify solution, launched last year to help businesses and banks verify the status of any type of bank account. No Code Verify expands on this by letting financial institutions use the technology without integrating an API (application programming interface).
“Failed payments have plagued the industry for too long, and I’m excited to scale our impact with No Code Verify, which will help drive transformation in businesses and institutions not ready to connect to APIs,” said Stephany Kirkpatrick, Orum’s founder and CEO.
“We’ve heard from so many that a button-click approach for account verification would enable in-house development teams to access the technology faster, and we’re thrilled to deliver on that promise. Verify gives businesses an edge, with instant verification that enables faster, more accurate transfers and guarantees payments arrive at the intended account, safely.”
As PYMNTS wrote earlier this year, research shows that 11% of transactions processed by the average eCommerce firm failed in the past year, although few merchants have a clear understanding of the underlying causes.
According to “Fraud Management, False Declines and Improved Profitability,” a collaboration between PYMNTS Intelligence and Nuvei, more than 80% of companies ranked difficulty in pinpointing the causes of failed payments as a major challenge, with nearly 64% saying this was their top challenge.
“Other challenges include difficulty in recovering customers affected by failed payments and concerns about compromised reputation, noted by 67% and 63% of firms, respectively,” PYMNTS wrote. “Furthermore, nearly 60% report an increased staff workload due to failed payments, while 56% find them expensive to track and resolve.”
In all, more than 10% of online transactions processed by the average eCommerce firm failed in the last 12 months, according to the survey.
PYMNTS and Nuvei also collaborated on the report “The Role of Fraud Screening in Minimizing Failed Payments.”
As noted here in March, that report found that — in spite of a prevalence of fraud in the payments ecosystem — “only about one-third of eCommerce merchants connect the dots between failed payments and potential fraud.”
To make matters worse, more than 40% of merchants said they simply ask customers to “try again” in the event of a failed payment rather than question if the unsuccessful transaction could actually be a sign of attempted fraud.
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