What is Transaction Success Rate (TSR)? Why is it important?

It is important to consider the Transaction Success Rate to calculate the number of approved transactions processed through that payment gateway. Transaction failure is one of the obstacles in digital payments for your online business as it results in the loss of sales. And so understanding the whole concept of the Transaction Success Rate and its importance is highly essential.

What is Transaction Success Rate

What is Transaction Success Rate (TSR)?

Here’s the definition of the TSR:-

When for a given time period, the total number of successful transactions are divided by the number of total transactions (processed by the customers with all statuses), then the result is the Transaction Success Rate (TSR)

Example Calculation of Transaction Success Rate:

For instance, 100 transactions were completed by the customers, out of this 95 transactions were successful. Then the Transaction Success Rate (TSR) is 95/100 i.e. 95%.

However, with the ‘Payment Retry’ option, suppose those 5 failed transactions were retried, and out of that the 2 got successful. Now the TSR would be 92% (97/105)

So, initially, the TSR was 95% and then after the retry, it went down to 92%. However, still, the total accepted payment amount went up.

Importance of the Transaction Success Rate

The main reason for the consideration of TSR is the customer experience. The increased transaction failure percentage would result in customer frustration and eventual cart abandonment i.e. incomplete purchase and loss of payment due to loss of sale.

The calculation of the TSR is used to choose the right payment gateway. It enables the comparison between the multiple payment gateways and helps you pick the one with the best Transaction Success Rate. TSR helps to analyze which payment gateway is the better one.

However, it is important to note that the reasons for the transaction failure could be various, such as downtime, technical glitches, etc. But, there might be reasons for which the payment gateway checkout is not responsible.

So low TSR with a particular payment gateway should not be the only reason for its selection. Other factors such as pricing, services, etc, and the reasons for the failed transaction must be considered.

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Read: What are the Reasons for Failed transactions

On the other hand, making the right decision with the payments is highly important to avoid the loss of sales from genuine customers. So, the developers and the businesses consider the factors of the Transaction Success Rate before integrating the particular payment gateway solution to their website or mobile application.

Importance of TSR in Various Business Models

As per the industry, business model, and targeted customers, the importance of calculating the Transaction Success Rate differs.

For example, on an eCommerce platform, if the customer could not complete a payment transaction, it might lead to the abandonment of the purchase. Similarly, there are various platforms when making the travel and the hotel Bookings so the customer might switch to another one.

However, if someone is buying shares or mutual funds, they would go for the retry if they are looking for a good investment. The same is the case with the food ordering platform, the customer would go again to retry the payment for their dish of interest.

Thus, the importance of the success rate would vary depending on the business model. Customer intentions and buying behavior play a huge role.

Read: Choose a Payment Processor Avoiding These Top 6 Mistakes

PayKun features – for increasing the amount of payment acceptance

As mentioned earlier, there are various reasons for the failed payments in which the payment gateway is not responsible. In such a scenario, the below features of the PayKun payment gateway helps with the recovery of the failed payments.

  • Payment Retry Option – When the payment fails, the customer gets the prompt to retry the payment. With this, the customer will attempt the payment again.
  • Multiple payment options – The payment failure might be limited to only a particular payment method. With the 120+ payment options available at the PayKun checkout such as credit cards, debit cards, net banking, UPI, wallets, QR code, etc, the customer can switch to another payment option and can complete the payment.
  • Merchant Dashboard – For failed, canceled, or incomplete payments, the merchant can reach out to the customers with the customer details appearing on the dashboard in real-time. The merchant can try to recover the payment by resolving the reason for which the customer left the checkout without purchasing.
  • Smooth checkout – The PayKun checkout is designed in such a way that smooth payment processing is made possible. It is compatible with any device from laptops, computers, smartphones to tablets. This provides the best transaction experience to the customers.

Thus, these are some of the features that would help with the increase in the transaction revenue. So, even if for uncontrollable reasons the transaction success rate may go down but not the successful payment amount.


It is essential that with the TSR various factors are considered in the selection of the payment gateway. Knowing the reasons for the failed transactions might give you a clear picture of the relation between the TSR and the payment gateway selection. PayKun provides you with the reason for the failed payments which helps you with the recovery from the customers. PayKun delivers a very high transaction success rate due to the integration and the relationship with the best banking partners and reputed financial institutions for payment processing.

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