Gateway Quality

Objective

The Gateway Quality dashboard provides the key data elements and metrics for each gateway. Leverage this report to determine if/when specific gateways need to be optimized at a deeper level based on chargebacks and refunds. Compare and determine the quality of the orders being processed through various gateways and if gateway adjustments are necessary. Identify the top 5 gateways with the two most negative billing activities - chargebacks and refunds.

Understand how much revenue has been lost to chargebacks and refunds, the percent of chargebacks and refunds, the order and revenue amounts on each gateway and how much each gateway has in reserves.

Note: It is best practices to run a single Merchant Account ID (MID) through a single Lime Light gateway. Specifically, it is not recommended to add a MID to a gateway and then change the MID within the gateway. If another MID is added, create another gateway and never move a MID from one gateway to another. This will ensure that all of your data in regard to Gateways in Analytics is accurate.

Potential Actions

  1. Adjust load balance to or away from a gateway to prevent losing a merchant account.
  2. See how much revenue has been processed through a particular gateway.

  • Data presented in this dashboard is based on "Transaction Date" unless otherwise noted. Transaction Date is the date that the order was placed without an association between the Re-bill and Recurring transactions (Cycles 1…X) and the Initial transaction (Cycle 0) that initiated the order.

  • All test orders marked within the platform are automatically removed from the Analytics data.
  • Please reference the Lime Light Order Cycle Nomenclature visual below to understand the way that Lime Light references the phases of a each order type. 

Chart / Table

Description

Formula

Top 5 Gateways by Merchant Chargebacks (MCBs)

Analyzes the top 5 gateways by MCB count This bar chart measures against the 100 MCB Visa threshold and helps to identify gateways that are reaching the 100 MCB KPI.

Data Based On: Chargeback Date - The date that the MCB was submitted by the consumer.

Chargeback count by gateway in the current month to date

Top 5 Gateways by Rev Refunded %

After viewing this bar chart, gain an understanding of problematic gateways from a refund rate perspective.

Data Based OnRefund Date - The date that the Refund was submitted by the consumer.

(Refunded amount ÷ Gross Revenue)

Gateway Quality Detail

The Gateway Quality Detail table includes all of the metrics necessary for gaining a deeper understanding of each respective gateway. After looking at this table, decisions regarding load balancing modification or other gateway enhancing changes can be made.

Data Based OnTransaction Date - The date that the order was placed without an association between the Re-bill and Recurring transactions (Cycles 1…X) and the Initial transaction (Cycle 0) that initiated the order.

 

Orders   

The amount of approved transactions run through the respective gateway.

Count(Approved transactions by gateway)

Gross Revenue   

The amount of total revenue processed on the respective gateway.

Sum(Order Total Revenue)

MCB #   

The quantity of merchant chargeback counts on the respective gateway. This metric can be used to analyze and sort gateways by the chargeback count in the selected date range.

Count(Chargebacks by gateway)

MCB %   

The percentage of orders on the respective gateway that have been marked as chargeback.

Chargeback count ÷ Approved Orders

MCB Rev %   

The percentage of revenue lost as a result of chargebacks.

Note: The impact of representment is not reflected in the MCB Rev % figure.

MCB Lost Revenue ÷ Gross Revenue

Reserves   

Gateway estimated reserves based off value set in the Lime Light platform gateway configuration.

Reserves is a set amount of the advertiser’s money that is put aside by the acquiring bank as a security deposit. This safeguards the financial institution from unplanned liability.

(Gross Revenue × Reserve %) 

Refer to Overview of Gateway Providers to determine how you set the Reserve percentage.

 ePR

ePR is and acronym for "Effective Processing Rate." The average cost of processing orders. For example, if the total cost of processing 100 orders is $10, the ePR is $0.10. The ePR is a good metric to compare the cost of one gateway/merchant account to another.

(Processing Expense Total ÷ Orders)

Refunded by Gateway

The Refunded by Gateway table provides the five most critical refund metrics.

Data Based OnTransaction Date - See description above.

 

Refund #   

The refund quantity on the respective gateway. This can be used to analyze and sort gateways by the refund quantity in the selected date range.

Count(Refunds by Gateway)

Refunded   

The amount of refunded revenue.

Sum(Total Revenue of Orders Refunded)

Refunded Rev %   

Percentage of Gross Revenue lost due to refunds.

Amount Refunded ÷ Gross Revenue

Refunded w/o MCB

 

Gross Revenue lost with the refunds from chargebacks not included. Sum(Refunds from sources other than MCBs)
MCB Lost Rev

MCB Lost Revenue is Gross Revenue lost within the designated time period as a result of chargebacks only.

Note: The benefits of representment is not reflected in the MCB Lost Revenue calculation.

Sum(Gross Revenue of Orders Charged back)

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