Here's a question that'll make your CFO nervous: Do you know your credit card approval rate?
If you're like most MVNO executives, you just paused. Your approval rate is the percentage of legitimate customers who can actually complete their transactions. It’s ok if you don’t know this off the top of your head—but you can find it on your latest statement.
Here’s why it matters.
The math that changes everything
Let's say you're running a mid-sized MVNO with 100,000 customers paying $25 per month. Your processor is approving 85% of transactions. Sounds pretty good, right? Most transactions go through, and you have minimal complaints.
But here's what's actually happening: Your processor is declining 15%, some of which are legitimate customers—real people trying to pay for their phone service who get turned away.
That 15% represents 15,000 customers per month. At $25 each, you're losing $375,000 in monthly revenue. That's $4.5 million annually.
Now imagine your approval rate improved by 7 percentage points—from 85% to 92%. Suddenly you're capturing an additional $2.1 million per year. If you're a larger MVNO with a million customers, that same improvement nets you $21 million annually.
The hidden multiplier effect
Here’s another thing to think about: not every declined customer disappears quietly. Remember, you spent $200-400 in marketing to get each of them to your checkout page. When they get declined, you've lost:
- The customer acquisition cost (already spent)
- The monthly recurring revenue (immediate loss)
- The customer lifetime value (ongoing loss)
- The word-of-mouth damage (incalculable but real loss)
Meanwhile, your processor considers this a success story. They prevented "risk." But you're the one paying for their overcautious fraud models.
Why this happens
Most MVNOs choose processors the same way they'd choose insurance: brand recognition, reasonable rates. Some then give their tech team license and choose whatever IT says is "easy to integrate." Nobody asks about approval rates because processors don't advertise them.
Your processor isn't trying to hurt your business. They're just optimizing for their metrics, not yours. They'd rather decline ten good customers than approve one fraudulent transaction. It's not their money on the table.
But it's your customers walking away. Your revenue declining. Your acquisition costs wasted.
The real cost of cheap processing
That 2.9% rate might actually be costing you 8%, 10%, even 11% once you factor in chargebacks, declined legitimate customers, and the cascade of costs that follow.
We've seen MVNOs paying effective rates of 11% because they chose a processor based on sticker price instead of total cost of ownership.
What changes when you know better
When you work with a processor who understands telecom—who knows the difference between a fraudster and a prepaid customer trying to top up their account—everything changes. Your approval rates go up. Your customer experience improves. Your actual costs go down. You stop leaving millions on the table.
The question isn't whether you can afford to switch processors. The question is whether you can afford not to know how much money you're losing right now.
So here's that question again: What's your approval rate?
If you don't know, it might be time to check. Get in touch to learn more.
About Vesta:
Vesta helps wireless providers make more money by fixing a part of their business most don’t think about — payments. Vesta works with major names like AT&T, Rogers, Telcel, and Vodafone, helping them stop fraud, reduce failed transactions, and make sure more payments actually go through. For MVNOs and prepaid carriers, this can mean fewer lost customers and more revenue — all without adding friction to the checkout experience. With over 100 million transactions processed every year in 40+ countries, Vesta is helping wireless providers turn their payment systems into a competitive advantage. Learn more at vesta.io.