Payments on Fire™ Episode 271 - Sufficiently Solving the Non-Sufficient Funds Puzzle with Chanan Lavi, Kipp
Aug 13, 2025
Chanan Lavi, CEO and Co-founder of Kipp, dives into the pressing issue of non-sufficient funds (NSF) declines affecting transactions. He discusses innovative strategies that allow merchants to influence authorization decisions, enhancing approval rates. The conversation also covers the evolving landscape of overdraft experiences, with banks moving toward fee elimination. Lavi emphasizes collaboration between merchants and issuers to improve payment solutions and shares insights on customer behavior shifts with debit cards, driven by apps like Venmo and Cash App.
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NSF Is A Distinct Funds-Availability Problem
- Non-sufficient funds (NSF) is a top issuer decline causing bad UX for customers and lost sales for merchants.
- Typical payment optimization (tokens, routing) can't fix NSF because it is a funds-availability problem.
Merchant-Issuer Collaboration Via A Mediator
- Kipp builds a platform to let merchants compensate issuers so issuers will authorize borderline transactions.
- The platform mediates pricing and issuer rules without touching settlement or changing interchange.
Set Willingness-To-Pay, Watch BIN Uplift
- Merchants can join Kipp with zero integration and simply set willingness-to-pay rules in a portal.
- Do monitor BIN-level uplift and adjust willingness-to-pay to maximize approval without overspending.