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Patrick McKenzie on Navigating Complex Systems

Conversations with Tyler

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Addressing False Declines in the Credit Card Ecosystem

The credit card ecosystem is a complex patchwork of systems, resulting in a high rate of spurious declines and limited visibility into the causes. While the industry has historically dismissed issues as 'gremlins', it is possible to reduce false decline rates with the right focus and effort. Solving long-standing problems often requires minimal effort from a dedicated executive, and this has been demonstrated in other industries like rocket technology.

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