Merchant churn is one of the most expensive problems in the payments industry. Every year, on average, 15% of total revenue walks out the door—and once high-value merchants leave, winning them back is an uphill battle.
At Arcum, we’re changing that. Our AI-driven predictive analytics help processors get ahead of churn before it happens. By analyzing transactional data, pricing structures, and merchant behaviors, we provide the insights teams need to retain merchants—before they even consider leaving.
Why Tree-Based AI is the Game-Changer for Churn Prediction
We’ve tested everything—from logistic regression to deep learning. But when it comes to structured payments data, tree-based models (like Random Forest) win every time:
✅ More accurate than traditional regression models
✅ Faster & more scalable than deep learning (no massive training sets needed)
✅ Mirrors real merchant decision-making—pricing, service, competitor offers
Traditional churn models rely on pre-set indicators. But churn isn’t random—it’s a decision. Tree-based AI identifies the patterns behind those decisions, automatically. That’s why Arcum’s AI achieves 90% precision in churn prediction—compared to just 40% for logistic regression.
Predicting Churn is Only Half the Battle—AI Agents Are the Next Step
Data alone doesn’t stop merchants from leaving. Action does. That’s why we’re taking Archimedes AI to the next level with AI-powered outreach automation:
For example, if a merchant is at risk due to pricing, AI automatically crafts a retention offer—factoring in transaction volume, competitor rates, and processing history.
The Future of Merchant Retention: AI-Driven, Automated, and Personalized
Arcum is already helping processors predict churn with cutting-edge AI models. Now, we’re helping them prevent it—with AI-powered retention agents and generative AI outreach.
The end goal? A fully automated retention engine that maximizes revenue—without manual effort.
If you’re ready to take a smarter, AI-driven approach to merchant retention, let’s talk.