Take Advantage of the Growth in Subscription Commerce and Recurring Billing-PART IV
How To Find The Best Solution
Ready to get on the subscription commerce bandwagon?
Automating a billing process certainly saves a business time and money.
Using pre-set intervals to bill clients increases the flexibility of your collections and gets you paid faster. Automatic debiting of customer accounts means you’ll get paid on time, every time.
Customer payment information only needs to be requested once, and after that every payment is handled automatically, saving hours of administrative time.
Subscription billing also maximizes cash flow. The right program improves authorization rates with card retry logic, and reduces chargebacks by using dynamic descriptors at the transaction level. Your product should also notify customers of failed transactions so that you can remedy any collection issues quickly.
But make sure you take advantage of automatic updaters, which ensure that billing continues uninterrupted, even when changes are made to the payment card or cardholder account.
Automatic updaters look for changes to important account data, such as expiration date changes, account number changes, account closures, and so forth. This new card data is automatically, electronically exchanged among card issuers, acquirers and merchants. Automatic updaters will access the data on a regular basis, and import it into consumer profiles based on pre-configured schedules set by the merchant.
Automatic updating reduces the risk of revenue loss. At the POS, a transaction that is declined because of outdated information will be processed as a chargeback, resulting in increased fees for the merchant, if not a total loss of the sale.
More importantly, automatic updaters can absolutely impact customer satisfaction and retention. Changes to important account information can cause a subscription payment plan to be discontinued, often without the cardholder even knowing. This disruption makes the cardholder painfully aware of a recurring bill that has been previously automatic. And when this happens, many consumers change plans.
Avoid service disruptions, risk of cancellation and the impact to cash flow by ensuring that your cardholder data is always up-do-date and accurate. That’s the beauty of recurring billing automatic updaters.
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Direct Connect is a leading provider of all payments processing functionality. We offer: a proprietary gateway that exceeds industry standards: a simple API integration; a robust line of products and services; and, a complete commitment to flexibility, transparency and outstanding customer service and support.
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