The Benefits of Using an Automatic Credit Card Account Updater

If you are running any kind of subscription service, the words “involuntary churn” will, no doubt, be familiar. This is when a paying subscriber stops being a customer because his or her credit card expires. Transactions are also declined. The word “involuntary” is most relevant here. This is because the person in question did not choose to bring his or her subscription to an end. Instead, the subscriber’s own inaction ended it. There is a way to fix this, however. A credit card account updater service can resolve this problem.

Subscription businesses are very familiar with involuntary churn. Subscribers register for their ongoing subscriptions using their favorite payment cards. With time, however, the card expires. Alternatively, if a subscriber finds something has compromised his or her card, he or she will replace it. When this happens, the subscriber often forgets to update his or her information with the subscription provider. Therefore, when the subscriber makes his or her next payment, the provider declines the transaction. It doesn’t mean the subscriber was unhappy with the service. It also doesn’t mean he or she wanted to bring it to an end. It just means the subscriber forgot to update his or her information. Unfortunately, the subscriber may never take the time to subscribe again. Thus, the business loses a satisfied customer.

How Can You Prevent Expired Credit Card Declines?

It may seem impossible to prevent expired credit card declines. However, the first course of action should always be to seek to prevent errors because of expired cards. Obtaining the information for the new card before the old one expires will reduce the chance of churn. It also keeps revenue streams predictable. There are several strategies you can put in place to do this.

Asking Customers to Supply Their New Card Numbers

It may be old-fashioned, but it still works! Talking to customers before their old cards expire and asking for their new numbers is an effective strategy. Reaching out to customers around 30 to 60 days before their existing cards expire will usually prompt a response. Most customers will update the information there and then. Of course, it could be risky. Some customers may think again about whether they really want to continue with your service. However, if a customer has been loyal for a while, this approach may be worth trying.

Using A Credit Card Account Updater Service

Perhaps the easiest and most convenient way to prevent churn is to use a credit card account updater service. This ensures the data for the customer’s card kept in your files remain current. If a customer’s card expires, or it is lost or stolen, the service will automatically update his or her records. While not every issuer participates in this facility, it usually covers the most popular cards.

Credit card account updater services offer a completely seamless experience that benefits both subscribers and businesses. Records remain current so companies can avoid involuntary churn. Customers, on the other hand, do not need to put in any effort to keep their information up to date.

What Are the Advantages for Customers?

When it comes to using a card updater service, customers reap the benefits. They can save a lot of time. All they need to do is activate their preferred card once. After that, their details can be securely updated as they replace their cards. There’s no need to enter their details every time a bank reissues or replaces a card. Customers will also experience no interruption to the service or product to which they have subscribed.

What Are the Advantages for Businesses?

A business can also benefit from a card updater service. It’ll be able to continue taking payments seamlessly. There will be no concerns about card details becoming obsolete. Also, there’ll be no need to waste time chasing after customers to get their new card details. Even better, there’ll be no worries about sending services or products to a customer who won’t pay for them. Businesses can recapture or increase their revenue, regardless of how often a bank reissues or updates a customer’s card.

How Can BillingTree Help?

BillingTree has leading solutions designed to make payments easier for customers and businesses alike. Our Payrazr Account Updater service eliminates the problem of nonpayment on installment plans. Customers appreciate the ability to make payments using the credit card of their choice. They also like the convenience of an installment plan. However, they don’t like having to put in the effort to keep those card details up to date. BillingTree eliminates that effort entirely. With BillingTree’s credit card account updater service, the process is entirely automated. Scheduled payments are simply submitted to the validation engine. It, then, identifies any canceled, reissued or changed card. It will supply the new card information and update the customer’s account records. Payments continue seamlessly, and the company receives its money while the customer receives the company’s service.