Every billing period, merchants with automatic payment arrangements brace for the same news: how many card payments will bounce back. Bounce-backs not only frustrate and inconvenience cardholders, they also jeopardize revenue flows. What’s more, they increase customer service demand by forcing merchants to contact customers for updated information or alternate payment arrangements.
Transaction denial and exception item processing come with significant management and operating costs. Moreover, recurring payment decline rates can average 25% to 30% - much higher than the 5% average for face-to-face transactions. Cardholder account information changes occur for a variety of reasons, including upgrades, portfolio conversions, card expirations, lost or stolen cards and account closures.
The IP Pay Account Updater ensures uninterrupted service for cardholders and uninterrupted payment for merchants. It seamlessly updates “card on file” account information without impacting cardholders. Perhaps most important, it can maintain and build customer satisfaction, making them more loyal and less likely to switch to another merchant.
By automatically maintaining the accuracy of customer data, Account Updater prevents recurring billing disruptions due to account changes. Account Updater extends the life of automatic payment arrangements by helping secure these ongoing, revenue-generating relationships, all while locking in revenue, reducing processing costs, maintaining service continuity and strengthening cardholder satisfaction.
How the Account Updater Works
Account Updater Benefits
How Merchants Benefit
How Cardholders Benefit