What if we told you that you’re likely losing money and don’t even know it? Unfortunately, you’re not alone. With credit card approval ratings lower than the global average, US Merchants are losing billions of dollars through hidden revenue leakage. And as you expand your business worldwide, it’s increasingly important to strengthen your billing and payments systems to support the multiple acceptance processes that cross regional and national borders.
Today, many businesses are turning away from one-time sales transactions and toward recurring payments or subscriptions charged on credit cards left on file (ex: Netflix, Adobe CreativeCloud, etc). And it’s no wonder, considering the number of benefits associated with these types of flexible payments, including:
But the switch to flexible payments doesn’t come without a hitch – the added increased complexity can make acceptance management a daunting task, even for the most experienced finance teams. Because flexible payments rely on having a credit card on file, any credit card issues (breaches, EMV chip reissuance, etc.) can delay or deny payment processing.
So how do you optimize the acceptance rates of recurring payments? Here are three best practices a company should follow in order to curtail common revenue leakage in recurring payment environments.
Flexible and recurring payments are increasingly popular today as more businesses embrace the recurring revenue business model. It’s important that your billing system and payment processor work with each other, not against each other, to ensure higher acceptance rates.
To learn more about this subject, check out the replay of Aria’s joint webinar with Chase on “Optimizing the Acceptance Rates of Recurring Payments.”