Whether your company has an autoship program in place, or you’re considering implementing one, picking the right payment gateway can make a big difference in how well the program performs.
It Takes More Than “15 Minutes”
Choosing a payment gateway is a lot like choosing an insurance company. We all know that trusting Geico, and making the decision about car insurance in less than 15 minutes, has the potential to come back and bite us in the rear when it comes time to make a claim.
Most Payment Gateways are Designed for One-Time Transactions
If you’re looking for a payment gateway that understands the unique nature of managing recurring transactions, and the customers who pay them, it’s good to know who the experts are.
It’s also good to learn which ones claim to be but aren’t. Companies like Paypal and other major gateways use their huge advertising budgets to convince you that you’re safe in their camp. What they don’t tell you is that these gateways have only a fraction of their transactions coming from recurring payment arrangements.
Why Does This Matter? Two Words …
Dunning Management
Dunning, as you might know, is the system in place for addressing the issue of failed or declined transactions. There are a million reasons why a credit card can be declined. Cards expire, get lost and more.
The key to success in this environment is a well-thought-out plan that involves a keen understanding of each different type of decline and the best way to get a successful payment, and avoid the high probability of losing the client altogether after a series of declines. There are over 100 unique decline codes, and addressing the unique nature of certain codes can speed up recovery of payments, and reduce customer churn.
If you’d like to learn more about choosing a payment gateway or how our company can help you effectively maximize recurring revenue, give me a call at 267.287.1035 or send me an email at rellis@membersolutions.com.
Rick Ellis is a Business Development Executive with over 20 years of experience operating a membership-based company. Rick has experienced firsthand the types of unique challenges present when using a recurring billing business model. Rick enjoys working through complex business models to find and leverage every opportunity to optimize profit and reduce risk.
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