Posted by admin on Jun 17, 2010


Recurring Billing Models

Recurring billing is a great way to stabilize cash flow while making it easy and affordable for customers to buy from you. 

Recurring payments are an effective way to sell products or services and are particularly valuable for SaaS service providers, subscription billing, or membership sites.

Yet, recurring billing can also lead to revenue leakage which can cause erosion of profits if not properly controlled. 

What Causes Revenue Leakage?

The most common reason of revenue leakage from recurring payments comes from card declines. 

Card declines are caused by a lot of reasons. Common reasons include reissuing of cards due to loss or theft, card upgrades, card expiration dates, or security breaches that require new cards to be issued. 

Regardless of cause, card declines are expensive to merchants.

Account Updater Services for Recurring Billing

Using specialized payment processing technology, you can automatically transform declined cards into authorized transactions. 

When a card is declined, the processor gets the updated card information from the issuing bank.  The file is updated and the card can be resubmitted for approval. 

As a result up to 80% of declined cards turn into authorized transactions.  All without manual intervention of any kind from the merchant or the consumer.


Account updater services decrease revenue leakage by automatically updating card data for recurring payments. Only a few processors offer this innovative service. Those who do, require at least $500K per month in recurring billing to qualify for an account.

How are you handling your recurring billing card declines?

Contact today