Posted by admin on Jul 12, 2010


Card Declines Impact Recurring Billing

A new report issued by Javelin Strategy & Research reveals that 28% of all consumers received a replacement debit or credit card in 2009 due to security concerns.  And many of these consumers had more than one card replaced or more than one card reissued.

This data is particularly relevant to merchants with subscription billing, SaaS providers, or merchants with a recurring billing model.  When a card is reissued, the updated information for the new card must be acquired or else the recurring payment transaction will be declined.  Declined transactions mean no revenue is generated.

Automate Updating Card Data

How can you get updated card information? 

Well, the old-fashioned way is to contact customers directly by email, phone or other means and request the updated card information.  This is ineffective and expensive.  And gives customers an unnecessary opportunity to cancel the recurring payments.

A smarter approach is to use a payment processor who has an account updater feature. 

When a card is declined, the processor automatically contacts the issuing bank and gets the updated card information.  There is no need to contact the customer and no manual intervention is needed on the part of the merchant.  The updated cards are resubmitted and approved transactions which generate revenue result.


Account update services automate the process of obtaining current card info for recurring billing. The service is available to merchants who process high volumes of recurring payments monthly.

How are you updating your card data for recurring billing?