SasS and Cloud Computing Payment Processing

Cloud computing will increase approximately $41 billion this year to more than $240 billion by 2020. Nearly all parts of the cloud are projected to grow during the next nine years, but none will see the same levels of rapid expansion as the SaaS market. The SaaS market will reach $21.2 billion in 2011, but will then surge to $132.5 billion by 2020.

Recurring Billing

Cloud computing and SaaS service providers use a recurring payment or subscription billing model. Consumers pay for services used on a recurring basis.  Most payment plans are monthly, although, billing can be provided for any time interval.

One of the greatest challenges for cloud computing companies is maintaining updated billing information without the need to contact customers.  Manual intervention to obtain updated payment information is expensive.  And every contact with the customer to update billing information is a risk because customers may opt to cancel the service rather than to provide updated information.

Account Updater Vital to SaaS and Cloud Computing Cash Flow

 Account updater transforms up to 75% of declined card transactions into authorized payments, all without manual intervention.  Account updater significantly increases revenues, stabilizes cash flow and reduces expenses for SaaS billing, recurring payments, and subscription billing.

During every recurring billing cycle, a significant percentage of transactions are declined.  The most common reasons for card declines are:

• Cards reissued due to security breaches.  Javelin Research reports 28% of all consumers received a replacement debit or credit card last year.
• Cards being upgraded.
• Expired expiration dates

Account updater eliminates the time and expense of dealing with declined card transactions.  When a card is declined, the processor automatically retrieves the updated card information from the issuing bank.  The previously declined cards are re-submitted with the updated information.

Merchants report that up to 75% of the declined transactions are transformed to approved payments through the use of account updater.  Revenues are rescued and recurring payment income is protected, all without the need for manual intervention.

Account updater eliminates the need to contact the customer by phone or email to request updated card information.  It is an important part of extending the long-term value of your customers.

Conclusion

Account updater services protect your recurring billing revenues. Cash flow from recurring payments continues without interruption.  Convenient for your customers.  And profitable for you.  

Do you want to increase your revenues from recurring billing transactions?  

For more information on account updater services, contact info@paynetsecure.net