Posted by admin on Jan 07, 2014


Recurring Payment Processing

Recurring Billing for Cloud & SaaS Providers

Cloud and SaaS providers are among the fastest growing ecommerce companies. Special payment processing solutions are required to protect income and stop revenue leakage.

Because the services are acquired on a recurring basis, Cloud and SaaS providers need to have sophisticated subscription billing models in place.  Cards are commonly used for recurring payments.

The ability to automatically update payment card data and protect revenues is vital to protect recurring billing income.  The Account Updater Service is offered only by a select few payment processors.

Stabilizing Cash Flow

The importance of updating payment data automatically cannot be underestimated.  During each recurring billing period, a significant number of cards on file are declined.

Javelin Research reports 28% of consumers got a replacement card in the last year.  The most common reasons for issuing replacement cards are expired dates, security breaches, or card upgrades.

Account updater reduces the expense of dealing with declined card transactions.  And protects expected income revenue streams.

When a decline occurs, updated card information is acquired from the issuing bank and the file is resubmitted.  As many as 75% of the previously declined transactions turn into approved payments.

Revenues are rescued and recurring payment income is protected.  All without the need for manual intervention.

Without account updater, a merchant has to contact the customer by phone or email to request updated card information.  This is inefficient, expensive, and increases the risk of cancellation of the service.

What are Cloud Computing / SaaS?

Cloud computing is a general term used to describe delivering hosted services over the Internet. Services are divided into three categories: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS).

Software as a Service (SaaS) includes applications such as office suites, digital content creation, business intelligence applications, and customer relationship management (CRM). CRM is predicted to be the largest revenue generator world-wide, with a predicted 15.1% CAGR by 2016.

The US represents the largest global market for cloud providers.  Canada, UK and Ireland are good targeted international markets.


Recurring billing models are integral to cloud computing & SasS provider business models.  Customers enjoy the convenience and lower cost of recurring payments.  And businesses can count on predictable income.  

Every year 20% of card are reissued.  Requiring updated card information for approval of recurring payments.  

To save time and money, high volume merchants use automated payment processing technology to update payments without the need for manual intervention.  As a result, recurring payment transactions are approved.  And revenue streams are protected.  

Are you a Cloud Computing or SaaS Provider who wants to protect your recurring billing revenues?