Many studies show that 50% of recurring payments can be lost due to accidental withdrawals or customer retention. In practice, companies will see lost revenue, lost staff time, and reduced customer retention.
With the advancements in technology, businesses can recover 70-80% of failed payments. One can choose the best recurring billing software with Cashi to recover the failed payments. With this business owners build trust with their customers and increase their average life expectancy.
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Various reasons are responsible for failed payments including insufficient funds or limit exceeded, expired cards, lost and stolen cards. Knowing the reasons for failed payments will help your business deal with outages.
Account Update is a service you can apply to avoid failed payments before they occur. It also offers proactive card updates in case of lost, stolen, expired, or invalid cards. It ensures that every customer's card information is kept up to date.
The most common reason for the rejection of recurring payments is overdraft. This means that funds are not available when the customer is billed. Of course, you can keep using email
and a phone call trying to get back the customer's payment.
The presence of experts for payment defaults ensures that you don't lose customers, your employees can concentrate on the business, and the best part about being an expert is that they know the best way to deal with failed payments.
Partnering with a company that can demonstrate years of data and algorithms guarantees maximum relaxation. Recovering failed payments can happen behind the scenes without the member knowing that there is a possible problem.
Members and staff should not feel uncomfortable. Instead, their payments pass and the company retains its members. Customer retention is something that every business should focus on.