Why Account Updater Is Critical for Optimizing Revenue
Every year, large businesses lose over $1 million due to payment failures. While it’s inevitable that some credit card payments will fail, they can have a serious, lasting impact on a business if enough occur. Indeed, when payment failures occur, businesses must invest additional time, energy, and money to retry the current credit cards on file for customers or forfeit the charge altogether. Furthermore, if businesses must contact customers regarding declined payments, this can erode the relationship between businesses and customers. To address this common issue, let’s discuss the TokenEx Account Updater. This service is an effective, sustainable solution to optimize your business revenue and recurring payment approval rates.
Why Account Updater Is Valuable
The TokenEx Account Updater refers to software designed to automatically update credit card information on file in your payment vault. Whether a customer’s credit card is lost, stolen, upgraded, or expired, the Account Updater will take care of this tedious task. Additional reasons for a payment decline include account closures, bank mergers, brand migrations (i.e., between Visa or MasterCard), portfolio conversions, or lack of sufficient funds. This type of payment automation will benefit both businesses and customers, as they will no longer need to manually update any card information on file every time a card is declined. In turn, this helps establish a seamless, positive checkout experience for customers who will be more likely to stay loyal to that business.
How Our Account Updater Works
To update customers’ cardholder data, businesses will send TokenEx a batch file containing both the credit card information and associated tokens. Once this information is received, we will work with the relevant credit card companies to automatically update outdated card data in its payment systems and your organization. By automatically refreshing stored cardholder data, businesses can maintain accurate payment information for current customers. As a result, this has a variety of benefits for businesses:
- Better customer satisfaction
- Improved business retention
- Improved checkout processes
- Less payment declines
- Reduced overall costs
Once a company implements the account updater, the software will check the credit cards in the associated payment vault for any changes. Specifically, the account updater will look for specific criteria that require action:
- Cardholder data with failed transactions containing certain declined codes
- Payments due within a specific number of days or weeks before a customer’s account is placed on hold or no longer has access to a product or service
- Credit cards that will expire within a certain amount of time, such as in a month
Keep in mind that credit card updates are not always possible, depending on the credit card company and/or country being contacted. In other cases, customers may choose to opt-out of using an account updater service through their bank. In general, most credit card companies are willing to work with reputable providers using account updater services.
Why Businesses Need Account Updater
Now that you know how this service works, let’s discuss why our Account Updater is a crucial element for optimizing your business revenue and payment approval rates. No matter what type of business you own, if you offer subscriptions or other services that rely on recurring payments, an account updater can provide tremendous value for your overall business success. As payment approval rates increase due to fewer payment declines, this will lead to an increase in revenue. This additional revenue will allow businesses to meet their goals and continue to scale.
For customers, an account updater service ensures that they will not lose access to your products and/or services that they are paying for. Indeed, this is a much better option than placing an unpaid transaction on hold due to a failed payment. Customers with declined transactions may not want to deal with the hassle or embarrassment of contacting your customer support team regarding a payment issue. Unfortunately, this can lead to customers taking their business to a different company that has an easier checkout experience and appears more trustworthy. Remember, your online payment processes affect how current and prospective customers view your business.
TokenEx Account Updater Benefits:
- Easy to adopt without any complex coding or file requirements
- Offer paperless billing, which will save time, money, and energy spent on mailing bills
- Prevent common billing issues that negatively affect your revenue, such as failed or late payments
- Save money spent on transaction fees for failed transactions, which must be paid whether a credit card payment was approved or not
- Secure your customers’ cardholder data for seamless checkout processes
- Zero setup fees
What You Need to Know About Batch Updates
For businesses offering predictable billing cycles, a batch update approach is a great option. This type of account updater will vary regarding how quickly credit card accounts are updated. In general, most providers offer a 2-to-5-day turnaround time. On the other hand, some businesses may benefit from an account updater that updates payment information in real-time. Depending on the business, they may use a combination of batch and real-time processing to update customers’ cardholder data.
Partner with TokenEx to Implement Your Account Updater Service
If your business needs to optimize revenue and payment approval rates, look no further than the TokenEx Account Updater service. Since digital payments are the most common form of payment, businesses can benefit from using this service to maximize credit card approval rates, avoid payment declines, and extend the duration of recurring payment arrangements. This will help boost profits that businesses can maintain over time.
Whenever a credit card needs to be updated, the Account Updater will take care of this automatically for both customers and businesses. Your business will not have to worry about interrupted payments, nor will your customers have to worry about product or service disruptions. Indeed, this allows businesses to focus on scaling, reaching new customers, and achieving goals, while customers can continue to enjoy using the products and/or services. Contact TokenEx today to learn more about how we can help you achieve seamless recurring payments by keeping cardholder data updated via our TokenEx Data Protection platform.