Managing vaulted payment data can be a hassle and keeping vaulted payment data current can be risky and timely. With the rise of subscription-based services, having a solution to update vaulted payment data automatically is essential to business owners. According to Forbes*, the global subscription e-commerce market size is expected to reach $904.2 billion by 2026. That’s an astounding increase of approximately $784 billion, compared to 2022, expected to increase to $120.4 billion. Existing subscription brands grew their overall customer base by 31% in 2021 alone, showing consumers are purchasing subscription boxes, digital content subscriptions, and service subscriptions as they provide an affordable way for consumers to access what they want when they want it. And according to a report from UBS, subscription business models could grow from a $650 billion market to a $1.5 trillion market between 2020 and 2025. That’s why keeping vaulted payments current with the MX™ Account Updater is so important.
Without a doubt, subscription e-commerce can provide an opportunity to increase sales through recurring transactions, but those numbers mean little if payments are declining. Let’s help merchants realize the benefits of utilizing an account updater to handle vaulted card payment data changes and minimize customer subscription or service interruptions by reviewing why changes occur below.
Why Changes Occur
Life happens, and it can be difficult to remember where to update your payment information should something change. As consumers, we’ve all been there. Thus, it’s easy to see why relying on consumers to provide updated payment information is risky. Many times, consumers aren’t even aware of the change themselves. Below are the most common reasons why a recurring payment declined:
- Expired Cards
- Closed Accounts
- Bank Changes/Upgrades
- Lost/Stolen Cards
There are many reasons why changes occur, but when an automated service like the MX™ Account Updater is implemented, it can help merchants reduce missed payments and increase customer retention.
Why it’s important to use an Account Updater:
- Data entry errors
- Staff time
- Staff risk of handling sensitive information
- No disruption of service or cancelation notice to the consumer
So, how does the MX™ Account Updater work?
Automatically! Once the MX™ Account Updater is installed, all vaulted card payment data changes occur behind the scenes automatically for Visa, Mastercard, and Discover cards. A report is provided showing changes for audit purposes. It’s that simple.
It’s easy to see why the MX™ Account Updater is essential to automatically updating customers’ account information, reducing failed transactions, improving customer satisfaction, and increasing YOUR revenue.
Need a Recurring Payment Solution?
For Merchants in need of a recurring payment service, we have that, too. MX™ Invoice allows for both invoice and recurring payments and works right alongside the MX™ Account Updater. Solving three common payment issues for merchants immediately – invoicing, recurring payments, and handling vaulted card payment data changes! Check out this product overview and the videos below to see the benefits of MX™ Invoice’s recurring payment options: