The Green Sheet Online Edition
October 13, 2014 • Issue 14:10:01
Power boost for recurring payments
Meritus Payment Solutions recently expanded its Payment Card Industry Data Security Standard-compliant global payment platform with the addition of Update XP, an account updater service for recurring payments. For businesses that rely on recurring billing, installment or subscription payments, having outdated account information on file is a leading cause for nonpayment. In the past, updating accounts involved contacting customers and manually inputting the data, but not any more, Meritus said.
"For businesses that process recurring-based transactions, keeping up-to-date card information can be especially challenging," said Alan Kleinman, Principal of Meritus, noting that MasterCard Worldwide reported approximately 30 percent of all recurring transactions are declined due to expired card information or account changes.
In developing this new service, Meritus collaborated with the major card companies to electronically exchange up-to-date customer card account information daily. By automating this process, Update XP helps clients reduce business costs associated with manually collecting and entering updated account information.
With Update XP, merchants receive continual updates on customer account changes. "When a consumer receives a new credit card number or their card expires, Update XP will send this data to the merchant upon request," Meritus said.
Because the update process functions transparently and merchants no longer contact customers to update information, Update XP facilitates a more cohesive purchasing experience. In the end, higher customer retention could translate into more revenue for merchants. "Update XP allows merchants to access and recover revenue that would typically decline, empowering them to maximize their sales," Kleinman added.
Additional benefits of Update XP include:
- Checks for card account changes and updates daily
- Provides seamless payment experience for both merchant and customer
- Minimizes operational costs associated with manual data entry
- Integrates with a secure payment platform that integrates with other services
Update XP works in conjunction with Meritus Payment's tokenized XP platform. The platform provides an encrypted and secure payment processing environment and eliminates data vulnerability concerns in card-not-present environments where recurring payments are likely to occur.
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