By Nicholas Cucci
When it comes to running a business, security and efficiency are two essential factors. In today’s digital age, customers expect merchants to offer secure and convenient payment options that allow them to make their purchases with a few simple clicks.
Many business owners allow customers to store their payment details securely on file. This makes processing future sales and recurring bills easy for both parties, as the credit card details are already saved. In fact, according to a Mastercard report titled Credential on File: The Digital Commerce Growth Engine, 76 percent of consumers agree that using a saved card makes online or in-app payments much more efficient.
While storing account information may seem ideal, it can pose risks. For example, if a customer’s credit card expires or is canceled, the business must manually reach out to them to update their payment information in order to process the transaction. Failure to reach them can result in losing a sale or, worse, the customer’s business entirely.
According to the Mastercard report cited above, 56 percent of consumers have replaced their default card in the last year due to card expirations, loss and fraud. Unfortunately, this creates headaches for business owners who rely on recurring payments to continue providing their products and services.
Risks are associated with manually updating customer account information, as follows:
A card account updater is a service that automatically updates customers' credit card information in the event of a change. This means customers won't have to be asked to update their account information manually, and merchants can be confident their payment details are always up to date.
An automated account updater works by periodically checking the credit card issuer’s database for changes to your customers' account information. If a change is detected, the account information will be updated automatically, preventing interruptions in recurring transactions.
This can prevent chargebacks, failed payments and service disruptions by ensuring customers' account information is always current. Future transactions can be processed without interruptions, saving merchants time and money while providing a more seamless experience for customers.
Customers and merchants enjoy many benefits when using an automated credit card account updater:
Nicholas Cucci is the co-founder and COO of Fluid Pay LLC. Cucci is also a graduate of Benedictine University and a member of the Advisory Board and Anti-Fraud Technology Committee for the Association of Certified Fraud Examiners, as a Certified Fraud Examiner himself.. Fluid Pay is the only 100 percent cloud-based Level 1 PCI Payment Gateway processing transactions anywhere in the world. Contact Nick at Nick@FluidPay.com.
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