For SaaS, app, telco and other subscription-based businesses, there is nothing worse than losing a loyal customer to credit card decline.
Fraud prevention is important not only to immediate bottom line, but also to a business’ reputation. Some credit and debit cards are always going to be declined in the name of fraud prevention. What about the erroneous red flags? For online retailers a wrongly rejected card could mean the loss of a loyal customer. For recurring and SaaS merchants card “churn” could mean the loss of years of sales.
Credit card declines cause all merchants problems. One survey showed $40 billion is lost each year to erroneous red flags and blocked transactions. Credit cards decline for a number of reasons: incorrect credit card number or expiration date, insufficient funds, credit card rejecting an international charge, or other technical issues. Once his or her card is declined, a customer is 14% likely to skip the purchase and 8% likely to complete the payment off-line. Instead of losing those customers, learn how to increase billings and prevent false declines.