Managing credit card declines

Avoid Customer Frustration and Cancellations due to credit card declines Credit cards decline for a variety of reasons including insufficient funds, expired cards, fraud verification, invalid card numbers, and address verification miss-fires. A subscription business could experience upwards of 10 to 20% decline rate on an initial attempt. If you're experiencing a large number of credit card declines, you may consider automating the collection process. You may also consider suspending service to resolve the unpaid balance. How do you manage the process? We suggest: 1. Send an email to the customer after each failed attempt 2. Encourage them to update their payment method in the portal 3. Retry the card multiple times to see if the decline resolves itself 4. After a 7 day grace period suspend connectivity (this will get their attention) 5. Lift the suspension upon payment, so subscriber can restore service 6. Evaluate remaining subscriber balances for goodwill or charge-off By automating the collection process, you'll provide a scalable, predictable, and "pleasant" customer experience. You'll immediately improve cashflow and avoid service cancellations.