How card account updater (CAU) technology benefits subscription businesses

Reducing payment failures

By automatically updating expired or replaced card details, CAU dramatically reduces payment failures by up to 25%. Businesses no longer need to rely on customers to manually update their card information, which leads to a smoother, uninterrupted billing process. As a result, businesses can ensure that recurring payments are successful even when customers have new cards.

Increased revenue retention

When payments go through without issues, businesses avoid the revenue loss associated with payment failures. By ensuring that transactions aren’t declined due to outdated card information, CAU helps companies maintain consistent revenue streams, improving financial predictability – The cost of resolving a failed subscription varies by industry but can be up to €100 per instance depending on regulatory requirements, product, and customer engagement.

Lower customer churn

One of the primary causes of involuntary churn (where a customer stops using a service due to payment issues, not because of dissatisfaction) is failed transactions. By keeping card details up-to-date, CAU helps reduce involuntary churn, increasing the lifetime value of a customer.

Improved customer experience

Customers expect a seamless experience from the businesses they subscribe to. They may not always remember to update their card information, especially if it’s a service they use regularly. CAU removes the hassle for customers, ensuring their service isn’t interrupted due to missed payments. This helps build stronger, long-term relationships with customers, fostering loyalty.

Reduced operational costs

Handling failed transactions often requires dedicated time and resources to chase customers for updated payment details. Subscription companies typically send multiple reminder emails or employ customer service teams to manage these updates manually. CAU technology reduces this burden, freeing up resources for more critical tasks and cutting down on operational costs associated with managing payment failures.

Enhanced security and compliance

Card Account Updater technology is managed by the card networks and integrated securely with payment processors. This means businesses do not have to handle sensitive card information, reducing the risk of data breaches and ensuring compliance with PCI-DSS (Payment Card Industry Data Security Standards). Automated updates reduce the need for businesses to store new card details manually, providing an extra layer of security and privacy.

Implementing Card Account Updater Technology: What You Need to Know

Most businesses can utilise CAU technology by working with the right payment provider, Celeris a leading global payment orchestration platform provides this service to their customers. This includes the technology to enable customers to attain the latest card information to prevent failures, lost revenue, and increased costs but also a proactive service to inform customers of the upcoming expiring cards or those cards likely to result in a failed collection, aiming to prevent these business impacting failures before they occur. Celeris helps businesses take a proactive approach to managing recurring payments and protecting their revenue from preventable disruptions.

As the subscription economy continues to expand, businesses must ensure their payment processes are as frictionless and customer-friendly as possible. Card Account Updater technology plays a critical role in this, reducing payment failures, improving customer retention, and increasing revenue predictability. For any business relying on recurring payments, CAU is not just a nice-to-have—it’s a vital tool for growth and sustainability.

By embracing this technology, companies can provide a seamless experience for their customers, all while safeguarding their bottom line from the hidden costs of outdated payment information.

If you would like to know more reach out for a Demo here.