Nick Cucci

Nick Cucci

May 26, 2022

Why do I need an Automatic Account Updater for My Business

When it comes to running a business, security and efficiency are two of the most important factors to consider. In today's digital age, customers expect businesses to offer secure and convenient payment options that allow them to make their purchases with a few simple clicks.

Like most business owners, you probably allow your customers to store their payment details on file. This makes the processing of future sales and recurring bills much easier for both parties as the credit card details are already saved. In fact, 76% of consumers agree that using a saved card makes online or in-app payments much more efficient.

How Expired Customer Payment Information Can Hurt Your Business

While this solution may seem ideal, it can actually pose some risks for your businesses. For example, if a customer's credit card expires or is canceled, you'll need to manually reach out to them to update their stored payment information and process the transaction. Failure to reach them can result in the loss of a sale or the customer's business entirely.

According to a report by Mastercard, 56% of consumers have replaced their default card in the last year due to card expirations, loss, and fraud. Unfortunately, this creates some major headaches for business owners who rely on recurring payments to continue providing their products and services to customers.

The Risks of Manually Updating Account Information

There are a few risks associated with manually updating your customer's account information:

It's time-consuming: Reaching out to each individual customer to update their payment information can take a lot of time, especially for businesses with a large customer base and limited staff.

It's costly: In addition to the time it takes to manually update account information, there are also the high costs of hiring additional staff to help with the process. Should you choose to use your existing staff to handle the updates, you'll be preventing them from working on other essential business tasks they need to complete.

If you're unable to process a customer's payment due to outdated account information, you may lose out on that revenue altogether.

It's inconvenient for your customers: If you reach out to your customers to update their card on file, they'll likely need to take time out of their day to provide you with the updated information. Additionally, failure to promptly update the information can lead to interruptions in the services they expect you to provide. This can be frustrating and inconvenient for them, which may cause them to take their business elsewhere.

It's error-prone: Manually updating customer account information can also lead to errors, such as accidentally inputting the credit card information incorrectly. This mistake can be costly for your business and may lead to chargebacks or declined transactions - further aggravating your customers and hurting your revenue.

The Solution: An Account Updater

A card account updater is a service that automatically updates your customer's credit card information in the event of a change. This means that you won't have to reach out to your customers to update their account information manually, and you can be confident that their payment details are always up-to-date.

How Does a Card Account Updater Work?

An automated account updater works by periodically checking the credit card issuer's database for any changes to your customer's account information. If a change is detected, the account information will be updated automatically, preventing any interruptions in the recurring transactions.

You can avoid chargebacks, failed payments, and service disruptions by ensuring that your customer's account information is always up-to-date. You'll be able to process future transactions without interruptions, saving you time and money while providing a more seamless experience for your customers.

The Top 5 Benefits of a Credit Card Account Updater for Customers and Merchants

There are many benefits for both customers and merchants when using an automated credit card account updater:

It's more convenient for customers: Customers won't have to remember to update their account information with you - everything is taken care of automatically. They likely have several other accounts and subscriptions that they need to keep track of, so this can be a helpful way to simplify their lives. In addition, if their credit card is lost or stolen, they can replace it and have the peace of mind that their account with you will remain active.

It's more efficient for merchants: As a merchant, you'll have more time to focus on other aspects of your business. You won't need to spend time and valuable resources manually updating credit card account information. You'll also reduce the risk of errors and declined transactions, saving you money in the long run.

It's more secure for everyone: Account updaters use the latest encryption technology to keep customer information safe and secure. These solutions are PCI-compliant, which means they meet the highest standards for data security.

It keeps things running smoothly: By using an account updater, you can avoid service disruptions and failed payments due to outdated credit card information. This provides a better customer experience and helps build loyalty and trust.

It can increase sales: Failed payments can cause 20-40% of your churn. Even if a customer loves your product or service, they may not bother trying to update their payment information if it fails. A seamless transaction process and fewer service disruptions can help to reduce involuntary customer churn.

Meet Fluidpay's Account Updater Solution

Fluidpay's Automatic Account Updater is the perfect payment updating solution for businesses of all sizes. We offer a simple, convenient, and affordable way to keep your customer's credit card account information up-to-date without any hassle.

Our Pay-Per-Update model means that you only pay once we've successfully updated a customer's account, so there is no harm in checking for updates or long-term contracts. We know that no two businesses are alike, which is why our flexible account updater solution can be customized to fit your unique needs and scale with you as your business grows.

To learn more about how Fluidpay's Account Updater can benefit your business, contact the Fluidpay team today.