Card payments for subscription businesses
25 May 2021
Updated: 24 May 2021
The payment industry is very dynamic and subject to constant change. From virtual cards, widely adopted by companies for employee use, to the use of artificial intelligence and machine learning, technology is advancing by leaps and bounds. Digital natives have come of age and demand high-speed, always-on technology that is also socially responsible.
For merchants, adapting to the shopping behavior of their customers and improving the speed and convenience of shopping for their products is extremely important. To do so, they have to work with an innovative payment gateway that can adapt to the real needs of the end customer, without overlooking fraud prevention and high payment security.
Despite the many technological advances in this sector, card payments continue to increase, especially for subscription businesses.
What are the new card trends for subscription businesses?
Automatic card updater
One of the biggest frustrations for recurring businesses, such as gyms, energy companies or online software, is updating customer card data.
Credit card expiration is one of the main challenges, but there are other reasons why credit card data changes, such as identity theft, losing the card or switching to a more prestigious one (gold, black, titanium…).
Each year, approximately 50-70% of Visa cardholders change their account details. This places a heavy burden on merchants to contact customers and capture updated information. Keeping customer credit card details up to date can be time-consuming, but it is important to maintain a stable customer base, keep cash flowing and avoid service interruptions.
The automatic card updater feature ensures that you always have up-to-date credit and debit card data by combining real-time and periodic updates with card networks. It is carried out securely, works for any card/processor combination and also provides a detailed report of each update.
MOTO: Mail Order Telephone Order
Merchants who want to accept payments without the customer, i.e. the cardholder, being physically present, can do so by telephone or mail, as long as they follow certain rules..
In the case of MOTO transactions, merchants must maintain detailed records containing specific information and process cards using a secure connection (SSL). Maintaining security standards is vital, especially when credit card information is stored in company databases.
This method provides a financial incentive, as purchases are settled more quickly remotely than if each customer has to show up at a brand’s store or kiosk to finalize payment. In today’s landscape, it is almost a requirement that companies offer as many payment options as possible to customers.
They can partner with a company specialized in secure payment processing if they want to avoid the risk and hassle. For some industries, such as media or energy, this method is very popular. SlimPay has several clients who rely on our expertise for their MOTO transactions.
These are just a few examples of innovative card initiatives. SlimPay aims to offer the best solution adapted to each merchant’s needs, facilitating subscription collection and helping improve payment collection.
SlimPay offers a payment mix, which combines card and SEPA direct debit. This ensures that the first order is completed by card, and subsequent subscription charges use direct debit. This helps avoid fraud, and suits merchants who send a product before starting the subscription, such as home insurers.
To find out which method best suits your business, please contact our team.