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Mobile is the buzzword, but what does it mean?

The answer for most card not present subscription merchants is an overwhelming “not much”. While mobile payments remain a hot topic and are the focus of much media attention, there isn’t necessarily a consensus on what mobile actually means. For some merchants, it refers to payments using near field communications (NFC) while for others it means simply using a mobile device, such as an iPad, to shop online.

The payments revolution is much more meaningful to point of sale retailers. Enabling small businesses to grow by accepting payments through a mobile device via a tool like Square or speeding up transactions in London’s tube by offering NFC payments are shaping up to have a real impact on how merchants conduct business – in the physical world.

In the virtual world of card not present transactions, the impact of the mobile revolution is still unclear. For recurring billing merchants, it’s possibly even murkier. New currencies like BitCoin and other payment methods could have a greater impact on CNP merchants in the near-term. The focus for CNP merchants should remain on decline prevention and recovery strategies, fraud prevention, and improving processes while keeping an eye open on the future while the brick and mortar world helps mobile payments platforms work out their kinks.

By | 2013-05-16T21:02:13+00:00 May 16th, 2013|Categories: Blog Post|0 Comments

How safe is your credit card data?

It seems you can’t turn on the news or open the paper without reading another story about credit card data breaches. As data is being exchanged via more media and with more frequency, these breaches seem an unavoidable risk of being a credit card consumer. The popular crowd discount site, Living Social, fell victim to one of the latest massive exposures of personal data – with 50 million accounts affected. During the investigation it became evident that credit card data was not exposed, but user information including passwords, emails, phone numbers, were.

By | 2013-05-16T21:00:28+00:00 May 16th, 2013|Categories: Blog Post|0 Comments

Extending the Lifetime Value of Your Customers

Engaging in an ongoing relationship with a customer is challenging under the best of circumstances. When you are a merchant in the business of continuity, billing for a good or service with a set frequency – weekly, monthly, quarterly, annually, or anything in between – maintaining this relationship for the duration is the crux of your revenue stream. We will always lose some customers due to the customer’s desire to end the relationship. What’s untenable is losing a valuable customer who wishes to remain a customer, but whose billing fails. Payment declines can cost merchants thousands to millions of dollars in lifetime value of a customer.

The universe of credit and debit cards that churn is about 40% each year. So continuity programs without decline prevention and recovery tactics are losing almost half of their otherwise happy and willing customers. The rate of churn is largely due to data breaches and lack of customer loyalty to a specific issuer. Data breaches have been on the rise in the past decade as an increasing number of transactions and data are being housed online. Cardholders are more likely to switch plastic as they are solicited by other issuers with promises of lower interest rates, more points/rewards, or the ability to consolidate debt with lower payments.

What’s a Merchant to Do?
Implementing best practices around preventing, recycling, and recovering declines is key to extending the lives of those customers that wish to remain customers. Understanding the nuances between decline codes and how to treat each will help close the gap between approvals and declines. Detailed reporting that gets to the heart of your card type mix and enables you to delve deeply into the process flow can give additional insight into […]

By | 2013-05-16T21:03:19+00:00 May 16th, 2013|Categories: Blog Post|0 Comments