Involuntary customer churn caused credit card declines has reached epidemic proportions. A weak economy (insufficient funds and delinquency), prepaid card intrusion and rampant fraud/card re-issuance have conspired to render significant challenges to transactional approval rates. PLC has incisive expertise in overcoming those challenges by optimally deploying the weapons and tools that both pro-actively prevent and re-actively repair the customer relationships under duress from these issues. What we do for merchants in this area is worth its weight in saved customers.
As the industry is plagued with data breaches at major retailers across the U.S., card re-issuance is at an all-time high. The average of 30% card re-issuance is dramatically increasing, leaving recurring billing merchants in the position of losing long-standing, valuable customers. Between the end of 2013-2014, approximately 100 Million credit and debit cards were exposed in data breaches. Some major issuers responded by proactively re-issuing all of the affected cards within their portfolio. This amounts to millions of credit card numbers being changed. And, as chip cards become the new standard in the U.S., 100% of cards will be reissued by the end of 2017 with, at minimum, a new expiration date.
The right strategy and targeted combination of decline prevention and recovery, utilizing the right recycling methods and account updating tools is critical to the lifeblood of your recurring business.