The Secret Advantage of Having a Subscription-Specialized Payment Processor
December 21, 2018
It’s hard to deny that subscription services are in vogue. The shift toward collecting regular payments from clients, rather than engaging in one-time transactions has gained considerable steam in recent years. While large service providers have relied on subscription models for some time now, the value of microtransactions is now evident in many other industries from software development to novel concepts such as subscription boxes for items such as shaving kits, easy to make meals, makeup or clothes picked out for you, and so much more! While the ability to market ease of receiving your products (they arrive at your door!) gives subscription-based companies and advantage to selling their product, successfully managing a large volume of recurring payments brings along its own unique set of challenges.
Streamlining revenue generation and improving customer retention is important for any subscription-based business as your ability to make a profit relies on customers’ continual use of your services. Achieving those goals is easier when you partner with a microtransactions payment processor. At JetPay, we combine the stability of a major processor with our highly developed knowledge of the microtransactional ecosystem.
What advantages can a business gain from partnering with a specialized service provider?
Streamlined Integration into Your Existing Platform
Any addition to a business’s system that integrates accepting subscription payments should be lightweight and easy to integrate into an existing platform. This adaptability allows for direct management of the process, yielding greater accountability and transparency while also conferring other benefits. It should also lead to lower processing latency, something that can be achieved through enhanced batch processing capabilities, which can rapidly validate even large volumes of recurring payments. By integrating these features directly, you’ll also improve security, by reducing the number of outside partners handling the data.
Automated Housekeeping of Payment Details for Up-to-Date Records
The “set it and forget it” nature of subscription services is a large part of their appeal, but it can also create headaches for businesses. Credit cards expire, and customers may not update their information in time to make an upcoming payment. The resulting lost revenue can become a persistent problem. However, when you work with an independent software vendor specializing in subscription payments, automating the process of keeping card data up to date is a built-in feature. JetPay’s system stays on top of expiring information to drive down the service’s decline rate.
Reduce Revenue Lost to Declines with Transaction Recycling
Transaction recycling is an important — perhaps even vital — component of payment processing for microtransactions. Though you may bill clients at a set time in each service period, there will be times when the transaction receives a “soft decline” from the client’s bank, most often due to insufficient funds. Allowing the transaction to wither on the vine after a single soft decline equals lost revenue. By using a specialized provider, businesses gain the ability to re-run the transaction attempt automatically. JetPay recycles for up to 12 days after a soft decline, boosting the likelihood that the client will continue the subscription.
Stability for Services Based on Recurrent Microtransactions
Based on these facts, it’s easy to see how subscription services must rely on dependable payment processing to succeed. As your subscription payments ISV, JetPay can deliver all these services while ensuring that your new payments model has everything it needs to succeed. By effortlessly handling high transaction volumes and offering engaged support, we keep costs down for subscription-style services and help businesses pave the way to long-term stability. Discover more about JetPay’s microtransaction support services today.
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