Backup payment method
When a recurring payment fails, we’ll jump in with a backup payment method to prevent involuntary churn.
Minimize involuntary churn and maximize subscriber convenience by designating a backup payment method for each account
Add multiple payment methods to an account
Additional billing and payment options unlock new revenue streams and promote frictionless payment experiences.
Uninterrupted services
A backup payment method can prevent subscription interruptions, helping to maintain your strong relationships.
Lower processing costs
With the right payments strategy, you can mitigate payment declines and reduce processing costs.
Recurring transactions have a 6% chance of decline
Recurly has both proactive and reactive strategies to reduce the risk of payment failure—adding a backup payment method is one more strategy to combat involuntary churn.
- Designate one payment method as the backup payment method
- Use it on any invoice that goes into dunning
- Prevent service and subscription interruptions
Recurly subscriber wallet
Honor subscriber preferences by allowing them to choose from over 10 payment methods for different purchase types at the point of purchase.
Setting a backup payment method
Reduce the likelihood of payment failure and subscription interruption by designating a backup payment method.
Failover prevents failures
If a customer’s first payment method fails, the platform will automatically failover to a backup payment method. The end result? Improved acceptance rates.
Create a strategic advantage
A well-developed backup payment method strategy can catalyze growth by driving greater subscriber convenience and reducing your operating costs.
Best-in-class dunning and an effective means to ensure successful payments on every invoice are critical capabilities. Recurly is an invaluable tool for us in these efforts, providing key information and tools to our sales team.
Read case studyFrequently asked questions
What is a backup payment method?
A backup payment method is a designated payment method Recurly will automatically use in the event the primary payment method fails when billing for a subscription or one-time charge.
When is the backup payment method used?
For any invoices that have a decline and a backup payment method can be used, Recurly will automatically attempt to collect with the backup payment method.
Why do we need a backup payment method?
There are over 2,000 reasons a credit card transaction can fail and recurring transaction decline rates have remained steady in 2022, hovering around 6.0% for credit cards, 13.0% for debit cards, and 7.0% for APMs according to our State of Subscription research. Recurly has both proactive and reactive strategies to reduce the risk of payment failure, and adding a backup payment method is one more strategy to combat involuntary churn.
What are some customer advantages of a backup payment method?
Having a backup payment method can prevent any interruption to the subscription and keeps your relationship with your subscribers on good terms.
