The Real Cost of Failed Payments

Today, payment failure is the leading cause of involuntary churn upon businesses. In most cases, or 53% of the time, consumers face card rejection due to insufficient funds. Second most, with a 42% commonality, consumers run into card declines when trying to make a purchase larger than their limit allows for.

Third most commonly, yet still frequent enough to be accounted for, consumers can experience payment failure as a result of any credit card changes. For example, an outdated CVV number, zip code, or numerical card number.

Resulting from this, businesses begin to lose out. In America, customer churn leaves a $136 billion bill across all businesses. Of all these instances, 34% are due to involuntary churn and failed payments. On the other hand, businesses that rely on auto-renewal subscriptions for revenue lie in a more vulnerable position.

What can businesses do to reduce failed payment expenses? Find out in the infographic below.

Infographic Source: https://www.gravysolutions.io/how-legendary-companies-make-money