Accept Recurring Billing Payments

Reducing Failed Payments and Churn

Involuntary churn from failed payments accounts for 20% to 40% of total subscription churn. Credit cards expire, get lost, or hit their limits. Without automated recovery, every failed payment is a lost customer.

The Payment Gods Partner Network includes automatic card updater services that refresh expired card numbers, smart retry logic that attempts failed charges at optimal times, and dunning emails that prompt customers to update their payment method.

ACH vs. Credit Card for Recurring Billing

ACH recurring payments have a 98%+ success rate because bank accounts rarely change. Credit card recurring payments have a 90% to 95% success rate due to card expiration and replacement. For businesses where retention matters most, ACH is the better choice.

The tradeoff is settlement speed. Credit card payments settle in 1 to 2 days. ACH settles in 3 to 5 days (or same-day for an additional fee). Many businesses offer both options and incentivize ACH with a small discount.

Subscription Management Features

Modern recurring billing platforms go beyond simple autopay. Features include prorated upgrades and downgrades, trial period management, usage-based billing, and customer self-service portals for updating payment methods.

Our partners integrate with popular subscription management platforms and provide APIs for custom billing logic. Whether you bill weekly, monthly, annually, or on custom schedules, the system handles it automatically.

Getting Started with Recurring Billing

You need a payment gateway with tokenization (to store card data securely), a recurring billing engine, and customer authorization. Our partner network provides all three components with interchange-plus pricing.

Browse our blog for strategies on reducing payment failures and optimizing subscription revenue.

Frequently Asked Questions

What is the best payment method for recurring billing?

ACH has the highest success rate (98%+) because bank accounts rarely change. Credit cards are more convenient for consumers but have higher failure rates due to card expiration and replacement.

How do I reduce failed recurring payments?

Use automatic card updater services, implement smart retry logic that reattempts charges at optimal times, and send dunning emails to prompt customers to update expired payment methods.

What is dunning management?

Dunning is the process of communicating with customers about failed payments. Automated dunning sends emails, SMS, or in-app notifications when a payment fails, with links to update their payment method.

Can I offer free trials with automatic billing?

Yes. Set up trial periods that automatically convert to paid subscriptions. Collect payment information upfront and charge the customer when the trial expires.

How do I handle subscription cancellations and refunds?

Most platforms support immediate cancellation, end-of-period cancellation, and prorated refunds. Configure your cancellation policy in the billing platform and it handles the logic automatically.