Credit card payments fail...every day—it’s an inevitable part of any business. Businesses offering subscription services feel the pain through lost monthly recurring revenue and hours of lost time attempting to manually update payment information. For those in the home services industry, it’s no different. Recurring payments are tied to monthly service membership plans, and a failed payment puts a membership at risk for involuntary churn. What often results is a lose-lose situation for both the business and customer. Memberships that aren’t renewed or updated mean lost revenue that would have come from monthly membership fees—and, even more impactful on your bottom line, this means lost opportunities to engage homeowners and identify new jobs during onsite maintenance visits.
80% of the cards in people’s wallets have already been compromised.
It’s not just the lack of funds that cause payments to fail. New credit cards can be issued for a number of reasons, including an upcoming expiration, replacements for lost or stolen cards, issuers adapting to new payment technologies or branding, and, increasingly more common, data breaches that have put consumer accounts at risk. The first six months of 2019 alone saw 3,800 publicly disclosed breaches, so it’s not surprising to hear a recent study by the nonprofit Merchant Risk Council found 80% of the cards in people’s wallets have already been compromised.
In an effort to protect revenue and ensure a smooth payment process for customers, businesses that handle large numbers of recurring payments have partnered with their payment processors to update accounts as card data changes. Now, ServiceTitan is excited to announce we are offering this level of protection for our clients. With Membership Renewal Protection, cards processed through ServiceTitan Payments and saved to recurring memberships will automatically update when card details change.
Avoid involuntary churn of your memberships.
Not only does your team work hard to sell and maintain monthly memberships, but this select group of homeowners have chosen your business as their home services partner–safeguard your memberships and preserve this positive relationship! With ServiceTitan’s Membership Renewal Protection, cards saved to memberships will automatically be updated with your customers’ most current card details, preventing the involuntary cancellation of monthly membership plans.
If you activate ServiceTitan’s Membership Renewal Protection you’ll get to:
- Protect recurring revenue for memberships without any effort
- Preserve opportunities to engage homeowners and identify work during onsite maintenance visits
- Save the hours of lost time spent contacting homeowners to update information
ServiceTitan clients lose an average of 10 memberships per month after a failed recurring payment.
How does Membership Renewal Protection work?
ServiceTitan’s Membership Renewal Protection works automatically and behind the scenes. On the first of each month, our card processor submits the data to the major card brands for verification against their databases. These databases are continuously updated by participating card issuing banks when cardholder information changes, which include account numbers and expiration dates. ServiceTitan will automatically update the information and provide you with a report that details which accounts were updated.
On average, our clients have seen 84 cards updated on their first run.
This means potentially 84 saved memberships and customer relationships and even more opportunities to engage with homeowners and discover new opportunities for jobs onsite.
Don’t let compromised credit cards compromise your membership program! If you’re ready to protect your memberships, contact our Payments Specialists to learn more and activate this feature today!