Do You Recycle?
ROI Solutions manages credit card payments for single and recurring sustainers across all of our clients. ROI clients processed over nearly $500 million last year, all managed in a PCI-DSS Level 1 secure environment. We talk a lot about credit card processing here at ROI because our clients rely on the consistent revenue streams of recurring giving to fund their missions.
For non-profit organizations, approximately 8% of sustainer credit card payments are initially declined. There are a number of reasons why payments are rejected including lost, stolen or cancelled cards, changed expiration dates and new card numbers issued. For these declined or rejected credit card payments, most organizations and their CRM’s merely retry each rejected card a few times and then give up. If the payment is not successful during this series of reattempts, sometimes the rejected cardholders are then sent to a calling program to reach out to donors whose payments have been declined.
ROI Solutions’ partnership with leading payment processors such as WorldPay (formerly Vantiv) allows our clients to maximize their credit card revenue by accessing cutting edge account updater and recycling capabilities. The combination of these services allows ROI Solutions to provide a best-in-class credit card management platform to maximize card revenue for its clients.
WorldPay’s automated account updater finds replacement card numbers and modified expiration dates prior to authorization attempts. This helps our clients avoid processing delays and minimize lost revenue due to card changes. Visa reports the average match rate for a Visa cardholder is 4-5% per month and as great as 50-55% per year. Proactively updating cards enables the acceptance of payments from sustainers and single donors that would have otherwise been declined because their credit cards had changed.
WorldPay’s intelligent recycling uses special algorithms, developed through statistical analysis across all of their commercial merchant portfolio, to automatically retry declined credit card payments and optimize that process to maximize revenue recapture while minimizing the costs of reattempts. These algorithms understand – by card type – the exact times, days of the week and dates within a month to retry a rejected payment. By using these sophisticated credit card re-try algorithms, a non-profit organization can recover significantly more of its failed payments in comparison to standard reattempt techniques while controlling costs on multiple reattempts.
By having a more reliable and streamlined credit card approval process, clients can avoid inconveniencing sustaining donors with rejected credit card payments. It also means that there is no longer a need to spend back office time or to incur call center costs chasing down rejected payments. The result is a better experience for this very important sustainer donor group that generates from two to more than six times the median lifetime revenue than single donors.
Another result: a more relaxed atmosphere in the Finance Department!
Did You Know?
Each credit card issuing company regulates the number of retries and the period of those retries. Visa allows a maximum of 4 reattempts within 16 days while MasterCard and Discover allow a maximum of 8 reattempts within 28 days.