Boston, Oct. 15, 2015 (GLOBE NEWSWIRE) -- This week, Netflix’s CEO said he believed that the company’s below-target subscriber growth in the U.S. “was driven in part by the ongoing transition to chip-based credit and debit cards.” Such hits on revenues can be mitigated, according to payment card experts.
“Fortunately for businesses that rely on periodically charging customers’ cards automatically, it’s possible to reduce temporary or permanent customer loss due to changes in credit card information,” said Kathy Greenler Sexton, CEO and publisher of Subscription Insider, an online publication that delivers intelligence on how to build, market and sell subscription-based products and services.
Starting in May of 2015, declined charges started increasing, due to the early impact of reissued cards that comply with chip card standards, according to a report Subscription Insider published. As of June 2015, stale account updates were 45 percent higher and stale expiry date updates were 25 percent higher than in April 2015. Subscription Insider expects these trends to continue to rise through 2016 and into 2017. The report is available for download at http://www.subscriptioninsider.com/products/Account-Updater-Trend-Report.cfm.
Subscription Insider will host several national experts on that topic for a one-day payment processing workshop in Boston Oct. 22. It will cover many strategies to prevent failed automatic service renewals – known in the industry as “involuntary churn” – including the use of a service called “Account Updater,” which advises businesses when customer credit card numbers or expiration dates change.
Editors: Kathy Greenler Sexton is available for interviews regarding the effects of the new chip cards on online subscription businesses and steps those businesses can take to avoid revenue loss. In addition, press credentials are available for Subscription Insider’s Oct. 22 workshop (see www.subscriptioninsider.com/public/Subscription-Accelerator-Mastering-Payment-Processing-for-Recurring-Revenue.cfm).
To arrange an interview, get a press copy of the report or obtain workshop press credentials, contact Jani Spede (information below).
About Subscription Insider
Subscription Insider, an online media business owned and operated by Authority Media Network, LLC, delivers intelligence on how to build, market and sell subscription-based products and services. Through exclusive news, research and tools (including case studies, trend reports, buyer guides, tutorials and best-practice information), Subscription Insider provides the industry's most authoritative how-to guidance on running subscription businesses more profitably. For more information, please visit www.subscriptioninsider.com or call 800-764-9133.