SAAS ACH Payment Processing : 2 Massive Reasons ACH is an absolute must have for recurring billing
SaaS ACH Payment Processing : 2 Massive Reasons ACH is an absolute must have for recurring billing
SaaS platforms that provide a recurring billing solution know that payment collection is at the top of the list of most important business activities and at the bottom for dreaded tasks.
The big problem today for businesses is the massive increase in credit card decline rates:
- On average 15% of recurring credit card payments decline with some industries exceeding 30%
- 30% of all credit cards are reissued each year
- 1.5 billion EMV chip cards issues in 2015–6
- 5% success rates in obtaining new info from customer on 1st attempt after decline
Offering an ACH processing option is becoming mandatory for recurring payments.
There are 2 BIG reasons you must take a closer look at the ACH Payment option:
Reason #1 — Decline rates are significantly less. Depending on the industry, the SAAS ACH Processing decline rates are usually 1–2%, compared to 15%+ (a HUGE difference).
Reason #2 — Reduced payment fees. On a $100 average sale with credit cards you would expect $2.50+ in processing fees. Compare that to a flat 30 cents on an ACH.
An ACH Payment Processing option means more revenue collected for your users.
Always be on the lookout for an edge your competition does not offer, and leverage that in your client acquisition strategy.
Discuss how your SaaS may be able to leverage ACH processing.