Reason 3 – Incorrect Billing Information
The most likely culprit here is an outdated customer address and zip code. Each year, over 36 million Americans relocate to new homes and neighborhoods – that’s nearly 10% of the total US population! Census Bureau stats indicate that the average American moves at least once every 5 years.
After moving, customers have a long list of entities who must be informed of the change in address – Social Security Administration, IRS, their employers, utilities, loan providers, banks, card companies, etc.
In the midst of all this, they will likely forget to update their billing address for your subscription service. This leads to a mismatch during the next payment – your gateway may not approve the transaction, if you have the wrong zip code in your system.
You can do two things to prevent/fix this. First, ensure that your customer billing portal is user-friendly and intuitive – make it easy for your customer base to update their billing details. This is also essential for improved customer retention. Second, set customized collection emails that remind them to update billing details with transactions that fail in this manner.