Backup Payment Methods Backup Payment Methods

Backup Payment Methods

Harris Carney Harris Carney

Introduction

Introducing our new backup payment method feature! This guide will walk you through setting up a backup payment method to ensure uninterrupted service for your customers, even if their primary payment method fails. This feature is particularly useful to enhance the reliability of your subscription services and reduce churn due to payment failures.

Prerequisites

Before you can enable the backup payment method feature, ensure that you have the Storefront Credit Card feature activated in Skio. You can find out more about Storefront Credit Card and how to enable it here.

Enabling Backup Payment Methods

Backup payment methods are enabled by default when using the Storefront Credit Card feature mentioned above. Customers can only use backup payment methods through the customer portal if enabled (see below) or through quick action (see below).

Configuring the Customer Portal

  1. Under Customer Portal in the sidebar, navigate to Portal Settings
  2. Enable the “Allow in-portal backup payment method management” toggle (this is off by default)
  3. Click save in the top right hand corner of the page.

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Creating Quick Action Links

The most effective way to utilize backup payment methods is through Quick Action links! Using the platform of your choice you can send quick action links to customers asking them to add a backup payment method. You can also increase engagement and encourage them to complete this action by adding a discount code to their subscription.

  1. Navigate to the Quick Actions page located under Features in the sidebar
  2. Select your link type! You can choose between Universal, Klaviyo, Sendlane, and Skio
  3. Select the action “Set backup payment method”
  4. If you wish to offer a discount, attach a discount code to the link but ensure to set the discount to be used once per customer.

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Best Practices and Tips

  • Regularly remind customers to update their payment methods through email updates (you can even filter customers that already have a backup payment method using customers properties in Klaviyo for example).
  • Offer a small discount for customers who add a backup payment method to incentivize setup.
  • Monitor and adjust the communication based on customer feedback and usage patterns.
  • Utilize both the customer portal callout and quick actions both to give your customers the best experience adding, updating, and managing their backup payment methods

FAQ

Q: What happens if both the primary and backup payment methods fail?

A: The subscription will enter a dunning process, during which further attempts will be made to collect payment utilizing both the primary and backup payment method.

Q: Can customers remove their backup payment method at any time?

A: Yes, customers can manage their payment methods through their customer portal and can add or remove payment methods as needed.

Q: How many backup payment methods can a customer have?

A: Customers can add one backup payment method to their account. This card will be used across all their subscriptions when the primary payment fails.

Conclusion

By setting up a backup payment method, you're ensuring that your subscription service remains active and reliable, decreasing the likelihood of involuntary churn due to payment issues. For further assistance, please contact our support team.

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