Revenue Recovery Tools
Overview
2Checkout provides recurring-revenue-based businesses with a comprehensive suite of revenue recovery tools, as well as the expertise and guidance to tailor and fine-tune your strategy to achieve industry-high revenue loss prevention and revenue recapture rates. Use the Revenue Recovery Tools to fight involuntary churn and increase your long-term revenues by up to 20%.
Revenue Recovery Tools are a unique set of features of the 2Checkout platform that are used for recovering and collecting transactional revenues lost due to poor authorization rates and include, without limiting, the following :
|
|
Basic | 2Recover Add-on |
|---|---|---|
| Account Updater external |
Yes |
Yes |
| Multiple retry logic |
2 |
up to 4 (in addition to the 2 included in Basic) |
| Pre-expiration billing | Yes | Yes |
| 2Checkout Updater |
No |
Yes |
| Dunning management |
No |
Yes |
| Dispute prevention service |
No |
Yes |
| Advanced Authorization Report | Basic | Advanced |
Availability
- Basic revenue recovery tools are available by default for all types of plans (2Sell, 2Subscribe, 2Monetize).
- 2Recover add-on is available on demand for all types of plans (2Sell, 2Subscribe, 2Monetize).
Basic Revenue Recovery Tools
Basic revenue recovery tools are available for all accounts (2Sell, 2Subscribe, 2Monetize).
Account Updater
Account Updater is a key customer retention tool designed to support seamless updates of credit/debit card account information.
What is Account Updater Service
Account Updater is a generic term for programs such as Visa's Account Updater or MasterCard Automatic Billing Updater that are offered by the credit card networks to automatically update subscription customer card data when cardholder information changes or goes out of date.
How Does an Account Updater Service Work
This service records changes to credit card account numbers and expiration dates due to mergers, portfolio flips (e.g., Visa to MasterCard), re-issued cards (from loss or security breach) account closures, and product upgrades.
Companies that participate in updater programs have several ways to check the information in their subscriber database: automated nightly updates that check any card you have processed in the past six months, requests for information on specific cards that have been declined and requests for information on a set of cards due for their next billing installment.
Basic Retry Logic
Basic Retry Logic involves the first two (2) renewal authorizations 2Checkout makes to recover expired subscriptions for which the renewal process failed.
Smart Retry Logic
The post-expiration retry logic uses adaptive algorithms to help companies and merchants implement smart retries and maximize authorization rates, thus increasing their revenues.
Generally, authorization rates show a steep decline after two attempts. Setting up too many authorization attempts can lead to overall poor results as banks and payment processors can flag them as fraudulent. The post-expiration smart retries aim to address about 30% of all declines on the platform.
The post-expiration smart retries logic takes into account factors like country, subscription billing length, best days of the month for automatic billing, the minimum and maximum time to wait between attempts, and the maximum number of retry attempts.
Availability
The smart retry logic is available to all MoR merchants on request. As we are in the early adopter phase, currently building on top of the existing functionality, please contact your account manager or sales representative should you be interested in activating this feature.
Benefits
-
Maximizing authorization rates by adjusting retry logic to local payment behaviors
-
Reduced number of failed payment attempts
Use cases
Adapting the retry scheme to billing length
A company sells both monthly and yearly/bi-yearly subscriptions and has different grace period settings, depending on the billing length. To reduce soft declines due to insufficient funds, the company wants to have different post-expiration retry schemes for monthly and yearly/bi-yearly subscriptions.
Leverage the best days of the month for authorization
A company sells monthly subscriptions in different countries. After an analysis of authorization rates, they realize that for one or more billing countries, the authorization rates are consistently higher in a certain interval of the month. The company wants to leverage that information to drive up its authorization rates.
Mitigate increased fraud score risk
A company has the maximum number of attempts configured and has seen authorization rates dropping lately. They suspect this is due to the high number of attempts per auto-renewal order that is having a side effect because the processors/issuing banks can view this as a possible fraud. The company would like to make fewer retries for monthly subscriptions and space out attempts for yearly subscriptions to mitigate the risk of having their transactions flagged as potentially fraudulent.
2Recover Add-on
The 2Recover add-on is available on-demand as part of the 2Recover add-on. Contact 2Checkout directly for more information. 2Recover add-on includes the basic revenue recovery tools plus:
- 2Checkout Updater
- Advanced Retry Logic
- Hard Declines Notifications
- Advanced Authorization Report (new acquisition, auto-renewal, manual renewal)
2Checkout Updater
2Checkout Updater is a key customer retention tool designed to support seamless updates of credit/debit card account information.
Advanced retry logic
Advanced Retry Logic involves multiple renewal authorizations 2Checkout makes beyond those of Basic Retry Logic.
Hard Declines Notifications
Read more about hard decline notifications here.
Advanced Authorization Report
The advanced authorization report section in your Merchant Control Panel includes dedicated sections for each of the extra features in the 2Recover add-on, as well as the ability to display the report for new acquisitions and manual renewals.
Self-service
Requirements
1. To request the activation of the 2Recover add-on, your account must meet the following criteria:
- Less than 1% chargeback rate over the last 3 months
- Have at least 10 active auto-renewing subscriptions
- Use a 2Sell, 2Subscribe, 2Monetize 2Checkout account
2. If your account meets the requirements above, you can click on Activate Advanced Options in your Merchant Control Panel.
3. Next, you'll be prompted with a message informing you that we will activate the module for your account in 48 hours.
4. As soon as we activate the module, you will receive an email notifying you about the activation.
2Recover Add-on Fees and Revenue
2Recover Add-on Incurred Fees
Commission (net amount, does not include taxes) for the recurring payments 2Checkout recovered when renewing subscriptions using the 2Recover add-on. 2Checkout does not charge fees for basic recovery tools. To calculate the recovered revenue fee, generate the report using the Attempt date selector.
2Checkout keeps the 2Recover add-on fees even in the eventuality of chargebacks or refunds.
Total Earnings from the 2Recover Add-on
Total recurring charges successfully recovered using the 2Recover add-on, reported according to authorization dates, when the 2Checkout system collects funds from your customers.
Invoice for 2recover add-on fees
2Checkout issues an invoice for the advanced recovery fees at the end of each month.
