What is payment information?
Payment information is the data that is required for customers to make a purchase online. Payment methods, including credit or debit card, a direct debit from a bank account, or a digital wallet such as PayPal or Apple Pay, are a key component of payment information.
Depending on the specific payment method, other required information can include the user’s full name, credit card number, security code, and expiration date, as well as billing address, account number, routing number, and other information. Any business that has access to customers’ payment information should ensure PCI compliance so that this sensitive information is securely protected.
Keeping payment method information up-to-date
For all businesses, but especially for subscription companies who rely on recurring purchases, it’s important to ensure your customers’ payment information is up-to-date. Doing so prevents involuntary churn, keeping your customers with you for longer and improving lifetime value.
One powerful strategy for reducing friction for your customers is to allow them to manage their own subscriptions. Often, this can be done via the payments page or section of their customer portal. This way, if they’d like to submit a new payment method, select and remove an existing payment method, or update payment details, they can easily do so independently without having to engage your Support team. It’s crucial that they can do this not just via a desktop computer but also via their mobile browser and any apps you offer so customers can update their information quickly as needed.
You can also offer customers the ability to add multiple payment methods to their account so that if their first payment method becomes out of date, the purchase can still be completed with a backup payment method. Dunning, or sending out communication to remind customers to update their payment details when a credit card or debit card payment fails, is another strategy that can help keep payment information up-to-date and prevent churn.