What is payment information?
Payment information is the data that is required for customers to make a purchase online. This includes entering any payment methods: credit or debit card, a direct debit from a bank account, a digital wallet such as PayPal or Apple Pay, etc. Depending on the 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 subscription companies who rely on recurring purchases, it’s especially 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 (LTV). One powerful strategy for reducing friction for your customers is to allow them to manage their own subscriptions. This way, if they’d like to submit a new payment method or remove an existing payment method, they can easily do so independently without having to engage your support team.
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.