Account Updater is a service provided by credit card networks that automatically updates cardholder information in merchant systems. This service comes into play primarily when a cardholder’s information changes due to card expiration, card loss, or when the cardholder decides to switch to a new card.
Account Updater is available through most major credit card companies, including Visa, Mastercard, Discover, and American Express. It allows businesses to retain their recurring customers by minimizing transaction failures and ensuring smooth payment processes. It is a crucial element in managing recurring payments and preventing service interruptions, thereby improving customer retention and revenue continuity for businesses.
The way it works is quite simple: businesses provide a list of customer account numbers to their payment processors, which is then sent to the credit card companies. The credit card companies match these account numbers with their updated records and send back the updated account information, including new card numbers, expiry dates, and more.
This service is beneficial for both customers and businesses. For customers, it eliminates the need to manually update card information with every business they have a recurring payment set up with, providing a more seamless payment experience.
For businesses, it can reduce failed transactions and associated costs, help maintain customer relationships by preventing service interruptions due to payment issues, and even improve compliance with Payment Card Industry Data Security Standards (PCI DSS) by reducing the need to store customer card information.