How an account updater works
Banks that take part report card changes to the card networks: a card reissued with a new expiry date, a card replaced after it was lost, an account that closed. A merchant, usually through its gateway, asks the network about the saved cards it holds, and the network answers with any new details it has.
The gateway then updates the saved card in its vault, so the next renewal is charged to the new details without the customer doing anything. Some gateways run this automatically for every stored card; others offer it as an option or not at all.
It cannot catch everything. Not every bank takes part, and a closed account comes back as closed, not as a new card. The customer still has to be asked in those cases, which is why an expiry reminder is the natural partner to an updater.
Worked example
A made-up business holds 1,200 saved cards, and 90 of them expire before their next renewal. The numbers below are illustrative; how many an updater catches varies by bank and network.
- Saved cards expiring before renewal
- 90
- New details returned by the gateway's updater
- −60
- Customers who still need to act
- 30
- Customers who update their card after a reminder
- −20
- Renewals still at risk
- 10
Without the updater or the reminder, all 90 renewals would have failed on the first attempt.
Why an account updater matters
Expired and replaced cards are one of the most common reasons a renewal fails, and the customer did nothing wrong. An updater fixes many of them before the charge is ever attempted, so the customer never sees a failed payment email.
It also helps annual plans most. A card saved a year ago has had a whole year to expire or be replaced, and a failed annual renewal puts a year of revenue at risk.
Common mistakes
- Assuming it catches every card Coverage depends on the banks. Keep an expiry reminder and an easy card update page for the rest.
- Assuming your gateway runs it Not every gateway offers an updater, and some charge for it or need it switched on. Check yours.
- Updating a card the customer closed on purpose A customer who closed their card to stop a payment has not asked to keep paying. Honor cancellations before worrying about card details.