How Many Times Do You Try to rebill a Customer Card After It Declines?
 

How Many Times Do You Try to rebill a Customer Card After It Declines?
The problem that I see is... that for every time you attempt to rebill a customer and it declines it costs them an overdraft fee of approx $35.00 depending on the bank. This causes
an increase in charge backs because the customer is trying to avoid the overdraft fees
from the bank. However, to not attempt the card at least twice is hurting profit too right?
What is your policy? :)

Why try to bill a broke fuck...? If he is broke the first time chances are he is tapped out the second round..

Zero .

Do declines really cause people fee's?
I know I have had my card declined in past and never saw a fee on it for trying to use the card. Only time I have seen a fee is when they authorized it as an overlimit fee and paid the bill (thus it was not a decline) or if I was using a debit card and it went into my overdraft and thus again it was paid and approved, meaning not a decline either.

In my experience at least with (Bank Of America) if you have a recurring fee that normally debits your account and then fails...they charge you a $35.00 decline fee. Now...if you try and do that several times it can cost them over $100 bucks. You can only try to debit their account 3-4 times after removing them from your list.

*bump for answers*

:1orglaugh:1orglaugh:1orglaugh

We used to try 4 times:

1 - The actual rebill date (Day 0)
2 - One day after rebill date (Day 1)
3 - Four days after rebill date (Day 4)
4 - One week after rebill date (Day 7)

While a small %, some people would renew successfully up to a week later. If your processor charges you decline fees though (some do, some don't) you have to measure those against your % success to see if it's worth doing.

I have never heard though in all my years involved with processors and IwantU of any decline fee passed on to a customer for credit cards...maybe you mean with recurring ACH (like a bounced check fee) ?

Various I think they may be talking about debit cards instead of credit cards. Though most debit cards just reject without a fee if funds are not available.

I get complaints sometimes from customers that they have been charged for overdraft fees, but I think this is actually when you rebill a customer sucsesfully but he doesn't have enough money on his card (for example he has a 1000 limit, and already spend 980, but the 30$ still gets aproved and so he spend $10 too much and gets the overdraft fee)
So they have like a negative balance, and for that they get a fee.

So in the case of overdraft the customer actually does get rebilled.

If the customer gets declined, I don't think there area any fees for him. It only costs you money (the per transaction free from your gateway).

So it's worth it to try rebill the customer at least a couple of times after a decline.

http://en.wikipedia.org/wiki/Overdraft

So overdraft fees are not given for declined rebills. If they get charged an overdraft fee it just means the customers balance is in minus after you rebilled them (sucesfully). It probably happens with people that have a creditcard linked directly to their bank account. So they can have a 1000 limit in their card, but if they only have 800 in the bank account and spent the whole 1000, they are 200 in minus, and get charged the overdraft fee.

By default, we retry a declined rebill 1x after about a week. Some of our merchants have it set to a more aggressive schedule however.

a decline does NOT cost a customer a fee, if there using a debit card and it over drafts then they get a fee, but DECLINES do not cost anything thats why it got declined

ive never heard of a credit card decline costing fees to the consumer, but to answer your question, you can set up to fatally decline certain responses, for instance "card reported stolen", "call bank", "no account located", etc responses, those that would never get processed no matter how many times you retry them

then for responses such "insufficient funds" or others that may be a temporary issue, you can retry after a certain amount of time like a week or so. I know on the mainstream side, they know days that are better at retrying those transactions, like fridays or around the 1st or 15th of the month.

on the adult side for instance, i think epoch has their system set up to retry on fridays

there is no decline fee afaik

ok..thanks..that's the info I was looking for : )

thanks for the Q's

If you use a BAD DEBIT CARD yes you pay fees. But at the end of the story, the customer did not cancel his membership, So who is reponsibile for that? I think the customer and not the company.