ist magazine July 2021

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Reduce Credit Card Declines & Easily Recoup EFT Revenue By John R. Toston, III Director of Sales, Tan-Link

If you own or operate a tan ning salon, you understand that most of your revenue comes from 50-65% of recurring members. However, what happens when payments fail when your draft runs, and how do you reduce declines and collect more EFTs? For example, imagine you are a salon owner with 100 customers who you bill $75 per month. Your business runs and plans based on $7,500 of regular monthly deposits into your account. It took a long time and a lot of work to get to the point where your business generates that amount of reliable, predictable income. You pay salaries, rent, handle customer

up on failed payments and manually tracking which customers’ drafts are overdue. If a payment fails, this can ulti mately give customers a reason to cancel or have an unexpected interruption in service. Here are the statistics: t On average, 13-15% of recurring credit card payments are declined (with some industries exceeding 30% decline rates). t 30% of all credit cards are reissued each year.

payment was declined and will enable them to pay and update billing infor mation directly on their phones. t Strategically rerun drafts with cards declined due to soft decline codes such as insufficient funds. t Store primary and secondary billing information on customers’ profiles. t Consider adding ACH payment pro cessing which can significantly reduce decline rates. So, if your decline rate is 20%, the combination of card updater, backup billing and automated collection can drop your effective decline rate to about 6-8%. That means you could be collect ing up to 14% more money on each draft that probably remains uncollected, not to mention the poor experience of manual collection for the customer and staff alike. Want to collect more revenue at your tanning salon by quickly recovering failed payments and reducing payment declines? Try the strategies listed above to automate and streamline your salon and start growing your business. Q

Start reducing payment declines and recoup failed EFT payments with Tan-Link!

If you are a salon owner who wants to collect more EFTs, increase customer

Data shows that through Tan-Link, a staggering 40-60% of declined payments on average are automatically collected and billing updated with no interaction required on your part at all. That can amount to 14% more revenue from your existing drafts alone.

retention, improve efficiency and increase cash flow, then look no further! Tan-Link is built for tanning salons to automate and streamline operations, but most importantly, the ability to efficiently run automatic recurring payments with automated collection processes in place. Here are a few strategies your tanning salon can quickly implement with Tan-Link to recover failed payments automatically: t Use Credit Card Updater programs from MasterCard and Visa, which allow for the automated updating of expired and reissued cards. t Automated “failed payment” text reaches out to customers whose

service and manage marketing campaigns ALL around that recurring revenue. Now imagine that 15% of that rev enue, or $1,125 per month, goes uncol lected – and not because your customers don’t want to pay you. What’s the problem? Credit card decline rates are increas ingly becoming a massive challenge for subscription/recurring tanning salons due to fraud, reissued cards, EMV (chipped) cards, and lost or stolen cards all contrib uting to declines in regular payments. Most tanning salons will spend hours running charges manually or following

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July 2021

istmagazine.com