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Customer banks declining payments, is this normal?

by DamTheMan
4 replies
Greetings,

I run a membership site with recurring billing using PayPal Web Payments Pro. Many recurring payments are failing, PayPal have confirmed the problem lies with the customers bank because the customers banks reject the charges, there is are no problems with my payments setup with PayPal.

This only happens to a small percentage of customers but I am still loosing out on quite a lot of business.

Is this behaviour normal for a membership site? I.e. are there so many people that run out of cash and therefore payments are declined? Would the percentage of successful payments increase if I moved to a different payments processor? I.e., if PayPal are lying to me and they are just terrible at charging my customers?

Thanks in advance.
#banks #customer #declining #normal #payments
  • Profile picture of the author Steve B
    Since PayPal derives profits from payment transactions, it would seem to me that they have a keen interest in charging whenever they can. I don't think the problem would be with PayPal "forgetting" or overlooking recurring billing of your clients.

    Having said that, I think that most successful membership sites move to a full-fledged payment processor once their site takes off even though they may have started out with PayPal.

    PayPal is quick to set up and doesn't require so many preliminary steps and the monthly account charges that you'll face with other payment processors so it's a good way to start out. But I think once the site takes off and brings in consistent revenue, a full service payment processor is what will keep you happy.

    Good luck to you,

    Steve
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  • Profile picture of the author talfighel
    You don't know this but most of the time, the customer will cancel the membership with the bank and not through PayPal itself.

    There are other times where the person has insufficient funds in their account and the payments are not going through.
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    • Profile picture of the author Steve Daley
      I had issues recently with PP continually failing a recurring payment of mine.

      After many emails back & forth, the issue most definitely lay on PP's end, by their own admission.

      Prior to that they tried to tell me that the bank declined it, then it was a lack of back-up source on my account, then it was lack of funds, & the excuses went on & on.

      Each time I refuted their reasoning, they'd try a new one on.

      In the end, they admitted the error was at their end, something in the way they'd set something up....details were light on, though.
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  • Profile picture of the author Duvallmarketers
    Try offering a yearly membership option and offer a slight savings advantage for paying the full year up front. This will reduce your monthly processing fees and drop out.
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