I have two b2c businesses in france, and we sell services with a monthly subscription (around 20€/month) or annual (169€/month). We sell via call centres and our clients are paying via direct debit (SEPA core). We have used traditional systems like high street banks, or big providers like GoCardless or Slimpay. We always end up being kicked out after a year because we have about 30% failed transactions per month (customers with insufficient funds or customers who don’t want the service and simply cancel their mandate instead of phoning us). Is there a processor in Europe who would be more understanding of our business model?︀
SEPA Core processor who is not bothered about rejected transactions
- Thread starter sdfgergertgrtghrfr
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30% is quite high for these kinds of payment methods. I’m not sure if anyone would really be willing to avoid blocking you after a while. If I were you, I would 1. Push the annual subscription more, 2. Follow up before billing with email/SMS, maybe even add a cancel button to prevent unsuccessful billings, 3. Rotate across multiple accounts
Thank you, I agree, it's high. People in France would rather cancel at their bank rather than call you (we don't even make it difficult, an email is enough, no need to speak to us, no need for letter, etc..).
the annual has a higher rate of failure, so usually monthly works better (less "insufficient funds" errors for a start).
All my peers who have similar business that work long term have relationship with banks, who let the high rate slide.
but since I live in the UK, I don't have any relationship with french bank manager, etc... so it's a bit more difficult.
Maybe provider outside of France are more lineant?
the annual has a higher rate of failure, so usually monthly works better (less "insufficient funds" errors for a start).
All my peers who have similar business that work long term have relationship with banks, who let the high rate slide.
but since I live in the UK, I don't have any relationship with french bank manager, etc... so it's a bit more difficult.
Maybe provider outside of France are more lineant?
Maybe try a bank in another EU country. Germany etc.
Also please note that you are required to send a charge prenotification to the customer before you charge them. If you include a cancel link there, I am pretty sure many may use this one instead as well.
Have you tried SlimPay?
But 30%? I mean that is like every 3rd customer does not even pay once and the rest just once. Or every 2nd customer does not even pay once and then rest just twice, which does not make it any better. I am not sure if this is a viable business model. Maybe,︀ your call centre is getting too many misspelled IBANs? And otherwise, your service is that︁ bad, that they regret the purchase that much that they just reverse the charge when︂ it hits. Not sure what is the issue, but if you are not able to︃ charge subscriptions on a continuous base, I wonder what you are doing.
Also please note that you are required to send a charge prenotification to the customer before you charge them. If you include a cancel link there, I am pretty sure many may use this one instead as well.
Have you tried SlimPay?
But 30%? I mean that is like every 3rd customer does not even pay once and the rest just once. Or every 2nd customer does not even pay once and then rest just twice, which does not make it any better. I am not sure if this is a viable business model. Maybe,︀ your call centre is getting too many misspelled IBANs? And otherwise, your service is that︁ bad, that they regret the purchase that much that they just reverse the charge when︂ it hits. Not sure what is the issue, but if you are not able to︃ charge subscriptions on a continuous base, I wonder what you are doing.
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