Recurring revenue mechanics.
WHAT MUST BE RELIABLE
Charging on time Handling failures Communicating clearly Allowing easy change and cancellation
WHAT CAUSES INVOLUNTARY CHURN
Expired and reissued cards Insufficient funds Issuer declines Mandates cancelled
WHAT REDUCES IT
Card updater or network tokens Reminders before renewal Retry at sensible intervals Alternative payment method on file Grace periods before suspension
WHY GRACE PERIODS
Immediate suspension for a transient failure loses customers unnecessarily.
WHAT TO COMMUNICATE
Before renewal, with the amount and date On failure, with what happens next On suspension, with how to restore
WHAT PRORATION REQUIRES
A defined rule for mid-period changes.
WHAT TO DOCUMENT
That rule, since disputes arise from it.
WHAT TO MAKE SIMPLE
Cancellation.
WHY
Difficult cancellation generates disputes, complaints and regulatory attention.
WHAT TO MEASURE
Involuntary churn separately from voluntary Recovery rate from failed payments Time from failure to resolution
WHY SEPARATELY
They have entirely different causes and remedies.
