When you build a membership site, you're full of excitement to finally create passive income with an online business. However, there are times when problems may arise, like failed payments, that put a pause on your recurring income.
This can be a stressful situation, but rest assured that there are ways to handle this problem with ease! In this post, we will discuss the reasons why online payments may fail in your membership site and how your online business can handle these failed payments as gracefully as possible!
How Do Failed Payments Happen?
The beauty of having an online business is that payments can be accepted in a number of different ways(credit/debit cards, Stripe, PayPal, etc.); however, when a failed payment occurs, business owners quickly learn that these convenient payment options can be both a blessing and a curse.
Failed payments can occur due to reasons such as:
- An expired or canceled debit/credit card
- A lack of funds on the credit/debit card
- Incorrect bank account or card details
- A bug in your payment gateway
- A hold placed on the customer's account/card due to the bank's fraud prevention
How Do Failed Payments Impact My Business?
Whether or not a failed payment is your fault, it still negatively effects your membership business.
- You lose or delay income
- Members may not come back to make another payment, causing you to lose a customer
- Customers may lose trust in you/your business if a payment fails and may not want to come back
How Do I Handle A Failed Payment?
What happens in the event that a failed payment does occur? We have a few tips.
The first thing you should do when a failed payment arises is NOT TO PANIC!! Failed payments happen to the best of us and you don't want to come out of character with your customers. It's okay to be alarmed, but just relax so you can handle the situation properly.
Make Sure Everyone Is Informed
When a failed payment occurs, you might assume that your customer knows that it failed; however, some systems don't always notify the customer. So make sure that you reach out to your customer to let them know of the problem. This help you to retain a customer and show that you are great at communication with your members.
Offer A Solution
Now that you've alerted your customer of the problem, it is a good idea to offer a solution on how to fix it. Either let the customer know that you have fixed the problem if the issue is on your end, or let them know that the problem could be because of something on their end. Either way, ensure them that the problem can be solved and that everything will be just fine!
A failed payment can be embarrassing on both ends, but it is important that you remain professional no matter what. Never take the failed payment or a lack of a response from your customer to heart. All you can do is communicate the problem, offer a solution, and wait. You cannot force anyone to return to your membership site.
Learn From It
Last but not least, take the opportunity to learn from this mishap. Whether it was an issue on your end or not, you can always use the situation as a learning experience to do better in the future!
No matter what type of membership site or online business you have, failed payments can sneak up on anyone at any time. Just never forget to stay calm and handle the situation calmly and professionally. Hopefully, our tips will help you to handle your failed payment situation like a boss!
Have you ever had to deal with a failed payment? How did you handle it?