EFT Declines - How do you handle them?

[uts-sj]

We talk a lot about getting clients enrolled on EFT, but what about when you get declines?

I think this is an important topic in light of the Target card hacking. What this did was cause in extra amount of declines in the last 2 months for us. Yes, we get them paid, but some don't.

How does this affect your cash flow? Were you prepared for this contingency?

Maybe you use checking account #'s and this is a non-issue. Let's discuss.

Please note: this topic does not include if you predominantly get clients to pre-pay for EFT drafts. This topic is focused on getting a draft from either a card or checking account.

[peach]

Put a box at the bottom that says "don't take EFT so we don't worry about it."

[uts-sj]

I can appreciate a none of the above, but this thread is for people who have decided to move forward with EFT and how to handle declines once you do.

I encourage discussion, though. So if you want to participate, just start with "I don't do EFTs, but if I did, I would...x,y,z...and for these reasons."

[Beachworld]

Call, email and text, immediately upon decline.

[Tony]

UTS

We treat each type of decline differently.

If the decline is a DEAD card decline then our system sends them a text in real time letting them know their card is no longer valid and to please go into the store to update their cc# info. If they do not respond within 3 days our system sends another text. If they do not respond within 7 days then our system kicks them out for a phone call from a customer service rep.

If the decline is not from a dead card we continue to resubmit the card information based on an algorithm that determines the days that card is most likely to get an approval code. If the system dosent get an approval code by the next draft date our system will initiate the same sequence as our dead card action.

If we fail to collect under each scenario then the customers membership is canceled as well as the EFT account so no further attempts will be made to draft their account. A final Text is then sent by the system to notify the client that there membership and account has been closed!

[House of Tan]

We do pretty much what Tony does, but not automated. Reading his post make me happy that at least someone is coding software that “works” for the owner, rather than just organize data. I love automation

[Steve Underhill]

Originally Posted by Tony

UTS

We treat each type of decline differently.

If the decline is a DEAD card decline then our system sends them a text in real time letting them know their card is no longer valid and to please go into the store to update their cc# info. If they do not respond within 3 days our system sends another text. If they do not respond within 7 days then our system kicks them out for a phone call from a customer service rep.

If the decline is not from a dead card we continue to resubmit the card information based on an algorithm that determines the days that card is most likely to get an approval code. If the system dosent get an approval code by the next draft date our system will initiate the same sequence as our dead card action.

If we fail to collect under each scenario then the customers membership is canceled as well as the EFT account so no further attempts will be made to draft their account. A final Text is then sent by the system to notify the client that there membership and account has been closed!

This is a perfect procedure.

[uts-sj]

A lot more calling and texting than I would have figured. Email and letters seem to work for me.

I'm curious if you guys noticed any affect with the Target hack. Most of our declines paid up, but I can imagine in some salons that clients might have taken the opportunity to say to themselves they were intending to cancel anyway so the new card replacement expedited that for them.

[Tony]

Originally Posted by uts-sj

A lot more calling and texting than I would have figured. Email and letters seem to work for me.

I'm curious if you guys noticed any affect with the Target hack. Most of our declines paid up, but I can imagine in some salons that clients might have taken the opportunity to say to themselves they were intending to cancel anyway so the new card replacement expedited that for them.

They only get 1 phone call. And its more effective then texting but
texting is completely automated so it brings back lots of people making
for less people to call. Automated texting is burdenless to why not send out
3 or 4 before you ice them? We are obsessed with efficiency!

B to C email is dead plus a text goes right to them instantly!

[Tan Idaho]

I DO take EFTs.
I email the client first, usually it's an expired card that we just need to update.
Next, its a text message to get them caught up.
If no response, I email and text that I'm trying to help avoid late charges and/or sending the client to collections. To contact me within 24 hrs to get caught up.