Compare your transaction success rates to recent industry research

Card usage tends to be weighted more heavily toward credit cards

Average Card Distribution, All Recurly Sites

All Sites

Credit

61%

Debit

39%

What did we analyze?

  • Examined a sample set of 836 subscription businesses
  • Transactions generated May 2014 through May 2016
  • Transactions were aggregated and anonymized
  • Recurring transactions only; initial transactions excluded

Of the thousands of transactions Recurly processes, the average subscription business will see the majority of payments from credit cards.

But credit card usage varies based on audience

Average Card Distribution, All Recurly Sites

Business to Business (B2B)

Credit

65%

Debit

35%

Business to Consumer (B2C)

Credit

53%

Debit

47%

Subscription businesses in the B2B space see more purchases via credit cards. But for B2C businesses, the split is much more even, with only a slight skew towards credit cards.

There is no seasonality to card usage trends

Card Type as a Percentage of Total Transactions

Credit

Debit

All Sites B2B B2C

Consumers and businesses tend to choose one payment type and stick to it. There’s no evidence that buyers are moving from one payment method to another.

The majority of transactions are successful—but debit cards decline at a higher rate

Decline Rates for Credit vs. Debit Cards

Credit

Debit

All Sites B2B B2C

Decline rates over time tend to be fairly stable, hovering within a 3% window for both credit and debit cards.

Debit and credit cards decline for different reasons

Reasons for Debit and Credit Card Declines

Credit

Debit

Credit

Debit

Credit

Debit

All Sites B2B B2C
Failure Type
CREDIT
DEBIT
Generic decline
51.74%
37.77%
Temporary hold
25.48%
10.05%
Insufficient funds
6.94%
28.99%
Fraud stolen card
5.15%
6.03%
Invalid card number
1.67%
8.32%
Invalid transaction
1.51%
1.51%
Other
6.31%
4.63%
Failure Type
CREDIT
DEBIT
Generic decline
61.53%
51.08%
Temporary hold
14.18%
7.14%
Insufficient funds
5.83%
16.46%
Fraud stolen card
6.62%
5.37%
Invalid card number
1.84%
10.17%
Invalid transaction
2.05%
2.60%
Other
7.31%
5.10%
Failure Type
CREDIT
DEBIT
Generic decline
47.78%
35.88%
Temporary hold
30.05%
10.46%
Insufficient funds
7.39%
30.77%
Fraud stolen card
4.56%
6.13%
Invalid card number
1.60%
8.05%
Invalid transaction
1.30%
1.35%
Other
5.65%
4.57%

But no matter the reason, significant revenue can still be recovered

Percent of Total Revenue Recovered by Recurly for All Declined Transactions

Credit

Debit

All Sites B2B B2C

Recurly 'recovers' revenue from failed transactions through our proprietary retry logic and Account Updater tools, letting us regain significant revenue for our customers which would otherwise have been lost to unsuccessful renewal payments.

See How Much Revenue Your Business Can Recover

And how Recurly makes it possible.

Recurly respects your privacy. For more information, see our Privacy Policy.

Recurly is a great piece of software for our company. The insights they provide make it easy to stay on top of our recurring monthly customers.

Vincent Powers, Senior Financial Analyst, Main Street Hub

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